Student loan

[SeekingZero]

I'm so honoured that im allowed to keep my student loan debt. I have no way to pay this, what happens if I just don't pay it?

[justbroke]

You are honored or horrified? If you don't pay it, then the lender (or guarantor) can take steps to garnish things like your tax refunds, or even sue you and proceed under normal collection law.

If you truly have no ability to pay, due to the type(s) of employment in which you find yourself, then you could ask for an Income Based Repayment (IBR) plan, consolidation, and other tactics that others use to help heal the wounds.

[SeekingZero]

thank you. I'll ask about a deferment i suppose

[leonel9]

You generally can't discharge student loan debt unless you can prove that requiring repayment will create an undue hardship. This is often accomplished when a medical condition prevents future employment, making it impossible to be able to repay the student loans.

If it is truly impossible to repay the student loans, I would explore trying to get them discharged. Without knowing the details of your situation, it's hard to say how effective your argument would be.

[SeekingZero]

thanks. in my case my wife and i separated, and i am now left to pay all the bills, mortgage, utilities, etc. couldn't even afford the car payment. i'm driving it for "free now" and in a less than 2 months that will go, and i don't even now how to replace it. I am also at the same time now also looking at a large child support increase, huge increase, not just a few hundred. there is already not much left to cover all the other expenses, can barely buy food.

[leonel9]

If there's truly no money available to pay student loans after all basic expenses have been accounted for, and you haven't already filed, I'd talk to an attorney about the likelihood you would be able to include your student loan debt. The attorney will charge more to pursue this, as it's an additional proceeding, but depending on how much you owe in student loans,it may be worth it.

Your argument should consider not just how the debt can't be repaid now, but also why it's unlikely the debt will be able to be repaid in the future. Review this page on Nolo.com for some additional information.

[SeekingZero]

Thank you. I think, for some reason, they put in, automatically, the loan into deferment, my next payment says its not due for 12 months. Not sure if that will change after the discharge, but for now, it doesn't seem i HAVE to pay it, but should to avoid the accumulating interest i suppose.

Thanks for the info and the link

[justbroke]

Federal student loans should automatically go into deferment while you are in an active bankruptcy. From my personal experience, they'll project a date into the future. However, once discharged, they'll adjust that date. Interest will continue to accrue during this period.

[SeekingZero]

Thank you again!