> Bankruptcy isn't a magic "Get Out Of Jail Free" card.
Except that it is in this case. The order of operations is:
1. Take out student loan
2. Graduate
3. Get a job, spouse, mortgage, and new car
4. Declare bankruptcy to discharge student loans
5. Profit
The order of steps 3 and 4 are critical. Your car and house are collateral for their respective loans, so they don't go away when you declare bankruptcy. Since you have a house and new car, you typically don't need good credit for the 5-7 years it takes before people will start loaning you money at reasonable rates again.
This isn't some theoretical pattern. It's what people actually did. Especially doctors, because they could often qualify for nice mortgages while still in residency ("doctor loans").
Except that it is in this case. The order of operations is:
1. Take out student loan
2. Graduate
3. Get a job, spouse, mortgage, and new car
4. Declare bankruptcy to discharge student loans
5. Profit
The order of steps 3 and 4 are critical. Your car and house are collateral for their respective loans, so they don't go away when you declare bankruptcy. Since you have a house and new car, you typically don't need good credit for the 5-7 years it takes before people will start loaning you money at reasonable rates again.
This isn't some theoretical pattern. It's what people actually did. Especially doctors, because they could often qualify for nice mortgages while still in residency ("doctor loans").