Woman owes $555,000 in student loans

[goof2]

Originally Posted by Apoc

Thats ridiculous. Bankruptcy doesnt make everything she's done invalid.

I agree, but I can see why someone would make that argument.

You take out a loan for a car and don't make the payments that car gets taken from you. You take out a loan for a house and don't make the payments that house gets taken from you. You take out a loan to practice a profession and don't pay it back that profession gets taken from you.

The problem with the comparison is repossession and foreclosure are not intended to punish the borrower. Those processes exist in an attempt to make the lender "whole". Since they will not receive any more payments they get the property back in hopes that the value will offset the outstanding obligation.

In the case of student loans removing a person's ability to work in their profession does nothing to help the lender, it only punishes the borrower.

[Rangerscott]

Originally Posted by Apoc

Thats ridiculous. Bankruptcy doesnt make everything she's done invalid.

So I get a loan on a bike, dont want to make payments, file bankruptcy, and I expect that I can still keep the bike.

Its the same thing. She took out loans to learn (a service), wants to file bankruptcy and expects to keep her title.

How is that ridiculous?

[Tmall]

Originally Posted by Rangerscott

So I get a loan on a bike, dont want to make payments, file bankruptcy, and I expect that I can still keep the bike.

Its the same thing. She took out loans to learn (a service), wants to file bankruptcy and expects to keep her title.

How is that ridiculous?

Because it's a skill, not a possession.

[Apoc]

Originally Posted by Rangerscott

So I get a loan on a bike, dont want to make payments, file bankruptcy, and I expect that I can still keep the bike.

Its the same thing. She took out loans to learn (a service), wants to file bankruptcy and expects to keep her title.

How is that ridiculous?

Theres a huge difference between a bike and an education. A bike is a piece of property. Her degree is knowledge based, you cant take that knowledge from her.

Its not a foreclosure, its bankruptcy. You cant foreclose on a degree.

Hell, in Canada at least, you can file for bankruptcy, and keep your home and primary mode of transportation, if you can continue to pay for them.

Anyway, its only bankruptcy, not a huge deal. It happens. She'll have good credit again in a year if she buys a secure credit card (ive seen it done). I wish her luck.

[goof2]

Originally Posted by Rangerscott

Well. If they let her file bankrupcty then she needs to kicked out of the field she studied for.

She can file bankruptcy all she wants. Debt from student loans is exempt from bankruptcy proceedings. There is a separate procedure for student loan debt, but is extremely difficult to get it discharged. Basically you have to prove to a court that you don't make shit and will never be able to make shit for the rest of your life. As a working doctor she wouldn't qualify.

[Homeslice]

Originally Posted by goof2

She can file bankruptcy all she wants. Debt from student loans is exempt from bankruptcy proceedings. There is a separate procedure for student loan debt, but is extremely difficult to get it discharged. Basically you have to prove to a court that you don't make shit and will never be able to make shit for the rest of your life. As a working doctor she wouldn't qualify.

Good.

[Apoc]

Off topic, what is with all the hate you guys have for bankruptcy?

Someone fucks up and gets in over their head, its the best way to straighten shit out IMO. Wipes the slate clean and lets you get on with your life. Its only money.

Sure, i'd much prefer not to, but if it came down to it, fuck it, theres much worse things to worry about.

[Captain Morgan]

Originally Posted by Apoc

Off topic, what is with all the hate you guys have for bankruptcy?

Someone fucks up and gets in over their head, its the best way to straighten shit out IMO. Wipes the slate clean and lets you get on with your life. Its only money.

Sure, i'd much prefer not to, but if it came down to it, fuck it, theres much worse things to worry about.

It's the fact that people are allowed to just hit the reset button and start over, then go on and do the same shit that got them in the mess in the first place. It's one thing if you're living a good life that you can afford, then get seriously injured, have an extended hospital stay, lose your income and go deep into debt. I can understand bankruptcy fora a situation such as that, only if there is no other option. However, many people filing for bankruptcy simply made horrible decisions, file bankruptcy, then start all over again down the path of horrible decisions.

[Apoc]

Originally Posted by Captain Morgan

It's the fact that people are allowed to just hit the reset button and start over, then go on and do the same shit that got them in the mess in the first place. It's one thing if you're living a good life that you can afford, then get seriously injured, have an extended hospital stay, lose your income and go deep into debt. I can understand bankruptcy fora a situation such as that, only if there is no other option. However, many people filing for bankruptcy simply made horrible decisions, file bankruptcy, then start all over again down the path of horrible decisions.

I agree that it shouldnt be used as an 'out'...

But if she really cant pay it (though I do agree she's a doctor, so fuck her), then I have no problem with it.

But, there should be no second time allowed, unless circumstances are extenuating.

[azoomm]

Originally Posted by Apoc

Off topic, what is with all the hate you guys have for bankruptcy?

Someone fucks up and gets in over their head, its the best way to straighten shit out IMO. Wipes the slate clean and lets you get on with your life. Its only money.

Sure, i'd much prefer not to, but if it came down to it, fuck it, theres much worse things to worry about.

Because, in the end, those of us that play by the rules and plan ahead get fucked by those that charge off their lives.