Legal Question in Bankruptcy in New York

Re: student loan debt

I understand your situation and it is very difficult. But I want to talk about how you can deal constructively with this mountain.

First, you are correct that Bankruptcy will not assist you. And paying on the loan is perhaps not possible. But, 140T may be a mountain, but it can be addressed.

Second, if you stop paying now, the clock starts ticking on the amount of time they have to sue for a judgment. The sooner you start this clock, the sooner the debt may become 'unenforceable'.

Third: If you stop paying and fall into default, then you can negotiate a payback that may not include further interest, and perhaps not even the already accrued interest.

Fourth: What is your situation? Are there reasons that would justify forgiveness of this debt?

Fifth: payment alternatives. There are concepts of 'community service' that may be applied to the debt (schoolteacher, military service are two such examples. There are others.)

sixth: remember; this is smaller than many house mortgages and they get paid. Think in terms of decades, not single years.

Good luck.

Re: student loan debt

You need to consult with a local bankruptcy lawyer and have him or her discuss with you the probability of obtaining a hardship discharge under chapter 7 or if need be chapter 13. (FYI see 11 USC sec. 523(a)(8))