Options when Unsecured debt exceeds Chapter 13 limits???

Just came across this (even though this question was started last year). Has anyone had any luck with how to proceed with either a 7 or 13 when student loans put you over the 336k unsecured debt limit for ch 13, but then do not pass the means test (make too much $$), and cannot afford a ch 11? Seems outrageous that since student loans are non-dischargable, but also not considered "secured" to allow you to file ch 13. We are contemplating filing, but are are worried that a 7 will really not help us as most of our debt is student loans and could be dismissed by the court, but I am wondering what they would suggest us do instead? A 13 and then get denied for being over the unsecured debt limit. I am at a loss here as to how to proceed as most lawyers I have talked to just scratch their heads and cannot give any answers!

If you can wait, there might be a change to allow student loan debt to be discharged. There were hearings in Congress on Sep 23rd 2009 "Discharging educational debt in bankruptcy".

If you can prove that you are broke, you can file a pauper's affidavit and the court will waive your filing fee. Read up on the bankruptcy process, file your petition pro se, only if you can pay attention to detail and follow directions.

My heart bleeds for professional students who live off their student loans for a good portion of their adult years then try to find ways to get out of paying them back. And, yes, I had student loans and I worked two jobs to pay them back in just over 13 years. Unlike the OP, I had to sacrifice my dream of buying a home until after I paid back my student loans. No sympathy from me.

You dont have to be a professional student to owe a good amount of debt. You can buy a home and pay a student loan at the same time.

Rright, only if you don't have a lump sum they'll likely sue you first. Been there done that.

sub # 22...what do you mean "only if you don't have a lump sum they'll likely sue you first.....?" do you mean that if you pay a lump sum to settle your debt, that they will sue you to get the remainder? I don't understand your statement??? can you clarify???

The house value dropped. Both 2nd & 3rd mortgage and other debits exceed the unsecured debts limit. Can Husband file Ch 13 first alone (2nd mortgage is under husband), to eliminate his debts, then the wife filed another ch 13 to eliminate(3rd mortgage is under wift) her debts. Will it work?

I mean that if you want to settle with a CC company for 40-50% of a (high) balance, they will want a lump sum settlement. I was sued by Citi for 45K and Amex for 25K and the only way to avoid a judgment was to settle with a lump sum (or 3 payments over 2 mths). I filed instead.

I need debt relief hepl...I get $472.00 a month from the state for disability.I was laid of last year and I owe money on my credit cards.are there any programs out there for people in my siutation.I've been trying really hard on trying to pay them off.but its just getting really difficult to keep up...I'd say I own close to $10,000..please I'm sesperate...there are a lot of debt relief programs but I don't know how reliable they are..

If you are over the debt limit for a 13 you can file a 7 regardless of your income.

I don't think there is any way around it that you have to walk away from your house. Rent an apartment and then try to restructure the student loans. Your $160k of income is extremely high and with that type of income you should be able to repay the student loans. But you may have to do bk for your other unsecured debt.

You want to get out of paying your student loans? Filing for Chapter 7 or 13 will not help you get that unless of course there is an undue hardship. And the undue hardship is very rare. And it sounds like you just don't have enough money (i.e., you are living beyond your means). They changed the laws a while back because everyone used to to go to school rack up a bunch of student loans (like you) and file for bankruptcy immediately after they got out of school (like you are trying to do). But they changed those rules because people abused them. You may qualify for Chapter 7 even though you have a high combined income, if your secured debt payments are high enough along with other factors. Run a means test and find out. I've seen people with your income qualify for Chapter 7. I don't understand your insistence on filing under Chapter 13. Chapter 13 is generally not a good choice because of the long repayment period and in your case it would be 5 years. But if you want to get rid of a completely unsecured 2nd mortgage on your residence it is still worthwhile. Chapter 11 is very expensive but you shouldn't complain about the fees, it requires A LOT of work. Chapter 7 is relatively inexpensive when you consider all the facts. Good luck!

By the way....Debt Consolidation is generally a scam. Watch Out!

That is what happens when you go to "bankruptcy attorneys", they have no clue.

All you had to move was a Chapter 11.

Bankruptcy is a forum to decelerate the default and reconstitute the payment stream, and possibly discharge specific non secured items within the plan.

yes she is bankrupt, not just broke you idiot, she has $135,000 in other non-student loan debt that needs to be wiped out