Should I file Chapter 7 -

[Anonymous]

My annual income is $68K. I'm married with two kids. Husband has been out of work since December 2014 because of foot surgery.  I have $165K in private student loans with Navient.  $100K in federal student loans.  $3K in credit card debt and a $13K car loan.  I'm in reduced payment plans for the federal and private student loans right now but that's only for 12 months.  Would I be a good candidate for Chapter 7.  Our home is in my husband's name only.  We' haven't missed any payments on that. All of the student loans and credit cards are in my name.    I wiped out my 401K to keep us afloat but that's gone now. If there's anyone that's reading this please help. I'm in south carolina if that matters. 

Thanks 

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

My annual income is $68K. I'm married with two kids. Husband has been out of work since December 2014 because of foot surgery.  I have $165K in private student loans with Navient.  $100K in federal student loans.  $3K in credit card debt and a $13K car loan.  I'm in reduced payment plans for the federal and private student loans right now but that's only for 12 months.  Would I be a good candidate for Chapter 7.  Our home is in my husband's name only.  We' haven't missed any payments on that. All of the student loans and credit cards are in my name.    I wiped out my 401K to keep us afloat but that's gone now. If there's anyone that's reading this please help. I'm in south carolina if that matters. 

Thanks 

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Forgive my ignorance, but is the 165K in private student loans dischargable in a BK 7?  If it is, I would definitely file.  You do want to pay off that 3K in credit cards if you can over a few months so you are not blacklisted.  If you file a BK the less accounts included the better for your FICO score.

But if you make 65K and you can qualify, great.  Just so you are not thrown in a 13.

[Anonymous]

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

My annual income is $68K. I'm married with two kids. Husband has been out of work since December 2014 because of foot surgery.  I have $165K in private student loans with Navient.  $100K in federal student loans.  $3K in credit card debt and a $13K car loan.  I'm in reduced payment plans for the federal and private student loans right now but that's only for 12 months.  Would I be a good candidate for Chapter 7.  Our home is in my husband's name only.  We' haven't missed any payments on that. All of the student loans and credit cards are in my name.    I wiped out my 401K to keep us afloat but that's gone now. If there's anyone that's reading this please help. I'm in south carolina if that matters. 

Thanks 

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Forgive my ignorance, but is the 165K in private student loans dischargable in a BK 7?  If it is, I would definitely file.  You do want to pay off that 3K in credit cards if you can over a few months so you are not blacklisted.  If you file a BK the less accounts included the better for your FICO score.

But if you make 65K and you can qualify, great.  Just so you are not thrown in a 13.

Some are dischargable if you can show they weren't for "qualified education expenses"  I'm hoping so. I need to find a lawyer in the area that has dealt with student loans before.  Yes my plans was to go ahead and finish paying off the credit card debt. 

[Pway]

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@Anonymous wrote:

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@CH-7-Mission-Accomplished wrote:

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@Anonymous wrote:

My annual income is $68K. I'm married with two kids. Husband has been out of work since December 2014 because of foot surgery.  I have $165K in private student loans with Navient.  $100K in federal student loans.  $3K in credit card debt and a $13K car loan.  I'm in reduced payment plans for the federal and private student loans right now but that's only for 12 months.  Would I be a good candidate for Chapter 7.  Our home is in my husband's name only.  We' haven't missed any payments on that. All of the student loans and credit cards are in my name.    I wiped out my 401K to keep us afloat but that's gone now. If there's anyone that's reading this please help. I'm in south carolina if that matters. 

Thanks 

---

Forgive my ignorance, but is the 165K in private student loans dischargable in a BK 7?  If it is, I would definitely file.  You do want to pay off that 3K in credit cards if you can over a few months so you are not blacklisted.  If you file a BK the less accounts included the better for your FICO score.

But if you make 65K and you can qualify, great.  Just so you are not thrown in a 13.

Some are dischargable if you can show they weren't for "qualified education expenses"  I'm hoping so. I need to find a lawyer in the area that has dealt with student loans before.  Yes my plans was to go ahead and finish paying off the credit card debt. 

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I would suggest that you speak with an attorney quicky.  There are certain stipulations you have to meet in order to get those student loans discharged. 

For all student loans, you must bring a separate action in the bankruptcy court, called a complaint to determine dischargeability, to get the loans discharged. To win, you must prove that repaying the loans would cause undue hardship.

In most of the country, bankruptcy courts use the Brunner test to decide if repayment would cause undue hardship. 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. A minimal standard of living is not a middle class standard, but a much lower standard of living. The courts expect you to maximize your income and minimize your expenses.
• 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. 

http://www.nolo.com/legal-encyclopedia/private-student-loans-bankruptcy.html

If you are filing bk why are you planning to pay that 3k of credit card debt.  This is a violation of the bk code if you do this and it will show that you are favoring one creditor over another.  They will contest in court and you could possibly have your case dismissed.  Pleae speak with an attorney quick and fast.

[CH-7-Mission-Accomplished]

Do speak to a good bankruptcy attorney who only does bankruptcies.  My gut tells me that if you have to go through some kind of a legal test to get that 165K discharged, you are not going to prevail barring some gross deviation in lending standards.  I can assure you, the student loan lender(s) will arrive with an army of attorneys to fight you before letting you walk away from 165K in debt -- more than a mortgage in some states.

If it were as easy as just listing them in your schedule, it would be a no brainer.  It's worth a shot, but go talk to a lawyer who knows what she is talking about.

[Anonymous]

I agree with the others about speaking to an attorney. Unfortunately, you will probably not be able to discharge the student loans. An attorney can guide you there. Have you discussed with your student loan lenders about deferral options? You may be able to go a number of months in deferral until you are able to get back on your feet. Good luck.

[Anonymous]

My husband is working on disability with the Social security administration.  More than likely it will be approved because another surgery is on the horizon this december.  If student loans don't bankrupt me medical bills will.  Yes I do plan on speaking with an attorney.  That's really my only option at this point.  Thanks everyone for the comments. 

[StartingOver10]

Agree that it is highly unlikely that you will be able to discharge your student loans. But naturally you will want to do your own research as well as speak to a knowledgeable Bk attorney. 

My advice is to seek out a Bk attorney that is either a sole practitioner type or small office, not one of those large mega firms that advertise on TV or bus benches. Make sure the paralegal is awesome too. The large firms have a tendency to be "Bk mills" and are known to not provide the type of service you need. You will want an attorney that can not only provide accurate information to you and guidance, but one that will actually show up to the 341 rather than sending a new law graduate to handle his first Bk case.

If you foresee imminent medical procedures (surgery) for your husband, then don't file before his surgery is completed and all the bills are known. What happens is you discharge the debt as of the filing date.  The discharge date is your goal, but you are discharging debt that was there as of the filing date.

I really don't see how a Bk is going to help you with only 3k in cc debt and $13k in auto loans unless your husband is also filing and all the medical debt is included.

I think you need to be very forthright with yourself and the attorney - and figure out a plan B for your school loans. It didn't take you one year to add $265k of student loan debt and it will take longer than a year to get out of it.  Are you working in the field in which you graduated? Is this a lucrative field or are you capped out with your income where you are right now?  This is going to be difficult, but it is doable. Have you looked into the various student loan forgiveness programs? Do you qualify for any of them? Even if it is a portion, it will help.    https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service