Melinda Said:

Credit Score of 531 - Delinquent Accounts - $25,000 unsecured debt - $12,000 Student Loans - Bankruptcy?

We Answered:

You did ask this question already but did add some Additional important details in your income and debts. You may already know this but Student loans are not dischargable in Bankruptcy so it would only be for your Credit Card debts.

In order to declare a Chapter 7 Bankruptcy you first have to pass two means tests. The first is if you earn more than the average for your state. The second is if it is determined if you have at least $100 a month disposable income for the next 3-5 years. If you do you may be forced into a Chapter 13 which is known as a Wage Earners plan.

While you do need to talk to a lawyer about the specifics of your case it sounds like you may be moved into a Chapter 13 if you are approved for one at all. If you are put into a Chapter 13 they will require you to make monthly payments toward your debt, then after 3-5 years any remaining debt would be discharged and you would no longer owe.

You may be better off trying to get onto a Debt Management Program. These are companies that work with your credit cards to lower the interest rate and get the debt paid off without going into bankruptcy. There are several out there and you need to be sure that you do not get involved with a Debt Settlement Company, these are very different and will cause more harm to your credit than help. For a DMP you can look at the National Foundation for Credit Counselors site for information

Jeanette Said:

If I move to a foreign country what happens to my debt amd student loans?

We Answered:

Not if you continue to pay the debt off. If you think moving will absolve of the need to pay you're wrong. Credit agencies report world wide.

Rafael Said:

Unsecured student loans?

We Answered:

Students with bad credit taking loans may not seem as a very positive exertion in the first instance. With bad credit already haunting you, you perhaps don’t want to take a bad credit student loan. Many students are unable to pay for college education directly. It is unlikely that every person pursuing education has enough money for funding his education. Being in bad credit perhaps makes you even more suspicious of student loans. You might remark why get into financial aid procedure for education. It might happen that you cannot forage a sponsor or your parents cannot supervise your student expenses. You can’t simply leave this to your parents.

Monica Said:

Are student loans secured or unsecured debtl?

We Answered:

A secured loan is a loan that is attached to a particular item that can be taken away if the loan is not repaid. Those such things include homes and vehicles. There are secured credit cards in which you have to put (for example) $300 into a savings account in return for a $300 credit card. That is usually for people wishing to "rebuild" their credit.

An unsecured loan is a loan that is not attached to a product that can be repossessed if the bill is not paid. Most credit cards and personal loans fall under this category.

While most debt is bankrupt-able, student loans are not bankrupt-able. The only way you get out of that is if you die.