Legal Question in Bankruptcy in New York

Bankruptcy vs Default

I have several thousand dollar credit card debt and a $40,000 student loan. The credit card debt has been in default for 5 years. I pay only interest on the student loan. I am in my early 50's and only a few years past entry level in my profession and a few years from retirement. Should I file for bankruptcy and attempt to discharge the student loan and the credit card debt before the new law takes effect, or should I just let the default disappear from my report? The statute of limitations in New York is 6 years; but I was sued by a bank for a business loan that had been in default for 10 years. The suit was dropped before court, but cost $2800 attorney fees, which my attorney said I couldn't recover.


Asked on 7/02/02, 8:31 pm

1 Answer from Attorneys
Lance Spodek Lance Roger Spodek, P.C.

Re: Bankruptcy vs Default

I do not believe you will be sucessful in discharging your student loans under the current or new law. I would opt to file now as the new law may present problems for you.

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Answered on 7/03/02, 11:43 am


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