Student Loans No Credit Check

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Q. I have a problem. I just graduated from college last year, and my parents put me through school with PLUS loans. I promised that I would pay for the loans once I graduated, even though the loans are in my mother's name. I am unemployed, and I cannot pay for these loans now.......and I refuse to stick my parents with the debt. My question is.....if I paid off the PLUS loans with credit cards, could I then declare bankruptcy?

A. First, check out the thread above entitled "Brett Weiss - your opinion please" which talks about the issue of making "preferential payments" shortly before filing bankruptcy. But, maybe you can use your credit cards to pay off the PLUS loans, then let the credit card companies chase you for the money you owe them. If you can't work out a repayment plan with them, they will eventually get judgments against you, maybe try to attach your wages (if you get a job), etc. But, all of that will take at least a year or two. If your financial circumstances don't improve within say 18 months or so, you can decide then if you need to file for bankruptcy. By that time, your repayment of the PLUS loans won't be a factor in the bankruptcy. I am not a lawyer, and if you want to know what your real options are, you should definitely talk with a bankruptcy lawyer in your area. Many provide free initial consultations.

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