I received sallie Mae student loans to go to school. After going to school, my disability became worse and I am now unemployable due to having seizures. There is a debt of over 20 thousand and my social security income of $720 a month. I have informed them multiple times of my situation and explained that I am disabled and unable to pay anything. They keep telling me it will effect my credit and they will take from my SSD income. I barely can pay bills and eat now. I am a single mother and can’t even buy my son clothing.
Can I file chapter 7 bankruptcy to end this debt so that they will stop contacting me to hear that I can’t pay?
Student loans have a high burden to meet to discharge them. In addition to filing a case, you would have to file a lawsuit known as an Adversary Proceeding and prove (1) that you cannot maintain a minimal standard of living for you and your kidsif forced to pay off student loans; (2) that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) that you have made good faith efforts to repay the loans.
Unless Congress changes the law to change the way courts have interpreted the law, you must meet this burden. You have a good case based on the information you gave here, but you will need to prove it all. Seek the help of a local attorney.
Mitchell Goldstein is an attorney licensed in Virginia. His practice focus is consumer bankruptcy, mortgage and debt defense and technology issues. He is a proud member of the National Association of Consumer Bankruptcy Attorneys (NACBA) and National Association of Consumer Attorneys (NACA). His goal is to educate people with solid advice and give guidance to consumers to help them made decisions that impact their financial well-being.
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.