Can I file now or

[fnyrascal]

do I have to wait until I am totally buried? I will be losing my job in three months and wonder if I have to wait until I lose it and don't have anything left or can I file now before I am totally without anything?
The following is a response I got from Sallie Mae, the Student Loan people: Exactly what does it mean, this petition and the administrative forbearance? Is that a total discharge or is it "pay later"?
{Student loans are rarely forgiven due to bankruptcy.
Student loans included in a chapter 7 bankruptcy may be eligible for
forgiveness if the an "undue hardship petition" is accepted by the court.
Student loans are placed in a bankruptcy status and an administrative
forbearance is processed once the Discharge of Debtors is received.}

 

[gottago]

Your student loans will not be discharged in a bankruptcy, so that's not an option for you.... at least for the student loans.

If you have a lot of other debts, and you're going to file bankruptcy, you should probably wait until your job is gone.

If you do make the decision to file, stop paying all your unsecured debts now. There's no use throwing anymore money away on them if you're going to file anyway.

Whatever you do, work out something concerning those student loans. Don't allow those loans to become too delinquent. The Gov't can cause you a lot of trouble if you don't pay them.

 

[fnyrascal]

How come no one

will answer the specific question? I got a resonse from Sallie Mae on the Student Loans and if you look at my original question you can read what they wrote.
They said that yes, student loans are rarely forgiven but gave an instance in which they could be. Please let me know what this Undue Hardship Petition is and what has to happen for me to apply for it or whatever. Thanks to anyone who can answer that question.

 

[bigun]

The trustee and judge will apply something known as "The Brunner Test". It is all or none. They can't dischage a portion They must find grounds to discharge the entire loan. The standards are very high. Do a "Googel Search" uaing the subject "the Brunner Test" and about the 6th or 7th listing, will be the entire court and appelate decision. Read that and decide for yourself if your situation merits discharge in bk.