Need advice on what to do

[Intergalactic57]

I'm really not sure what to do at this point.  I have a whirlwhind of debt, mostly student loans.

Here is a snapshot of the debt:

CC - $6000 - nearly 6 months past due

Eviction - $4200 in collections

Utilities - $3000 in collections

Payday loan - $1000

Federal loan - $130k, current

Private student loan - 80k; past due

At this point, I'm feeling a bit overwhelmed.  Calls left and right.  I know the student loans are a huge issue.  I'm current on the federal loans, but the private ones have gotten out of control.  I read about a bill being proposed right now, to make private student loans dischargable in bankruptcy.  Should I wait to see how that goes?

My income has gotten better, but after a period of unemployment / underemployment, I got behind in so many things that it makes climbing out seem impossible.  

[Intergalactic57]

I forgot to add, I have a car payment that is current.

[DaveInAZ]

Well, to begin with I wouldn't hold your breath for the law to be changed concerning private students in this political environment. Secondly, you need some really good legal advice - can you afford an attorney?

I am very much not an attorney, but I always find good general legal information at Nolo.com. Regarding discharge of student loans, it is very difficult but sometimes possible to discharge them in Ch. 7 (complete liquidation/discharge):

In order to have your student loans wiped out in bankruptcy, you must demonstrate that it would be an undue hardship for you to pay them. The test for determining undue hardship varies between courts.Regardless of the test used, most courts are reluctant to discharge student loans. However, if you have very low income or your loans are from a for-profit trade school, you may have a better chance.
The Brunner Test

Some courts use the Brunner test. Under this standard, you can discharge your student loans if you meet all three of these factors:

- Poverty. Based upon your current income and expenses, you cannot maintain a minimal standard of living for yourself and your dependents if you are forced to repay your loans.
- Persisitence. Your current financial situation is likely to continue for a significant part of the repayment period.
- Good faith. You have made a good faith effort to repay your student loans.

That certainly is a staggering student loan debt, find a good lawyer and get his opinion if you have a shot in your state of getting an undue hardship Ch. 7 discharge. You might try (free) legal aid in your city - not to repesent you, but after you explain your situation to recommend the right attorney for you.

Ch. 13 - Reorganization BK - May be a better option. In Ch. 13 you can often delay or reduce your monthly student loan payment for the duration of your repayment plan (which usually lasts between three and five years).

But most of all: Do something! Don't put it off any longer! Those CC, eviction, utitlities & payday debts can turn into personal judgements which give them the authority to garnish wages, seize personal property.

Hoping all the very best for you.