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Thread: i put myself in a bad finacial situation - now i want student loans

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    Member Velouria's Avatar
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    Default i put myself in a bad finacial situation - now i want student loans

    roughly i owe:
    *$3,000 maxed out chase credit card
    *$1,000 maxed out providian credit card
    *$500 maxed out providian credit card
    *less than $200 to cingular wireless
    *$2000 to collections for an apartment that i defaulted on the lease of
    *and $7304.94 to mazda american credit for a car i voluntarily surrendered.

    i quit dancing for the last three months and am going back tomorrow, so i will have the extra income to take care of this soon.

    i read on here about filing a dispute that these debts even exist in small claims court with the companies and if they cant furnish a signed contract i will win by default? or you can settle with the company for 10%-30% of what you owe? i read that this information can be found in a book by bob hammond called life after debt (which i can buy used off amazon for 33 cents) has anyone ever done this? he also has information about setting up new lines of credit that may or may not be legal (but i want to try it reguardless)

    only mazda has my current address and phone number, isnt there also a way of becoming "uncollectable" and having your debt erased that way? i havent paid any off these debts for around 2 years and many of the bills and collection notices go to my previous addresses in california and arizona.

    before i learned about these alternatives i figured all i could do was file bankrupcy, but i was hesitant because i would really like to be able to take out student loans in the future and i dont know how a poor credit history would effect that, nothing i can find online is really helpful.

    AND, i have back taxes to file.
    half of 2002
    all of 2003 and 2004.
    i will be talking to a professional about this when i finally do it, but before i schedual an appointment what should i bring? i have no recepits from these years - i wont be writing anything off. the only finanacial records i have are bank statements.

    ive also read about incorporating yourself (i would actually choose to be a LLC), so you can also recieve a corporate line of credit. couldnt i use that credit (say from a cash advance on a credit card) to pay off my back taxes and whatever i end up owing to from past debts? or am i misunderstanding the way corporate credit works? it seems like a lot of additional bookkeeping and effort when filing taxes to become incorporated, but i could REALLY use the additional lines of credit. im also in the process of starting up my own pin-up website and im wondering is incorporation would be benificial as a dancer and model to become a LLC in my case?

    i really dont know very much about accounting or personal finances but i really want to learn, any information you have i would greatly appreciate.

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    Senior Member gdamadg's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    I think you should really talk to a professional about all of this. There are companies that will take on your debt and consolodate it into one payment. This would make it easier for you to manage.

    As for the tax situation, take what ever you can think of. And the professional should just file a basic return. But be careful, there is a chance that you might be audited, filing all those years at once.
    Confidence is the sexiest thing a woman can have. It's much sexier than any body part.

    Sexually, we are all competing for the same seat on the bus and the thing that holds it together is the tightly held conceit that we are all sexual gods. How can I believe in my own uniqueness when there's a cat out there exactly the same as me?
    -Jeff Melvoin, (Northern Exposure, Altered Egos, 1993)


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    Member Velouria's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    i read consolidation looks worse on your credit report than bankruptcy - i would file bankruptcy before i would so that. but does bankruptcy effect my ability to qualify for student loans? or do you think i would qualify but just get stuck with a higher interest rate?

    the payments on all these bills arent a problem because for the last 2 years ive been paying nothing. now i just want to eliminate them.

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    Senior Member gdamadg's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    Bankruptcy takes quite a while to get off of your record. I am not exactly sure of the time frame in the US. This is something you can ask the person you are having do your taxes. Either way, with consolodation or bankruptcy, I am pretty sure the interest rates offered on any loan in the future will be higher.

    You can go into your banking institution for free financial advice. They might be able to give you some ideas.
    Confidence is the sexiest thing a woman can have. It's much sexier than any body part.

    Sexually, we are all competing for the same seat on the bus and the thing that holds it together is the tightly held conceit that we are all sexual gods. How can I believe in my own uniqueness when there's a cat out there exactly the same as me?
    -Jeff Melvoin, (Northern Exposure, Altered Egos, 1993)


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    God/dess VenusGoddess's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    It takes 7-10 years for a bankruptcy to drop off your record.

    Your loans will never be "uncollectable".

    If original lender writes the loan of as a P&L, they can sell it to a collection agency...who will try for x amount of time to collect your loan. If they don't collect anything within that time, they will sell it off to another agency. After 7 years, they cannot collect anything anymore. However, that 7 years starts with EACH NEW COMPANY. Good luck.

    You can usually get student loans (Federally funded loans) from the government after a bankruptcy. They're federally guaranteed and you'll never get rid of it. You cannot bankrupt it...and if you default on it long enough...they'll just grab your taxes when you file them until you either 1)rehabilitate the loan or 2)you get enough money back in taxes to pay all principle, interest, fees, penalties off. They can take your taxes (all or part of it) for as many years as it takes to pay the loan off. They will garnish your wages...etc.

    SO...I agree with CO that you should talk to a professional (ie Lawyer) about what the best thing for you to do is. Your credit card balances are low enough that you can pay those off fairly quickly...

    Good luck.

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    Default Re: i put myself in a bad finacial situation - now i want student loans

    gdamadg -- you need to change your avatar; VG thinks you're me now.



    i read consolidation looks worse on your credit report than bankruptcy - i would file bankruptcy before i would so that. but does bankruptcy effect my ability to qualify for student loans? or do you think i would qualify but just get stuck with a higher interest rate?
    Yes, to be frank, consolidation does look worse than bankruptcy. However, with the new legislation regarding bankruptcy about to be signed into law, this may change somewhat. If you're going to explore bankruptcy, do it now and do it with a lawyer. Bankruptcy is not the big deal that everyone fears it is, so long as you're prepared to become a sub-prime borrower for 7-10 years, which usually just means slightly to significantly higher interest rates on loans, but if you have upfront cash, this will mitigate that effect, including with cars and houses. And since we're being frank, you don't really have enough debt to warrant bankruptcy; get with a professional, and make repayment arrangements. Tomorrow.

    Regarding student loans, those are backed by the federal government even if they're not run through the Direct Loans section of the US Dept of Education. That means that you cannot default on them, and if you do, the Dept of Education will sick the IRS on your ass and they will not let go--they can garnish your wages, including directly drawing from any of your bank accounts. Filing bankruptcy is one thing, facing the IRS is another animal completely--and a vicious one at that. That said, bankruptcy does not directly impact your ability to get student loans, though you will have to disclose that fact.
    Idealism is fine, but as it approaches reality, the costs become prohibitive.

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    Default Re: i put myself in a bad finacial situation - now i want student loans

    I don't know your age but if you're considered independent for financial aid purposes you WILL be able to get student loans regardless of your credit history. 5 years ago I had the same concerns as you...in fact I was POSITIVE I would NOT get any student loans but much to my surprise I was approved. This was with a Chapter 13 in default and other outstanding debts; my credit was a real train wreck. Just apply through your financial aid office at school. You'll probably need to be enrolled full time and in some degree program but I'm not sure.

    Your past debt will not go away unless you pay it all off, file bankruptcy, or start a new identity. LIke VG said those outstanding debts will just follow you around and haunt you literally forever. If you decide to file bankruptcy (as you mentioned you'd rather do than consolidate) you're really better off with a chapter 7 as opposed to a chapter 13 like I did. Chapter 7 just erases it all away (with the exception of student loans though, those are not forgivable through bankruptcy) If you are seriously considering bankruptcy you'd better talk to somebody quick because laws are in the works to make it more difficult to file.


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    Default Re: i put myself in a bad finacial situation - now i want student loans

    haha CO great minds think alike.


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    Senior Member gdamadg's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    Here you go CO. I wouldn't want to be cause of confusion.
    Confidence is the sexiest thing a woman can have. It's much sexier than any body part.

    Sexually, we are all competing for the same seat on the bus and the thing that holds it together is the tightly held conceit that we are all sexual gods. How can I believe in my own uniqueness when there's a cat out there exactly the same as me?
    -Jeff Melvoin, (Northern Exposure, Altered Egos, 1993)


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    Default Re: i put myself in a bad finacial situation - now i want student loans

    However, with the new legislation regarding bankruptcy about to be signed into law, this may change somewhat. If you're going to explore bankruptcy, do it now and do it with a lawyer. Bankruptcy is not the big deal that everyone fears it is, so long as you're prepared to become a sub-prime borrower for 7-10 years, which usually just means slightly to significantly higher interest rates on loans, but if you have upfront cash, this will mitigate that effect, including with cars and houses.
    I'm in total agreement that you may seriously want to consider going bankrupt before congress actually enacts the new bankruptcy law changes they are currently deliberating (which will effectively outlaw chapter 7 bankruptcies for individuals). However, your situation will be complicated by the fact that you have unresolved income tax issues for the past two years plus. It's definitely time to talk to the professionals.

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    Default Re: i put myself in a bad finacial situation - now i want student loans

    However, your situation will be complicated by the fact that you have unresolved income tax issues for the past two years plus. It's definitely time to talk to the professionals.
    Yeah, the tax issue is more serious than your debt issue. Pissed off creditors cannot do what the IRS can.

    Here you go CO. I wouldn't want to be cause of confusion.
    Much thanks. Besides, you don't want to be confused with a fat, balding, toothlessly slobbering PL like myself.

    Idealism is fine, but as it approaches reality, the costs become prohibitive.

    William F. Buckley, Jr.

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    Senior Member gdamadg's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    Much thanks. Besides, you don't want to be confused with a fat, balding, toothlessly slobbering PL like myself.
    No problem. Well so far, I think I am only slobbering. I think this new avatar is a bit more humorous anyway. More fitting my personality.
    Confidence is the sexiest thing a woman can have. It's much sexier than any body part.

    Sexually, we are all competing for the same seat on the bus and the thing that holds it together is the tightly held conceit that we are all sexual gods. How can I believe in my own uniqueness when there's a cat out there exactly the same as me?
    -Jeff Melvoin, (Northern Exposure, Altered Egos, 1993)


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    Featured Member Lizette's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    My mom used her Federal Student Loans to pay off her credit cards because of the lower interest rate.

    You don't owe that much. Don't file for bankruptcy. You've surrendered your car, and that's already a bad mark on your record. You might need loans later on. Keep your chin up and pay what you can.

    There are many non-profit financial advisors. Find one!

    I have no suggestion for your tax situation. The IRS is a big bad ass. I was audited for the year I volunteered in an orphanage in a poor country. I had to prove that I did not earn anything.

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    Default Re: i put myself in a bad finacial situation - now i want student loans

    Or you could do what Ive seen a guy on ebay recently do..he put up for bids a new PSP, BUT he put his own little sob story on there about how he ran up his credit cards, ect ect, and owes like 5750$ or something like that, and he wants someone to make the bid of that amount to help him out, and he will send them the PSP.

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    Senior Member gdamadg's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    What the hell? What some people will do. E-Bay is retarded.
    Confidence is the sexiest thing a woman can have. It's much sexier than any body part.

    Sexually, we are all competing for the same seat on the bus and the thing that holds it together is the tightly held conceit that we are all sexual gods. How can I believe in my own uniqueness when there's a cat out there exactly the same as me?
    -Jeff Melvoin, (Northern Exposure, Altered Egos, 1993)


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    Featured Member Lizette's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    http://cgi.ebay.com/ws/eBayISAPI.dll...559938963&rd=1

    Mystery Envelope sells for $7600 on ebay.

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    Default Re: i put myself in a bad finacial situation - now i want student loans

    I agree, some people do stupid shit on ebay, but at least this person put in his post that he was in debt because he ran up credit cards. And if someone has enough money to throw around on a mystery envelope ^ then they certainly have enough to help someone out with bills. They just need a little incentive.

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    Senior Member gdamadg's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    That is true, if he can find some sucker to fork over the money, all the power to him.
    Confidence is the sexiest thing a woman can have. It's much sexier than any body part.

    Sexually, we are all competing for the same seat on the bus and the thing that holds it together is the tightly held conceit that we are all sexual gods. How can I believe in my own uniqueness when there's a cat out there exactly the same as me?
    -Jeff Melvoin, (Northern Exposure, Altered Egos, 1993)


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    Default Re: i put myself in a bad finacial situation - now i want student loans

    Velouria, the proof of contract you are referring to in your post is sort of off the mark.

    If you dispute claims on your credit report, the company with the claim has a limited amount of time to respond to your request for proof. If they don't respond within that time frame, the claim is removed from your credit. Sometimes they respond sometimes they don't.

    There's a whole process you need to go thru regarding the request for proof - the exact format of the letter, the number of letters needed etc. There are companies that offer this service but, if you are in debt, you can do it yourself and save the money.

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    Member Velouria's Avatar
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    Default Re: i put myself in a bad finacial situation - now i want student loans

    these are some threads i saved in my favorites that had information about what i was talking about.

    http://www.stripperweb.com/forum/showthread.php?t=34670

    http://www.stripperweb.com/forum/sho...orate+business

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