Lost Cause

[dcj]

Hi guys, I've been searching this website and it has been a great tool for me. However, my situation seems hopeless. I am married with 130K in student loan debt and 30k in credit card debt. My credit cards are paid on time and my loans aren't in repayment yet. There is no way I can make the monthly payment on my loans (appx950ms) and cc(total appx 700ms) I only make 40K. My husband is not aware of the total amount of my debt. Can anyone offer any advice or suggestions?

[HRx]

Hi,

You can always file Chp7 and have your credit card debts discharged. But the student loans will more than likely still have to be repaid. But you'd still be lifting a large debt burden off your chest.

Good Luck!

[dcj]

7

Hi Todd, Thanks for your reply. Will my husband also have to be apart of the Chapter 7? I don't know much about Chapter 7 but I'm sure this site will answer my questions. I appreciate you.

[HHM]

You could petition for a hardship discharge of some of your student loans. However, its very difficult to get.

But I agree, you could at least discharge your credit card debt in a chapter 7 and alleviate yourself of that burden.

And no, your husband does not have to be part of the Chapter 7. (However, you will have to list his income on your schedule's, and his income will be a factor in determining whether you file a 7 or 13). Sounds like you need to start looking into options with your student loans.

[dcj]

Thanks

I've looked for options for the student loan. The only thing I can get offered is like income sensitive. That still doesn't help. Where else can I look to find out this type of information on student loans/ I am desperate!!

[HRx]

DCJ,

Keep in mind that any type of hardship discharge you get from your student loans will first require that you had may honest and tangible efforts towards satisfying the debt. This is typically accomplished through first doing a Chp13, and going through all the formalities required to having the debt discharged through a "hardship" - but this usually requires a 24 month minimum repayment history under a Chp13.

You'd probably be better off having your credit debts discharged under Chp7, and to negotiate different repayment terms for your student loans.

Good Luck!

[dcj]

Thanks

I will start looking into this tomorrow. My car is in my husbands name and the house is in both of our names. How does something like this work with a Chapter 7. I've been searching online about the "undue hardship" for the student loans. Seems impossible. How long will I be affected by the Chapter 7 and what are the price ranges for something like this?

[HHM]

I am curious, what did you do to incure $130K in student loans, I would guess Medical Degree?

Chapter 7's can be reported on your credit report for up to 10 years, but they typically only effect your credit in a meaningful way for a few years (after discharge). Assuming you maintian good credit habits after discharge, most of the effects of the Chapter 7 will disappear in 3-4 years.

Cost of a chapter 7 varies, so its hard to give you a good estimate. I would guess that anywhere from $800-$1200 would be reasonable in your case.

[dcj]

Student Loan Debt

I used loans for education and to live while in schoo. I obtained a BA is Sociology, MA in Mental Health Counseling and partially completed a Doctoral Program. If i could do it all over again, I wouldn't go to college.I went to private colleges which were expensive. I had no financial support from friends or family. I wasn' thinking of repayment when I took out the loans. A lot of the money is from the interest over the years.

[HRx]

I used loans for education and to live while in schoo. I obtained a BA is Sociology, MA in Mental Health Counseling and partially completed a Doctoral Program. If i could do it all over again, I wouldn't go to college.I went to private colleges which were expensive. I had no financial support from friends or family. I wasn' thinking of repayment when I took out the loans. A lot of the money is from the interest over the years.

Makes sense.........good luck with whatever your decision is.

-Todd

[HHM]

Are you currently working as a mental health professional, there may be programs to forgive some of your student loan debt depending on the type of work you do.

In any event, good luck. At least you are facing the situation and attempting to do something about it.

[dcj]

Job

I work as a social worker with terminally ill patients. I used to be a School Guidance Counselor.

[jeslyn]

dcj- I went through some of the same issues with student loans. This is what I'm doing- apply for forbearance for as long as you can with the servicer of the loan. Then, if you still can't pay when that time is up, you can consolidate all of your loans and then your forbearance time starts over. You can apply for forbearance for 1 year periods for a total of 3 times (I think). You can also pay the interest during your forbearance period which helps. I would definitely call your servicer and talk to them about it. Make sure you get transferred to a department other than collections- all they want is a check in hand. Write everything down and ask them to repeat it back to you and then mail it to you. Good luck!

[dcj]

Thank you

I recently spoke with my lender and consolidated. I am going to apply for a Economic Hardship for 3 years (one year at a time.) Then I will apply for a forbearance for five years and try to pay some of the intereset over the next couple of years. WIll I be able to re-consolidate with another lender after all of this? The interest payments are just as high as the monthly payments. Thanks so much for your input. Now I feel that there are options and a little hope for me.