I filed for bankruptcy in 2009 and was discharged in June 2009.
I owe approximately $60,000 in student loans that were all accrued before bankruptcy.
Naturally, none of these were included in the bankruptcy. It took about 2 years to find gainful employment, and during that time I tried desperately to have my student loans put in forbearance. Some companies worked with me, some would not.
The companies that DID work with me have been getting their monthly payments now that I am employed and the accounts are in good standing. (about half of my loans). Now, the other half have been in default for some time.
I just let them go, gave up on them, never issued a payment and never answered a phone call. This should stress me out, but it doesn’t. I let the worry go because it almost swallowed me whole! I make $30,000 a year and my husband is currently unemployed.
I don’t worry much about my credit because the bankruptcy really damaged that.
But we have to keep separate saving and checking accounts and also file taxes separately because I’m not sure what the student loam companies can do or will do.
I live in the state of OH. My question is, what are my options? Since my bankruptcy was already discharged, is it too late to try to argue undue hardship?
Will I get called to court before a garnishment is issued? How will I know if they are pursuing a garnishment? Will I have the chance to go before a judge and say “Hey, I can’t afford this!” and can the judge shut down the student loan companies and give me a break?
I have no money to offer these companies a settlement, so that’s out. Or am I doomed to have my wages garnished, one by one by the student loan companies for the rest of my life?
That’s quite a question with a number of issues.
First off, your bankruptcy does not doom you to bad credit and can easily be rebuilt, click here.
Since my bankruptcy was already discharged, is it too late to try to argue undue hardship? Yes.
Will I get called to court before a garnishment is issued? No.
How will I know if they are pursuing a garnishment? As long as you’ve maintained your current address with the student loan companies you will receive a notice. If not, they will mail the notice to the last known address.
Will I have the chance to go before a judge and say “Hey, I can’t afford this!” and can the judge shut down the student loan companies and give me a break? No. Student loan wage garnishments are an administrative affair and do not need to go before a court.
If these are government backed student loans you have some really good options to deal with them. See links below.
If they are private student loans, the only options are what the companies offer.
Let me know which type of loans you have.
Please post your responses and follow-up messages to me on this in the comments section below.