Do I qualify for BK? Help!

[gearbm95]

I added up my debts from creditors/credit cards and it comes to around 15k, give or take a couple hundred. I have a B.A. degree and am 3 credits shy of my M.A. degree, however I don't have the money to go back to school.

I work 2 jobs, one full-time, one part-time just to pay my rent/car/bills, my student loans are currently on forebearance because they would be an additional $1000/month that I currently do not have.

Do I qualify for BK (Ch.7)? The reason I'm exploring this option is because the student loans were co-signed by my parents and I don't want to default on them and throw their finances completely upside down as their getting close to retirement. Any advice? Thanks!

[ess]

That would depend on your income and what you owe. NY's guideline for a single person says $45,931. Call an attorney for a free consultation, some will do it over the phone to see what you qualify for. Remember, you can't write off student loans or 401k loans.

[gearbm95]

I grossed 42k on my 2011 tax return, am I still eligible?

[SMinGA2]

The bottom line is what is left when you compare your net monthly income to your net monthly expenses? (Including rent, transportation, groceries, gas, utilities, etc. But not including credit card payments or anything else that would be discharged in a bankruptcy.) You're working 2 jobs to make ends meet - would getting rid of the credit cards help your budget enough that you would not fall behind on regular (rent, car, etc.) stuff each month? The reason I ask, is because if your budget is still majorly in the negative without the credit cards, then bankruptcy won't fix that.

Filing bankruptcy will cost something in the $1000-2000 range. Most bankruptcy attorneys give free consultations. Make a list of your debts, incomes, and expenses/bills - and discuss your situation with a few attorneys.

[keepsmiling]

Welcome to the forum. gear!
How long is your forebearance for? Can you tighten your belt and pay the 15k before it's up? Move back home for a year? take a roommate?
Mostly we do recommend filing here; but if your job is secure, bk is a big gun for 15k, and it won't make the student loans go away.
Have you looked into Income Based Repayment?
Definitely do make appointments with a few attorneys and have some free sitdowns. Good luck, and keep us posted.

[gearbm95]

Right now between all of my credit cards/creditor I pay roughly $1300/month. When my loans come out of foreberance they will be $1100 month, that's with them extended to 25 years. I have private loans from Sallie Mae because my family made too much money to receive federal loans. There is NO income based repayment option for private loans from Sallie Mae.

When I meet with the attorney he will see that I pay all my bills on time and do not miss payments, however, in 2 months once my loans kick in I will be unable to afford my bills. Will having paid my bills on time for the better part of 7 years negatively effect my chance of being able to file Ch. 7?

[AngelinaCat]

Will having paid my bills on time for the better part of 7 years negatively effect my chance of being able to file Ch. 7?

No. In fact you will likely be told to stop paying on all of your credit cards once you have decided that you are going to file. Save that money for your eventual attorney and/or your emergency only cash fund.

[keepsmiling]

Right now between all of my credit cards/creditor I pay roughly $1300/month. When my loans come out of foreberance they will be $1100 month, that's with them extended to 25 years. I have private loans from Sallie Mae because my family made too much money to receive federal loans. There is NO income based repayment option for private loans from Sallie Mae.

OUCH. OMG.
Too bad about the co-signors. At least one member here (treehugger, maybe he will chime in) found it better to just let those loans garnish him.

[keepmine]

I'd strongly suggest you protect your parents and take out a term life insurance policy in the amount of the loans and name them as beneficaries.