Something you should consider if you are looking to recover from a poor credit status or to improve your long-term financial situation, is a refinance loan for debt consolidation.Consider this: If you are paying a high interest rate on your mortgage but interest rates fall 1% lower than what you are currently paying, this can mean substantial savings.

By simply replacing your existing mortgage with a new, lower interest rate loan, changing the term of your loan or consolidating all of your debts into a new loan - will save you money!

Other points to note: Because any negative issues can linger on your credit report for up to 7 years, you should try and pay back any existing debts to indicate that you are serious and a good candidate for a refinance loan for debt consolidation. This will help establish you as trustworthy to any possible lenders showing that you are both willing and able to make your loan payments.
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There are a wide variety of reasons why you could be considering student loan bankruptcy as a solution to your student loan debts. Even though this should be your last resort to paying off your student loans, you might find yourself in a situation that could require you to file for student loan bankruptcy.

Can You Declare Bankruptcy For Student Loans?

You can, but there are certain laws, rules and policies that you must follow. There are also certain qualifications that you must be able to prove in order to even qualify for a student loan bankruptcy. As far as qualifying to declare bankruptcy, this could be different for almost everyone.

Undue Hardship: You must be able to show that you have an undue hardship in order to qualify for this type of bankruptcy. The only way you can prove an undue hardship to declare bankruptcy for your student loans is if you are physically unable to work and you will not be able to work for the rest of your life. This is a rare occurrence, and difficult to prove to a court. You should choose this method of applying for bankruptcy if you meet the qualifications for it.

Chapter 13 Bankruptcy: You shouldn’t expect to be able to get rid of all of your student loan debts by filing under a chapter 13 bankruptcy, but you could get rid of some or most of it. The best way to apply for this one will be to expect to have your student loan debt consolidated, because that is likely what the court will do (as well as eliminate some of it). To qualify for chapter 13 you will need to prove that you have the disposable income available to pay back at least most of your student loan debt.

Are There Any Alternatives To Bankruptcy? (more…)