QUESTION
I am 26 years old and I am almost $80,000 in debt, should I file for bankruptcy?
Asked on Feb 10th, 2013 on Bankruptcy - Michigan
More details to this question:
I have $52,138 in student loans, $19,319 in medical bills and $5,065 just in misc. debt. I don’t own anything of value, car, house, etc. I also have 3 kids and bills that total about $1200.00 a month. I make $2808.00 a month. These numbers could be higher, what can I do?
13 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Feb 15th, 2013 at 6:11 AM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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It's a personal decision. But, currently, you cannot discharge student loan debtthe far majority of your debt.
Answered on Feb 15th, 2013 at 6:11 AM
Chapter 7 may be a good option to pursue, then you would just have your student loan obligations.
Answered on Feb 14th, 2013 at 9:22 AM
William Rhymer
Based on your information it appears that you may need to file a case. A lot more information would be needed to give you a definite answer and recommendation as to what is best for you.
Answered on Feb 13th, 2013 at 7:06 PM
Based on the information provided, it would seem that you would qualify for a chapter 7 bankruptcy, however we would still want to meet with you take a bigger picture of your debt and income. Bankruptcy is for a person in your situation, that has a lot of debt and wants to start over fresh. Unfortunately, the student loans are non-dischargeable and you will still continue to pay those.
Answered on Feb 13th, 2013 at 4:48 PM
At the income level that you report you appear to be eligible for Chapter 7 relief, but such a filing will not rid you of your student loans. Accordingly, it seems that a bankruptcy discharge would rid you of approx. $24,400.00 of debt, but still leave you with the $52,000.00 (approx.) student loan obligation. If this relief seems acceptable to you, you should contact a competent, local bankruptcy lawyer to further discuss your situation.
Answered on Feb 13th, 2013 at 4:48 PM
Construction Litigation Attorney serving Mission Viejo, CA
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Law Office of Christian F. Paul
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I suggest you make an appointment to consult with a local bankruptcy attorney. Many offer a free consultation. Be sure to take with you documents to show your income (last tax return, last couple of pay stubs, etc.), a list of monthly expenses, a recent credit report and other proof of debts, latest bank statements, as well as title documents to vehicles and real property (if any). The attorney will be able to assess your situation and advise whether bankruptcy is a good choice for you.
Answered on Feb 13th, 2013 at 2:49 PM
Well, that is a tuffie. First of all, your chances of discharging your student loan debt is really quite low. Chances are you will come out of bankruptcy still owing that $52k. The medical bills and other debt would be gone. Then you might be able to afford to come out of delinquincy and get a payment plan for the student loans based on your income. As always, deciding what is the best thing to do is up to you.
Answered on Feb 13th, 2013 at 2:48 PM
There is no hard and fast rules about who should file bankruptcy and the more important question I would need to ask you is whether the medical problems that led to the large medical debt have been resolved or may continue. If you have ongoing medical problems, it would be a shame to use up your right to eliminate debts in bankruptcy only to find yourself back in as much or even more debt shortly afterwards. You probably know that unless you are so disabled that you will never work again that you won't be eligible to eliminate your student loan debt. What you should do is consult with a kind and compassionate local bankruptcy attorney for individual advice.
Answered on Feb 12th, 2013 at 4:09 PM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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I suggest you consult with a bankruptcy attorney to discuss if bankruptcy is the best option for you.
Answered on Feb 12th, 2013 at 4:08 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Student loans if state or federal are not dischargeable, rest is, so bankruptcy is option.
Answered on Feb 12th, 2013 at 4:08 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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The student loan is not dischargeable but the other debts are, but you need to qualify for a Chapter 7 with the means test.
Answered on Feb 12th, 2013 at 4:07 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See a bankruptcy attorney, the issue is going to be the student loans which are generally NOT dischargeable.
Answered on Feb 12th, 2013 at 4:07 PM