Loans

Can Student Loans Now Be Discharged In Bankruptcy?

Can Student Loans Now Be Discharged In Bankruptcy?

Unlike other consumer debt such as credit card and mortgage debt, however, student loans traditionally cannot be discharged in bankruptcy. Why? Some can't explain the rationale for the student loan "no bankruptcy" exception, but others say it grew from a concern that student loan borrowers could take advantage of bankruptcy laws, borrow a bunch of debt, earn a degree and then file for bankruptcy. There are exceptions, however, namely if certain conditions regarding financial hardship are met.

Paying Taxes With A Credit Card?

From Forbes.com

For those of you who love racking up airline miles or earning cash back, paying your taxes on a credit card might be too appealing to pass up. For others, this may be a great way to stealthily increase your cost of taxation, or worse, letting taxes spiral your debt out of control.

Let me just say this may be a case of do as I say, not as I do. I pay my taxes with a credit card. I do it for convenience, and more importantly, to rack up airline miles. But this convenience and miles does come at a cost in processing fees. Because I always pay the total statement balance on my credit card each month the cost stops there. This strategy will NEVER work if you are going to end up carrying a credit card balance.

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