Is there a way to lower the debt or should I file bankruptcy? 11 Answers as of November 01, 2013

I was ripped off by a trade school. I owe over $50,000.00. I feel like it was a waste of time because I never landed a job. How can I completely wipe it off or at least reduce the debt to 60% - 70%? Please advise.

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Law Office of Thomas C. Phipps | Thomas C Phipps
You can tell them you will pay a reduced amount or you will file a chapter 7. Then they will get nothing.
Answer Applies to: Missouri
Replied: 11/1/2013
Law Offices of A. J. Mitchell, LLC
Law Offices of A. J. Mitchell, LLC | A. J. Mitchell
Assuming that you do not have a federal student loan, bankruptcy may be a good option. However, you should exhaust other means beforehand such as negotiation. Sometimes, a creditor may be willing to reduce the debt by as much as 40 - 50%.
Answer Applies to: Georgia
Replied: 9/16/2013
Danville Law Group | Scott Jordan
If you received the education, even if it was not worth the money, you owe the money. You can try to negotiate the price down. If not, bankruptcy may be your only option.
Answer Applies to: California
Replied: 9/13/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
This is hard one. It is not likely that you can prevail in the bankruptcy court getting this discharged. Your best option is a state court action for fraud. Look on the Internet for a lawyer who handles this type of case. Bankruptcy only looks that your ability to pay (or not pay). The validity of the debt is not an issue.
Answer Applies to: California
Replied: 9/13/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
If it is a guaranteed school loan then you can not do anything, but if not then it may be dischargeable in bankruptcy.
Answer Applies to: New York
Replied: 9/13/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Bankruptcy generally doesn't discharge student loans. Go to the Dept of Ed website and find the list of "rip off" schools. If yours is on the list you may qualify for loan forgiveness. I if it isn't a student loan, bankruptcy can wipe it out
    Answer Applies to: New York
    Replied: 9/12/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    You can try to negotiate with them but other than that bankruptcy is your only option.
    Answer Applies to: Nevada
    Replied: 9/12/2013
    Law Offices of Daniel J Winter
    Law Offices of Daniel J Winter | Daniel J Winter
    Assuming that it is a federally guaranteed loan, Bankruptcy cannot eliminate the debt, unless you can prove "undue hardship". Courts have been very strict, and it has been very difficult to eliminate the debt in bankruptcy. In some rare cases, student loans have been discharged in bankruptcy, usually if a person is disabled in some way. It is important to speak with a bankruptcy attorney to discuss your options. If you are working, you might be able to file Chapter 13 Bankruptcy, to pay whatever you can of the debt over time. However, the balance of the loan would be left to pay, plus interest. If it is not a student loan, you may have some other options.
    Answer Applies to: Illinois
    Replied: 9/12/2013
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    You really need to consult with a bankruptcy/student loan expert. Generally student loans cannot be easily discharged in bankruptcy. There are some limited exceptions, but you will need someone who really knows the case law and can analyze your situation carefully.
    Answer Applies to: Colorado
    Replied: 9/12/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    You will have to see an attorney, government student loans are generally NOT discharged in a bankruptcy. There are exceptions but they are hard to qualify for. I, or any other adviser, will need many more details before you can be given specific counsel and advise.
    Answer Applies to: Michigan
    Replied: 9/12/2013
    Law Office of Barry R. Levine | Barry R. Levine, Esq.
    By filing a bankruptcy or offering them the cash equivalent of 50-60% (or less) in settlement. Depending on what assets you own, a bankruptcy may be the route to take.
    Answer Applies to: Massachusetts
    Replied: 9/12/2013
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