Probably going to have to file

[CindyLou]

yep I racked up 80000 just in grad school alone! tuition in private school can run 30,000 per year! But the upside is that I almost doubled my income. (which still isn't enough...go figure!) "ne bit of advice....if you "reconsolidate" which is allowed...you just have to go with another company PM me and I can tell you who I went with. them you forebearance time does start over! That might buy you a little time. now if you are locked in at super low apr theb you may not want to do that.

[lrprn]

Here's the link to California bankruptcy exemptions - http://www.bankruptcyinformation.com/CA_exemp.htm

CA allows two different exemption systems - the filer can choose whichever one works best for their circumstances.

System 1 allows a motor vehicle exemption of $1900 and there's no wild card.
System 2 allows a motor vehicle exemption of $2275 plus a $925 wild card = $3,200 total.
Neither system is going to come anywhere close to protecting a paid-off $14,000 car

With that many $$ to be gained by the trustee taking the car and selling it, that might be too much for any trustee to pass up. Even if the trustee leaves you the car and asks for the remainder beyond the exemption (about $10,800) as a one-time payment, that's a hefty chunk of change to pay to keep an already paid off car. Wish the news was more rosy here

Compulsive, it's time to set up free initial consultations with 3-4 CA bk attorneys in your area who will be familiar with the customs in your district and what trustees are likely to do in your situation (not just with the car but the co-owned bank account as well). You'll find out a lot about what's going to be possible to do in your situation. Come back and let us know what you find out, ok?

[Lindsay]

I've had my student loans in forebearance already so I can't extend them anymore. I should be getting a job soon, but I probably will only be able to afford to pay student loans at a little over $1k/month. All the credit cards have high interest rates.

Thats the problem we have with huge interest rates too. If they kept the rates nice and low, I probably wouldn't be BK. The only thing that keeps me from thinking you should file is the car exemption is low and your car is paid off. And that bank account with your dad. It's a hard situation to be in. Of course, the car isn't worth $30,000 so it may be better to give it up and buy another vehicle later. Did you try calling the creditors and explaining your situation to them? I tried this with varying successes before deciding to file.

HSBC (our largest creditor, we owe them $17,000) said that they'd close the account, lower the interest to 0% until it was paid. That gave me a little hope at first, but Discover said they'd lower my interest from 29.99% to 17% and lower the minimum payment from $280 to $240. Chase said that they'd possibly take a settlement of 55%, but we didn't have the money. Chase is a strange company, last week they sent me a beautiful card saying that they understood our financial problems and would love to help. It came in a beautiful frosty paper envelope, I thought it was a wedding invitation before I opened it. The next day a letter came from Chase that said if I didn't respond to them in 14 days, they were going to file a lawsuit and the sheriff would come to my house to serve papers(we're not even 90 days delinquent). They urge me to contact them to avoid this unpleasant situation! Citibank and BOA raised the interest even higher, cut our credit lines, and were generally unhelpful. I didn't bother to contact the other few creditors because I knew that we were going to file by this point.

I've heard some states have some sort of a wildcard exemption, not sure if CA is one of them. You should try to call a few lawyers and get some opinions.

I know how bad you feel, I am never going to get another credit card after this mess is over. I've been listening to the Dave Ramsey show everyday online at his website and I really see the errors of my ways now. I've been really stupid.

A hot topic on the show is creditors that aggressively market cards to students who have no income. Alot of students come out of college with huge credit card debts and huge student loans. I think this is really terrible that they do that. I see the applications laying all over the college I attend.

[compulsive]

I've heard of some couples that have $300,000 worth of student loans between them. College is expensive now. That's why I have to go to a community college. I'm in my 2nd year and I haven't had to take loans because the Pell grant covers most of the expenses. I've looked into going to the State University after I get my associates degree and its significantly more expensive. I'll definitely have to take out a loan if I continue past the 2 year degree. One of my relatives is in a private university and had to sit out this semester until she sells her car because she is maxed out on her student loans already.

But back to bankruptcy, 30K is small debt compareds to some of us on this boards. I have over 80K and BK is the only answer for us. From what I've read, the CA bankruptcy exemptions on a vehicle are only about $2700 so the trustee would probably be interested in your car. If it were me, I'd probably try to find a solution other than bankruptcy because after the car would be sold, the debt would only be around $18,000. I'd probably try to get a couple jobs and pay the creditors, settle with them for lesser amounts maybe, and avoid bankruptcy for now. I guess it depends on how badly you want to keep the car. I don't know if you could take your name off the bank account with your father, but if there is a way, I think the trustee would want that money. I'm not sure about that though, hopefully someone else will know for sure.

I used to work in the student loan department of a bank and I'd give deferrments all day to borrowers. That was my only job. We gave them for unemployment, hardship, and other reasons. They were pretty easy to get, I can't remember my boss not signing off on too many of them. I'd do the deferrment paperwork and she'd sign on it.

I've had my student loans in forebearance already so I can't extend them anymore. I should be getting a job soon, but I probably will only be able to afford to pay student loans at a little over $1k/month. All the credit cards have high interest rates.

[compulsive]

"- My income from Mar 1 is less than 1k.
- My sister's husband and my mother also live with me.
- I was paying about $500/month up until May. I would aslo help a little with groceries and other misc expenses, but it wasn't consistent."

We need your last six months of income total. I'm confused on how you could only have made 1k in six months and paid about $500 a month for three months and help with food, misc. when possible.

At any rate, the joint account with your father will cause some concern, I don't have any advice to offer you on the best way to handle that.

If the equity in the car you own falls under the states allowed exemptions then you will be able to keep the car.

Someone else hopefully can come along here that has some knowledge in the joint account issues and offer you some better advice on that.

I had leftover money from my school loans and I also took out cash advances.

[Lindsay]

I've heard of some couples that have $300,000 worth of student loans between them. College is expensive now. That's why I have to go to a community college. I'm in my 2nd year and I haven't had to take loans because the Pell grant covers most of the expenses. I've looked into going to the State University after I get my associates degree and its significantly more expensive. I'll definitely have to take out a loan if I continue past the 2 year degree. One of my relatives is in a private university and had to sit out this semester until she sells her car because she is maxed out on her student loans already.

But back to bankruptcy, 30K is small debt compareds to some of us on this boards. I have over 80K and BK is the only answer for us. From what I've read, the CA bankruptcy exemptions on a vehicle are only about $2700 so the trustee would probably be interested in your car. If it were me, I'd probably try to find a solution other than bankruptcy because after the car would be sold, the debt would only be around $18,000. I'd probably try to get a couple jobs and pay the creditors, settle with them for lesser amounts maybe, and avoid bankruptcy for now. I guess it depends on how badly you want to keep the car. I don't know if you could take your name off the bank account with your father, but if there is a way, I think the trustee would want that money. I'm not sure about that though, hopefully someone else will know for sure.

I used to work in the student loan department of a bank and I'd give deferrments all day to borrowers. That was my only job. We gave them for unemployment, hardship, and other reasons. They were pretty easy to get, I can't remember my boss not signing off on too many of them. I'd do the deferrment paperwork and she'd sign on it.

[BKTango]

"- My income from Mar 1 is less than 1k.
- My sister's husband and my mother also live with me.
- I was paying about $500/month up until May. I would aslo help a little with groceries and other misc expenses, but it wasn't consistent."

We need your last six months of income total. I'm confused on how you could only have made 1k in six months and paid about $500 a month for three months and help with food, misc. when possible.

At any rate, the joint account with your father will cause some concern, I don't have any advice to offer you on the best way to handle that.

If the equity in the car you own falls under the states allowed exemptions then you will be able to keep the car.

Someone else hopefully can come along here that has some knowledge in the joint account issues and offer you some better advice on that.

[compulsive]

Back to the bankruptcy topic.

[whatamess]

I used EIC working part time 28 hours per week before. I had my taxes done at H&R block too.
BTW 90K in student loans is nothing unusual. Both my niece and nephew are attending University right now at 35K & 40k per year.
Some of my friends (early 30's) are still paying down loans upwards of 150K who went to grad school. This is why so many grads are moving back with mom & dad.

WAM

[familyof7]

The EIC is available to ANYONE who made less than the allowed amount. The burger flippers probally gain more. They make little and struggle

[magyar123]

Please file tax because IRS give Earned Income Credit to low-wage or no-wage people... send you a check of couple hundreds in refund possible if your income fall below federal poverty level (see IRS Poverty table, maybe < 8K-9K/year?) .. I filed for people/student have minimum/no income before so I know there is no tax due but only refunds for standard deductions...

Don't think that will "fly". The EIC is only available to full time workers who make under a certain amount. Not to part-time workers. If it were available for everyone, even the burger flippers could take advantage of it.

[BKOnce]

Please file tax because IRS give Earned Income Credit to low-wage or no-wage people... send you a check of couple hundreds in refund possible if your income fall below federal poverty level (see IRS Poverty table, maybe < 8K-9K/year?) .. I filed for people/student have minimum/no income before so I know there is no tax due but only refunds for standard deductions...

[lrprn]

what school do you go to that it's 90K? How long can you defer them until you get a good job?

MM, these are nosy personal questions.

Frankly it's easy at almost any college or university to rack up $90K or a lot more in student loans after years of paying for schooling on your own. And how long student loans can be deferred depends on the type of loan, if the student is still in school or not, and how many deferments have already been granted.

Compulsive, I encourage you not to answer overly intrusive personal questions like what school you attend on a public internet forum.

[MajorMike]

what school do you go to that it's 90K? How long can you defer them until you get a good job?

[compulsive]

Welcome to BKForum, compulsive - glad you found us!

Some very important questions we need to ask before we can help:
- What state are you in?
- If you look back to last March 1 up to today, how much income have you made from all sources?
- Besides your sister and yourself, are any other adults or children living in the house with you?
- Do you contribute money to your sister to support the home? (groceries, pay a utility, etc)
- For each year you didn't file tax returns, did you make below the stated minimum income the IRS set so you weren't required to file?

The answer to most your questions depend on the answers to these questions.

And I'm hoping you already know that it's 99.9% likely you cannot wipe out your $90K student loans in bankruptcy. You'll have to pay them in full even if you file.

- I'm in CA
- My income from Mar 1 is less than 1k.
- My sister's husband and my mother also live with me.
- I was paying about $500/month up until May. I would aslo help a little with groceries and other misc expenses, but it wasn't consistent.
- And yes I didn't file a tax-return because I didn't make below the minimum. I was in school full-time.

Yeah, I wasn't expecting to get the student loan discharged.

The big thing for me is losing my car, it's the only vehicle I have and in Southern California it's a necessity. Also the car has 2 owners listed on it. It says "[my uncle's name] or [my name]".