In 2011 while I was in class in culinary school baking I was pulled out of class and told that if I don’t figure out a new loan situation quick that I won’t be able to continue at the school. The only option the provided me was a private student loan with a variable rate from Sallie Mae. I was 18 and just wanted to get back to class and wasn’t given any other option. 6 years later of paying $700 a month after I graduated and I have only paid $3,000 towards my principle. I am now physically disabled and on disability due to chronic illness and can’t even work enough to pay off the monthly payment.not being able to even use my degree and paying almost $47,000 towards Sallie Mae and still owing almost my entire beginning balance make me feel as if I’m drowning. I can’t seem to move on or start a life while I’m drowning in all of this debt that is impossible to pay off. They denied getting them forgiven based on disability. Can I sue?
The only way to find out is to file a bankruptcy petition and ask. Private student loans aren't dischargeable as part of the standard petition. Instead, you or your attorney must file an adversary proceeding. Essentially, you're filing a lawsuit against the private student loan creditor to get the debt discharged. Although an in person consultation would be necessary to determine what is the best course of action for you, if you meet what is known as the 3 part Brunner test to evaluate whether a debtor can demonstrate undue hardship sufficient to part ways with their student debts. if you can satisfy each of the following 3 requirements, your student loan debt may be dischargeable. (1) You cannot maintain, based on current income and expenses, a minimal standard of living for the debtor and dependents if forced to pay off student loans;
(2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans;
(3) You have made good faith efforts to repay the loans.
Although courts tend to interpret the Brunner test strictly, whether you qualify for a hardship discharge will ultimately be a function of the individual facts and circumstances of your case as well as the attitudes toward student debt which are prevalent in your jurisdiction. It is very difficult, but not impossible to discharge student loan debt in bankruptcy. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation with an experienced NH bankruptcy attorney. Use AVVO's Find a Lawyer tool to select a qualified attorney. Good luck. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
If you found this Answer helpful, please mark it as "Best Answer" Please be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.
It is theoretically possible to obtain a discharge of some student-loan debt in bankruptcy, but it is not easy. One should, as mentioned in the first answer, speak with an attorney familiar with the way that "hardship" law has developed in the relevant courts. (For you, those would be the U.S. Bankruptcy Court for the District of New Hampshire, its sister courts (those in Maine, R.I., Mass., and Puerto Rico) and, most importantly, the First Circuit Court of Appeals.) These courts, an experienced local attorney would tell you, do not follow the “Brunner” test, but, rather, the “Bronsdon” “totality-of-the-circumstances” test. This test is a bit more forgiving, but still stringent. The critical factor will likely be your future ability to pay back your loans, but the relevant courts shy away from making categorical statements.
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