How to Get Back in School When You Owe Money? Important Facts & Details

How to Get Back in School When You Owe Money?

In this article, we’ll discuss the important topic of: “How to Get Back in School When You Owe Money?”

If you owe money on student loans and still wish to get back to school for further studies, you are not alone. As per the Federal Reserve, there are as many as 22% of the Americans who get back to school even when they own money. If you are thinking about whether you can get back to school when you own money, you can. The only question that may arise is how to get back in school when you owe money

So, if you are determined to join back your school for further studies, here are some ways you can make even when you owe money. 

How to Get Back in School When You Owe Money?

If you have not paid back the school education loan you have taken, thinking to go ahead with further studies can be challenging. But many such students decide on going back to school while in debt. There are just a few critical factors you need to consider and understand while deciding on it. 

Some of the indispensable factors that you need to think about are:

  • How much debt you have?
  • Whether you will be able to pay off the debt if you are taking another loan for your further studies or not?
  • How much time will you take to pay off the debt?

After you have analyzed the entire picture, several things get clear. It helps you understand whether you should take up another study loan for your further studies while you are already in debt. Also, it helps you in paving ways on how to go back to school with defaulted student loans

Once you have thought deeply about all the factors and angles, there are several ways that you can try out how to get back in school when you owe money. Here are some of the ways that you can try out.

Taking to the Creditor:

The fundamental way is to talk to the creditor from whom you previously took the study loan. You can discuss the scenario with the creditor that you wish to go back to school for your further studies, for which you will require more loans on the debt you already have. If the creditor that you have chosen is a good one and offers several benefits, then the service provider can surely help you in different ways. They can help you in selecting a more convenient repayment option for your loan that you are taking. 

If You Have Defaulted:

If you have defaulted on your federal loan, you cannot apply for a further loan for your other studies. So, how to get back to school with defaulted student loans? In such a situation, you have to improve your standing in the loan to get further help. Two different ways can help you. Federal loans have the benefit of offering your forgiveness if you have a critical financial situation. But if the forgiveness option does not work out, you can pay off the federal loan by taking a student loan from a private creditor. After this, you can again stand a chance of getting a new loan for your further studies and get back to school. 

If You Are Confident:

If you have not defaulted and are confident that getting further studies, you will stand a good chance at earning a handsome income, and you can indeed talk to your creditor. If your creditor is not satisfied with the plan you have in life, you can take a separate loan to pay off the debt and further studies. This way, when you start earning, you can slowly pay off the loan amount. 

Going Back to School While in Debt

Going back to school while in debt can be a risky thing. When you already must pay, getting another debt can overburden you even more. In such a situation, there are two ways in front of you. 

  • Either you should first pay off your debts and then take another debt to start your further studies, or
  • Take an added burden to complete your further studies and then pay off both the debts together. 

Many scholars who are tracking higher studies in medical, law, and similar sectors prefer to go for the second option. They are confident that after completing the classes, they will have a lucrative career ahead and earn well. They can use up this making to pay off the debts quickly. But of course, you have to be sure that you can get the career option you have thought of after completing your studies. 

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Many students in America do not continue their further higher studies because they are in debt. On the contrary, also others still wish to pursue further studies even when they are in debt. If you need to know How to Get Back in School When You Owe Money, you should have an in-depth analysis of your situation and talk to your creditors about it. 

Can You Sell Your House After Filing Chapter 7? Important Facts & Details

Can You Sell Your House After Filing Chapter 7

In this article, we’ll discuss the important topic of: “Can You Sell Your House After Filing Chapter 7?”

Once you have filed a case of bankruptcy under chapter 7, your properties are now under the court’s jurisdiction, and the court will decide what needs to be done with it. The creditors do not have any right to foreclose on the property, as an immediate stay protects it. You will not be able to sell your house either, without any permission from the court. The court will appoint trustees who will look after the property, have every right to sell, and pay back the debts. But there are exceptions. 

In this article, we will discuss the exception to selling a house during bankruptcy chapter 7. 

Can You Sell Your House After Filing Chapter 7?

In each case of Chapter 7, bankruptcy is treated differently. However, in all cases, the court appoints trustees who decide what needs to be done for the debtor properties or assets. The only reason for a trustee to sell properties is to pay the creditors and reduce the debt amount. The trustees consider those assets only which can be sold.

But you can save some of your equity, which is protected under the law called a homestead exemption. If the total amount of your mortgage loan and the homestead exemption valuation is greater than the valuation of your house, the trustees usually do not sell it. Instead, they hand it over to you, and you can then sell it or hand over the property to the mortgage company. 

If we wish to sell the property, let’s find out what procedure can be followed. 

Procedure to sell your house after filing chapter 7

Below are the listed steps wherein you can sell your house- 

  • Calculation of equity and homestead exemption

You need to find out the total valuation of your homestead exemption. There is a possibility that trustees can dissolve all assets if they are not declared as exemptions. Some states, like California, have two exemptions. Section 704, under the Civil Procedure Code, defines a more homestead exemption list. Check out how to calculate homestead exemption in details.

For instance, if you are single and disabled, you will receive up to $75,000, and if you are family, you will receive $100,000 of exemption. If you are elderly and disabled, you will receive more. This exemption amount is the value of your equity, which is your house’s total market value minus the mortgage loan you owe. 

  • Meeting with Creditors

Now that you have calculated your homestead and equity value, you will have to attend a meeting with the trustees and creditors. This meeting may take up to 30-40 days from filing the bankruptcy case. You will have to present all the exemption claims. 

If the mortgage value, home exemption, and trustee fees and selling cost overpowers the house’s total value, there is no equity you can give away, and the trustees can consider not selling the house. 

  • Discussion with Trustees

If the trustees are convinced that your exemptions are correct and that there are no considerable assets with equity for him to sell and distribute amongst creditors, he can leave the assets. The Bankruptcy Law network reports that out of 100, 95 cases are like these. Now the trustees will file a “No Distribution report,” which will help discharge your bankruptcy.

  • Discharge from Bankruptcy

Now that the court discharges the case, your home is free from Chapter 7 bankruptcy. You can directly officially sell your house as an owner.

  • Sell the property

You will either have to list your property on any real estate website or appoint an agent to find a suitable buyer and negotiate the value. 

Foreclosure process after chapter 7 discharge

Often, we receive a question that, can the property which has already been disclosed be foreclosed? The answer is yes. There can be two types of foreclosure in the United States. 

One is judicial, and the other is non-judicial. In judicial foreclosure, to regain ownership of your house or property, the lenders can go through an entire court proceeding. However, in non-judicial, the lenders can sell a property at an auction and foreclose without taking approval from the court. It follows a state-specific foreclosure procedure.

One popular misconception is that bankruptcy provides the lenders a way to regain the property. They will have to follow either of the above mention methods. In a few cases, the lender might wait till your bankruptcy case is discharged. But a few lenders may not wait that long. They can immediately start doing the correct paperwork and request the bankruptcy court to keep the house or property out of protection so that they can continue with the sale. 

Final Thoughts

The house that you own can fall under multiple exemptions while you are trying to sell. You must have all the valuation accurately prepared to save the house and sell the house. The lenders can foreclose the property in a few cases. We suggest you consult with your attorney to identify your properties and not lose it during bankruptcy correctly.


Here is a quick video to that goes into more detail on the topic “Can You Sell Your House After Filing Chapter 7?”

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Filing Bankruptcy a Second Time – Helpful Tips & Advice

In this article, we’ll discuss the important topic of: “Filing Bankruptcy a Second Time”

Every individual today has some financial burden to maintain a proper lifestyle. But it becomes intolerable when you get drowned in debts. When you are overburdened with debts and do not have an option to pay them off, filing bankruptcy becomes the ultimate option. 

Though most people learn to manage their finances after first bankruptcy, others still may get stuck in another similar situation. Such people might question whether they can go for filing bankruptcy a second time or not. 

Usually, you can file bankruptcy as many times as required. But there are specific parameters that you need to follow in doing so. 

Filing Bankruptcy a Second Time – Helpful Tips & Advice

You can file bankruptcy even more than two times. But whether your case will be supported or will be dismissed depends upon many factors. 

  • What chapter did you file previously?
  • After how much time are you filing bankruptcy again?
  • Under what chapter are you filing bankruptcy this time?
  • Are you filing for debt discharge or for gaining time to repay?

Your case can be dismissed on supported in the bankruptcy court on your second filing based on these factors. There are several strict laws that you need to follow, such as:

  • You can file Chapter 7 for the second time, too, but you have to wait for at least eight years. 
  • In the case of Chapter 13 for the second time, it is just two years waiting time. 
  • Similarly, if you have filed Chapter 13 earlier and then you are filing Chapter 7, you have to wait for six years. 
  • Again, on the vice versa, that is, if you have filed Chapter 7 before and then are filing Chapter 13, you have to wait for four years. 

It is always a better idea to talk to your advocate about all these complications. Also, here is the right procedure that you can follow. 

  • Bankruptcy Evaluation:

If you have already filed bankruptcy previously, filing bankruptcy a second time should not be that much confusion. It would support if you did a few of the analyses for the filing purpose. Some of the facts that you need to analyze are mentioned here.

  • Do you have dischargeable debt or not.
  • The property that you have to compromise for the solution.
  • Which bankruptcy filing is best suited for you, i.e., Chapter 13 or Chapter 7? 

It is only after doing such an analysis that you can move ahead for the next procedure. 

  • Back to Back Filings:

Do you intend to pay the debt amount at all, or are you filing bankruptcy to get protection from the creditors? If planning to get protection from the creditors, you are filing back to back cases, and you can be in trouble soon. The court will realize that you are filing several issues, and soon, it will dismiss your case. Thus, you should talk to your attorney carefully, analyzing the time that you need to pay back the debts. It would help if you also asked questions such as how many times can you file chapter 13 and how often you can file. You should file bankruptcy accordingly. 

  • Debt Discharge:

If you are filing bankruptcy a second time for debt discharge, there are specific guidelines that you should know. You can file the case after a certain period after your first case depending upon several factors such as:

  • The Bankruptcy type that you filed earlier and that you wish to file now
  • The date of the last bankruptcy file
  • Whether the last time the debt was discharged or your case was dismissed

Based on these factors, you can file for debt discharge twice or more.

  • Without Debt Discharge:

Not many people file for debt discharge. Many people file bankruptcy to get some extra time to make the payment. In such a case, you can file the second case much before the period mentioned in the rule. 

How Many Whiles Can You File Chapter 13?

You can file Chapter 13 bankruptcy endless times. But there is a criterion that you need to follow. Here are some of the essential facts that you should follow to file bankruptcy under Chapter 13. 

  • You are not eligible to file liquidation under Chapter 13 if you have a secured debt that is more than $1,184,200 and an unsecured debt that is more than $394 725. 
  • For filing bankruptcy under Chapter 13 for the second time, you have to wait for at least two years.
  • If your previous bankruptcy was under Chapter 7, you need to wait for the next four years to file Chapter 13. 

If you have filed for insolvency under Chapter 7 and now your question is Can I file chapter 7 before eight years? You will get a negative answer. In such a case, you can wait for four years and can file Chapter 13 if it suits you. 

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Filing bankruptcy can be a complicated task. Further, you are filing bankruptcy a second time; it can get even more complicated. You need to follow several rules and guidelines if you do not want your case to get dismissed by the court. 

In such a situation, many people have several questions such as can I file chapter 7 before 8 years. Getting in touch with the right bankruptcy attorney can help you get answers to these tricky questions while solving your problem. 

How Long Does It Take To Convert Chapter 13 To Chapter 7?

How long does it take to convert chapter 13 to chapter 7

In this article, we’ll discuss the important topic of: “How long does it take to convert chapter 13 to chapter 7?”

Let us start by describing the types of Bankruptcy that are available to file. Chapter 7 in Bankruptcy means that your non-exempt assets and properties are to be taken over by trustees to evaluate the worth, sell it, and try to pay back the debts to your creditors as per the Bankruptcy rules. 

Chapter 13 in Bankruptcy, on the other hand, means that you can save your assets and properties by paying an amount every month to the trustees, who then distribute the amount amongst creditors. 

Often debtors wish to convert Chapter 13 to Chapter 7 under certain circumstances. In this article, we discuss under what circumstances can a bankruptcy case be converted from Chapter 13 to Chapter 7 and how long does it take. 

How Long Does It Take To Convert Chapter 13 To Chapter 7?

Chapter 13 to chapter 7 conversion may seem simple to you. But that is not the case. Firstly, if you have received a chapter 7 discharge in the past eight years, you cannot apply. Next, to be eligible for this conversion, you will have to persuade the court that you are incompetent to pay the monthly charges. You will have to show the updated Schedules I and J to showcase your current expenses. 

When the conversion is approved, the court can now appoint trustees as per the Chapter 7 rules and schedule a 341 meeting of creditors. This meeting can happen after 30 days of conversion. 

There is a small convenience fee involved for the conversion. However, your file number remains the same, which means that it is the same case. All you have to do now is fill up a new set of forms and declare the new assets, debts incurred after the initial Bankruptcy was filed, etc. 

Reasons for Conversion

There can be two significant reasons why there can be a conversion. 

  • Convert when you feel Chapter 7 will benefit you

When your financial status changes and you feel that converting your Bankruptcy from chapter 13 to chapter 7, you can check the eligibility and apply for the conversion. 

If you start getting to feel that you will not make those monthly payments due to loss of income, the creditors can ask the bank for foreclosure. But since you will lose the property or asset, you might as well get it to consider bringing it converted to chapter 7. It will therefore settle all the discrepancies or shortages, which may have arisen later. 

In a chapter 13 conversion, it goes on for 36-60 months. In such long durations, there can often be a change in fortune. At times, people wish to get the conversion done to get rid of the long handling case of Bankruptcy. But it may not always stand true as you have to be eligible for this conversion under specific rules. 

  • Forced conversion by Bankruptcy Court

Court usually does not force a conversion. But such scenarios do occur when you are unable to repay the decided monthly amounts or are unable to follow the repayment plan. However, there are exceptions; for instance, if you fail to make one or two payments due to a valid reason, or despite the efforts, you cannot put together a confirmed payment plan, the court is likely to consider and dismiss your Chapter 13. 

But when the court and trustees feel that the debtor is misleading the court, suspects of abusing and manipulating the legal system, trying to hide the properties/assets to get a Chapter 7 discharge, or is trying to pay the creditors a lesser amount than that was decided. 

Pros and Cons of converting chapter 13 to chapter 7

Listing down a few advantages and disadvantages of the conversion- 


  • In Chapter 7 bankruptcy, almost all the unsecured debts tend to get discharged.
  • You can get out of a recurring payment per month to creditors.
  • When you move to Chapter 7 bankruptcy, the case closes sooner (just in a few months).


  • You will lose the non-exempt property forever as it will be sold by the trustee to pay the creditors.
  • Not all debts are discharged, e.g., Childcare, mortgage, medical expenses, etc. 
  • It may heavily affect your credit scores. 

Final Thoughts

In a nutshell, there is no fixed timeline for the conversion procedure to complete. There are multiple steps involved after you find you eligible for the conversion and would like to file for the same. After you have filed a case, and if the court finds you and your financial status are eligible for conversion, the process happens very soon. In this article, we hope you have your queries answered. 


Here is a quick video to explain “How Long Does It Take To Convert Chapter 13 To Chapter 7” in further detail. 

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