Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Student Loans
Profile Image

Question By

0 Contributions
0 People Helped
Student Loan Transfer Loophole?
Once the debt is transferred to a collection agency, is it still protected against bankruptcy like student loans are?

I'm in that catch-22 disabled veteran gray area. I am not totally disabled, but cannot work. Outside student loan debt, I owe less than $3000 altogether to three non-student loan types. So going bankrupt has not been much of an option for me.

However, if I allow my student loans to transfer to a collection agency and then could file bankruptcy to clear those out, I might actually be able to use my VA loan and get a house instead of renting rooms to live in. Student loan debt has my credit score so low (around 450) that I cannot even get into low-income apartments.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.