New and trying to figure out whether to file

[smeechai]

Hello! I'm trying to figure out whether to file ch 7, and am looking for opinions - be brutal

I am 28, working as a nanny. My salary is just under $15,000 plus room and board. Will I qualify for ch 7? I have $13,700 in credit card debt, and over $70,000 in student loans, which I know would not be taken care of in a bk. I am 90-120+ days behind in paying everything. There's no way I could pay everything. The student loans have been deferred or in forebearance since I finished grad school 2 years ago.

I don't own anything except a 2001 car that's paid off.

Unfortunately, I just made a promise to a collection agency to pay a settlement, $240 this week, and $675 more in a week. I don't have any such money, and I would have to sell most of my worldly possessions or get a personal loan (I don't need more debt!!) to pay it. So, I'm hoping to make a decision quickly and see if I can start the proceedings before the end of the week when the $675 is due .

Help?

[JRScott]

What did you go to school for? Did you complete your degree?

I'm not sure a bk would help you much since most of your debt is nondischargeable.

[danaf]

I don't think bk is going to help you with only 13.7 that you can discharge out of a total of 83+ debt. I'd start looking for a job that pays alot more. Of course you can do the bk but what is the point? How would it help you when you'd still have to pay back 70k on a 15k/yr salary?

[smeechai]

I went to school for social work. There just aren't jobs that pay a lot more unless you have 5 years of experience, and I have 1.5. The ceiling is basically $60,000 a year.

The 70k can at least be paid over 30 years, whereas the cc debt they want NOW. I have at least 3 parts of it in collections, and I'm going crazy with the calling. They're also calling my parents (seem to be walking the line as to what's allowed).

Once I'm done with the nannying job in 6 months or so, I hope to get a job in an underserved area with a govt program that pays up to $25,000 a year back in loans, plus the salary. Oooh, I better check if bk affects eligibility for that...

[MajorMike]

Dont file for that little in debt!! Try to get a loan or get someone to co-sign for you....or get a much better paying job as that is crazy to do it for that little amount. I still dont get how someone could have over 70K in student loan debt and it's not even a medical or law degree. Where did you go to school and what is the tuition per year....I cant imagine.

[qwertysue]

Dont file for that little in debt!! Try to get a loan or get someone to co-sign for you....or get a much better paying job as that is crazy to do it for that little amount. I still dont get how someone could have over 70K in student loan debt and it's not even a medical or law degree. Where did you go to school and what is the tuition per year....I cant imagine.

Again!!! Why do you insist on posting in such a judgemental tone? What is "that little debt" for you may be an enormous amount for the OP. Suggesting they get a "much better paying job" is also useless advice. This whole post is useless.

[Cali]

I don't see how BKing 13.7 is going to help you at all. You could get a better job or get 2 jobs and pay the CC's off.

Mike, I want to know what school offers a Medical or Law degree for 70k?

[CindyLou]

I went to a distinguished private grad school (at least I think its pretty distinguished...) anyway, my tuition alone was $35,000...then add books, supplies, laptop (required), parking, time off work to study, and a couple years of compounding interest, yada yada yada...and BAM, you got yourself a $70,000 student loan! Now, my salary has almost doubled since my masters, but with Social Work, that's another story!

But to the OP, the sooner you get in your field and start working the sooner you are going to get some years under your belt!

As far as the loan payback I don't think a BK will affect that as long as you aren't actively in it when you file.

My advice, however, is just to just call the collector and tell them its a no go on the "deal." Did you authorized a debt from your acct? If not then you should be ok, but don't go making anymore deals til you get on your feet.

Honestly, 13,000 in cc debt may seem like a whole lot, but in the whole scheme of things its not so bad...filing may be right for your still, but just make sure that you talk to an attorney asap.

Oh, MM, the more I get to know you the more I "get" you....

To the OP, Good luck and keep us posted.

Cindy

[smeechai]

I have been trying to "get on my feet" for really four years, and it's just not working. All my interest rates are around 30%, except the loans, when I was doing therapy, I dumbly had a too expensive apartment, etc. My credit is absolutely shot to hell as it is. Add it the extreme mental stress of feeling like I'm never going to get out of this, and it feels like a slam dunk. I am more certain than when I originally posted that this is the way for me to go.

I guess my last question is, will I get approved for bk for what seems like "so little debt"? If not, isn't the message that I should go rack up more debt, then try again six months after that???

[Scott50]

Dont file for that little in debt!! Try to get a loan or get someone to co-sign for you....or get a much better paying job as that is crazy to do it for that little amount. I still dont get how someone could have over 70K in student loan debt and it's not even a medical or law degree. Where did you go to school and what is the tuition per year....I cant imagine.

please see below for the annual costs for one year of college:

The cost of tuition, fees, room, and board at public four-year universities has increased 52 percent, from $8,439 in 2000-2001 to $12,796 in 2006-2007 (in current dollars); and

The cost of tuition, fees, room, and board at private four-year universities has increased 37 percent, from $22,240 in 2000-2001 to $30,367 in 2006-2007 (in current dollars).

[Cali]

My tuition for undergrad and grad was 6 figures.

I went to a distinguished private grad school (at least I think its pretty distinguished...) anyway, my tuition alone was $35,000...then add books, supplies, laptop (required), parking, time off work to study, and a couple years of compounding interest, yada yada yada...and BAM, you got yourself a $70,000 student loan! Now, my salary has almost doubled since my masters, but with Social Work, that's another story!

Cindy

[treehugger1]

Hey, I teach at a small "affordable" public college. The tuition/books/board/incidental fees run $15K per year. This only for an undergraduate degree!! Students typically have $40K - $50K in unsecured student loans after 4-5 years. I have friends that are attorneys and doctors who have $125K - $180K in student loans. $50k-$70K will barely buy you a bachelor's degree at a Tier 2 public institution these days. Welcome to the new world! You get what you vote for...

[smeechai]

Yup, $70,000 (more maybe?) for a social work degree that won't get me too far. At a fancy schmancy school. Should've gone to a public school...

Look, $14K is a million dollars to me. There is no way I can pay it off. I'm trapped right this minute. I don't want to figure out how to get out of this current jam, then end up more in debt in a year or two.

My question is, will the court see it the same way? $84K in debt on a $15 or even $30K salary? (what I was making before) Could it be too little dischargable debt???

[Cali]

So what will you do in a few years if you are in this situation again?

Yup, $70,000 (more maybe?) for a social work degree that won't get me too far. At a fancy schmancy school. Should've gone to a public school...

Look, $14K is a million dollars to me. There is no way I can pay it off. I'm trapped right this minute. I don't want to figure out how to get out of this current jam, then end up more in debt in a year or two.

My question is, will the court see it the same way? $84K in debt on a $15 or even $30K salary? (what I was making before) Could it be too little dischargable debt???

[JRScott]

You might could contact the student loan giver and ask for forbearance due to economic hardship. They probably have a process that you have to go through, basically it would put off your payments until later, it is practically impossible to get such discharged though.

While it is in forbearance you can work on chipping away at the credit card debt.