Legal Question in Bankruptcy in California

Do I have a chance in heaven???

I am the single mother of a 1 year old, my student loans have defaulted and now in the possession of the CA State Franchise Tax Board. I recently started working (4 mos. ago) and I received a notice dated 3/22/00 that they would like a check for $47,000+ in full...now! I have no money for them--I wanted to file for bankruptcy, but there seems to be no help for me there. There has to be a loophole somewhere to help me, I'm just starting to get my life together and they are about to crush it, what can I do--no, I can't reorganized my debts...I just need a way out or up...HELP!!!


Asked on 3/29/00, 4:01 pm

1 Answer from Attorneys
Neil Ackerman Ackerman & Gallipoli, LLC

Re: Do I have a chance in heaven???

Hi!

There are two types of bankr. you can look into. A chapter 7 will discharge the ed. loan debt if and only if you can prove that it would be a great hardship for you to repay this. From the facts I read, it doesn't look like you could win this, but see a local bankr. practitioner, maybe there are more facts that would help you here. More likely, you could resort to a chapter 13 bankruptcy, and pay this debt off over 3-5 years. Yes, chapter 13 forces them to wait that long to take payment. Now, you have to show you can afford this based on your financial situtation, but if you can show it, you can do it.

Nonbankruptcy alternative: can you have Sallie Mae (StudentLoan Marketing Assn, probably with a local phone number for you, but certainly with a number in DC) buy your loan? My student loan was bought off by them; they gave me great terms, and were understanding when I needed time, and I repaid the debt over 10 years. Maybe you should look into this first, to see if you can keep away from bankruptcy. If not, use the alternatives discussed above.

Good luck!

Neil Ackerman

Read more
Answered on 4/03/00, 8:19 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in California