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“Is There Any Relief for this White Anglo Under These Distressed Situations?”

Written by Steve Rhode

Question:

Dear Steve,

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.

God bless,
Aaron

Answer:

Dear Aaron,

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.

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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.

The middle class in America is going to shrink and we could change things by raising taxes on the wealthy or adjusting tax rates as Warren Buffet and other 1% people suggest. Bonus reading and more.

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.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.





About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

18 Comments

  • Well there. Let’s get the facts straight. “The Bankruptcy Reform Act of 2005 straight-out exempted private loans from bankruptcy and from the normal business risk of loan default. Lenders could levy whatever terms they wanted on student and parent borrowers, and threaten them with permanent servitude if they couldn’t pay.” And who signed the law, George Bush.

    I was actually playing a role in fighting the legislation and it was not signed during the Clinton administration after years of lobbying. It took till Clinton left office that Bush passed the reform act that placed significant hardships on people with private student loans.

    • It was the Higher Education Act of 1998 [as signed by former President Bill Clinton] that set the ball in motion, and caused significant and long-lasting harm to both past and current students (and to the system of higher education, as a whole), though. That simply cannot be denied — and any attempt to try to deny it would have to be based solely upon political bias and opinion, rather than truth and a genuine desire for transparency and honesty.

      Moreover, you neglected to mention the following, in your response:

      “Mrs. Clinton took a strong interest in the fate of the bankruptcy legislation, and President Bill Clinton vetoed it in late 2000. But its supporters pressed on, and in 2001, as a senator from New York, Mrs. Clinton was among 83 senators WHO VOTED IN FAVOR OF overhauling the bankruptcy system, a group that included 36 Democrats.

      Ms. Warren later cited Mrs. Clinton’s campaign fund-raising from the banking industry as a factor in her vote.”

      [Emphasis added]

      From: http://www.nytimes.com/2016/02/07/us/politics/the-vote-for-bankruptcy-reform-that-haunts-hillary-clinton.html

      Furthermore, Senator Hillary Clinton chose NOT to vote with regard to “The Bankruptcy Reform Act of 2005”, thereby directly aiding in its passage.

      [Her stated reason(s) for not voting were of a highly questionable nature, and, as such, many citizens and political leaders had a legitimate reason to believe that her close ties to the banking industry led to her final decision. In other words, had she voted against it, she would be betraying her close associates and donors in the banking industry.]

      Since you were playing a role in fighting this legislation, I’m certain that you must be aware of all of that…yet, for some reason, you made the choice to totally omit any mention of her personal role in the matter.

      Why?

      Was it a sincere omission, based upon a momentarily lapse in memory, perhaps — or are you deliberately attempting to “cover-up” Hillary Clinton’s involvement in the legislation, as a means of promoting your preferred candidate and manipulating the political opinion(s) of your readers?

      That’s a very sincere question. I think your readers (people like me) deserve to know whether your advice and recommendations are 100% truthful and unbiased, or whether they are tainted by your personal political inclinations.

      (I’m honestly not trying to be argumentative or hostile; I’m just sincerely perplexed by your defense of the Clintons, with regard to this subject. The statements and opinions that you have been expressing, here, simply do not appear to reflect or support the best interests of your audience in relation to matters of debt and the predatory nature of the financial/banking industries.)

      On a side note, Hillary Clinton’s inappropriately close relationship with Wall Street likewise cannot be denied — though I did notice that you did not attempt to do so, in your comment (very likely because it is thoroughly indefensible, on all levels).

      So, in conclusion…Was former President George W. Bush involved in corrupt activities and legislation, during his presidency? Absolutely. Does that somehow excuse Hillary [and former President Bill] Clinton’s repeated involvement in corrupt activities and legislation, throughout all of her years as a political figure — or her direct role in causing harm to American borrowers? No, of course not.

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