Legal Question in Bankruptcy in California

student loans

I took out a student loan from sally mae many years ago. I moved to the United Kingdom 13 years ago and the loan has not been paid on since because I did not have means to pay and I did not know how to pay from a foreign country so I just let it go. Since then the amount of interest has has accumulated to a very high amount and I would like to know if I can claim either bankruptcy on the outstnading amount or just have them cut the huge amount of interest. I would like to move back home to the states but am worried as I don't want to end up with a huge bill or have my wages docked. I also don't want to ruin my credit rating either. Your advice would be greatly appreciated.


Asked on 6/22/06, 5:55 am

1 Answer from Attorneys
Judith Deming Deming & Associates

Re: student loans

I can assure you that your credit is already ruined if you have not paid on the loan for all those years. Also, generally, loans owed to the government, as is a student loan (because backed by govt. funds) are not dischargeable in bankruptcy. I would recommend contacting them and working out a payment plan that you agree to live up to, so long as they do not garnish wages.

Read more
Answered on 6/22/06, 11:09 am


Related Questions & Answers

More Bankruptcy Law questions and answers in California