Early on in the first semester of my Sophomore year (2013-2014), I had to leave my university on a medical leave of absence. The reasons for leave were psychological/emotional in nature, arising as the result of a complicated childhood and family history. All of my loans for this year were returned, but last year's heavy load remains. I had stellar marks my first year. Since leaving University, I have lived at several retreat centers and sought a great deal of emotional therapy from various sources. Now, as I'm just coming out of recovery, my private student loan, Direct Loan, and Direct Plus loan are all collecting in early May (about a month). They total in ~$40,000 and the minimum monthly payment is ~$350. I am unemployed, and have no intention of going back to University. Help!
Generally, the only way out is if you are so disabled that you can no longer work. Use the "find a lawyer" tool on AVVO to get a consultation with a debtor bankruptcy attorney. Student loans are not generally dischargeable, but if you are so disabled you can not work, you can file an adversary proceeding against the student loan co. in your bankruptcy and see if that works.
We do not have an attorney-client relationship. I am not your lawyer. The statements I have made do not constitute legal advice. Any statements I have made are based upon the very limited facts you have presented, and under the premise that you will consult with a local attorney. This is not an attempt to solicit business. This disclaimer is in addition to any disclaimers that this website has made. I am only licensed in California.
Whether the loans are dischargeable will generally be determined by the terms of your loan documents. Often the contract will contain special circumstances for the discharge and you must demonstrate your compliance with those terms. Bankruptcy will not discharge the college loan; however, if you can prove disability or hardship to the bankruptcy court the court may under specific circumstances discharge the debt. You should consult an attorney who specializes in debtor/creditor matters or bankruptcy for more specific and detailed answer to your questions.
Best of luck!
NO LEGAL ADVICE GIVEN. READ THIS BEFORE you contact me! My responses to questions on Avvo are never intended as legal advice and must not be relied upon as if they were legal advice. I give legal advice ONLY in the course of a formal attorney-client relationship set forth in a written document executed by the client and by me or a member of my firm. Exchange of information through Avvo's Questions forum does not establish an attorney-client relationship with me. My law firm does NOT provide free consultations. Please do not call or write to me with a “few questions” that require me to analyze the specific facts of your history and your case. I can give advice, make recommendations and answer specific questions only after reviewing the evidence and documents applicable to a specific client and following a personal meeting in my office in which the relevant facts can be developed and analyzed. My law firm presently accepts cases involving State and federal administrative law; professional licenses and permits; education law; employment and labor law; and litigation matters in state and federal courts. Our practice is limited to the States of Oregon and California. If you have a case in any other state we would not be able to assist you. Unless we have a signed written fee agreement you are not my or my firm's client.
1 found this helpful