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  • Michigan Bankruptcy Student loans Michigan

    I went back to college as a non-nontraditional student after getting a divorce over 10 years ago.
    Going through college I pushed and grad under 4 years. Got a degree in CIS which turned to poo around the beginning y2k &-new election that quarter. Defaulted back to farming and now have a huge student loan which I am not able to pay. What are my options.

    Not sure of the student loan amount, depends on whats being tag to it, maybe 60-100k. I do have some personal debt I occurred during the time I went to school, maybe 10k that I am behind on.

    I am about 50, all the payback plans I read are 3-5-10 years. Maybe offer some forbearance or leniency on current repayments for a short time, after the 3-5-10 years back to normal debt. I do not own a home, only have a used car, and have to get finical help from family to pay for medical bills, not a good feeling. Cannot buy a home, get a loan for anything. This really trickles down into all parts of your life. Not just buying a new car or having your own home.

    Rest of my life I am ducked? Is there some options or information I can read? Help....

  • #2
    You might talk to a bankruptcy attorney to see if bankruptcy might be an option for you. Generally, you can get a free or low cost initial consultation. However, generally student loans can't be discharged in bankruptcy.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    • #3
      Actually I have called a few offices. I guess thats why I am posting here looking for options. Initial screening on the phone, they say you cannot do anything regarding student loans. Then you read stuff like the following. Or is he trying to sell a book?

      “ Under some circumstances, particularly when a debtor is attempting to provide for dependents on a very low annual income, discharge may remain a possibility, albeit, as Alan Michael Collinge argues, a very slim one.”

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      • #4
        Originally posted by dilbert View Post
        Actually I have called a few offices. I guess thats why I am posting here looking for options. Initial screening on the phone, they say you cannot do anything regarding student loans. Then you read stuff like the following. Or is he trying to sell a book?

        “ Under some circumstances, particularly when a debtor is attempting to provide for dependents on a very low annual income, discharge may remain a possibility, albeit, as Alan Michael Collinge argues, a very slim one.”


        You need to research the Brunner Test (google it). That's going to be a good indication of whether or not your loans can be discharged. One of the bigger questions is whether you've attempted in good faith to pay on the loan before now. That will likely be a huge factor.

        If you have other debts, bankruptcy may discharge those debts which would in turn free up resources so you can pay off your student debt.

        So, stop doing phone consultations. Take your feet to a real bankruptcy attorney, and lay out your circumstances. That will give you an idea of what you should expect.

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        • #5
          Only a lawyer in your area would know, after getting complete information from you re your financial situation, if there "might" be a possibility of a discharge of the student loan - generally there is not.

          Mi. does allow on a *rare* occasion a discharge in certain hardship cases - it would be up to the court.
          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

          Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

          Comment


          • #6
            If you read the burner test I could meet all, except (3). The burner test appears as 3 paragraphs from what I found. 3Rd paragraph “have you show good faith paying of the loan”? My is question to my self is what the heck? Why would someone that does not have financial problems be cleared or have paved way for discharging of there loans? That does not make any sense to me at all. If you can pay them and you want releaf? The if you can't pay and do not show good faith, you should have a magical money tree to plant.

            Hum, lets make sense of this. So people that can't pay there loans, should not be able to and or you should be single, have state pay for everything, and live in your parents basement to make payments in good faith. Oh lets leave out, no you cannot ever buy a home or car for that matter or have a life.

            So if you cannot pay your loan, you should, and never, will be lessen of the burden, of a loan that was to much given to you to begin with. I could go on and on.. guess I am just crabbing because I really do not have any options or few.

            “ (1) You must establish that you cannot maintain, based upon your current income and expenses, a minimal standard of living for yourself and your dependents if you are forced to repay your loans; (2) You must show that additional circumstances exist indicating that your current state of affairs is likely to persist for a significant part of the repayment period of your loans; and (3) You must have made good faith efforts to repay your loans.”

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            • #7
              The thing is the laws/rules are what they are. As Dogmatique noted previously, if you have other debts that can be discharged in bankruptcy, that may free up some income/resources you can use to pay on the student loan.

              Your best bet, if you have not already done so, is still to talk to a bankruptcy attorney.
              (Someone you can discuss your complete situation & finances with.)
              Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

              Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

              Comment


              • #8
                burner test is not law.. need to find one, I have not found one that knows of the burner test.
                Originally posted by Betty3 View Post
                The thing is the laws/rules are what they are.

                Your best bet, if you have not already done so, is still to talk to a bankruptcy attorney.
                (Someone you can discuss your complete situation & finances with.)

                Comment


                • #9
                  I'm just saying the laws & rules (& exceptions) re bankruptcy are what they are - my suggestion re an attorney still stands. He/she should have an idea of what you can discharge in a bankruptcy after they know your complete situation & financial information. The court makes the final decision whether you can discharge your student loan as a hardship case - each case is not the same. All courts do not interpret the Brunner Test the same either.
                  Last edited by Betty3; 04-16-2012, 07:17 PM.
                  Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                  Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                  Comment


                  • #10
                    When I have called some attorney offices, I have not found anyone that knows of the burner test? Seems like if they are into bankruptcy they would have heard of it? Do you know of any attorneys in SW Michigan area? Or should I make apt to get past the screeners and see what a attorney might say?
                    Originally posted by Betty3 View Post
                    I'm just saying the laws & rules (& exceptions) re bankruptcy are what they are - my suggestion re an attorney still stands. He/she should have an idea of what you can discharge in a bankruptcy after they know your complete situation & financial information. The court makes the final decision whether you can discharge your student loan as a hardship case - each case is not the same. All courts do not interpret the Brunner Test the same either.

                    Comment


                    • #11
                      I would definitely get past the screeners & talk to an actual attorney. We are not allowed to give referrals to specific attorneys/law firms. You can contact your local or state bar assoc. for a referral to a bankruptcy attorney, your local law school if there is one, local legal aid society, yellow pages, internet.....

                      You need to talk to an *attorney* as suggested previously.

                      (It's the Brunner Test (not burner.)
                      Last edited by Betty3; 04-22-2012, 07:46 AM.
                      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                      Comment


                      • #12
                        The lenders involved will put everything they have into fighting you, making it too expensive to even try, which is their intent. They do NOT want any precedents set that allow people to file bankruptcy on their student loans. Most bankruptcy attorneys are running mills - they only want the easy cases. If you qualify for SSDI and can get approved, then after 3 years your student loans can be discharged. I think. You do need to consult with an attorney, but finding one who handles student loans will take some work.
                        I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.

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                        • #13
                          The bottom line is the OP does need to talk to an attorney which the OP was told in every reply I believe.

                          OP, it's very possible you just will not be able to discharge your student loan in bankruptcy - at this time anyway. (but talk to an attorney)
                          Last edited by Betty3; 04-22-2012, 10:39 AM. Reason: add info
                          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                          Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                          Comment

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