<p>My parents filed personal bankruptcy. I am not sure whether or not I should report this under the special circumstances section.</p>
<p>Any ideas?</p>
<p>I don’t see how/why that should be mentioned. That suggests that debt is being dismissed.</p>
<p>Besides, colleges don’t really care about people’s debt situations unless it resulted for very large medical bills that weren’t covered by insurance.</p>
<p>I was wondering the same thing…there is a question on legal expenses and it seems like any attorney fees should be listed. I was also wondering whether it could hurt/help financial aid-wise as a recent bankruptcy precludes the parents from obtaining private or PLUS loans. Could it make obtaining admission more difficult because of the difficulty in putting together a fa package for the family?</p>
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<p>More importantly clearly this student’s parents will not be able to contribute much to the education as they dig themselves out so the student needs to be “smart” about where he/she is applying. Debt is not considered as a hardship, so I assume bankruptcy is not considered but I have no knowledge one way or the other. The student will be able to get Staffords since those do not involve the parents.</p>
<p>Oh, one last thought, if the bankruptcy was caused by circumstances like medical issues, loss of job, etc. it’s possible that the student could file for special circumstances. If the bankruptcy was caused by life choices the chances of getting a personal circumstances adjustment are greatly diminished. Op do a search on this site for bankruptcy, I’m sure questions have been asked in previous years.</p>