Desperate & considering filing

[txhelp]

We are trying to figure out what to do but have not spoke with a lawyer yet. I have read extensively online, but would like some opinions before we actually sit down with a lawyer. I will try to make this very concise:

Situation: Husband and I are both teachers. I am almost finished with masters in admin and will gross (before anything comes out) about 92,000 this year. The main reason for us considering BK is that our home was recently "trashed" by renters and there is no way we can afford to repair it. This is after we have been paying on it while it was empty for over 2 years - we moved because of new coaching job for husband.

Debt:
Student loans 135,000 (direct federal, recently consolidated for IBR & forgiveness option)
home 42,000 (don't want to keep)
vehicles (2) 8,000
credit cards 15,000
We rent a home where we teach 600 mth.
5,000 or so in medical and utility bills

We have been paying on my husbands loans (32,000) regularly for about 5 years and have only paid a handful of payments on mine (105,000) because of finances and I was out of deferments & forbearances (borrowed from parents to pay those)

We are aware of the new forgiveness laws for teachers and they probably won't help much because of our combined income.

Any suggestions, comments etc will be very helpful! Right now the death option is looking pretty good for me.


I forgot to add: His loans are about 20 yrs. old (1st date of loan)
most of mine 95K are 17 yrs from 1st date
Therefore, most of the "forgiveness" options for educators do not apply to us because of the original date of loans

[lrprn]

Any suggestions, comments etc will be very helpful! Right now the death option is looking pretty good for me.

Trust me when I say that doing away with yourself is *NOT* the answer! No debt is *EVER* worth your life, no matter what stresses you might be feeling right now. There are far too many people in your life who would be devastated by losing you, especially when there are answers for your financial problems.

I forgot to add: His loans are about 20 yrs. old (1st date of loan) ... most of mine 95K are 17 yrs from 1st dateTherefore, most of the "forgiveness" options for educators do not apply to us because of the original date of loans

If your student loans are federal, have you both looked into the IBR (Income-Based Repayment) program? Here are two links with more information about the program - http://www.ibrinfo.org/what.vp.html and http://www.finaid.org/loans/publicservice.phtml . Seems to me to be perfect for your situation.

Also these sites explain whether you really can qualify for Public Service Loan Forgiveness after 10 years or not. It would be well-worth your time to investigate this option thoroughly as well.

As dark as things seem now, there are answers. You just need to reach out like you have here to find them. Hang in there - we're here when you need to vent or when you have questions. We'll help you sort things out as best we can.

[jribe]

the student loans would survive the BK - they are not dischargeable. After the other debt is discharged- would you be okay financially?

If the student loans are the main hardship- i would call the lenders and see what can be done.

It would still probably help you to get out from the mortgage and cc debt.

good luck!

We are trying to figure out what to do but have not spoke with a lawyer yet. I have read extensively online, but would like some opinions before we actually sit down with a lawyer. I will try to make this very concise:

Situation: Husband and I are both teachers. I am almost finished with masters in admin and will gross (before anything comes out) about 92,000 this year. The main reason for us considering BK is that our home was recently "trashed" by renters and there is no way we can afford to repair it. This is after we have been paying on it while it was empty for over 2 years - we moved because of new coaching job for husband.

Debt:
Student loans 135,000 (direct federal, recently consolidated for IBR & forgiveness option)
home 42,000 (don't want to keep)
vehicles (2) 8,000
credit cards 15,000
We rent a home where we teach 600 mth.
5,000 or so in medical and utility bills

We have been paying on my husbands loans (32,000) regularly for about 5 years and have only paid a handful of payments on mine (105,000) because of finances and I was out of deferments & forbearances (borrowed from parents to pay those)

We are aware of the new forgiveness laws for teachers and they probably won't help much because of our combined income.

Any suggestions, comments etc will be very helpful! Right now the death option is looking pretty good for me.


I forgot to add: His loans are about 20 yrs. old (1st date of loan)
most of mine 95K are 17 yrs from 1st date
Therefore, most of the "forgiveness" options for educators do not apply to us because of the original date of loans

[txhelp]

Thank you for the info. I have looked extensively into the IBR & ICR and if the govt. changes the rules for married couples and income, it would make a big difference for us! Can student loans be paid on during BK if we are in the IBR or ICR plan? I definitely wouldn't want to defer for 5 years and then have even more interest. Also, does anyone know if student loan payments would be included or excluded from disposable income? That is where we would have trouble. It looks like the student loan payments would be 800-900 per month on the income plans, but if we would have to pay them without it being included in our 13 plan-I don't know how that would work! I am probably rambling-sorry!