School Loans + BK7

[grandcru]

Hello all, I'm new here and just looking for advice whether BK is right for me. I know in general school loans are not forgiven but I currently have one (per se) in excess of $80k, under my parents name. I've made every payment from the beginning as I promised them, always on time. I did this because my own student loan would only have awarded me a max of $3k/yr. And with tuition at $12k/yr, that wouldnt have done much to help. I recently quit my job due to a substantial paycut and along with my own debt in collections, I am unable to repay any of it (not the smartest thing to do but there were politics that went with it). I remember reading that school loans can be forgiven if it is a financial hardship. And although it isn't under my name, I've made every payment so far and can provide documents to show it. Would my situation fall under that category? Every payment I've made has only gone to accrued interest and it's becoming frustrating. Obviously not what me or my parents had in mind after graduation.

Any advice is greatly appreciated.

[Genenco]

Hello all, I'm new here and just looking for advice whether BK is right for me. I know in general school loans are not forgiven but I currently have one (per se) in excess of $80k, under my parents name. I've made every payment from the beginning as I promised them, always on time. I did this because my own student loan would only have awarded me a max of $3k/yr. And with tuition at $12k/yr, that wouldnt have done much to help. I recently quit my job due to a substantial paycut and along with my own debt in collections, I am unable to repay any of it (not the smartest thing to do but there were politics that went with it). I remember reading that school loans can be forgiven if it is a financial hardship. And although it isn't under my name, I've made every payment so far and can provide documents to show it. Would my situation fall under that category? Every payment I've made has only gone to accrued interest and it's becoming frustrating. Obviously not what me or my parents had in mind after graduation.

Any advice is greatly appreciated.

Let's see if I have this right.

You're not the "Named Borrower" on the loans...So, how are they school loans? Your parents fronted the money or the assets?

Your BK may domino onto them too...Or worse...

As far as collections...Yes, those can be wiped out...

Your really best bet, is to seek an attorney...Your Parents also..Sounds like this is something so convoluted, only a lawyer could unravel.

[StaciMM]

Speaking to an attorney is a good beginning step, as is reading all you can find about bankruptcy.

Being temporarily out of work will not work for a hardship claim. My understanding is that the ability to work makes the student loans stick. Besides that, even though you have made the payments, the person whose name is on the loan is responsible for them. If you file BK, your parents will still be responsible for those loans.

[grandcru]

Let's see if I have this right.

You're not the "Named Borrower" on the loans...So, how are they school loans? Your parents fronted the money or the assets?

It's a parent loan that came directly from the Department of Education to cover my tuition (I think the technical name was "federal plus loan"). It provided enough to cover the full tuition. Getting my own Stafford student loan would only have covered a fraction of my tuition costs.

So yes, it is my parents loan. I've only been paying it per our agreement.

[Genenco]

It's a parent loan that came directly from the Department of Education to cover my tuition (I think the technical name was "federal plus loan"). It provided enough to cover the full tuition. Getting my own Stafford student loan would only have covered a fraction of my tuition costs.

So yes, it is my parents loan. I've only been paying it per our agreement.

Ouch...Yes, I'd get all of you to a lawyer...This looks like it's a tangle they "MIght" be able to untangle...

[StaciMM]

Just out of curiosity, Geneco, what strategy do you have in mind? I understand student loans to be next to impossible to discharge if the person is able to work. And, I've never heard of one person being able to get someone else's loan discharged. (The OP has an agreement w/ parents to pay, but that doesn't change the fact that Mom & Dad are the ones obligated to pay.)

I'm just wondering what you had in mind, in case I'm overlooking something.

Ouch...Yes, I'd get all of you to a lawyer...This looks like it's a tangle they "MIght" be able to untangle...

[grandcru]

I'm going to seek legal advice. Hopefully something can be done - I know its a longshot - otherwise I'll leave them out of it. Thanks for the help.

[bkfiler]

you can always try anything. and of course an attorney knows best.

having said that, most often student loans are not discharged unless you have a hardship case. this means you will no longer be able to work in your life due to being mentally disabled or physically handicapped such that you wont be able to make any proggress toward any payments. thats how hard it is.

however, if its not a guaranteed student loan by the gov then you can get it dsicharged. meaning if the gov didnt promise to pay it then you can get it removed with the other debts. check your out.

as for listing your parents debt on your bk just becuase it was for your school probably isnt gonna work. i dont see tht happening.

research it and get counsel to determine your case.

good luck and let us know.

[StaciMM]

The 10/17 changes give privately funded/secured student loans the same standing in BK as federally guaranteed loans.

however, if its not a guaranteed student loan by the gov then you can get it dsicharged. meaning if the gov didnt promise to pay it then you can get it removed with the other debts. check your out.

[bkfiler]

didnt know that. thanks. so thats even worse now, great! lol