Student Filing Questions 22 years old

[3cavaliers]

My son who is a college student and 22 years of age is in credit card debt trouble. It is all my fault. He wanted to help me, his mom, and took out a bunch of debt to help me and himself while in college. I was paying all the bills for him but just cant anylonger. He understands and wants to file bk himself. I am also filing and loosing my home. He figures his credit is ruined any way so why not file while he is in school so when he finishes school in about 4-6 years, the bk will be old news and as long as he keeps everything current after the bk, his score should increase. He is just finishing his 5th year at school but is going to get his phd in 4-6 years. So he will not have any income to speak of until he finishes school. He cant work a "regular" job because he is a music major and plays in the band and orchestra. So, he is bogged down with rehersals, performances and classes. He does do work study at $2,400 a year, but that's it. He took out the debt because I have became blind 2 years ago (my friend typed this for me) and suffer from a terminal disease of the kidneys as well as other medical problems of the bones. He is a such a great son trying to help but I feel so bad that his credit has been damaged. I want to help him get back to a better credit rating. He knows he can not file his student loans. Is he up against any special problems? Any advice for him?

[Flamingo]

My son who is a college student and 22 years of age is in credit card debt trouble. It is all my fault. He wanted to help me, his mom, and took out a bunch of debt to help me and himself while in college. I was paying all the bills for him but just cant anylonger. He understands and wants to file bk himself. I am also filing and loosing my home. He figures his credit is ruined any way so why not file while he is in school so when he finishes school in about 4-6 years, the bk will be old news and as long as he keeps everything current after the bk, his score should increase. He is just finishing his 5th year at school but is going to get his phd in 4-6 years. So he will not have any income to speak of until he finishes school. He cant work a "regular" job because he is a music major and plays in the band and orchestra. So, he is bogged down with rehersals, performances and classes. He does do work study at $2,400 a year, but that's it. He took out the debt because I have became blind 2 years ago (my friend typed this for me) and suffer from a terminal disease of the kidneys as well as other medical problems of the bones. He is a such a great son trying to help but I feel so bad that his credit has been damaged. I want to help him get back to a better credit rating. He knows he can not file his student loans. Is he up against any special problems? Any advice for him?

May I ask how he was able to take out debt for you if he has no income and is in school? I am a bit confused there and I am sure oithers will be also. Since you are having extreme financial difficulties now, along with your son, you may have to investigate public assistance and I hope you have looked into SS disability for your medical situation. It appears you have support that can help you as you had a friend type this for you so may I suggest that your son call and make an appointment with a BK attorney and take all his bills and asset/any income information with him to at first get a firm grip on what his options are at this point and look for some support as to getting your living and other arrangements worked out until he is able to obtain his degree, if that is still possible since he may not afford to be able to continue going to school at the moment and delay his degree. Best of luck to you.

[3cavaliers]

He was approached by credit card companies who issued credit cards to students. The only income he listed was his work study of $2,400. I guess that all assumed a parent would pay the bill if he did not. He never lied to get any credit, they all knew his situation. I have been on ss disability since the end of 2005 but the amount is too much to qualify for any medicaid insurance so I have had to pay for all my medical bills ( surgery x 2, medication at about $900.00 a month and doctor bills) Some of my drs have reduced their bills and I get about $1,000 of my meds free from the drug companies each month. I will have Medicare April 1st YEAH!!!!! There is a 2.5 year wait for Medicare for everyone. I do have wonderful friends who help me with day to day living issues as well as parents who help all the time. They are not able to help with financial needs other than transportation, and day to day things which saves me a ton of money if I had to pay someone. I am single living alone. My son has gone thru 5 years with large scholarships from the school ($14,000 yr), loans and grants. He has already picked 4 grad schools that he is applying to and has paid for his airline tickets and hotels for his auditions over the next months. Should he wait untill he is accepted to a grad school? Then he will know what his income and debt will be for the next four years. I have refused all help from him and will continue to do so. I have helped him out from time to time when I can. Does this clear things up?

[Flamingo]

He was approached by credit card companies who issued credit cards to students. The only income he listed was his work study of $2,400. I guess that all assumed a parent would pay the bill if he did not. He never lied to get any credit, they all knew his situation. I have been on ss disability since the end of 2005 but the amount is too much to qualify for any medicaid insurance so I have had to pay for all my medical bills ( surgery x 2, medication at about $900.00 a month and doctor bills) Some of my drs have reduced their bills and I get about $1,000 of my meds free from the drug companies each month. I will have Medicare April 1st YEAH!!!!! There is a 2.5 year wait for Medicare for everyone. I do have wonderful friends who help me with day to day living issues as well as parents who help all the time. They are not able to help with financial needs other than transportation, and day to day things which saves me a ton of money if I had to pay someone. I am single living alone. My son has gone thru 5 years with large scholarships from the school ($14,000 yr), loans and grants. He has already picked 4 grad schools that he is applying to and has paid for his airline tickets and hotels for his auditions over the next months. Should he wait untill he is accepted to a grad school? Then he will know what his income and debt will be for the next four years. I have refused all help from him and will continue to do so. I have helped him out from time to time when I can. Does this clear things up?

Did you by any chance co-sign for him on those credit card applications or are they just in his name only. If in his name only, it would be best if he investigates filing BK to see exactly where he stands so he can make future plans to finish his schooling. As you probably know, most BK attorneys give free initial consultations. Have him call and make an appointment and take with him a listing of all his monthyly payments, bills, sources of income, last tax return and any assets. He will then get the correct advice as to his situation and both you and he can get straightened out and get him back on track. Best of luck to you both.

[FreshLikeADaisy]

3cavaliers, it occurs to me that if he is not racking up any new debt, this would actually be the best time for him to file, for the reasons you stated. But that's the big deal, that no further debt is created in his name. But he needs to investigate how this will impact his ability to obtain student loans in the future before deciding. But for yourself, you may want to wait, because your debts are still being accrued from the way it sounds. But if you're pretty certain you won't be incurring further debt (medical bills, etc) you could reasonably file now.

Flamingo had it right; don't hesitate to get some free atty consults. That will give you advice that is specific to your situation. That, and if you qualify for a Chapter 7, don't easily consider a Chapter 13: it may be more lucrative for the atty, but it is not necessarily what is in your own best interest going forward. Good luck to you!!!

[3cavaliers]

I never cosigned for anything. These are all in his name only. I will have him talk to a bk atty. Thanks.

[3cavaliers]

Thanks. He has not incurred any new debt in many months. The creditors are driving him crazy with phone calls. His credit is so bad now with the late or non payments that if he was going to have trouble with creditors for student loans, I am sure he is out of luck as it is. Most of his loans are not credit applied type, just government. He has not defaulted on any student loans as none have become due yet. Thanks