Question
I am a single mother who took out a Student Loan to take a hairdressing course about five years ago. I worked in a few salons, but after paying for my chair rent, supplies, and sharing half of my receipts with the salons, I realized I can make more if I work in a grocery store as a cashier. That’s where I am now, and I am receiving collection calls and they threaten to seize my wages and have phoned my employer. After I pay my bills, I have no money left over to put anything toward my Student Loans. What can I do? Is bankruptcy an option?
Answer
Student Loans less than seven years old will survive a bankruptcy and must be paid even if you go bankrupt. We noticed that you have indicated that you have no money left after you pay your bills. If these bills include significant other debts, which are dischargeable or forgiven in a bankruptcy, a bankruptcy may still be beneficial for you, even if you have to pay your Student Loans. If you have and can eliminate enough other debt by filing a bankruptcy, you may then have some money available for your Student Loan.