Don't even know where to begin

[adkid22]

I am in a pretty unique situation that I know most likely requires an attorney to help decipher it, but wanted to ask some questions first.

Debt-
70k in student loan
17k in judgements (apt, car) - currently being garnished from my check
other debt- around 10k(credit cards, hospital, etc)

Assets-
Car - honda accord (paid off)
computer? (3 years old)??

Basically, I was in school and putting myself through it when I had a lot of tragedy hit me at once. This has caused me to drop out of school, pretty much give everything up and roam the country on pennies. In this time, I neglected pretty much everything I was responsible for.

Here I am 4 years later trying to get back on my feet. I work a 12/hr job, 40 hours a week. I have applied numerous places, but can not get a better paying job due to no degree. Anything that requires an AA is about what I make now, and I work from home so it saves on gas.

I also have a child that I am luckily not behind on child support payments. That is pretty much the only thing I ever kept current.

I have tried to get back into school, but I am stuck on a vicious cycle of not having enough money to pay for classes and not being able to get student loans. Also, with my credit being so bad, I have had a lot of trouble getting my own place, so I have been forced to sleep on friends couches.

I live in PA and have for less than 6 months. My home state is Ohio where I resided for 10+ years. Currently I live with friends cause they give me cheap rent (600-everything included) and I am not on a lease.

Do I have any chance to help get my student loans down/wiped? Will this be an easy filing for myself? Is it worth it?

My main goal is to allow myself stepping stones to get back on the ground. A new city and a fresh start has gone a long way(so far, no OD in my bank account in 3+ months) which is a start for me as I was getting them all the time.

Sorry so long, but just needed some general direction on where to start my research.

[newbie2]

Debt-
70k in student loan
17k in judgements (apt, car) - currently being garnished from my check
other debt- around 10k(credit cards, hospital, etc)

Assets-
Car - honda accord (paid off)
computer? (3 years old)??


I also have a child that I am luckily not behind on child support payments. That is pretty much the only thing I ever kept current.

I live in PA and have for less than 6 months. My home state is Ohio where I resided for 10+ years. Currently I live with friends cause they give me cheap rent (600-everything included) and I am not on a lease.

Do I have any chance to help get my student loans down/wiped? Will this be an easy filing for myself? Is it worth it?

Student loans are not discharged in bankruptcy. You can't wipe them out or get the balance lowered. You can file bankruptcy and discharge your other debts, especially to stop the garnishment of your paycheck. I would call a couple of attorneys and have some free consultations. Your debt load isn't high (other than the student loans) but it would help with your credit rating afterward so that you could perhaps get an apartment of your own. Good luck to you.

[adkid22]

Well in my research, I saw where a small percentage of people have had their student loans discharged due to undue hardship. Is that not true? or is it just incredibly hard. I feel like if I can't finish school, I'll be stuck where I am at and already proved I can't live at this level

[newbie2]

Well in my research, I saw where a small percentage of people have had their student loans discharged due to undue hardship. Is that not true? or is it just incredibly hard. I feel like if I can't finish school, I'll be stuck where I am at and already proved I can't live at this level

I think it is extremely rare. Perhaps for someone who has become disabled and cannot work then there are exceptions. PS: You can always get 2 jobs to work at paying down the student loan debt so that you can continue school at a later time.

[momofthree]

Well in my research, I saw where a small percentage of people have had their student loans discharged due to undue hardship. Is that not true? or is it just incredibly hard. I feel like if I can't finish school, I'll be stuck where I am at and already proved I can't live at this level

If you are physically able to work, then you will not qualify for a discharge of your student loans.

[adkid22]

Do you think I should file for BK in PA (where I currently live) or file back in Ohio. I just moved here cause I didn't have any other place to go. Still trying to get back on my feet. Once I file, the extra 50 bucks a week they're taking out for the garnishment can help me a lot.

Will I have any issues since im not on any leases/bills here? or anywhere in fact.

[Pandora]

You will have to file using OH's exemptions - therefore living in PA really doesnt matter.

Have you checked into aid to see if you qualify for any? May be that because you are new to the state (and also not a resident) that you wont qualify for any programs, but its worth looking into in the interim.

Do you not have family that you can stay with? Parents, siblings, aunt/uncle...??

[wonderingrov]

Well in my research, I saw where a small percentage of people have had their student loans discharged due to undue hardship. Is that not true? or is it just incredibly hard. I feel like if I can't finish school, I'll be stuck where I am at and already proved I can't live at this level

Just to give you a little perspective, I had a (mild) stroke about a year and a half before filing bankruptcy, and was on disability due to that. The attorney in my case said they MIGHT be able to get mine discharged under the circumstances, but it was about a 50/50 shot. It would have had to have been a major stroke that left me basically bedridden permanently to guarantee success according to her. I say this just to say that they are EXTREMELY hard to get rid of in bankruptcy.

In my case, it would have cost me an additional $5,000 in attorney's fees to file the AP to try to get the loan discharged. Since my balance was only around $10k, it really didn't seem to make sense to me to go for it (plus, if I could have afforded the $5,000, they could have made a very good argument that I could have paid the loan off).

[adkid22]

You will have to file using OH's exemptions - therefore living in PA really doesnt matter.

Have you checked into aid to see if you qualify for any? May be that because you are new to the state (and also not a resident) that you wont qualify for any programs, but its worth looking into in the interim.

Do you not have family that you can stay with? Parents, siblings, aunt/uncle...??

I haven't checked into any aid. I will start googling around for some information. Maybe I can find it there.

Part of my tragedy was I lost both parents and a sibling at the same time. We lived in Ohio and the closest family was in Chicago or Rhode Island. The reason I chose PA is cause this is where my kid lives, so I am trying to make good by that

[adkid22]

Just to give you a little perspective, I had a (mild) stroke about a year and a half before filing bankruptcy, and was on disability due to that. The attorney in my case said they MIGHT be able to get mine discharged under the circumstances, but it was about a 50/50 shot. It would have had to have been a major stroke that left me basically bedridden permanently to guarantee success according to her. I say this just to say that they are EXTREMELY hard to get rid of in bankruptcy.

In my case, it would have cost me an additional $5,000 in attorney's fees to file the AP to try to get the loan discharged. Since my balance was only around $10k, it really didn't seem to make sense to me to go for it (plus, if I could have afforded the $5,000, they could have made a very good argument that I could have paid the loan off).

Thanks for your help and insight on this. I know it's very hard to get them discharged. Just didn't know if there was a chance cause I can't get back into school on government financial aid. A big bulk of that student loan is from private loans my father took on my behalf before he passed away.

If I was in default through gov loans, will they allow me to obtain more to go back to school? Anyone have any direction on how to decipher what would disqualify me from that?

[Pandora]

I haven't checked into any aid. I will start googling around for some information. Maybe I can find it there.

Part of my tragedy was I lost both parents and a sibling at the same time. We lived in Ohio and the closest family was in Chicago or Rhode Island. The reason I chose PA is cause this is where my kid lives, so I am trying to make good by that

I'm so sorry for your losses, very hard indeed. Please look over this link and read through all the programs available, then call to see if you qualify. http://www.dpw.state.pa.us/foradults...ance/index.htm

Residency requirement: http://www.pacode.com/secure/data/00...r95/s95.2.html

http://www.dmv.state.pa.us/new_residents/driver_license.shtml

These may help get you started. Wishing you all the best.

[LadyInTheRed]

A big bulk of that student loan is from private loans my father took on my behalf before he passed away.

Are those loans in your father's name, or are you on them too? The law will vary by state, but it is likely you can only be held responsible for your father's debt up to the value of any assets you inherited from him. The fact that he took them to pay for your education is irrelevant unless you are an obligor on the loan.

[adkid22]

Are those loans in your father's name, or are you on them too? The law will vary by state, but it is likely you can only be held responsible for your father's debt up to the value of any assets you inherited from him. The fact that he took them to pay for your education is irrelevant unless you are an obligor on the loan.

The loans were in my name with my father as the co-signer. I don't think I have any way to get out of repaying them back. Honestly, I don't care if I have to pay them back. My main goal is to be allowed federal grant/loans/financial aid to help me complete school. If it could increase my wages to say, 17/hr, it'd help wonders.

I already live off 12/hr and that is with child support. I am very frugal in my spendings

[LadyInTheRed]

My main goal is to be allowed federal grant/loans/financial aid to help me complete school. If it could increase my wages to say, 17/hr, it'd help wonders.

I suggest you make an appointment with a financial aid counselor at the school you want to attend. When I was in college, I screwed up one semester and stopped going to classes which made me techincally inelligible for further aid. But, I was able to get aid by going on "probation" which involved signing an agreement which included a semester by semester plan to complete my degree. In your situation, you aren't likely to get much useful information about financial aid by searching the internet. But, a financial aid counselor may be able to help you get back into school.

I think you should also go ahead an file a Chap 7 even if you can't discharge the student loans. It sounds like you earn well below median income, so you should qualify without a problem. You can get a forebearance if you go back to school. And getting back to school will be easier with all of the other creditors off your back. I recommend you use an attorney to file. You already have a full time job and filing BK on your own will be time consuming. But, if you want to go it alone, read the Nolo Press book on Chap 7 and decide if you feel comfortable with the process.

Whether you decide to hire an attorney or file pro-se, go consult with a few bankruptcy attorneys to get their input on your situation.