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Should I file for bankruptcy? and is there any way my student loans can be included?

Scranton, PA |

I'm 24, I have about $4000 in credit card debt. I haven't made any payments to the account in about 4 years (this is the limitation in PA). Most have now been sold off the harassing collection agencies, who have been calling everyone, with the same last name, trying to find me. I also have several education loans through Citibank totaling about $7000 and something through NY Higher Education for a little over $10,000. This is all based on the information in my credit report. I have nothing else to go off of. Letters have been going to my parents and they, being bad managers of money as well, have just been throwing them away for years. There hasn't been anything for the last 6 months. I was sued and settled out of court for a $500 credit card a year ago, but that is it. Help?

I should add that my fiance supports me. I have no job, no assets, and nothing in my name. Not even a bank account. I do have a phone contract though, if that matters. If student loans cannot be dismissed as well, would be able to get a payment plan for them even though they are in default?

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Attorney answers 1


A Chapter 7 bankruptcy may be an option for you as it will discharge all non-secured debts, such as credit cards. Also, you will be relieved of the judgements based on the non-paid credit cards. However, in most cases student loans are not dischargeable under a Chapter 7. If you file a Chapter 13 bankruptcy, that is the type of bankruptcy in which you make payments to your creditors, usually for a period of 5 years. In that type of bankruptcy, you usually make payments toward debts that are not normally forgiven, such as mortgages, car payments and student loan balances.