I Can’t Afford To Repay My Student Loans. What Are My Options?

Posts Tagged ‘Bankruptcy’

I Can’t Afford To Repay My Student Loans. What Are My Options?

|

Q: Hi, I have a pretty unique situation regarding student loan debt. I have about $100K in student loan debt. I did not find a job until about 8 months out of college and the loans were in deferment. The entry level position I obtained was not enough to pay my loans and I was playing catch up from the get go. The loans were then in forbearance and still are as I am not about to make $700 monthly payments. To top it off my co-signer filed for bankruptcy without me knowing and one of the creditors sold the debt and reported it as charged off and my credit is now terrible even though I was not the one who filed for bankruptcy.

Is there anything that I can do legally since I was not the one who filed and my credit is now shot? I feel like $100K will never be paid off. I regret going to college! What do I do?!? PLEASE HELP! Continue reading “I Can’t Afford To Repay My Student Loans. What Are My Options?” »

My Student Loan was Discharged in Bankruptcy – How Can I Prove It?

|

Author: The Money Coach

If you have managed to get your student loan discharged through bankruptcy by proving that your loan would cause you “undue hardship”, you will need to gather documents that pertained to your case to prove it. In some cases, the U.S. Department of Education may still be sending you notices about your student loan or requesting a payment, and you will need to send them a letter showing that this loan has already been discharged by the courts and you are no longer responsible for it. Here are the steps you need to take in order to inform the Department of Education that your student loan has been discharged:

Gather Appropriate Documents

The Department of Education will need to create a case for your claim and review all documents pertaining to your bankruptcy discharge. You can seek the help of a bankruptcy attorney to confirm that you are no longer under any obligation to pay the student loan debt. The Department of Education will need to see proof that you have been relieved of the student loan during a bankruptcy discharge. You can submit proof by including:

Documents outlining your court ruling, and indicating that your repayment plan was discharged because of undue hardship
Copy of the notice of the first meeting with your creditors
List of all creditors that were included in your bankruptcy proceeding
The Final Discharge Order

You will also need to include a cover letter and a copy of your Social Security card in your package. All of this information will be reviewed in detail to determine that you were, in fact, discharged from the student loan debt and that you no longer owe the government money from this loan.

Prepare a Cover Letter

You will need to write a formal cover letter stating when your bankruptcy petition was discharged, and what the total amount of the loan was discharged. You can also explain that you are still receiving notices about your student loan after the discharge was completed, and that you had previously been making payments regularly towards the balance.

Send All Paperwork to the Department of Education

You will need to send your cover letter, supporting documents and your contact information directly to the Department of Education’s National Payment Center. Make a copy of everything and then send the package via certified mail to the following address:

National Payment Center

U.S. Department of Education Unit

Educational Credit Management Corporation

P.O. Box 8809

Richmond, VA 23225

Extreme Makeover: Home Edition builder files for bankruptcy

|

Author: The Money Coach

Jake Myddelton and John Parker of MyddeltonParker Builders LLC are in the midst of personal bankruptcy proceedings in an attempt to leave behind more than $4.3 million in debts according to an article that ran in the Tallahassee Democrat.

MyddeltonParker was the featured builder on Extreme Makeover: Home Edition during season 6 which originally aired on 4/12/2009.

Links:
Photo of the house that Myddelton Parker built for the Kadzis family
Extreme Makeover: Home Edition Episode 22

5 Questions You Must Ask Before Filing Chapter 7 or Chapter 13 Bankruptcy

|

Author: The Money Coach

A number of celebrities have made headlines in recent months for having enormous debts and tax problems or because they’ve filed for bankruptcy protection. Actor Eddie Murphy’s ex-wife, Nicole, reportedly owes millions of dollars, including five IRS tax liens of just under $850,000. Singer Toni Braxton recently went bankrupt for the second time, with debts between $10 million and $50 million. And rapper Xzibit – who is said to owe nearly $1 million to the IRS – also headed into bankruptcy court in December 2010, after two previous attempts to wipe out his debts failed.

But celebrities with huge financial woes aren’t the only ones going broke. More than 1.53 million Americans filed for bankruptcy protection in 2010, a 9% increase over 2009 levels, according to the American Bankruptcy Institute. With credit card debt and unemployment running high, experts predict that consumer bankruptcies will continue to rise in 2011 – following a trend that’s been growing since 2005.

If you or someone you know is contemplating bankruptcy, here are five important questions you must ask before heading into court to seek financial relief:

1. How much will it cost me?
Most people who file bankruptcy use a lawyer, and doing so isn’t cheap. Expect to pay anywhere from $1,500 to as much as $4,000, depending on the complexity of your case, where you live and the experience of the attorney you choose.

2. What type of bankruptcy should I file?
The form of bankruptcy you file plays a role in your costs and the overall process. Chapter 7, also called a “straight bankruptcy” or a “liquidation,” is the most common form of personal bankruptcy. To file Chapter 7, you must meet an income test and a means test imposed by the court. A Chapter 13 bankruptcy is known as a “wage earner’s plan.” You have to have a job and you must show the court that you will be able to repay at least some of your debts over a period of three to five years. Those who want to save their home from foreclosure should file Chapter 13, not Chapter 7. Read the rest of 5 Questions You Must Ask Before Filing Chapter 7 or Chapter 13 Bankruptcy on BlackVoices

Ask The Money Coach

Posts Tagged ‘Bankruptcy’