Should I try bk? will they take my laptop?

[IMF221]

I am about to graduate college, and I have a lot of debt, both student loans and credit cards. Maybe 100k in student loans, and then 15k in credit card debts. I don't have a job lined up for next year, and I don't have any more cash on hand to pay my credit card debts. If I have to get a part time job in the interim, it's unlikely that I will be able to afford the 400 dollars a month cc payments in addition to the student loan payments.

All I own is my laptop, clothing, and a bed. Is it possible they would try to take my laptop if I were to declare bk? Obviously there is a lot of personal information on this, all of my work from college, saved emails , pictures, etc. that I would not be willing to give up. It's about a year old at this point, and based on ebay prices, maybe worth about 600 dollars.

Should I think about declaring bk? I have no income at all, and if my parents decide not to help me pay these bills, I have no savings either. I just put the rest of my savings into paying last month's bills, and now I almost feel that it was wasted if I am going to stop paying soon.

Also, how do people afford bk attorneys if they are bankrupt and have no cash or credit left?

[eddiep]

No they won't take your computer, you will be allowed to keep all the stuff you listed.

I would think twice before filing bk if I were you. You can not get rid of the student loans in bk and filing over $15K at your age (I am assuming you are young since you just got out of college, sorry if I am wrong) dosen't seem like a good idea to me. I would look into other options.

[IMF221]

thanks for the response

You are right, I am 22. But what should I do if I cannot make next month's payments?

I have a discover card and a citibank card. I have read that citi doesn't use universal default, so if I could scrape enough money to pay only one card, should I pay the citi card and just default on the discover?

If i can't pay, should I call and tell them now?

Also, I just found out my bank account is overdrawn (utility bill autopay). I can't pay them back either.

[momxx5]

Oh sweetie, just stop and take a deep breath. I know it all seems overwhelming right now but things will get better. In this downer of an economy it is hard to see the light, but believe me you are not alone.

First, your student loans are yours and are not going away with a BK.

In the big picture it is not all that bad. You have other options. I would call the cc company and see if they will work out a payment plan. You may have to miss a couple months of payments but I am here to tell you that the cc companies are taking huge hits and are willing to make deals.

Just saw about your checking acct. Try to get that covered. Call the bank and explain your situation. You may need to close the account so no further activity will come through.

Lots of luck.
Keep us posted.

[IMF221]

thanks guys. I really wish I had spent the money on something worthwhile or exciting, but it's mostly been bills, furniture, and groceries. My mom recently got laid off so now my family's income is cut in half, and so they can no longer afford to help me make payments.

If I cannot make payments, it seems likely that they will up my interest rate to 30%... and at this point I really won't be able to make payments even in the long term.

I know the student loans won't go away, in fact my parents had cosigned them, so I am not even sure the loans have anything to do with me.

If I declared bk, would there be any affect on my parents, or the student loans they had co-signed?

[eddiep]

Try reading or posting a new thread in the collections section, there are alot of others here who have had experience with dodging the collectors and you may be a good candidate for that, because you dont have a job, don't own any assets that could be seized and your prospects for finding a good paying job in the future are good (hopefully with $100k in student loans

I have not made a payment on my cc since september and I have not filed yet and I have not been sued yet either. But as I said there are others here with alot more experience in dodging creditors that could advise you.

[lrprn]

If I declared bk, would there be any affect on my parents, or the student loans they had co-signed?

As you know, filing bk does not remove the student loans for you or your co-signing parents. One of you has to pay the monthly loan payment or every signer on the loans will get the credit hit for lates and penalties.

Are your student loans government, private, or a mix?

If the majority are government, take a look here for some great information about what your options are when you can't pay them - http://www.nolo.com/article.cfm/pg/1...3/208/135/ART/ and http://www.finaid.org/questions/bankruptcy.phtml . There's some excellent options mentioned here to pursue.

Good luck to you! We all make financial mistakes - you just made yours younger than the rest of us, that's all . Hang in there!

[Flowers]

There was just an article in yesterday's Wall Street Journal about the student loan soaring default rates.
So you are not alone.
But, I am sure some of these lenders will work with you.
Believe me, every sector of the economy is being propped up in some way.
Here is the link to the article as an FYI and best to you - -

http://online.wsj.com/article/SB124027600001437467.html

[CarrieOakey]

Generally your student loans can't be discharged; either you or your parents will be on the hook for those (this might also depend on whether they are government loans or private loans - there is a difference). If you declare bk and for some reason the loans are discharged, then creditor CAN come after the cosigners - ie, your parents - to recoup their loss.

Hon, I hate to say this, but you need to find work, and fast. Maybe even two part-time jobs. How far are you from graduating?

ETA: Yes, at the moment you are judgment proof - in other words, they can't squeeze blood from a turnip. But you WILL be working at some point, and judgments can be enforced (wage garnishments etc) for (generally) 10 years (20 years if they choose to renew).

[CarrieOakey]

Forgot - what's your state of residence? It matters, regarding judgments and garnishments....

[IMF221]

I live in PA. I don't expect to discharge my student loans, but I want to make sure that bk won't affect my parents or the rate on the loans they co-signed in any way.

Basically I don't think I will be able to pay both my credit cards and my student loans unless I land a 40k plus job asap. Even with two part time jobs (or a full time job with a low wage) it will be unlikely for me to be able to handle 1k a month payments, especially if I default on my cards, and the higher interest rates make the payments increase even further.