Private Student Loan

[needtobe]

In May I received a balance transfer offer from Capital One. My daughter had recently graduated college. I had cosigned with her on a private loan. She has not found a job. I thought could swing the payment if I transfered the amount to the low introductory offer. ($9000). She was going to help pay the payments. She still has not found a job. My job has cut hours to 32 per week. I probabably can make the payments 3 more months. I will have to file Bk then because I can't pay all the bills I have. My question is since it will be past the 90 days will it be a problem?

[Trixie007]

Is there a reason that you would need to file so quickly? We went a year after our first missed payment before filing... 9k is a lot to BK on after only 3 months, regardless of whether you paid off a student loan or just transferred cc balances, IMO anyway!

[liz417]

I've read that a credit card company CAN object if the credit card was used to pay tuition...I'm sure someone will come along with more info...

Good Luck!

[needtobe]

I need to file on my house and car also. I will be moving and I just want to get this done in the county I am living in now. Has anyone else had a similiar situation?

[needtobe]

Also there was no intention to defraud and I am making payments.

Thanks so much.

[Amy26]

From what I've read...its hard to say. I too have 2 balance transfers that I did about 90 days ago. They were just me moving my existing credit card debt to a lower interest rate but one is about 5,100 and the other card is almost 4,000. I need to file quickly as right now I'm way under the median but in a few months I would not be. My lawyer was comfortable with filing even with the BT's there. They may object and they may not.

[lrprn]

In May I received a balance transfer offer from Capital One. My daughter had recently graduated college. I had cosigned with her on a private loan. She has not found a job.

Was the private loan you co-signed a student loan?

I probabably can make the payments 3 more months.

The payments on what? The private loan? The credit card with the balance transfer? Both?

I will have to file Bk then because I can't pay all the bills I have. My question is since it will be past the 90 days will it be a problem?

All 90 days does is place the burden of proof on the creditor to prove you took the balance transfer knowing you couldn't pay it back.

I'm confused - your subject line states "private student loan", but I can't figure out where the student loan is in your situation.

Did you take the balance transfer offer and your daughter then used the money to pay her school tuition? Or did you co-sign on a private student loan for your daughter that she hasn't been able to pay because she can't find a job, so you have been making the payments and took the balance transfer to help pay that loan?

Also I hope that you are aware that if you did co-sign for an actual student loan, the student loan (private or government) is *not* dischargeable in bankruptcy.

If you can clarify how the "student loan" fits into your situation, that would help us sort through your issues better.

[needtobe]

Yes. I co-signed for the private student loan and then took the balance transfer to pay the loan. (better interest rate) If I wait at least 90 days do you think this will be a problem.

[HHM]

Yes, it will be a problem for 2 reasons.

1. If the BT was large enough, they could object anyway, but they would have to prove intent to defraud (but realize, that does not mean, state of mind)

2. You did the BT to pay off a non-dischargeable debt on the eve of BK, the creditor could object and assume the non-dischargeaable status of the debt.

In either case, the creditor must object.

[needtobe]

I didn't pay off debt on eve of bk, I haven't even filed yet. I was going to wait about 3 more months.
There was no intent to defraud at the time.

Thanks,

[LuciluS]

Did you use a Balance Transfer Check and deposit it into your checking account? or was it transferred directly to the College?

If it is the later, your chances of Creditor objecting will probably be a Given.

If you deposited it in your checking account, the Creditor may object and burden of proof of expenditures might be required.

Your taking chances either way. It's a gamble. Paying 3 months is a good move. IF I were in your shoes, I would add additional monies to the minimum monthly payment.

Our BK Attorney suggested we do the above where I'd made a Balance Transfer from a Capitol One CC to another CC for the next 3 following monthly statements. However, because of other circumstances, we haven't filed yet & last payment made was 12/08.

Would be beneficial to speak with a Bankruptcy Attorney, if you haven't already done so. Most BK Attorneys' have Free Consults.

Luci

[needtobe]

Thanks for the feedback. No the BT was made directly to AES. It was a private loan and could not even be consolidated with my other student loan. I have another student loan of $4500 which I am making payments.

[LuciluS]

Thanks for the feedback. No the BT was made directly to AES. It was a private loan and could not even be consolidated with my other student loan. I have another student loan of $4500 which I am making payments.

My husband has a ParentPlus loan for his Son's first year of college. It is at 4%; however, the payments are $115.20 a month drafted from our checking account. It is questionable in different District/States whether this monthly draft will be an expense included in BK.

I also spent a lot of money on college for my son many years ago. I don't believe there is a parent who has not helped their children make it through college.

Good Luck!

Luci