Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
My question involves collection proceedings in the State of: Georgia
I started going to University in late 2004 and finished in 2009. Going to school was the worse thing I've ever done. Sad. I studied abroad and borrowed about 150,000 total -- I now own about 430,000?! The capitalized and high interest rates complied to the point it's just astonishing. Every time I talk to a Sallie Mae rep, they are flabbergasted at my loan amount (scary).
Sallie Mae originally ask payments of 3,500 every month. They understand I cannot make this monthly payment and put me on a rate reduction program, which helps a great deal. However, I'm still making 1,800 dollar payments every month currently. That means I work at my current job for Sallie Mae ONLY. My second job pays for gas and if I'm lucky lunch once in awhile (forget going out). I'm forced to live with my parents and the way things are going, I'll live with them forever.
Great, the real kicker is that I payed about 17,000 last year to Sallie Mae and my Loan Amount INCREASED! Shocking... I'm not even close to bringing my total down, so it will continue to increase and increase! I may own 1 million in the next decade?
I haven't defaulted on any loans, I don't have kids, and I don't have any disabilities, other than a stressed out brain and a broken heart -- I have consolidated my Federal Student Loans which is a god send. With that said I wish Private Student Loan are treated like Federal Loan, it would give millions of Student a fair break, which I thought was the purpose of going to school in the first place -- ignorance.
My question is, do I have a chance to file Bankruptcy and win the case?
I understand that each state treats each claim different, but do I even have a case to be considered, hardship maybe?
I like many others want to pay what I borrowed, but I can only work 90 to 100 hours a week.
Should I hope and pray that Legislation changes soon?
Thanks for any advice and I wish anyone in my situation the best of luck, and hope for the greatest accomplishment I can fathom -- being debt free.
Best wishes,
Debtor for life-
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
Have you googled "Brunner Test"?
Do that first.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
This isn't a question that we can answer in the abstract - it's going to depend upon the type of loan at issue and how it fits under the governing federal statutes that prevent the discharge of most student loan debt. Do you have documentation of the loans - the original applications, etc. - such that you could have them reviewed by a bankruptcy lawyer?
Also, hardship discharges are sometimes possible - note that they are rarely granted, seem to be most often granted in cases where the petitioner has an illness or malady, and even when granted are usually partial. The law governing hardship discharges in your state is discussed in In re Bush, 450 B.R. 235 (M.D. Georgia, 2011). Your case is a bit more favorable, as you state you have made a consistent, good faith effort to pay your loans and you appear to be unable to pay down your loans even if you get the highest paying job in your profession and apply most or all of your income to the loan; but as you can see the law and analysis favors the creditor.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
You could always move to Canada, they won't follow you to another country. You can start your life over again.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
Quote:
Quoting
johnb123
You could always move to Canada, they won't follow you to another country. You can start your life over again.
OP, please ignore this.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
I hope you enjoyed your 5 year vacation. They do get expensive.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
Quote:
Quoting
johnb123
You could always move to Canada, they won't follow you to another country. You can start your life over again.
Thanks for the laugh.. I forgot to mention I have a co-signer, so taking to the hills isn't an option. Thanks anyway.
- - - Updated - - -
Thanks for the insight Mr. Knowitall. And I have looked into the Brunner Test, thanks Dogmatique. It states what Mr. Knowitall has described in his post.
I'll look into the In re Bush, 450 B.R. 235 case. I have some documents from when I started school, I don't know if I have everything. I've moved around a bit the last 8 years. I always thought that my lender could provide me with these things, but why would they help me?
Does any know if H.R. 4170 is a bill that is taken seriously by Congress? And if so, how long does it take to implement a bill if indeed it does pass?
Thanks again all.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
The nice thing about the Brunner test" is not only the difficulty in qualifying for it. Even if you do, the loans will default to your co-signer.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
Did not know you had a co-signer. That makes it much harder.
Concerning H.R.4170
Latest Title: Student Loan Forgiveness Act of 2012
Sponsor: Rep Clarke, Hansen [MI-13] (introduced 3/8/2012) Cosponsors (24)
Latest Major Action: 3/29/2012 Referred to House subcommittee. Status: Referred to the Subcommittee on Higher Education and Workforce Training.
Re: Do I Qualify for Bankruptcy on My Sallie Mae Private Student Loan
I am curious why you think think your loans should be forgiven. If you were smart enough to obtain a degree, you were smart enough to do the math and understand the bills you were running up. The expectation of repayment goes along with that.