pre filing bk jam..

[DebtHater]

How old are your debts? And...I think I read elsewhere that you are in PA now? The SOL on debts in PA is 4 years. How that 4 years is counted (would it start from the actual last date of delinquency, or from the date you moved to PA), I don't know (ask your lawyer!).

I'm just sayin', if the debts are nearing the SOL, and this windfall is keeping you out of bankruptcy...if it was me I'd be asking my lawyer if there's any downside to just throwing that 40k (or what's left of it) at your student loans. It's not like you're trying to hide assets...you're just choosing to pay down a certain debt before others.

Correct me if I'm wrong, the SOL doesn't mean you no longer owe the debt, it only means the creditor is limited to their collection tactics.

[DebtHater]

What is SOL?

Statute of Limitations

[dman]

Correct me if I'm wrong, the SOL doesn't mean you no longer owe the debt, it only means the creditor is limited to their collection tactics.

Correct. I won't get into too much into SOL, and what all could reset the clock (such as, confirming that you do owe the debt).

Just saying...this isn't a case of taking the money and running. Rather, it's deciding which debt to pay off first. If it were me, I'd pay off the student loans first. Student loans will follow you around forever and can (almost) never be discharged in bankruptcy. What if you ended up having to file five years from now? If you had little/no student loan debt, and tens of thousands in unsecured debt...you'd be in a better position than if you had tens of thousands in student loan debt, and not as much unsecured debt.

I'm assuming that the OP has multiple student loans, and not just one huge one? If you're already late, they may be willing to settle for a lower amount (but don't expect 20% or even 50%). Doesn't hurt to ask.

[IamOld]

I would just only say that with student loans maybe the OP could refinance with Dept of Ed for a lower payment, deferrments (If still available for him) - those may be the loans with the lowest interest, etc.

Also, as I understand it, one SOL is up, collection agencies can try to sue you, but expiration of SOL is an affirmative and absolute defense, but it is something that YOU have to raise with the court and/or before it goes to court.