Results 1 to 4 of 4
  1. #1
    Join Date
    Aug 2012
    Location
    Wilmington, North Carolina, United States
    Posts
    1

    Default Does it Make Sense to File for Bankruptcy Over Student Loans

    My question involves collection proceedings in the State of: North Carolina/New York

    I'm from New York, but currently reside in North Carolina. I moved down here with my father to attempt to get back on my feet after years of unsuccessful job hunting.

    Long story short, I owe Chase Student Loans under 25,000. I've been trying my darndest to pay these loans and live. It wasn't working, so the situation with my father arose as a result of that. In fact on multiple occasions he paid for me. Now, I haven't been able to get a job (and I can prove I've been busting my butt trying to find one) in my field, and have had to, in turn, work food service jobs part time or full time, work under the table and do "handyman work" for years. Things were looking up last year, then during the summer I had to pay a number of other bills and things got tight again. I haven't even owned a cell phone since then (and before that I had prepaid ones that were shut off half the time). I haven't had an apartment in my name because I can't afford the rent, or cable, or internet. I have a house line that my father has me use, while he used a prepaid cell phone. Last fall I fell down a flight of stairs and broke my spine in three places. I have floating bone chips and nerve damage that makes it very difficult for me to work. Despite the recovery time of 18 months, I went back to work after just 4 to attempt to start paying things off again. Within a few weeks my leg had gone out and I had to go to the emergency room. They told me there that I wouldn't be able to work, and should not be standing at ANY job, or sitting, for extended periods of time. I had spoke with Chase about the situation and thought it had been put into forebearance while I recovered. This morning I received a call from a collection agency and was forced to set up a payment plan I'm unlikely to be able to pay, or have the loan go immediately into default (they had not been contacting me at the right places, despite having my home number). They called my fathers cell, asking for me, but not saying what for or why they were calling. I'm extremely concerned about having my wages garnished, I finally found another job that will hire me despite my injury (at a sub shop, the shifts are short and the manager is understanding), but I don't start that until Saturday/Monday (short shift on Saturday to "train," which is really my manager just getting me a few hours as I have more experience than he does in such shops). I'm a very intelligent and capable person who just seems to make dumb decisions or just has had some bad freakin' luck. I don't want to be buried like this. But I am. I have to deal with it. I know that private SL bankruptcy is damn near impossible, but I'm wondering if it is completely? I was hoping that showing undue hardship, plus my constant searching for jobs (I'm registered on lots of job sites, with NCESC, staffing companies, all that), and my injury might help me at least sort this out, get it out of collections (where the payments will vary from 500-680 a month) and into something I can manage, or go to court and prove that I'm unable to do it at this time. I don't object to paying what I owe, that's why I signed the PN, but if my only option is to file for bankruptcy or the like that's what I will do.

    Sincerely,

    A very distressed 27 year old.

  2. #2
    Join Date
    Jul 2012
    Location
    Westland, Michigan, United States
    Posts
    18

    Default Re: Does it Make Sense to File for Bankruptcy Over Student Loans

    Student loans are not dischargable in bankruptcy. Yes, technically there is a provision that allows for it but it is only allowed in very very extreme circumstances. I've read up on the issue extensively over the past couple of years. In my personal experience Chase is not very easy to work with. I asked on multiple occasions for alternative payment options and forbearances. Never had one approved. Loans had to go into default before I was able to get a hardship payment plan.

    - - - Updated - - -

    And just to let you know.... I have no idea if this would work for you but when the loans went into default I was able to get a payment that I could actually pay. After paying it for roughly 6 months I was offered a settlement option. I have 4 student loans totaling approx $21,000 and they offered to settle for $7,500. The catch was the settlement has to be paid in one lump sum. Each individual loan had it's own settlement amount so I can settle them out one at a time to make it a bit easier. I have yet to be able to take them up on that offer but as long as payments are made on time every month the offer stays on the table. Again, this may not be the same for you as your situation is different than mine.

  3. #3
    Join Date
    Aug 2012
    Location
    Dallas, Texas
    Posts
    1

    Default Re: Does it Make Sense to File for Bankruptcy Over Student Loans

    Just as there are certain law firms who specialize in defending consumers against debt collection lawsuits, there are law firms whose primary practice is suing and collecting from consumers.

  4. #4

    Default Re: Does it Make Sense to File for Bankruptcy Over Student Loans

    Discharging student loans is very very difficult. Consider these questions:

    1) Would paying these loans keep you from "a minimal standard of living"? This usually means you are below the poverty line with regards to incomes and expenses if you are forced to pay off your loans.
    2) Are your below minimal standards of living likely to continue for a long time for the foreseeable future?
    3) Have you made good faith efforts to pay off these loans?

    These are usually the main questions a bankruptcy court would ask when considering discharging your loans, but far from the other only ones. Be honest with these questions and than consider your next step. Good luck.

    I am not an attorney and I am only giving information commonly found on the internet. For real legal advice, please see a real attorney.

    1. Sponsored Links
       

Similar Threads

  1. Chapter 7: What Do I Do with My Student Loans in Bankruptcy
    By kzl864 in forum Bankruptcy Law
    Replies: 2
    Last Post: 04-18-2012, 10:26 AM
  2. Bankruptcy Issues: Bankruptcy and Student Loans
    By that1guyy in forum Bankruptcy Law
    Replies: 2
    Last Post: 11-20-2010, 04:57 AM
  3. Chapter 7: Does Bankruptcy Make Sense for Me
    By usone123 in forum Bankruptcy Law
    Replies: 3
    Last Post: 08-25-2010, 11:03 AM
  4. Student Loans: Cannot Make Minimum Payment on Private Student Loans
    By philhall83 in forum Debts and Collections
    Replies: 3
    Last Post: 04-16-2010, 03:29 AM
  5. Chapter 7: Help With Student Loans in Bankruptcy
    By techgeek40 in forum Bankruptcy Law
    Replies: 8
    Last Post: 12-05-2007, 03:03 PM
 
 
Sponsored Links

Legal Help, Information and Resources