Settled on a student loan

[quepasoksl]

How does it work when you pay a debt such as a student loan that wouldn't have been able to be included in the bankruptcy?? I cosigned on the loan for my ex and they filed a lawsuit against the two of us. I borrowed the money from my mom to make a lump sum settlement payment of $9000.00. I have been trying to avoid filing for bankruptcy. I have already settled the student loan and one debt that was purchased by a junk debt buyer within the last two months. Depending on which SOL(some say it is 4, some say it is 5) I either have one year to go or two years to go for the other credit card debts. Also I have borrowed a significant amount of money from my mother. I know that payments made to her would be considered 'preferential' but I HAVE to pay her back. I don't think I would qualify for a Chapter 7 because of my income. I live in FL, my truck is a lease, and the mortgage is current. Just trying to decide what the heck to do. Any input or suggestions would be greatly appreciated. I know I should make an appointment to see a lawyer, just trying to get an idea if I should do the BK or not and how it would play out. Thanks in advance

[Fade to Black]

if you don't have anyone screaming at you to pay them back, and no one has sued you in an effort to win a judgement, I would not file BK. There really is no reason to do it right now. Talk to a lawyer. If you think you even might file BK, go now and talk to a lawyer. The best approach to filing BK is preparation. There are many things you can do to prepare for filing, if you have the time.

Depending on your income vs debt vs expenses, A Chap 13 might not be the best approach. All debts in one payment plan could be costly. Again, only a lawyer can give you a quote.

A Chap 7 flushes all unsecured debt. The mortage probably could be reaffirmed and the truck might have to go. It all depends on how your petition is written. I know I am repeating myself but PLEASE, go talk to a lawyer.

[LadynRed]

I don't think I would qualify for a Chapter 7 because of my income.

Your income level is NOT the deciding factor with a Ch 7, its your DISPOSABLE income that is the most important factor.

The 9K to the student loan isn't much of a problem because the student loan isn't dischargable anyway.

However payments to ANY creditor of $600 or more in the 90 days prior to filing can be deemed as preferential. Payments to your mother certainly are. You can still pay her off AFTER discharge, but you will probably have to include her as a creditor if/when you file.

FL allows only $1000 exemption for a vehicle - and that goes to equity. If you have no equity or less than $1000, then you have little to worry about.