I’m 26 and owe 44,00 in student loan debt. I no i will not be able to pay it back. Should i file bankruptcy?
I kept dropping in and out of school for years. Now i’ve taken a job as a painter’s assistant that i love. But i no i will not be able to pay anything on my loans because i barely make minimum wage. I don’t care about my credit because i already got bad credit.
If these are federally guaranteed student loans you cannot discharge them from bankruptcy. Uncle Sam guaranteed these loans and wants to be sure he will get paid so when the bankruptcy laws were written, they made sure guaranteed loans could not be discharged in almost all cases.
You may want to look into the plan called "income based repayment" where your payments are lower now when you earn less, and increase slowly over time.
Also, keep in mind you have up to 20 years to pay this off, which is about $2,200 a year on average, plus interest. This works out to a little bit over $50 a week. Just focus on finding that $50 a week either by working a couple more hours, or spending less on stuff you don’t really need, and you should be able to pay this off just fine.
January 8th, 2010 at 7:07 amMost student loans are not dischargeable under bankruptcy, meaning even if you file, you will still owe the debt. Expect a court judgment and eventually wage garnishment at some point.
January 8th, 2010 at 7:07 amWell, I hate to burst your bubble, little one but: You might have to suck it up and get a job you hate, like 99% of us out there. I am 27, haven’t even gotten to my Master’s degree yet and have over 50K in student loan debt. My dream of becoming a consultant for legal cases as a forensic psychologist is put on the back burner until I can finish getting my Msc and I work for an Inspector General’s office for a federal agency that is the most mind-numbingly dull work I have had to suffer through as an adult. But I got those student loans to pay.
Now, seriously, I do feel your pain and in a moment of weakness considered filing for Bankruptcy too, but that is why the country is so f*cked up. People give up too easily. Things just don’t happen overnight, and while you might love being that painter’s assistant, you got bills to pay. Its one thing if you had a horrible accident and are disabled and can’t work anymore. But if you have an able and willing body, you can find another job one that can help w/ you debt. Don’t take the cowards way out, and trust me its more trouble than its worth, I used to date a bankruptcy lawyer, so take my word.
January 8th, 2010 at 7:07 amCertain debts are not dischargeable:
- Taxes (mostly)
- Student loans (mostly)
- Fines for criminal activity
- Debts incurred fraudulently
Guess what the first three have in common? They are debts owed to the government.
If I were in your shoes, I would find a way to pay off your student loan debt.
January 8th, 2010 at 7:07 amhttp://diylegalinfo.com/bankruptcy_Links.html has a lot of information on bankruptcy questions, how to handle them yourself and other information.
January 8th, 2010 at 7:07 amYou wont be able to discharge student loans unless they were on a credit card or other kind of unsecured loan. A true student loan must be repaid. Bankruptcy at such a young age is not a good thing. You should consider a plan other than bankruptcy. You borrowed the money and need to pay it back… period. It’s time to increase income and/or reduce your expenses. For one thing you need to finish what you start if you expect to earn more than minimum wage. Dropping in and out of school should tell you something about yourself and your accomplishment of goals. Believe in yourself. Bankruptcy has long term results and they are not favorable. Have you ever seen the question, "Have you ever filed bankruptcy?" … you will. It has to do with housing, employment, insurance, and alot of other facets of you life which exist way beyond just your credit score. It’s time to face the facts and accomplish your goals… TODAY.
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January 8th, 2010 at 7:07 am