Here is my situation.
I'm a U.S citizen divorced by an English court in 2003 from my American ex-wife. As part of the divorce settlement, I was forced to take over her student loans. They are consolidated and we are both co-signers on the loan. At the time, the balance was around $180,000. She is an RN with a master degree in Nursing Science, but was not working at the time of the divorce. Subsequent to the divorce, I paid $60,000 toward the loans. In 2003, I left England and moved to Costa Rica. In 2005 I started deferring the loans as I had been paying them from my savings and my savings was gone. In 2009 a fire destroyed by restaurant business (I was a minority owner with my girl friend). Now, I'm broke and I had stopped making the deferment requests after the fire as I realized I am never going to be able to pay them off.
I have done some research on hardship discharge, and I'm aware of the two tests (Brunner and Totality of the Circumstances). From what I read, if a court applies the Brunner test, it is almost impossible to win discharge. Totality there is a chance). I have not lived or worked in the U.S. since 1999. I have no assets in the U.S. I don't plan on returning to the U.S. (other than to visit family) for the next 5 to 10 years - if ever). All the student loans were originated by my ex-wife (who now makes a 6 digit salary back in California). I passed the bar in California, but no longer have any connection to the state. In addition, I would have to come up with about $3,000 to reinstate my bar status as active, plus complete additional CLE classes at additional cost. I'm broke and don't even have a bank account. In addition, I practiced International Project Finance. I am unemployable as a lawyer other than any lawyer just leaving law school.
In addition to this, I have a family in Costa Rica. The mother of my son is not a U.S. resident and doesn't wish to live in the U.S. Therefore, if I were to return to the U.S. I would have to leave my son. The average Costa Rican salary is around $600 a month.
I have no other debt. The outstanding balance is around $128,000. I am currently in default as I haven't asked for another deferment.
Here are my questions:
1. Is there any chance of having my federal student loans dismissed in either Chapter 7 or Chapter 13? I would file in CT where my family lives. Does anyone know what test the 2nd District applies (Brunner or Totality of the Circumstances)? If I'm going to apply for a hardship exception, which is recommended).
2. As a lawyer, can I file my own bankruptcy petition? As I mentioned, I'm broke and don't have the money to pay a lawyer to do it.
3. The Student Loan Servicing Center states that my loans can be directed to private collection agencies. With no assets in the states (or anywhere else), this isn't much of a threat, but I wonder how this works. Does the federal government wait for you to produce some assets that "wakes up" their collection department. Does anyone have experience dealing with them in this regard?
4. Two other options are: 1) my ex is a co-signor on the loan. Should I remind them of this? This would create a claim for her against me based on divorce settlement (from an English court), but perhaps that can be discharged in Bankruptcy?; or 2) see if I can start deferring the loan again and hope for a change in the law.
All responses are greatly appreciated.
Thanks,
JR
I'm a U.S citizen divorced by an English court in 2003 from my American ex-wife. As part of the divorce settlement, I was forced to take over her student loans. They are consolidated and we are both co-signers on the loan. At the time, the balance was around $180,000. She is an RN with a master degree in Nursing Science, but was not working at the time of the divorce. Subsequent to the divorce, I paid $60,000 toward the loans. In 2003, I left England and moved to Costa Rica. In 2005 I started deferring the loans as I had been paying them from my savings and my savings was gone. In 2009 a fire destroyed by restaurant business (I was a minority owner with my girl friend). Now, I'm broke and I had stopped making the deferment requests after the fire as I realized I am never going to be able to pay them off.
I have done some research on hardship discharge, and I'm aware of the two tests (Brunner and Totality of the Circumstances). From what I read, if a court applies the Brunner test, it is almost impossible to win discharge. Totality there is a chance). I have not lived or worked in the U.S. since 1999. I have no assets in the U.S. I don't plan on returning to the U.S. (other than to visit family) for the next 5 to 10 years - if ever). All the student loans were originated by my ex-wife (who now makes a 6 digit salary back in California). I passed the bar in California, but no longer have any connection to the state. In addition, I would have to come up with about $3,000 to reinstate my bar status as active, plus complete additional CLE classes at additional cost. I'm broke and don't even have a bank account. In addition, I practiced International Project Finance. I am unemployable as a lawyer other than any lawyer just leaving law school.
In addition to this, I have a family in Costa Rica. The mother of my son is not a U.S. resident and doesn't wish to live in the U.S. Therefore, if I were to return to the U.S. I would have to leave my son. The average Costa Rican salary is around $600 a month.
I have no other debt. The outstanding balance is around $128,000. I am currently in default as I haven't asked for another deferment.
Here are my questions:
1. Is there any chance of having my federal student loans dismissed in either Chapter 7 or Chapter 13? I would file in CT where my family lives. Does anyone know what test the 2nd District applies (Brunner or Totality of the Circumstances)? If I'm going to apply for a hardship exception, which is recommended).
2. As a lawyer, can I file my own bankruptcy petition? As I mentioned, I'm broke and don't have the money to pay a lawyer to do it.
3. The Student Loan Servicing Center states that my loans can be directed to private collection agencies. With no assets in the states (or anywhere else), this isn't much of a threat, but I wonder how this works. Does the federal government wait for you to produce some assets that "wakes up" their collection department. Does anyone have experience dealing with them in this regard?
4. Two other options are: 1) my ex is a co-signor on the loan. Should I remind them of this? This would create a claim for her against me based on divorce settlement (from an English court), but perhaps that can be discharged in Bankruptcy?; or 2) see if I can start deferring the loan again and hope for a change in the law.
All responses are greatly appreciated.
Thanks,
JR
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