First, thanks for the pat on the back. It means a lot to me.

I know of no other option to get rid of the private student loans. It is not a guaranteed approach but it really comes down to the experience your lawyer has making this argument and his/her confidence in your case to go ahead with it.

I wish I had a better and more definitive answer for you on this but I’m afraid I don’t. Good news is that I’ve seen this actually discharge student loan debt for some.

Steve

We have 22,000 in old SallieMae student loans. Our lawyer explained that normally student loans are not covered in bankruptcy, but we have 90 days to ask the judge for bankruptcy relief because of undue hardship of this loan due to number of kids and lack of income. He says it will cost $4000 in his fees to argue this to the judge, but feels we have a case an this too may be forgiven in court. I don’t have the $4,000 right now. Current payments to Sallie Mae are $236 month. Is it worth it to push and raise the $4 grand, or just pay the loan out monthly. Or are there any other options you know?
Thank you so much for your guidance until now. It is more appreciated than you know.

Thank you for the straight talk.

Big hug right back at ya’ for being there.

Deborah

1. Bankruptcy is rosy when compared to the other solutions available like credit counseling or debt settlement. There was a time when I founded and ran a credit counseling agency but that was back when credit counseling had some real benefits for consumers in trouble. Not any more. That’s why I got out.

Is bankruptcy the thing you want to grow up to do, not really. I no more wanted to go bankrupt than drive a nail in my foot but you do what you have to do to protect your family. The reality is that it is in the creditors best interest to scare people about bankruptcy and tell people it is a bad thing. As if lending way more money than anyone can afford to repay isn’t a bad thing. Funny, no stigma associated with that.

I can show you how to start rebuilding your credit immediately after bankruptcy. When you start making money, within two years you’ll get a car loan, within three a mortgage. In fact you’ll start getting new credit card offers immediately.

2. Let me speak bluntly and candidly, those techniques are bullshit. They suck down life energy, create stress, and draw the process out and do nothing to address the underlying issue or prevent you from being sued by your creditors. If you want to hide from your collectors for a bit to get a break, heck even I show you how to do that, but I also say it is not a solution, it is a temporary fix. “Avoiding the debt collector does not change the reality of your financial situation and like time, it will march on no matter if you want it to or not.”

I sayest if thou follow my advice you will findth peace quickly.

Steve

Just cuz you’re listening…I’m going to ask…

1)You really make bankruptcy seem rosy. Honestly, what are the CONSEQUENCES I am going to have to suffer (I will weigh those against the awful bill collectors). It carries such a stigma. We don’t own our home, and fear that we won’t ever have that option for another 10 years (if/when we do start making money).

2)Now online, I’m finding a whole host of techniques of not giving information to debt collectors calls as a way of them just not continuing to call because it falls under harassment. Sort of reverse threatening them. Is this legal to do to the actual credit card companies I owe, or just to the debt collection agencies that the debt has been passed to. In the end – does this work?

Bottom line. I have to concentrate on getting money into this household to keep a roof over our heads and basic expenses, and some kind of safety net for when life “happens”. I have to deal with these debts quickly and correctly.

What sayest thou?