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Flashcards in Student Loans & Bankruptcy Deck (8)
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1
Q

What are some circumstances in which your student loan could be cancelled?

A

Your school closed, the school owes you a refund, disability, death, spouses and parents of victims of 9/11

2
Q

What are the specifications for loan forbearance and deferment?

A

Deferments apply when you’re at least a 1/2 time student, unemployed, military service, graduate fellowship. Forbearance is if you can’t qualify for deferment and are not already in default.

3
Q

How can bankruptcy help an individual?

A

Can temporarily stop almost all creditors from taking steps against you. Fastest way to deal with debt problems. Some debts can be legally wiped out.

4
Q

What are some things bankruptcy cannot do for an individual?

A

can’t forgive or discharge all debt

5
Q

What is a Chapter 7 bankruptcy?

A

Immediate discharge of many debts with the liquidation of your assets that are not exempt.

6
Q

What is a Chapter 13 bankruptcy?

A

Reorganization of debt, where you pay creditors some or all of what you owe over a period of years. You generally get to keep all of your property.

7
Q

What is an automatic stay?

A

Court order that temporarily prevents the start of debt collection, utility shut offs, garnishments etc at the start of bankruptcy process.

8
Q

What is discharged debt?

A

Eliminations your obligation to repay unsecured debts. After bankruptcy, a creditor can seize its collateral and resell it but cannot come after you for the difference.