Should I file BK?

[dustinc]

I have $27k of debt and make around $30k a year. Half of that debt is private student loans. Are private loans dischargeable? How can I confirm that they are private? Does the statute of limitations apply on private student loans? If so, should I just wait until that passes and not file BK? It has been around five years and I have not been sued yet. Any advice would be appreciated. Thanks.

[justbroke]

Private student loans are non-dischargeable under the new bankruptcy code. It would not matter if they were private or government backed. After the bankruptcy code changed in October 2005 (the BAPCPA), student loans are now "well-defined" in the code as, basically, anything that's for an educational benefit. While the (new) code mentions some government-backed loans, it then broadens that definition to include those that are an "educational" benefit. Additionally, Federal or government-backed loans never expire.

Unless you have some disability or inability to pay the student loans, I don't see them being discharged. Since you estimate that you owe $14K of student loans and you're making $30K+ a year, it would be highly unlikely you would receive any other relief unless you could go on some income contingency repayment plan.

I am by no means a student loan expert; even though I have had student loans.

[Drazil65]

Start your journey by reading and gaining knowledge, this forum is a great source of information. Our private student loans are still alive and well and very NONDISCHARGABLE.

One alternative is to get a 2nd job and just start whittling away at the debt, you do what you have to do period! Good Luck!