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The student loans can not be discharged via any bankruptcy , if a person is consider disabled and receives SS disability then it's a possibility.
She needs to "rehabilitate " her student loans which means she has to make minimum monthly payments based on her income for 10 consecutive months and no late or missed payments . Once she had done that the garnishment will stop and she can apply for a income based repayment plan . That's they only way ....
There are possibilities to have them reduced or payed by taking a certain government jobs , making regular payments for 10 years and the the rest is forgiven.
Pretty sure she can't do anything but pay the garnishment until the loans are rehabilitated .... Call the student loan people ASAP ......they will work with you to figure it all out , ignoring it gets you nowhere
I thought you had to make 9 timely payments in 10 months.
Tell her to call an attorney in regards to the bankruptcy but she needs to be aware that student loans cannot be discharged in a banruptcy.
She also needs to contact the companies that hold the note for the student loans and set something up with them in regards to getting those straightened out.
She also needs to find a good solid financial plan that she will follow and start paying down her debt.
She needs to get a second job and put all of that money toward debt.
She needs to sell absolutely anything and everything that is worth anything that she owns and put all of that toward her debt.
Depending on where she lives she may need to find a roommate or move to a less expensive area and take the money she saves on rent and put it toward her debt.
Is she still legally married? If so, his income will probably be included in any chapter 13 calculations and he could be responsible for some of her debts. What a mess. If she goes to a BK attorney, she should probably ask him to go along because this could affect him.
Good lord... 30k car loan buy only 62k in student loans after defaulting?!?! Priorities.... Stop having babies too. She will not be able to get the student loans discharged in a bankruptcy.
Thanks all - I was afraid that would be the consensus. I will tell her to talk to a bankruptcy attorney ASAP. Hopefully her employer can recommend someone. To say her situation is complicated is the world's biggest understatement - I left quite a bit out, even.
She's a mess, but she's my best friend and I love her. And she's never once asked me for a dime (not that I ever have it to spare), just for advice and support.
Oh, and to answer a question I saw a few times - yes, she is still legally married, but haven't been together for a few years. Just never did anything about it. They're planning on filing sometime this year, I think, and then she and her current bf will get married. lots of stuff tangled up in here. But somehow everyone gets along. Wierdest situation ever.
So. She wants to file a Chapter 13 bankruptcy, claiming hardship and trying to have the student loans discharged.
Not gonna happen; student loans are protected from bankruptcy. Also, it isn't considered a hardship when you're a dumbass and got yourself pregnant by two different people when you didn't have a job.
I wouldn't go bankruptcy at this point. I would do 1 step at a time.
First off...find away to get rid of this car ASAP. That should be the simplest thing before she stops paying on that and it gets repoed.
I would try my best to facilitate a divorce and break free from her husband as that makes things even more complicated.
If you look at the top of the mountain you will never get there. Look at the first step and take it.
Cut every expense possible and live on nothing and get on a strict budget. Financially she can get through this but she needs a strict plan she can stick to. I wouldn't bother with bankruptcy...its just another kick in the face.
She has the ability to make more money and that needs to be done as well. A full time job making 60K a year changes her life. You are gonna have to put the kids in day care until you clean up the mess.
Oh yeah 2 words...Birth Control. No more kids now...I am sure the household is already stressed out. No need for more babies.
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