Means Test - Negative disposable income?

[blankslate]

Did anyone else get a negative number for the disposable income???

[Tbornetun]

That's the point. You want negative disposable income.

[blankslate]

Ok, I figured that was the purpose but wow... -$52,000! (60 months) That's a pretty sobering number.

[Tbornetun]

Kind of validates the fact that you are in financial trouble, huh?

[blankslate]

Kind of validates the fact that you are in financial trouble, huh?

Yes, it's sad to think I work two jobs to come up that short every month and at the same time, a relief to see that it's not just a case of bad budgeting on my part.

[Tbornetun]

It comes down to the fact that something has to give.

[blankslate]

Tbornetun - based on your replies you seem to be the guru of the bk forum! I have another question for you regarding student loan charge discharge.

I know as a general rule they are exempt from discharge except in certain circumstances. Here is my circumstance: Had a full scholarship but had to take a $6200 loan in the last semester to cover an extended graduation date and living expenses due to my divorce at the time. The loan is now 15 years old. The extended graduation date was not reported to the Department of Education by my financial aid officer as I was told it would be so I was in default before I graduated. Between voluntary payments, diverted tax returns and now 4 years of wage garnishments I have paid over $25,000 for a $6200 loan. The collection agency handling the account for the DOE refuses to give me any sort of break down of where the money is applied, ie, interest, penalties, principal. Obviously this has gotten me into a terrible bind over the years because the more I work and earn, the more they get based on the 25% garnishment. When I spoke to them last week they told me that I am charged a "per day penalty" hence an $1800 balance that never goes down.

Do you think this would qualify for a discharge?

[Tbornetun]

I have no idea. Discharging student loans is a gray area and the rulings on it vary from district to district. Not something I would even offer my opinion on since it is rare in our district that they would be discharged. Since the loan was administered by the DOE, I would doubt it if you would be able to get it discharged. This would be a good question for an experienced attorney in your district. Have you gone on your rounds of free consults? Sorry, I'm not any help.

[blankslate]

Thanks for trying to help I did a free consult over a year ago but I got the feeling it was nothing but a sales pitch on their behalf to get the $3k fee upfront. One of those McDonald's of bk type firms. I am going to do another consult before I file on Friday and am trying to find as much information as possible beforehand so I can come armed with the right questions.

Is it ironic, pathetic or both; the thing debt that is protected from bankruptcy caused the deficit and debts that pushed me into it?