If I have $50,000 in student loans and I only make $30,000 a year what can I do?

I also have $100,000 in medical bills and have 3 children. Is there anything I can do to alleviate that?

Asked on November 8, 2011 under Bankruptcy Law, Illinois

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You won't be able to discharge the student loans by filing bankruptcy; however, the medical bills could be discharged by filing bankruptcy.

Chapter 7 is straight liquidation which eliminates your debts.  Chapter 13 requires a plan (budget) for repayment of creditors.

Your income and other factors will determine whether or not you are eligible to file  Chapter 7. If you are not eligible to file Chapter 7, you can file Chapter 13.

You will need to list all  of your creditors when you file bankruptcy if a balance is owed to a particular creditor.

It would be advisable to speak with a bankruptcy attorney.


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