What to do if we received a summons regarding a student loan debt but we have no ability to pay?

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What to do if we received a summons regarding a student loan debt but we have no ability to pay?

I was co-signer. It was for 10k. They want $15k + fees. We have no savings, only $2k in the bank and nobody to help us. No inheritance, etc. Our house is in foreclosure (haven’t received official paperwork but will very soon). We have 5 kids. Husband is on probation at work. We have other debt, medical and $40k on 2nd mortgage that they’ve sent to collections. Husband can’t find a job here and is looking out of state. We have to move. What do we say in our answer? Living paycheck to paycheck and will be lost if they garnish wages.

Asked on November 4, 2011 under Bankruptcy Law, Rhode Island

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Assuming you can't workout something with the lender (e.g. deferment; small enough payments that you could afford; etc.), then your best option, considering everything you have written about, may be bankruptcy:

*  While bankruptcy will not let you keep a home indefinitely if you can't afford it, it will

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Assuming you can't workout something with the lender (e.g. deferment; small enough payments that you could afford; etc.), then your best option, considering everything you have written about, may be bankruptcy:

*  While bankruptcy will not let you keep a home indefinitely if you can't afford it, it will


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