Legal Question in Bankruptcy in Louisiana
Student Loans
I have accrued an insurmountable student loan debt (~$90K). I have been in forebearance for 1.5 years to pay off the credit cards I lived off of in school. The private consolidation company for these student loans require a large monthly payment for 30 years. I am at the highest salary for the work I do and I do not forsee my ever being able to purchase a home or have children due to the student loan obligation. I asked the loan company what will happen if I pay less than the amount they indicate each month and they told me that my wages will be garnished and my credit ruined. I understand I owe money, but I cannot pay the large sum they require. I am considering bankruptcy to eliminate this debt, but I do not wish to ruin my future. I am stuck between a rock and a hard place. Any advice is welcome.
Thank you,
L. Bongard
2 Answers from Attorneys
Re: Student Loans
Student loans are not discharged under bankruptcy law, just as other nondischargeable obligations as child support, alimony, some taxes, etc.
Re: Student Loans
Dear LawGuru Friend,
Bankruptcy should provide you some protection. I would suggest your hiring a good bankruptcy lawyer, however, not just any lawyer who may fill out forms and file Chapters 7's. You need someone who knows the law about discharging student loans. Now, I suggest you negotiate for a fee. Don't just up and hire the first attorney who quotes you a fee, but shop around. You may save some very good money that way. Not all student loans are dischargeable, only those where it would create a "hardship" if it were not discharged. Also, even if the debt is not dischargeable, the bankruptcy laws provide you important relief, such as stopping bill collelctors from harrassing you, in some case stopping inerest from accumulating, etc. Further, as far as the threats of garnishments and seizures are concerned, you might want to read the Fair Debt Collections Practices Act (FDCPS). You might be able to make the collecton agency pay you,instead of your paying them. There is more to it all than this, but this is something to think about. Best of luck!
Sincerely,
Hardy Parkerson, Atty.
Lake Charles, LA
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