I’m an Arizona attorney with more than 25 years experience in bankruptcy and foreclosure. I see people making lots of desperate economic decisions they later regret.

I deal with this behavior by mumbling under my breath (and then posting about it on this blog). Thought you might be interested in some of my ramblings.

Consumer Financial Protection BureauConsumer Financial Protection Bureau (CFPB) is seeking input on a “Safe Student Account Scorecard” that would help colleges to avoid partnering with financial institutions that offer checking and prepaid accounts with tricks and traps.  CFPB discloses that many “colleges make deals with financial institutions, where the college helps with or allows the promotion of credit, debit, or prepaid cards, sometimes endorsed with a college logo or linked to a student identification card.  Colleges, either directly or indirectly, typically get a share of the revenue generated from the cards, and financial institutions have access to a new group of consumers.

The CFPB has identified agreements where financial institutions offer royalty payments for use of college trademarks or bonuses based on the number of student account sign-ups. Financial institutions may also offer discounted, or even completely free services, in exchange for marketing access on campus.

Chapter 7 is not something that you can dip your toe into in order to check the temperature of the water.  It is something that you jump into and can only be rescued from it if you show cause”  In re Dreamstreet, 221, B.R. 724 (Bankr. W.D. Tex. 1998)

Disclaimer - surf at your own riskAt least once a week I hear a report of someone filing bankruptcy and then trying to get out because they do not like the way things are going.  You can see from the quote above that this is not so simple.  Only a judge can release you from a chapter 7, and then only after you show good cause.  How hard is it to show “good cause”, some courts are not inclined to allow a debtor to dismiss their chapter 7, other courts are more lenient.  Why take that chance? Talk to an experienced bankruptcy attorney who will give you proper advice about the challenges and rewards of bankruptcy.

In the medical arena this would be similar to starting your open heart surgery only to have you try to leave the operating table halfway through the surgery.  Perhaps you should think about the surgery before laying down on the operating table.

I know this is a harsh sentiment, but bankruptcy, like open heart surgery, should not be taken lightly.

Note from Diane: Once again banks and lending institutions look for ways to bind a student to life changing debts. Please use your common sense when borrowing money with the “hope” that you can repay it in the future. Remember that at some time you will have to repay the debt, plus interest and, possibly, penalties.  This is gambling with your future and the financial stability of your family.

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