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Student loans and BK

Discussion in 'Credit Talk' started by author_22, Dec 6, 2003.

  1. Dec 6, 2003 #1
    author_22

    author_22 Well-Known Member

    Any hope of getting student loans discharged through BK7? What does "undue hardship" mean concerning this?
     
  3. Dec 6, 2003 #2
    GEORGE

    GEORGE Well-Known Member

    As far as I remember what people have said--THEY DON'T GO AWAY!!!
     
  4. Dec 6, 2003 #3
    AtlantaGA

    AtlantaGA Well-Known Member

    About the only way to get them discharged in BK would be if you were permanently disabled.
     
  5. Dec 7, 2003 #4
    PsychDoc

    PsychDoc Well-Known Member

    Hey there, author_22, long time no see. What's up with the student loans? Hopefully somebody can share some ideas regarding how they handled a similar situation.

    Doc
     
  6. Dec 7, 2003 #5
    sweet21510

    sweet21510 Well-Known Member

    its possible to get them discharged, but very difficult. Usually it involves a very long period of non payment along with the prospect (ie disability or the like) that you will never have the income to pay it. I've found that not all lawyers are even aware of this (mine wasn't) but a good BK lawyer will be. Best to talk to them.
     
  7. Dec 7, 2003 #6
    author_22

    author_22 Well-Known Member

    Re: Re: Student loans and BK

    Beyond broke. Completely. I owe $3600 in back rent, which obviously I can't discharge without getting evicted, have $3.74 to my name, and an incredible unsecured debt. The Student loans make life worse as well.

     
  8. Dec 7, 2003 #7
    PsychDoc

    PsychDoc Well-Known Member

    Re: Re: Student loans and BK

    Yikes, well, I take to hear that -- it sounds like you're dealing with a situation that extends beyond credit repair and to debt/income restructuring. Of course those always beg VERY pointed questions, so here are a few:

    1) Are you employed? If yes, are there any prospects for job advancement? Looking ahead five years with the hope that you won't still be suffering the same fate, are there steps you can take now which will put you on better footing a few years from now?

    2) Are you in a position where you can take a second job? That's impossible for some (because of kids, health issues, etc.); others, though, seem to work 2 or 3 jobs and still have time for socializing, so I obviously have no idea which category is yours. If indeed you can fit in a second income, by all means consider that.

    3) Do you have "stuff" you bought which can be sold? You'll surely be in a better position to reacquire the good stuff (if you've got some) later when you're back on track. Put differently (as an example that may generalize to other things), do you have a $2000 computer you can sell for $1400, and then buy a two year old $400 computer, for a net profit of $1k, etc. Same for cameras, audio equipment, etc. I'm not saying get rid of everything, for goodness sakes! But if you've got more accumulated than you need like some people do, then perhaps consider a limited to moderate liquidation.

    4) Cars. Do you have a car payment? I'm with DaveRamsey.com on this score: Is there any way to sell the cars and then buy $1,000 transportation just to get around -- just to get you to next year when you're back on your feet?

    5) Are you eligible for a hardship/emergency student loan deferral? Have you called your guarantor to ask?

    Don't think for a minute I'm suggesting a crackers and baloney diet. :) But these are the kinds of questions that can truly make a dent if indeed there are areas of your life you can alter. Thoughts?

    Doc
     

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