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apples said:
I'm not sure if bankruptcy includes student loans...

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NewbieShroomie said:
I read that depending on the situation (ex: If my student loan company is asking for an unreasonable, exorbitant sum it may get tossed) my student loans may disappear with the credit card debt. 

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NewbieShroomie said:
my shitty ITT Tech experience

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Brasco said:

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NewbieShroomie said:
my shitty ITT Tech experience

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God, I'm so sorry for you.  Technical schools are scams and you are not the first person to have to go through bankruptcy because of them.

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It could always be worse, but thanks for the sentiment. 

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johnm214 said:
Whoa,

1.  What is the benifit of filing for bankruptcy?  Have you figured it out?  I mean what do you have that they are taking or could take from you if you don't?


2.  If there isn't anything, then why file?  Bankruptcy is reported on your credit report for 10 years whereas debts are reported for 7 from the date of last payment.  So you are starting the clock over PLUS three years by filing- and then even longer as it only starts on discharge.


So if you have nothing to protect from seizure then why file?  Why not just wait?


Is the student loan federally guarenteed?


If the loan isn't dischargable anyways, then I'm not sure what bankruptcy can do for you.



Ask your lawyer:

1.  What is the advantage to filing for bankruptcy in my situation?


If you don't make enough to get your wages guarnished and have nothing seizable then why would you worry about it?


Make sure there is an advantage first (i.e. like you have judgments or something that can be renewed or something).

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Good advice.  If you have little to loose, why file.

I know this would be horrible, but even if they garnish your wages, a 2nd job that pays under the table could work.

I knew a man once who got divorced, his wife (who made more money than he did) filed for "spousal support". 

He ended up working at a grocery store on the weekends because he explained his situation to the store manager and he got paid under the table.  And he got a really good deal on food

Keep us posted.

Lana

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NewbieShroomie said:
I guess I should gear my questions with the lawyer more toward, "Can you stop the phone calls?"  "Can you lower my payments?"

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I told him I was worried about my $11,000 becoming $15,000, $20,000, and so on if I just keep ignoring them, but doesn't it go away after 7 years or so anyway? 

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Your creditors might decide to write off your balances due as "bad debt," but this is not guaranteed.  Perhaps you were thinking of the credit reporting rule in which negative reports drop off your credit report after 7 years of inactivity?  If a current debt exists, and the company neither writes it off nor stops reporting it to the credit bureaus, it can remain on your report until paid in full.

Have you considered going to Consumer Credit Counseling?  They can be very helpful, and will often waive their small fee if your budget is limited.  I went to them years ago when I was over my head with debt, and they helped me make a HUGE turn around.  They negotiated low or no interest with all my credit cards, had the accounts "re-aged" (no more late fees & bad reports to the credit bureau), helped me figure out a budget for full repayment, and handled all the payments electronically so ensure that they were made on time.

Bankruptcy is so expensive, and it is a serious black mark on your credit for the next decade.   If you can manage to handle your debts through CCCS, you can avoid all of that.  It's worth a shot.  You can always file for bankruptcy later if you cannot manage the plan CCCS negotiates for you.

I am so so so so SO glad that I did not file for bankruptcy back then, because I would not have been able to buy my first home in 2008 with a bankruptcy on my credit report.  I got such a sweet deal on the price AND the interest rate, and I would have been kicking myself if I missed out on that opportunity.

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Veritas said:

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I told him I was worried about my $11,000 becoming $15,000, $20,000, and so on if I just keep ignoring them, but doesn't it go away after 7 years or so anyway? 

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Your creditors might decide to write off your balances due as "bad debt," but this is not guaranteed.  Perhaps you were thinking of the credit reporting rule in which negative reports drop off your credit report after 7 years of inactivity?  If a current debt exists, and the company neither writes it off nor stops reporting it to the credit bureaus, it can remain on your report until paid in full.

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johnm214 said:

Basically the statute of limitations and the credit reporting dates are things that will help you.  It kinda depends on where you are though, so what state are you?  For instance, some states the debt doesn't exist after the statute of limitations and I believe most the debt does exist but the statute expiring is an affirmative defense to it.

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Veritas said:
The law regarding statutes of limitation only applies to the time  in which the creditor may opt to sue to collect debts.  If the creditor takes NO legal action, then they will be unable to legally pursue the debt once 5-7 years have passed without activity. 

This does not mean that the debts will automatically "go away" if you ignore them for 5-7 years, which is what the OP was suggesting.  Creditors will usually send the debt to a collection agency, and the agency will decide whether to pursue a money judgment.  If they decide to do a charge-off & write it off as a bad debt, then it will effectively "go away" in seven years.  If they obtain a judgment, they can continue to renew it until the balance is paid in full.  They can also report you as delinquent in paying the judgment as long as the judgment is current.

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Veritas said:
Did I say anything about subsequent creditors? 

The statute of limitations starts on the date of last activity, not on the date the account is first reported to the credit bureau.  IOW, if I opened a Sears charge account in 1991, it was reported delinquent in 2006, and I made payments on it in 2008, the clock starts ticking in 2008.

Maybe we're talking about the same thing?

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Ojom said:

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Veritas said:
Did I say anything about subsequent creditors? 

The statute of limitations starts on the date of last activity, not on the date the account is first reported to the credit bureau.  IOW, if I opened a Sears charge account in 1991, it was reported delinquent in 2006, and I made payments on it in 2008, the clock starts ticking in 2008.

Maybe we're talking about the same thing?

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I haven't fully comprehended this whole post so this may be a bad place to jump in, but this makes little sense to me. It may be the way it is, but its just retarded. It seems to indicate that the sooner you STOP paying on a debt the sooner it can "go away" which provides little motivation for one to continue paying on a debt.

And you've probably said before in another thread, newbieshroomie but how much do you owe to salliemae that they want $400 a month from you? My wife owes almost $30k in student loans and pays less than $300 a month. Is ITT really that freaking expensive?

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Redstorm said:
I can't really give you any advice on credit scores rising over time, but I just wanted to let you know it's been awesome to see you work this out over time. I realize it's been a pain in the ass, but it's real commendable to take control of your life the way you have been doing. Congrats, man. You deserve it.

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Money problems are definitely in the top three of the list of shitty situations to get yourself into. 

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