My wife took out an original student loan for $20,000 in 2007 and I cosigned. Then the bottom fell out during economic crisis at the time and we were forced to file chap 7 BK in 2009/2010 when my income was nearly cut in half.
Next, my wife went through major surgery and was disabled for several years. By the time Sallie Mae caught up with me as we couldn’t communicate during the BK period, not to mention that was the last thing I was thinking about, the loan had increase to $27,000 with interest and penalty.
I settled out this finally with a $165/month payment which was represented as a full time payment for 20 years or so. I could handle that barely but what I could not handle was the overnight increase in payment of $100/month up to $269/month plus the $7000 in penalty plus all the other student loans I cosigned for and still trying to pay for.
We have no health insurance, no savings and no assets. My wife never got her degree and is so weak today she cant do much with it anyway. Plus they are now hitting my credit with derogatory because I cannot make the higher payment.
God forbid I should need a car for business as I drive a lot to make a living and cannot get one due to yet one more negative credit hit. Is there any relief for this white Anglo under these distressed situations? Appears not.
I was told by my attorney that I could not discharge in BK. I owe everyone in the world money from the BK period and this is too much. Furthermore the online school my wife gave all this money to, I believe are fraudulent. How do I even begin to address that?
How do I get out of this insanity? Thanks so much for any advice.
I can’t believe you actually say, “Is there any relief for this white Anglo under these distressed situations?” Wow, that really hit a nerve with me.
To begin with, in the grand scheme of things I’m a nobody, just a white guy with expertise in consumer debt issues. So what follows are just my thoughts and opinions, you can take them with a grain of salt if you want.
So here goes. Buckle up.
Who the fuck cares if you are white? I don’t give a shit if you are green, purple, or pink. I help everyone regardless of race, religion, or sexual orientation. And I will help you as well because you are someone in trouble. Not because you are a “white Anglo.”
Debtor’s Lives Matter
Financial problems and income hurdles are not exclusively race specific but minorities face more hurdles than white people. Because you are white does not mean you are afforded any special or additional options either from a debt relief company or under the law of consumer bankruptcy.
There is not a damn thing that makes your debt any more special because of your race and like everyone else, you are entitled to nothing in life. As I said in my book, “The only thing you are entitled to in life is…let’s see…nothing.”
But you can take action to deal with the situation. You are not entitled to help, but help is available for all people and not because you are a white Anglo.
You want some cold hard reality, how about the fact that looking forward, you should expect less financial opportunity as crazy ass politicians close borders and limit international trade. Just ask the Chamber of Commerce or any one of a number of economists, or say the International Monetary Fund Managing Director.
“A new analysis concludes Donald Trump’s economic proposals, taken at face value, could produce a prolonged recession and heavy job losses that would fall hardest on low- and middle-income workers.” – Source
And this bullshit thinking people have about America is the only country suffering from less opportunity is so narrow minded and just flat out ignorant.
The things that have struck you are situations that we could have easily solved as a country, decades ago. Private student loans could have been manageable or a lot less like a financial hangman noose. But banking lobbyists have a tremendous amount of power and fight reform.
And let’s take your drowning in medical debt. The medical system in America is utterly broken. Having run medical practices myself and lived in Europe and used nationalized health care, I can completely assure you that a safety net of a government run health service would be lightyears ahead of what is available in America.
If you want to make America great then I would quickly get behind student loan reform and medical insurance reform. Otherwise, you and everyone else who is going to fall into the declining income and opportunity bucket is going to experience a lot more of the misfortune you have had. Your children should except less as well.
Debt without degrees and unexpected illness will KILL the financial future of many. And lobbyists and politicians have put the Constitutional right of people to get a fresh start under the law through bankruptcy for student loans, behind big walls. And guess what, those Congress people and lobbyists are primarily white Anglos. So enjoy what your white Anglos gave you.
When it comes to your student loans, you didn’t say if they were federal or private so I can’t give you any specific advice. However, if these are federal loans you have a lot more options and if the school was fraudulent then you can look at a Borrower Defense claim to forgive the debt. If this is private student loan debt you will need an attorney to press for a discharge of the debt in your bankruptcy because it might not be protected. See this.
But remember this moving forward, when you co-sign for a debt you accept 100 percent of the liability for the debt if the borrower does not pay. Don’t do that again.
It sounds to me like you could benefit from another bankruptcy filing to get some legal protection and breathing room. I would suggest you talk to a bankruptcy attorney who is licensed in your state and talk about Chapter 13 protection since it is too soon to file for a Chapter 7. And if you have not done it yet, go to Benefits.gov and find out what public benefits, including Medicaid, you may be eligible for.
Whew, all that being said, you can always come back and ask for more help but don’t you ever pull that entitled “white Anglo” shit with me again. All debtor lives matter to me.