Is bankruptcy a good idea for me?

I have about $16,000 in credit card debt, a car that I owe $36,000 and is worth about $20,000. This is all made much worse by the fact that I have a substantial amount of student loan debt. at this time I am not able to realistically make payments on both my cc and student loan debt. I plan on going back to school to pursue a masters and was wondering if it would still be possible to get student loans with a bankruptcy? Also, my car loan is co-signed by my mother. If I include the car loan in bankruptcy would the loan automatically go to my mother? If not how would it effect her credit?

Asked on June 16, 2009 under Bankruptcy Law, Colorado


B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

It's been a while since I paid off my student loans, but I doubt that the rules have changed to the point where you could get a student loan right after having another one wiped out in bankruptcy.

There is also a very good chance that if you give up the car in bankruptcy, the lender will go after your mother for the deficiency.  And unless she can make reasonable payments that the lender will accept, it will have a substantial negative effect on her credit.

I'd suggest that you talk to an attorney in your area, about your options and their consequences, based on all of the facts of your situation.  One place to look for a lawyer is our website,

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.