You are here:

Creditors and Bankruptcy/Personal Loan to Cover Debt?


I am in my late 20s and have been through a tumultuous year - divorce and starting graduate school. My student loan debt is manageable and not in repayment, but I was left with a significant amount of credit card debt because of the divorce settlement, moving expenses, etc. I am considering looking for a personal loan at a lower interest rate to pay off my credit balances and bring down the number of payments. I rent, so I have no home equity to borrow against. I have a vehicle that is over 50% paid off (an amount greater than what I would be borrowing) with an auto loan around 4% interest.

So my questions are, first, is seeking a personal loan a smart move or will it create greater complications? If it is a good idea, can I use the vehicle as collateral even though it is already under lien? Would approaching the bank who has that loan be my best bet?

Hello Justin:    Good luck with your graduate studies.    

It is hard to give you any advice without knowing some more specific information.   You may have a couple of good options, but consolidating a group of unsecured creditors (like your credit cards) is probably not the best choice - and depending on your circumstances, may not be possible anyway.    Insofar as your vehicle is concerned, you definitely are not going to get anywhere with trying to borrow money against a title that is not cleared in your name.   

Sorry I can' t give you more specific advice, but I don't think anyone could without knowing more specific information.     Besides, this would be much easier talking about on the telephone.   You are welcome to call me anytime at this number:     915  261-3893   I will not charge you just to talk on the phone.

Creditors and Bankruptcy

All Answers

Answers by Expert:

Ask Experts


Bankruptcy Services


Can answer questions about bankruptcy, lawsuits or judgments that have been filed against you. Also can answer questions about tax issues, property that is facing foreclosure, repossession of vehicles, and wage garnishments. 915 261-3893


Over 30 years experience assisting consumers with lawsuits and bankruptcy matters since graduating from law school.

Numerous published appellate court opinions; Law review publications; Article on consumer bankruptcy in Black Enterprise magazine; was requested to author a book on consumer bankruptcy by Doubleday Publishers

Over twenty years of education including law degree (J.D.); masters and bachelors degrees in political science; author of magazine articles related to consumer bankruptcy; hundreds of hours of continuing education legal education and seminars

Past/Present Clients
Have had well over a thousand bankruptcy clients during the past 30 years and have had many clients in civil lawsuits during the same time period

©2017 All rights reserved.