My question involves collection proceedings in the State of: NEW JERSEY
After two years of finishing grad school and over $140,000 of student loan debt, I have decided I have to file Chapter 7 bankruptcy for my own health and sanity. I've been barely making ends meet and hardly providing for my family because of this student loan and credit card debt (another $25,000). Thought I would have a nice job with a Masters in hand. So much for chasing the American dream, right?
Since I can't include my student loans in bankruptcy, after I file my Chapter 7, I planned on defaulting on my private student loans ($47,000) and letting the 6 years statute of limitations run out. I figure it'd be 6 years until I would qualify to purchase a home for my family. The money I will be saving in credit card and private student loan payments I can save. Private loan payments are $530 a month. Credit card minimum payments equal $625 a month. My family lives with my mother due to our financial hardship. Thanks to the protections of the federal gov't loans I am in the IBR plan and have a payment of $0 because of my income and family size.
I have a few questions regarding the SOL in NJ and private student loans:
1. If Sallie Mae sues me and gets a judgment against me for the $47,000, does that judgment last forever, with liens on any of my accounts (or new accounts)?
2. If they do have a judgment/lien, will the judgment fall off my credit report in 7 years?
3. Is a SOL just for collection purposes (legally collecting a debt) or is the SOL good for judgments too? For example, after 6 years will I owe them nothing? Or after 6 years I may legally not owe them anything but with a judgment on my credit report I will not be able to get credit, if they renew the judgment.
If I had a career in what I went to college for I'd be happy to pay back what I borrowed. I just made a bad choice and took out the wrong loans.
Thank you for your help.