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 NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 53 seconds
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 I think I may need to go bankrupt. I have some questions.
#8610750 - 07/08/08 11:52 PM (4 months, 25 days ago) |
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So here's my situation:
Somehow I managed to make extremely poor decisions with my money. I have a $7500 credit card I'm paying off. I also have a $1800 credit card I'm paying off. I totaled my car the other day and I need to save for a new one. And the whopper of them all is my $35000 sum of loans I owe to Sallie Mae for my bullshit stay at ITT Tech.
I can handle the credit cards, my phone bill, gym membership, and still be able to save for another car. The thing is, Sallie Mae is telling me I can't defer payments any longer, and they're all coming into repayment status. Some of the monthly payments include about $500 in late fees, $250/mo payments, etc. I don't even really full understand the different loans.
I can't pay them, flat out. I won't be able to for a very long time. I don't think I should even have to pay them because of the disgusting way ITT Tech conducted their business, but regardless, I couldn't pay them if I wanted to. My dad has helped me so much in the past I couldn't ask him for money. To be honest, he doesn't even have the money. I make more money than him and I'm still relying on him for simple shit like gas and FOOD. It's pathetic and I need it to stop.
I just wrote my grandfather, pretty much the only other person I can turn to for money, and I didn't even specifically ask for money because it's too hard for me to do, but I made my financial situation known. I'm hoping for some relief there, but I really don't expect anything. I don't know what else to do. I've hit a pretty scary point in my life and I really need some direction. Is bankruptcy an option for me? I'm 22 years old so I figure better sooner than later.
I'm going to call a counselor from Sallie Mae tomorrow, as I coincidentally received an email about having trouble paying my loans back. I'm going to tell them how I honestly don't have the means to pay yet, I want to consolidate, and I need my payments lowered or there's absolutely nothing else I can do.
What are my options, if any? I need to find the light at the end of this tunnel soon. It's been plaguing me for far too long and it's time to change. I know it's a little late to be realizing this but I need help. 
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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MHbound
Ballin Out At All Cost
Registered: 09/24/07
Posts: 4,197
Loc: Under The Rainbow
Last seen: 5 hours, 49 minutes
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 Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8610800 - 07/09/08 12:06 AM (4 months, 25 days ago) |
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I don't think they let people file bankruptcy anymore. Not sure on that had someone tell me that. Goto someone who does this for a living. Yes they are going to charge you, but they will save you money in the long run. They will work to consolidate, or do whatever it is they think you need. Sometimes get your credit card debt cut back by simply saying if you don't work with us there is no way you will get your money back. I know through my sister she filed for it, but still had to pay back some stuff to keep from ruining her credit completely.
How bad was ITT Tech? What do you mean how they conducted their business? I had a friend who said he is learning quite a lot there.
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 53 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: MHbound]
#8610828 - 07/09/08 12:12 AM (4 months, 25 days ago) |
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All of my teachers struggled HORRIBLY with English, and they'd print out tutorials on the programs and make us teach ourselves. I can do that for FREE, right here in my own home. The textbooks were full of errors, the Dean wouldn't take action on my complaints, and I was finished my work in a shorter amount of time than it took to drive to the school.
Example.
Mr Chen: "Fuhss you hoffa senzudduh sape bi lamba, ennen senzada materby"
Translation: "First you have to change the shape by number, then change the material"
No lie, that's EXACTLY how he sounded. (I do impressions  )
He'd babble for 10 minutes then pass out a 3DS MAx tutorial for us to work through.
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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MHbound
Ballin Out At All Cost
Registered: 09/24/07
Posts: 4,197
Loc: Under The Rainbow
Last seen: 5 hours, 49 minutes
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8610843 - 07/09/08 12:16 AM (4 months, 25 days ago) |
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Yea he is doing the ISS program which really is the only fucking thing they should be doing, or are qualified to be doing. The school he is attending is very close to the University of Birmingham which is really one of the best Medical schools in the south. They have several teachers from there I guess thats a difference...He has run into several of the teachers that speak some other languages.
I'll ask my sister for you I really don't think you can file for bankruptcy...I may be wrong there though.
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 Lana
Head Banana
Registered: 10/27/99
Posts: 2,579
Loc: www.MycoSupply.com
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8612177 - 07/09/08 08:59 AM (4 months, 24 days ago) |
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If you're in a pickle, ask your debt counselor at Sallie Mae what would happen if you paid an amount of money monthly BELOW the minimum amount. I've heard that with school loans and medical bills, as long as you're paying SOMETHING your credit won't get completely ruined. Instead of paying $500 a month, pay $10.00
As for your credit cards, thats simple. Settle.
Settling a credit card debt is easy but you can only do it once. Call your credit card company and ask to speak with someone who you can settle your outstanding debt.
Say you owe $7500.00, call up and say very nicely that you're going to go bankrupt and that you'd like to settle your debt now. What they'll do is make you an offer, they may say that they'll settle your debt for $1000.
At that time you MUST have the money in your checking account because they will pull it out that day. At that time you are no longer obligated to pay your debt off from that one particular credit card company. BUT, you can only do it once and you'll never be able to deal with that company again. Basically you'll get blacklisted and they won't accept any credit applications from you.
If a creditor knows that you're going bankrupt, they want their money, ANY money that you're willing to give before your lawyers eat up their profits.
If you go this route, pay off your largest credit card debt so that the smaller ones are so hard to manage.
As for ITT Tech and many trade schools. I hate to say it but, now you've learned a valuable lesson. Universities, colleges and trade schools are all big business. Period.
Good luck. If you need anymore help PM me.
Lana
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Myco Supply - Distributors of Mycological Products
http://www.MycoSupply.com
The Premiere Source for Mushroom Growing Supplies.
Visit us online or call us toll free
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Veritas
Registered: 04/15/05
Posts: 10,379
Loc: PNW
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8612216 - 07/09/08 09:18 AM (4 months, 24 days ago) |
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First of all, student loans cannot be discharged by bankruptcy.  You may be eligible to consolidate your loans, which would likely lower your monthly payment. Some programs have different payment plans, including "income contingent," in which your monthly payment for the year is calculated based upon last year's income. The payment would be adjusted annually, but usually will be lower than the payment you'd owe under a standard payment plan.
You may be able to discharge your consumer debt via bankruptcy, but I strongly advise against it. Instead, go to Consumer Credit Counseling & let them help you figure out a budget. They will use your budget figures to negotiate with your creditors for lower payments AND lower interest rates, and they will process your payment each month. Your payment will be applied to the highest-interest debt first, with smaller payments to the lower-interest debts. Once the #1 priority debt is paid, they roll that amount into the next-highest interest card payment.
Bankruptcy is BAD NEWS. Everyone who pulls your credit report for the next 7 - 10 years (depending on the type of bankruptcy filing) will see this black mark on your credit. Landlords, employers, banks, potential lenders, etc...do not want to deal with someone who has filed for bankruptcy.
By contrast, handling debt through CCCS is NOT a charge-off, so it will not show up on your credit report. Asking your credit card companies to "settle" will result in a charge-off on your report, and this will be visible for up to 7 years. Again, potential creditors do not want to deal with someone who has charged-off their legitimate debt in the past.
I wish you well. I was in a similar situation 7 years ago, and was able to pay off all my consumer debt. CCCS is an incredible organization, so I recommend them highly. After years of struggle and financial rehabilitation, I purchased my first home this year. Had I filed for bankruptcy when my debt situation became unmanageable, I would not have been able to obtain a home loan now. I hope that you will be able to resolve your difficulties & get on track to achieve your own financial goals.
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No man is free who is not master of himself.
~Epictetus.
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Seuss
Error: divide byzero
Registered: 04/27/01
Posts: 16,838
Loc: Caribbean
Last seen: 29 minutes, 18 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Veritas]
#8612239 - 07/09/08 09:25 AM (4 months, 24 days ago) |
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Listen to the above by Veritas. Spot on.
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Just another spore in the wind.
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 53 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Veritas]
#8612285 - 07/09/08 09:39 AM (4 months, 24 days ago) |
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I just called Sallie Mae and I only have 4 months of forbearance time left. They want a good faith payment of $240 and a fee of $100 to do so, but that really won't help me too much. Do I need to call back again and insist on an extended forbearance? They told me I have about 40 days left before they report to a credit bureau.
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8612507 - 07/09/08 10:49 AM (4 months, 24 days ago) |
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I also just spoke with my big credit card company and they said since I made a $650 payment last month (thanks to my Dad) my next payment of $215 by the 13th will bring my account current and my monthly fees will remain in the $200 range. If I pay a little more than $215 will it lower the payments even more? It's a bit of a weight off of my shoulders but I'm not out of the woods yet.
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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Veritas
Registered: 04/15/05
Posts: 10,379
Loc: PNW
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8612800 - 07/09/08 11:50 AM (4 months, 24 days ago) |
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You may have better luck getting info from their website:
http://www.salliemae.com/after_graduation/
Sallie Mae allows both forbearance and deferment, so you may be able to either extend your forbearance OR ask for a deferment due to economic hardship. You should be able to log on to your account through their website & find out if you are eligible to delay payments through one of these methods.
With regard to your credit cards, the minimum monthly payment will be slightly lower as your balance due is reduced, but paying the minimum usually does not reduce your principal balance. If you are paying interest-only each month, the monthly min. payment will remain the same.
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No man is free who is not master of himself.
~Epictetus.
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Veritas]
#8612835 - 07/09/08 11:58 AM (4 months, 24 days ago) |
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Gotcha. I did browse through their deferment section but it was really confusing. After work tonight I'll have to really sit down and study it. Thanks for the advice. 
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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Penguarky Tunguin
Allspace in a Notshall
Registered: 08/08/04
Posts: 11,170
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8614317 - 07/09/08 06:57 PM (4 months, 24 days ago) |
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Why don't you go back to school and apply for an in-school deferment on your school loans? You could probably go for free if you're in the right income level/FAFSA thing.
That's why I do. I went back to school, get enough grants that I go to school for free, take out stafford loans to support myself, work part-time and go to school full time while paying off some of my previous degree's interest.
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Every mistake, intentional or otherwise, in the above post, is the fault of the reader.
"But the world, mind, is, was and will be writing its own wrunes for ever, man, on all matters that fall under the ban of infrarational senses..."
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Penguarky Tunguin]
#8614805 - 07/09/08 08:31 PM (4 months, 24 days ago) |
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I would, but this would be my third time applying for a loan. I already owe $35,000 in loans, I don't want any more. I'm kind of scarred from the secondary schooling experience. Besides, in my line of work I'm always around the newest PC technology and we get trainings as well. If I need to learn something I'm more than capable of teaching myself through research. It's just these financial terms and conditions that are alien to me.
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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Lana
Head Banana
Registered: 10/27/99
Posts: 2,579
Loc: www.MycoSupply.com
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Re: I think I may need to go bankrupt. I have some questions. [Re: Seuss]
#8616480 - 07/10/08 08:08 AM (4 months, 23 days ago) |
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Quote:
Seuss said:
Listen to the above by Veritas. Spot on.
Yes... I stand corrected 
Listen to Veritas
Lana
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Myco Supply - Distributors of Mycological Products
http://www.MycoSupply.com
The Premiere Source for Mushroom Growing Supplies.
Visit us online or call us toll free
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Lana]
#8617142 - 07/10/08 11:48 AM (4 months, 23 days ago) |
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I checked out their website again and I applied for a deferment, which it seems I was making it harder than it was. They said I was pre-approved but needed to mail in paystubs and a transmittal form. I also included a letter:
To whom this may concern:
I am writing to clarify my situation.
It was brought to my attention that I am delinquent in my repayment, and that is far from my intent. I was also advised that I have almost run out of forbearance time, so I am seeking an alternative method to post-pone my repayment.
I am applying for a deferment due to an acute economic hardship. I am willing, but very unable to pay my loans back at this time. My bills, the loss of my motor vehicle in an accident, and my responsibility to pay rent to aid my father with mortgage have left me unable to make full payments to your organization. During this deferment period, should it be granted to me, I will make whatever payments I am able to on my loans. My hopes are that by the time my loans come out of deferment status I will be current and able to make said monthly payments.
Any aid you may be able to provide in postponing these payments would be greatly appreciated. As As previously stated, I am very willing to bring my account current, but it is not possible for me to do so right now.
Thank you for your consideration.
my signature
My name, printed.
Am I correct in doing this?
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
Edited by NewbieShroomie (07/10/08 12:01 PM)
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MHbound
Ballin Out At All Cost
Registered: 09/24/07
Posts: 4,197
Loc: Under The Rainbow
Last seen: 5 hours, 49 minutes
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8617227 - 07/10/08 12:07 PM (4 months, 23 days ago) |
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Yea...Those companies don't care about all of the stuff in between the lines of Hey my name is, and Bye my name is...Except for one thing, that you want to get them their money, but you can't right now. Thats all they will see, and probably gladly work with you. I would do it sooner than later since several others will be doing the same soon due to George Bush...Wait did I say that? I meant due to the economy.
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deadmeat986
Registered: 01/21/08
Posts: 198
Last seen: 10 hours, 8 minutes
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8618748 - 07/10/08 06:28 PM (4 months, 23 days ago) |
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i went through bankrubcy last year best thing i could do. only thing you could do is call each lender and see if you can get the amounts lowerd or settle? if not then file bankrupcty or tell them you are going to file and see you can work something out. the stundent loans you CAN NOT get rid of sorry have pay anything like that back. If you make less then 40k you can file chapter 7 but if you have more then 15k in items that stuff has to be sold or you will file under chapter 11.7 is free and clear. 11 is you pay as much as you can in 3 years then the rest is gone.Any extra money goes to bills sorry. get a lawyer. bite the bullet.
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"Whoever appeals to the law against his fellow man is either a fool or a coward. Whoever cannot take care of himself without that law is both. For a wounded man shall say to his assalent, "If I live I will kill you, if I die you are forgiven". Such is the Rule of Honor."
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8651410 - 07/18/08 02:35 PM (4 months, 15 days ago) |
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Those fuckers denied my deferment, so I wrote them another email informing them that I flat out CANNOT make the requested payments. I told them it's unrealistic to expect me to be able to afford a $200, $300, and a $700 payment in a month, as well as the other 3 loans I have on forbearances (when they come back into repayment). I also said I'm willing to make smaller payments on the loans, but I'm not able to pay what they're asking.
I'm starting to get frustrated to the point where I really want to call and start screaming at them over the phone. I can't believe I even went to that school. I should have never re-entered. My financial future is fucked now.
It's almost as if I just wrote to a company and said, "Hi, can you please put me $35,000 in debt, effective immediately?" then signed it. I didn't take a single fucking thing away from that bullshit school.
God DAMMIT. 
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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Veritas
Registered: 04/15/05
Posts: 10,379
Loc: PNW
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8651432 - 07/18/08 02:46 PM (4 months, 15 days ago) |
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Have you applied for both deferment AND forbearance? It seems as though you would qualify for one or the other. I know that loan companies can be less-than-helpful via email and phone contact, which is why I posted the website. If you have not tried forbearance, you might go to their site & see if you are eligible.
Have you checked out their "income sensitive" repayment plan option? This might bring your monthly payment down to a manageable level.
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No man is free who is not master of himself.
~Epictetus.
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Veritas]
#8651436 - 07/18/08 02:49 PM (4 months, 15 days ago) |
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I've already used up all my forbearance time. I have about 3 months left. The kicker is it cost me $100 every time I had to do it. Fucking leeches. I'm going to just have to send them smaller payments, even if it means I'm going delinquent (which I am already, 14 days in). I want to at least show I'm trying.  I still need to save for a car, so I can get to work and keep my income rolling in. That's more important to me right now.
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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Veritas
Registered: 04/15/05
Posts: 10,379
Loc: PNW
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8651544 - 07/18/08 03:16 PM (4 months, 15 days ago) |
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What about changing payment plans to the "income sensitive" option? Have you checked to see how much that would lower your monthly payment? It's really much, much better to make your full minimum payment each month (credit report-wise) than it is to underpay & rack up delinquency reports each month. If you can lower your payment to a workable amount, and stay consistent in paying AT LEAST that much, your credit will not take a hit.
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No man is free who is not master of himself.
~Epictetus.
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NewbieShroomie
Registered: 07/18/04
Posts: 9,622
Loc: 'Burbs of Philly
Last seen: 23 minutes, 54 seconds
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Re: I think I may need to go bankrupt. I have some questions. [Re: Veritas]
#8651577 - 07/18/08 03:21 PM (4 months, 15 days ago) |
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To be honest I don't understand how. I'm not stupid, I'm just don't understand it. I click the link and it immediately scrolls down to a list of repayment options rather than just sending me to fill out a form. Then when I click "Lower my payments" it shows what loans qualify then there's terms and conditions out the ass.
You know:
*
**
***
+
++
+++
+**
++*
+**
It's overwhelming. I'll have to really scrutinize it, I appreciate your responses but you can only really get me so far. It's up to me to read up and get educated.
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~=-=~=-=~=-=~=-=~
Confucius say, "He who go to bed with itchy butthole wake up with smelly finger."
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Veritas
Registered: 04/15/05
Posts: 10,379
Loc: PNW
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Re: I think I may need to go bankrupt. I have some questions. [Re: NewbieShroomie]
#8651605 - 07/18/08 03:25 PM (4 months, 15 days ago) |
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Are you logged in under your specific account, or just looking at the main site pages?
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No man is free who is not master of himself.
~Epictetus.
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NewbieShroomie
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