QUESTION
Is it possible for me to file bankruptcy if I currently owe over $150,000 in private loan debt?
Asked on May 09th, 2017 on Bankruptcy - Nevada
More details to this question:
My federal loans are on forgiveness status. I also have loans at variable interest, and can't seem to consolidate them, because my school lost its accreditation and closed after I graduated. I'm paying nearly all my income other than a car payment of $250 a month to my loans and had to move in with my parents. The variable interest loans have since risen in interest making it even harder to pay, and out of nearly $500 a month (for just two of the five loans I have), only approximately $50 is going to the actual principal. I own nothing other than my car to get to work and a computer. I want to use to do a graphic design startup but no time due to the two jobs to pay anything I can on my loans.
3 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The $150,000 debt is no obstacle to filing bankruptcy. This may make it easier for you to pay your student loans, which are not dischargeable in bankruptcy (unless you are virtually disabled). The student loan people at the department of education in GC have a number of programs that could make payment easier for you. I think when you wrote the word forgiveness in your question, you meant forbearance, which is a different thing. I suggest that you call the department of education in DC and asked to speak to the Office of the ombudsman.
Answered on Aug 02nd, 2017 at 7:34 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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If you are sure that they are fully 100% private, you maybe able to get out of them with bankruptcy. You have to be sure that the loan is not made or insured or guaranteed by a governmental unit or made under any program funded in whole or in part by a governmental unit of nonprofit institution.
Answered on Aug 02nd, 2017 at 7:33 AM
The student loan debt does not factor into your decision to bankruptcy. Unless you are seriously disabled, bankruptcy will not affect these loans. Sure would have helped to offer you some concrete advice had you said whether you have any other debt that might lead me to say whether or not bankruptcy is worthwhile.
Answered on Aug 01st, 2017 at 9:46 AM