Private College Student Loan

May have to declare bankruptcy at 21 years old. I need advice.?

I'm sorry this is so long, i'm just trying to get an informed opinion about this and i'm giving all the information I have. I am a 21 year old wife and mother of one living in Illinois. I am just short of $30,000 in debt and I am crumbling under the pressure. The first thing is, I acquired all of the debt before I was married, none of it has my husband's name on it. The majority of the debt is a student loan I took out from Wachovia for my first year of college. The rest of the debt is medical bills and a smaller portion is for a credit card I took out my first year of college at the urging of my parents. I had to leave the four year university I was attending because I was not eligible for financial aid and my scholarships didn't nearly cover the expense. I also was not able to find any lenders to loan to me again. So I went without college for a year and began paying my loan back. I am now enrolled in a community college and still don't qualify for either a loan or financial aid. I pay my tuition out of my own pocket every semester. I only make around $800 a month, my husband makes the same. Our living expenses total to around $1300 a month (with NO extras I might add, just the absolute necessities). This only leaves me with $300 a month to try and pay off thirty grand. It seems impossible. I made the big mistake of getting behind on my student loan payments and the credit card payment the year I was out of school. Because of this, Wachovia will not grant me loan deferment while i'm enrolled in my new school like they do for most people. I am paying as much as can but still not making minimum payments and they are threatening loan default. The card company is losing patience as well. It's difficult because I was irresponsible for one year and I cannot catch back up even though i'm paying the absolute most I can spare. We've made good on my medical bills so far, but i'm scared that soon I may fall behind on those too. I'm wondering if bankruptcy is an option for me. Because we are so far behind, we won't be able to continue my education after I am done at this community college. The closest four year university is hours away and we couldn't afford to send me anyway because I cannot get a personal or stafford loan nor financial aid. We cannot afford to move anywhere near these universities anyway. It looks like until I can get this debt under control, I won't be making any more money so I can take care of my family. I made dumb mistakes that I cannot seem to get out from underneath. Is bankruptcy my only option? I don't want to declare bankruptcy at 21 years old, but I will if it's the only way. On that note, will my husband have to declare bankruptcy with me, or can I do that separately? He has no debt of his own and I don't want to blemish his record if I don't have to. Also, if I declare bankruptcy, will Wachovia go after the person who co-signed my loan for the money (an uncle)? Will the credit card company go after my husband even though his name isn't on the account? I really want to get this squared away and I don't know what my options are. Please give me some advice. My husband has been so understanding about everything from the very beginning, but I don't want to drag him down with me anymore than I already am. I should also mention, that we rent and do not own a house. Our vehicles were purchased with cash and we do not owe anything on those. Beth - Thank you. I am glad to hear that my husband won't be accountable for the debt. As for the student loan, I just found out that those cannot be wiped by bankruptcy anyway. But if I can get the other debts under control then paying back the student loan won't be impossible.

Public Comments

1. Your husband won't have to declare bankruptcy...he will only be held responsible for anything bearing his name, or anything for which he had a card for. Your Uncle will be called upon to pay the student loan. The other I am not 100% sure about - but I would be really surprised if they didn't give you more options to pay back considering how little you make. You need to call them and talk to them and provide proof of how little you make and explain how you will be able to pay them back more easily when you are done school. Very few creditors don't make allowances for people who are legitmately facing hardships, but make plans to make things better for themselves - and more likely for them to pay back all they owe.
2. The student loan and medical bills have to be paid you can not get rid of them. Contact each lender and tell them you want to make new payment schedule because you can not afford it. Credit card is only one you can get rid of but why bother filing bankruptcy if you only get rid of the smallest loan. Credit card should not be able to go after husband he was not involed when you had loan.
3. Bankruptcy should only ever be a last resort because of the consequences, and for only $30000 it's not worth it. Ring the creditors and explain it to them and you will be surprised at how accommodating they will be provided you stick to a plan and don't avoid their calls.