It seems that a debtor ready to go into bankruptcy can pay off his non-dischargeable debt ahead of non-dischargeable debt, and that in Chapter 7, the trustee would apply and assets towards such non-dischargeable debt. Is this accurate? I have some debt to an SBA disaster loan (which I am told by a representative of the SBA is treated the same as a student loan.)
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Last edited by swampwiz; 10-16-2009, 11:42 AM. -
I thought you said you contacted a lawyer. If you pay off any debt prior to filing, it can and will be a preferential payment.Originally posted by swampwiz View PostLast edited by shabam; 10-16-2009, 12:25 PM.My comments are solely based on my opinion. The information and links that I have
posted are provided solely for informational purposes, and do not constitute legal advice -
Your assumption is completely wrong.Originally posted by swampwiz View Post
Being Non-dischargeable, by itself, debt does not hold any special priority in bankruptcy. A student loan is a general unsecured debt, just like your credit card debt. If you pay it off before you file BK, the trustee will simply sue the student loan lender, get the money, distribute it pro-rata to ALL your unsecured creditors, and then you will be back to square one with the student loans.Comment
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I thought student loan debt was non-dischargeable, and therefore takes a preferred position to the dischargeable debt. I suppose that I should pay it off now, then wait 90 days to officially declare BK?Comment
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How much Student loan debt to you have? How are you going to pay for this debt?Originally posted by swampwiz View PostMy comments are solely based on my opinion. The information and links that I have
posted are provided solely for informational purposes, and do not constitute legal adviceComment
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While not dischargeable, student loans are not defined as a prioity debt.
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I still some cash to play with. Perhaps I should pay it off now, and then wait 90 days.Comment
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Famous last words I predict. Good luck swampwizOriginally posted by swampwiz View PostWell, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -RickComment
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The look back for preferential transfers is "minimum" 1 year.Originally posted by swampwiz View PostComment
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Here we go with the 'what-if' scenarios again..."To go bravely forward is to invite a miracle."
"Worry is the darkroom where negatives are formed."Comment
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OK, Swampwiz, I've had enough. Your egocentric attention getting threads and posts are tantamount to mental illness. The Mrs. mentioned your multitudes of "what-if's". Although we are independent thinkers and really don't agree on many things, we both agree that you are needing attention to the detriment of this forum. You are demeaning its value by speculation on imaginary scenarios.
First, you don't have a house, then you do, and want to redeem it, then you have no money, then you have 40K and another property, you wish to purchase a health gym membership or whatever, and then you can't afford a lawyer. Then, you have a lawyer, but now you wish to ask us, not your lawyer about paying an educational loan? Excuse me???
What is with you? I'm not exactly sure what a Troll is, but if it is a person who wishes to disrupt a forum for entertainment, you are doing it and to me it is not funny. Lesser people have been banned, yet you have stayed just below the believable line until a person goes to your profile and sees your history. Get right, or get off this forum!If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.Comment
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Swapwiz sounds a lot like debmonster, who was constantly up to no good and looking for the angle to scheme. Maybe they are legitimate but it does sound like someone who is here for some sort of questionable purpose and trying to fish for information. At the very least, Swapwiz is evidently trying to work the system, not to mention, bordering fraud. Which gets me wondering, no one fraudulent would be posting this stuff in a open / public forum.
Maybe I am wrong but the old saying goes, if it looks like a duck, sounds like a duck, smells like a duck, it's a duck.Last edited by shabam; 10-16-2009, 05:29 PM.My comments are solely based on my opinion. The information and links that I have
posted are provided solely for informational purposes, and do not constitute legal adviceComment
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