Is this the way out

[solost]

I have well over 40000 in credit card debt and will have to start repaying my school loans. I want to stop borrowing money from friends and family just to pay my debts.

I had a good paying job but was forced to step down when I went into my last semester of college at the beginning of the year. Since then I used my credit cards to survive. I am making my bare minimum payments and going over my limit on some of my credit cards. I have looked into many ways of lowering my debt and always come up with 20+ years of stressful debt. I continue to borrow and add to my debt!

I am current and uptodate with all my creditors and have good credit scores. I don't want to stop paying and add up late fees, I know bankruptcy will hurt my credit but I've been thinking that I'm young and could rebuild my credit and be okay. I am very stressed and broke and struggling to live day to day.

I can't help but ask myself is this the way out?

[HRx]

Hi,

It sounds to me like you've already done the math, and don't like the results. If you do decide on filing for BK7, you won't be able to discharge you student loans. My suggestion is, stop paying on your credit card debts for the next six months. Then file for Chp7 on them. But when you student loans become due, stay current on them each month. Doing so will play a major role in rebuilding your credit.

The only way you'll be able to have your student loans discharged is by filing a Chp13 and defaulting on your repayment plan for a length of time. Then you'll need to file the appropriate documents and provide the financial proof that you aren't unable to repay your student loans. Keep in mind, that this process is not gauranteed to work, and will take atleast one years effort of being unable to make payments on your Chp13.

Good Luck!