Would paying for college classes right before bankruptcy be bad?

[aaengel]

Just another question... if I pay for classes for a local community college and then file for bankruptcy a few weeks later, is that a bad idea? I'm not trying to be illegitimate but want to continue working on my degree... and don't want to take a semester off. And when I say pay for classes, I mean I'll pay for my classes to the detriment of not paying my credit cards.

[HHM]

Short answer, it depends!

Longer answer. If you are talking about pre-paying next semester, probably okay. Anything beyond that, probably not okay.

After all, you are paying for a service (not paying back a debt).

[buffetbuster]

Are you a definite for a CH7? The reason I'm asking, we were a little on the Positive Side when it came to our means test until we figured in Tuition Payments. When we did, that put us right where we needed to be with the CH7 means test. Talk with your attorney, he/she may be able to advise you on if this will be helpful with your CH7.

[btbeme]

Are you a definite for a CH7? The reason I'm asking, we were a little on the Positive Side when it came to our means test until we figured in Tuition Payments. When we did, that put us right where we needed to be with the CH7 means test. Talk with your attorney, he/she may be able to advise you on if this will be helpful with your CH7.

To emphasize this - As HHM suggests, some jurisdictions see progress toward a degree as a positive, and if the filer has a history of paying tuition, that expense is typically OK. Your mileage may vary, which is why the advice of a local attorney familiar with how your local Trustees see this can be of great value.

In general, what Trustees don't want to see is atypical behavior. Tuition is a little foggy at times.

[AZNoName]

Hmm, this brings up some good questions for me as well. I'm filing Ch13 this month, and have 4K in student loans (which are included in the BK but non-dischargable). I need another 4K in loans next academic year to finish my BS by 2013. I hope the trustee will approve my request for a student loan for the 2012-2013 school year. the atty didn't seem to think it would be a problem. Probably because of the small amount I would be requesting and little time I have left to complete my degree.

[btbeme]

Probably because of the small amount I would be requesting and little time I have left to complete my degree.

Probably. And since your Ch 13 repayment plan will extend into your newly-graduated timeframe - and the better pay you are likely to receive afterward - be aware that your repayment amount can, as they say, "vary" if your disposable income increases.

[AZNoName]

your repayment amount can, as they say, "vary" if your disposable income increases.

haha, guess that give me incentive to stay where I am and not find a better job? lol

[btbeme]

In the upside-down, twisted logic, crazy-straw world that is Bankruptcy.... yup.

But I think you are more of a person than that!