What exactly constitutes "extreme hardship"?

[SvnLyrBrto]

What is the name of your state? California

My situation:
Short version is that I'm an ex-tech worker in California. And when the tech industry collapsed in 2001, I lost my job. After stringing along on savings for a while, I took a much lower-paying "survival" job. By "survival" I mean that as literally as possible. My paycheck just *barely* covers my rent, utilities, and insurance. Food, clothing, and other expenses come out of tips.

I now have about 45K of bad debts, 20K of which are student loans. I've put off even considering bankruptcy as long as possible, hoping and trying, to no avail, to get a new job in my profession and pull things together myself. But I'm now at my wits end...

I'm now being threatened with wage garnishment for one of my defaulted student loans (rent and food came before paying off debts), and I can't afford it. I've been informed that I can appeal the garnishment if it would constitutes "extreme hardship", but I've no guidelines on what EXACTLY that means.

Likewise, in considering bankruptcy, I'd be very little better off if I didn't get some kind of relief from my student loans, as they are the ones that are threatening my ability to keep a roof over my head. My other creditors are still content just to send nasty letters. The US Dept. of Education's own website says that student loans CAN be cancelled in bankruptcy in cases of "extreme or undue hardship". But, again, offers no information on just how destitute I have to be FOR my situation to be considered "extreme hardship". I gather from replies to similar topics that "extreme hardship" is fairly hard to establish in this case.

So, in both cases, can anyone offer advice on what is considered "extreme hardship", and how I go about proving it?


thanks,
john

 

[Who's Liable?]

"Extreme Hardship" generally means no arms or legs, dyslexia, and a severe case of DDA...

Good luck in proving this as it is VERY difficult to prove... You NEED to pay those student loans! If you do not and they do default, you might as well move to the moon and try to get credit there. It is not the Governments fault that you lost your high paying job and are unable to get another... Man up, quit sniveling, and get a second job to pay back society for your schooling. Don't say that it's to difficult or you can't do it! There are plenty of women out there with one or two kids who can/have done it, and so can you...

Good Luck!

 

[ndnicks]

I don't quite think he is sniveling, just explaining his situation for a better answer and advice as requested by the forum instructions.

It's very difficult to get jobs, at least in my state and the one I lived in previously. Relatives in another tell me its very difficult to get anything besides fast food, and that could very well be what he is working. Around here the only hiring job anyone can get without -lots- of experience and certain degrees is at the prison, which is where I work now after many months of going jobless.

By the tone of his writing, I dont think he would purposefully let another job slip through his fingers if he could help it and is really that close to starving and trying to survive.

 

[Who's Liable?]

I don't quite think he is sniveling, just explaining his situation for a better answer and advice as requested by the forum instructions.

It's very difficult to get jobs, at least in my state and the one I lived in previously. Relatives in another tell me its very difficult to get anything besides fast food, and that could very well be what he is working. Around here the only hiring job anyone can get without -lots- of experience and certain degrees is at the prison, which is where I work now after many months of going jobless.

By the tone of his writing, I dont think he would purposefully let another job slip through his fingers if he could help it and is really that close to starving and trying to survive.

Quit making excuses for him... A fast food job making $5.50/hour is better than $0.00/hour.

 

[kopes]

I tried filing for "extreme hardship" when it came to my student loans and there is no way that I even came close. I can't remember exactly what they said, but basically you would have to be barely breathing. I am a single parent, two kids, absolutely no child support, low paying job, and in huge debt. I couldn't qualify. I filed BK7, have been discharged, and have to suck it up and pay the student loans. There is an income sensitve payment plan. That will lower your payments based on your income. You end up paying more interest in the long run, but if it helps now, apply for that. My payment got knocked down from $321 a month to $115.

 

[SvnLyrBrto]

Quit making excuses for him... A fast food job making $5.50/hour is better than $0.00/hour.

Look, this hostility is uncalled-for. I've never tried making excuses for myself. I'm not here for sympathy. And I'm not here to tell a sob story. And, yes, I'll be the first to admit that my situation is as much the result of my own irresponsibility as bad luck.

At the same time though, it's not like I majored in basket-weaving. When I graduated, Computer Science was a "write your own paycheck" degree, and no one had any idea that the recession, and the death of the tech industry, was coming.

All I was hoping for here was to ask, and maybe have answered, some questions; in this particular case about terminology that seems to me to be deliberately vague.


cya,
john

 

[Who's Liable?]

okay John, you have your answers...

No you cannot discharge(extremely difficult) your student loans, you can talk with the lenders and maybe get on a program as one of the posters suggested, or you can get another job...

Bottom line is this: DO NOT let those student loans go into default!

 

[SvnLyrBrto]

Thank you.

Thank you.

And now that I know, I doubt I'll be considering bankruptcy for the time being. I'll go back to fending off the student loan guys by whatever OTHER means are possible, and keep looking for a real job; so I can stop living paycheck-to-paycheck and start getting EVERYTHING paid off legitimately.


cya,
john

okay John, you have your answers...

No you cannot discharge(extremely difficult) your student loans, you can talk with the lenders and maybe get on a program as one of the posters suggested, or you can get another job...

Bottom line is this: DO NOT let those student loans go into default!