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Need advice

Established Member

Need advice

Posting this here as well...

 

So a quick rundown of what I'm currently facing:

 

Student loan debt - $220,000.00

 

Closed credit cards:

  1. Capital One - $600.00 closed, past due.
  2. Capital One - $600.00 closed, past due.
  3. Capital One - $500.00 closed, past due.
  4. Wells Fargo - $795.00 closed, currently making $25.00 per month payment plan.

Accounts in collections:

  1. Private Student Loan 1 - $15,000.00.
  2. Private Student Loan 2 - $5,000.00.
  3. Eviction - $4,000.00.
  4. Verizon - $2,500.00.
  5. Bank - $1,500.00.
  6. Pay day loan - $1,000.00.

What are my options here?  BK7?  BK13?  DMP?

 

Need all the advice I can get.

 

Current FICO - 538

Message 1 of 12
11 REPLIES
Established Contributor

Re: Need advice badly

Whats your income, also post this is the rebuilding/bankruptcy sub forumn for more help. Also bankruptcy is not always the answer.

Fico 8 11/8/16
Equifax 836, TransUnion 836 12/30/16 , Experian 842 1/11/17 . AAOA 12 years Oldest 20
No inquires since 2014
All credit reports frozen
Fico 8 Equifax Bankcard 866 12/27/16
Message 2 of 12
Established Member

Re: Need advice badly

Currently make about $60k

Message 3 of 12
Established Member

Re: Need advice

I'm new here myself, so I'm sure others more knowledgeable will chime in, but my understanding is that it is really difficult/if even possible to get student loans wiped out in a bankruptcy. Since they appear to be your largest issue, I'm not sure that BK would be the best route for you.

Starting Scores (4/1/2014): Mine 654 Ex/639 Eq/ 641 TU DH 650 Eq
Current (4/25/2014): Mine 654 Ex/734 Eq/641 TU
Gardening until April 30th, 2015.
Message 4 of 12
Regular Contributor

Re: Need advice badly

Unfortunately, student loans CANNOT be discharged in any matter. 

FICO 8 10/15/2017 EX: 504 TR: 514 EQ: 488
Message 5 of 12
Valued Contributor

Re: Need advice badly


Intergalactic57 wrote:

So a quick rundown of what I'm currently facing:

 

Student loan debt - $220,000.00

 

Closed credit cards:

  1. Capital One - $600.00 closed, past due.
  2. Capital One - $600.00 closed, past due.
  3. Capital One - $500.00 closed, past due.
  4. Wells Fargo - $795.00 closed, currently making $25.00 per month payment plan.

Accounts in collections:

  1. Private Student Loan 1 - $15,000.00.
  2. Private Student Loan 2 - $5,000.00.
  3. Eviction - $4,000.00.
  4. Verizon - $2,500.00.
  5. Bank - $1,500.00.
  6. PayPal - $2,000.00.
  7. Pay day loan - $1,000.00.

What are my options here?  BK7?  BK13?  DMP?

 

Need all the advice I can get.

 

Current FICO - 538

 


You say you have $220,000 in student loan debt but you only list $20,000 in private student loans. Can you be more specific?  Have you consolidated any student loans? What type of student loans are they and your interests rates? What have you been paying on them?

CapOne $7500 | Discover $8500 | Amex ED $25K | Barclay SM $5700 | Chase Disney $500 | Chase Slate $5K | Target $3K | Hilton Amex $2K
Gardening Since 4/3/2017
Message 6 of 12
New Member

Re: Need advice

Go to the library. Check out the NOLO bankruptcy books. Do independant research. From my research I believe your best option is to start paying those loans back.

Message 7 of 12
Highlighted
Contributor

Re: Need advice

i would set up payments with all of them even if it is just ten bucks each a month. since you arent accruing interest anymore on them start with one with the smallest balance and work your way up until you just have sl's to deal with. and yup you guessed it that sl for 220000 is probably not going to get discharged in bk. the rest amounts to the cost of a decent car so you can work with it and have it paid in the 7 year time frame its going to take for them to fall off report.

Current MERRICK SECURED-$200 EMBLEM MC-$250 EXPRESS NEXT-$350
In the garden till 10/9/14
Fico 8 start 02/15/13 488
Current TU Fico 8 641, EX 734 EQ 740
Goal 650 by 02/15/15
Message 8 of 12
Valued Contributor

Re: Need advice


polno1234 wrote:

i would set up payments with all of them even if it is just ten bucks each a month. since you arent accruing interest anymore on them start with one with the smallest balance and work your way up until you just have sl's to deal with. and yup you guessed it that sl for 220000 is probably not going to get discharged in bk. the rest amounts to the cost of a decent car so you can work with it and have it paid in the 7 year time frame its going to take for them to fall off report.


I agree.

 

Have you tried to rehab your student loans? 

I'm back rebuilding my credit again, sigh.
Message 9 of 12
Established Member

Re: Need advice

What do you mean by rehab?

 

To clarify:

 

140k is federal.

 

60k private.

 

and 20k private.  the 20k has been defaulted on.  How should I proceed with that?

Message 10 of 12