What Path Do I Take?

Sep 09, 2009

Student loan debt and bankruptcy
by: Gerri

Racquel,

I am sorry to hear what a stressful time you're having. Unfortunately, student loan debt can be one of the worst types of debt. It is very hard to discharge in bankruptcy, and as a result, negotiating a lower settlement is also typically out of the question. And you are right - at some point you are going to have to start finding a way to pay that debt off. I would recommend you read the book The Student Loan Scam by Alan Michael Coolinge (visit StudentLoanJustice.org for more information).

$15,000 is a relatively small amount of debt for which to file for bankruptcy. But if it gives you enough relief that you can start getting back on track, it may be worth it. Only a bankruptcy attorney can give you advice there. I'd recommend you go ahead and get a free consultation with a bankruptcy attorney. There is really no downside to at least talking with one.

You can also try talking with credit counseling agencyto see if they can help you with an affordable repayment plan. It's a myth that credit counseling is as bad for your credit as bankruptcy, and we explain why in the e-book. (We also share the story of one woman who needed to buy a car while she was in a counseling program and got a great rate - her credit had actually improved due to her lower debt levels.)

Please let us know what happens after you've spoken with the bankruptcy attorney and credit counseling agency.

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Sep 09, 2009
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Submitted by: Gerri

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Racquel, I am sorry to hear what a stressful time you're having. Unfortunately, student loan debt can be one of the worst types of debt. It is very hard to discharge in bankruptcy, and as a result, negotiating a lower settlement is also typically out of the question. And you are right - at some point you are going to have to start finding a way to pay that debt off. I would recommend you read the book The Student Loan Scam by Alan Michael Coolinge (visit StudentLoanJustice.org for more information). $15,000 is a relatively small amount of debt for which to file for bankruptcy. But if it gives you enough relief that you can start getting back on track, it may be worth it. Only a bankruptcy attorney can give you advice there. I'd recommend you go ahead and get a <a href="https://www.credit.com/r/bankruptcy_ccom/af=p68456&ag=">free consultation with a bankruptcy attorney</a>. There is really no downside to at least talking with one. You can also try talking with <a href="http://www.CareOneDebtHelp.com">credit counseling agency</a>to see if they can help you with an affordable repayment plan. It's a myth that credit counseling is as bad for your credit as bankruptcy, and we explain why in the e-book. (We also share the story of one woman who needed to buy a car while she was in a counseling program and got a great rate - her credit had actually improved due to her lower debt levels.) Please let us know what happens after you've spoken with the bankruptcy attorney and credit counseling agency.

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