I am in danger of default and can not make the back payments to catch up or the monthly, which is more than half what I earn in a month. What can I do? it seams that all my options are exhausted.
You may need to look at a chapter 13 to pay affordability over 60 months and worry about the balance at the end of the plan.
Discharging a student loan completely is almost impossible.
Have you explored income based repayment or income contingent repayment plans? I agree -- student loans are almost impossible to get discharged in bankruptcy unless a person is permanently disabled or terminally ill and will never be able to work. And even then, it can be a very long and expensive process.
Bankruptcy is not likely the answer to your problem. I understand how oppressive excessive student loan payments can be, but discharging those obligations through bankruptcy (Ch. 7) is extremely unlikely.
You better option is to contact your lender and see about income sensitive repayment, a forbearance, or other options that limit your repayment obligations. There are a lot of programs available, because this is a very common problem these days. Good luck.
As indicated by the other attorneys, no you cannot discharge your student loans. There are exceptions, but you do not likely meet them.
Your best option is an income based repayment plan. They may never get paid off, but at least you'll be making payments and they won't be in default.
If you have any questions, feel free to give my firm a call.
There are a number of questions an attorney should ask before attempting to give you an answer to your specific question. The answers already given suggest some of the questions that should be asked as well as some that are not asked. You really need to get a free consultation with an attorney to give both of you the opportunity to exchange questions and answers. None of the answers given previously are complete and they cannot be complete unless the attorney knows more specifics about your particular situation.
We don't know your income or who your employer is. We don't know what type of loan you have. We don't know your expenses and other debt. We don't know your family situation. We don't know your physical or medical condition. We don't know your age. We don't know how long you have been in forbearance or deferment. Do you see there are many factors to consider? It might be wise not to make a decision without a thorough evaluation of all the options and ramifications.
I wish you all the best.
Howard H. Ellzey
As a younger attorney with mountains of student loan debts, I suggest you try income based repayment. You can google IBR. I use it and it is a life saver.