Underwater 70k in debt and can't find a way out

[enjoimorenow]

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@creditlady wrote:

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@enjoimorenow wrote:

I included a private student loan (with co-signer) in BK and it was not discharged or given derog marks.  It still shows all payments were made on time, and is still current, paying as agreed and I continue to make my monthly payments on it.  They did send a letter to the co-signer that I filed BK, but I was able to keep the loan and continue paying it.  They didn't go after the co-signer for the money.

May be worth a call and looking into, because I don't think you can discharge a private student loan in BK, but maybe I'm wrong.

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Really?

Who is your student loan through? This gives me some hope

As to Roberts response I live in Texas so they cannot garnish any of our wages except for alimony, child support and student loans.

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When I got the loan it was called Suntrust I believe, it has since become AES.... it was almost a $20k student loan with a co-signer, and I currently owe about 16.  I just recently discharged and everything with the AES loan is still on my report and I am still making the payments.

[Pway]

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@creditlady wrote:

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@enjoimorenow wrote:

I included a private student loan (with co-signer) in BK and it was not discharged or given derog marks.  It still shows all payments were made on time, and is still current, paying as agreed and I continue to make my monthly payments on it.  They did send a letter to the co-signer that I filed BK, but I was able to keep the loan and continue paying it.  They didn't go after the co-signer for the money.

May be worth a call and looking into, because I don't think you can discharge a private student loan in BK, but maybe I'm wrong.

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Really?

Who is your student loan through? This gives me some hope

As to Roberts response I live in Texas so they cannot garnish any of our wages except for alimony, child support and student loans.

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You are correct on the Garnishment part, however, a creditor can levy or seize your other assets, such as your bank account.

[Anonymous]

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@enjoimorenow wrote:

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@creditlady wrote:

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@enjoimorenow wrote:

I included a private student loan (with co-signer) in BK and it was not discharged or given derog marks.  It still shows all payments were made on time, and is still current, paying as agreed and I continue to make my monthly payments on it.  They did send a letter to the co-signer that I filed BK, but I was able to keep the loan and continue paying it.  They didn't go after the co-signer for the money.

May be worth a call and looking into, because I don't think you can discharge a private student loan in BK, but maybe I'm wrong.

---

Really?

Who is your student loan through? This gives me some hope

As to Roberts response I live in Texas so they cannot garnish any of our wages except for alimony, child support and student loans.

---

When I got the loan it was called Suntrust I believe, it has since become AES.... it was almost a $20k student loan with a co-signer, and I currently owe about 16.  I just recently discharged and everything with the AES loan is still on my report and I am still making the payments.

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SunTrust used to administer federal Stafford Loans. If it is a Stafford Loan, then it isn't a private loan. Look yourself up on "NSLDS for Students" and you can see if your loan is listed there and what type it is.☺

[enjoimorenow]

It's not a stafford loan, it's a private student loan.  I have other loans on the NLDS that were from the US Dept. of Edu and now belong to nelnet.

AFAIK you wouldn't need a co-signer on a stafford loan anyways, because it's from the Gov and they don't even run a credit check to approve you.  

-EDIT-

This is what I found on it:

"The government guarantees Stafford loans, so no cosigner or credit check is necessary. The amounts that can be received for both subsidized and unsubsidized loans are set by the government based on the student's grade level and financial need."

[Anonymous]

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@enjoimorenow wrote:

It's not a stafford loan, it's a private student loan.  I have other loans on the NLDS that were from the US Dept. of Edu and now belong to nelnet.

AFAIK you wouldn't need a co-signer on a stafford loan anyways, because it's from the Gov and they don't even run a credit check to approve you.  

-EDIT-

This is what I found on it:

"The government guarantees Stafford loans, so no cosigner or credit check is necessary. The amounts that can be received for both subsidized and unsubsidized loans are set by the government based on the student's grade level and financial need."

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My bad. The cosigner part didn't register. 

[nolamike]

creditlady,

I don't mean to sound trite or anything and i am sure you have racked your brains for a solution, but have you considered driving for Uber a few days/nights a week? I know you said you have a new kid, but couldn't a friend or relative watch the kids while you picked up those shifts? the short term hardship will result in long term gains for your family.

at even 300 extra a week you get a little relief from that 400 lifestyl

another option is to unload the house, which is often the biggest monthly debt when taxes, insurance and upkeep are included. downsizing for the short term is better than drowning and even a short-sale would get you out from under the monthly mortgage costs for now.

I am also curious about some math. you state you have a combined 82K annual income but bring in 8k a month so that would be 96K take home which is well above your stated combined annual income.

Which is it?

i am not picking when I ask, but if the math miscalcutions here are a reflection of how you are distributing money, then some fundamental changes that are in your control should help you.

you do not have  quick fix unless you strike oil or win the lottery, and lawyers are certainly in your near future if you cannot come up with a practical plan, no matter the hardship it might require.

From the sound of it you don't have much farther to fall before the vultures swoop in.

I would consider contacting the BBB and State Attorney General to identify a reputable debt management firm that will work out a plan with your creditors and put you on a budget.

i wish you luck

mike

[wa3more]

stop paying all credit cards now.you are throwing good money after bad. Avoid BK and ch13 which is 5 years of slavery.

You might be able to negotiate the debt for say 20-30% down the road. Some creditors will sue some may not. See if your credit cards have arbitration clause and use that if you are sued. It is leverage and makes it more expensive to be sued.

I was 50k under at one point. Only chase sued on 19k and i settled for 30% after a few years. Amex threatened on 9k and I pulled arb card and settled. Chase walked away on a 20k credit line.

It is hit or miss. But BK is serious and is the nuke option.You are in Texas so you have some leverage with garnishment not an option.

Right now, you need to concentrate on your family - only spend on 4 wheels/4 walls/food.

Many of us have been there. You will be ok in the end.

[rmduhon]

Garnishment may not be allowed, but they can (and probably will) put a lein on assets

[wa3more]

Not sure OP is homeowner. So they lein house. So what ? Negotiate 20% settlement in future. Would a lein holder want to wait 25 years after sale of house to get paid ?

OP is trying to take care of family issues. A lein is not an immediate concern. and it sounds like OP has a number od creditors.

The creditors know from the credit report, and the BK score it calculates, she is likely candidate. Can use that as leverage.

[Anonymous]

@ creditlady, I know that feeling, when you can't breathe and can't get ahead. I truly believe you've reached out to the right place.

First IMHO, you need to stop the bleeding so you can see a light at the end of the tunnel. I beg you to go see 2-3 different BK attorneys who will do a free consultation. Get a definitive on the student loan and the obligation. Knowledge is power and knowing the status of the SL if you were to file a chapter 7 is critical for your decision making process. One thing I know, is that life is unpredictable and stuff happens. There can be options. 

Ask the attorneys if you can reaffirm the student loan (or maybe someone here can chime in if that is/isn't possible). Quite honestly, if it turns out that you are correct and your co-signer would then be responsible for the payments, then maybe it's time for a conversation.  If your family ends up being on the hook for the student loans, you could escalate the monthly payments on the loan and as long as they don't have to make the payments, maybe they will be okay with it and knowing that it will be paid off quicker.

The reason I suggest seeing at least two attorneys is that you will get different takes on your situation and one may cover something in the free consultation that the other didn't. You may feel that one is a better fit, etc.

Please take action, and at the very least know what is factual and consider that as soon as you file (if you do), the madness is starting to be under control. You have a lot going for you with your income and your new child. You owe it to yourself to get out from under the pressure and stop throwing money at those debts that just won't go away. We are all here for you!

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