Tuesday, December 22nd, 2009

If I put all of my student loan debt on a credit card, could I cancel this out by declaring bankruptcy?

Debt Bankruptcy
migueljuan asked:


I currently owe $45,000 in student loans and I am having a hard time paying them off. The loans are private (sallie mae) and I am not elligible for consolidating them via federal loans since I am not a US citizen. I was not able to get a visa so I had to leave the US. I live in Europe now.

I understand that declaring bankruptcy would not cancel out the student loans, but I have read that bankruptcy could cancel out credit card debt. I have a good credit score (790), so given some time, with an even higher credit score, I may be able to transfer my loans to a few credit cards.

What are the laws regarding credit card debt and bankruptcy? What difference does it make that I am not a US citizen and do not live in the US?

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2 Responses to “If I put all of my student loan debt on a credit card, could I cancel this out by declaring bankruptcy?”

spifiman1 Says:
December 23rd, 2009 at 2:45 am

First of all, you would get caught and that is considered fraud.

missyme Says:
December 24th, 2009 at 3:27 am

I would strongly advise you not to go that way. You will carry that mark against you for life. Talk to your student loan creditors and tell them that you are doing it really tough. Most will understand and help you come to a better arrangement that’s suitable to you both. I have been in a similar position to you and I worked out a solution with my creditors. Maybe you could talk to a financial adviser who could show you various options. Good Luck.

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