Discharged Pro Se, but still a problem....

[Krys]

First, I didn't post here often, but used BKFORUM extensively to properly file my Ch. 7 Bankruptcy, and a few months ago, it
was discharged without a single hiccup (yay!).

But I have a problem.
We owe MAJOR student loans.
The loan companies wouldn't talk to us about payments during bankruptcy (we tried to find out how much a reasonable payment
could be expected to be after the BK process was done). Now, they are asking us for almost $900 a month between 3 companies.

I didn't realize until late in our BK process that you had to file a seperate suit for "hardship" with your student loans, and so I did not do that.
We really wanted to pay the loans back, but on a $20,000 annual income, we can't afford $900 a month. I don't think we could afford $300 a month right now. Someday maybe, but not in the forseeable future.

SO I need some advice.
I can either re-open my Chapter 7 and file the suit (I read online that you can do that, please correct that info if I'm wrong), OR
I can file Chapter 13 for the Student Loans.

I know it's not common for hardship to be approved, and I don't really want to open another BK case, but I'm not sure what the best option is.
I was hoping someone had faced this exact thing and could give some advice?

Thanks!!!

[justbroke]

You could re-open your case and file a Complaint to Determine Dischargeability of Student Loans. The likelihood of prevailing in such a case is low and there is a very high bar to prove that you will never be able to pay them back. You can't file Chapter 13 for the student loans. All that would do is put them back in deferment, collecting interest and getting even higher! Student loans are non-dischargeable so Chapter 13 doesn't really do anything. Chapter 13 also complicates the fact that student loans are no different than any other unsecured creditor and enjoy no special "priority" for payments. But that's another story on Chapter 13s that is not worth posting about.

Have you tried to consolidate the loans? Are these all private or Stafford? Have you tried to get them to reduce the loan payments to what you can afford?

Look into the income based repayment and see if you can get those loans consolidated and/or the payment reduced. http://studentaid.ed.gov/repay-loans...sed/calculator. You did not mention how much you owed, but I'm guessing that it is more than $60K?

(I am not saying that you should not file the complaint, but it is going to take a lot more research, testimony, facts and figures, and time than you spent on your bankruptcy petition. A complaint -- adversary proceeding -- is a real full-blown court case and you will be in court in multiple hearings proving your case. You can start doing the research to see if this will even help.)