private student loan

Student loans including private loans are non dischargeable in bankruptcy. Some privates have a SOL but since you are outside the country, the SOL will be tolled.

Private student loans cannot be discharged. However, there is growing sentiment out there to make private student loans dischargeable again. When this day comes (and it will), you can return to the States and declare bankruptcy and regain your life again. By the way, more and more Americans are moving overseas and leaving their exorbitant student loan debts behind. This is because we are in the midst of an ever growing student loan bubble. If you move out of the country you are essentially judgement proof. Sallie Mae knows this and this is why they will go ballistic with you on the phone if you even mention of thinking of leaving the US. By the way, I have yet to hear of anyone getting garnished on overseas wages. This is because your collector would have to go through the exorbitant costs of going through a foreign court system from scratch. Furthermore, many nations will not recognize and enforce private foreign debts (especially an underdeveloped one like the one you are at currently). And even if a judgement were even possible (which would take years and years by the way), what would prevent the borrower from quitting their job and moving on to yet another country? Furthermore, since you no longer have any property in the USA you don't have to worry about any property liens. Furthermore, do not keep any significant money in US banks since those accounts could be frozen at anytime after a judgement is executed. I have yet to hear of any student loan debtor having their wages garnished working abroad.

Came across this radio interview today between Peter Schiff (a well known finance guy who called the real estate bubble) advising a student loan debtor owing 200K to move abroad. Note how Mr. Schiff (who is a brilliant guy) blames the banks and govt for entrapping the borrower into financial ruin while soaplady places all the blame on the 18 year old student who is only trying to better him or herself.

http://www.youtube.com/watch?v=PljbdfPRWis

I have heard of several successful private loan lawsuits in the UK and Canada....Canada will honor a US judgment.

If the day ever comes (and personally I doubt it will) that privates are dischargable, they will set many conditions down for the bankruptcy qualification. More than likely they will require it to be 5-7 years after the loan became due like in pre 1999. This will cause the loan holders to sue earlier and extract their pound of flesh quicker and get whatever funds they are capable of getting prior to bankruptability date.

In 2005, while Congress made PRIVATE student loans NONDISCHARGEABLE for life in this country, our Canadian neighbors next door decided to pass legislation to make ALL STUDENT LOANS (including federal!!!) dischargeable after 7 years (used to be 10). I find this dichotomy astounding. Nevertheless, I came across this interesting ...exchange between a former US citizen owing over 100K in fed student loans and a Canadian bankruptcy trustee:

"I became a Canadian citizen over 2 years ago and have recently suffered a financial setback. I owe $20,000 in unsecured credit card debt and over $100,000 in student loans that I borrowed while a U.S. citizen. Are the U.S. student ...loans, owed to The U.S. Department of Education, dischargeable under Canadian bankruptcy laws? (IT HAS BEEN OVER 10 YEARS SINCE I STOPPED ATTENDING SCHOOL)"

"The US Student loans will be discharged in a Canadian Bankruptcy so far as the laws of Canada are concerned. The US student loans cannot pursue you for collection in Canada once you file bankruptcy.However, the loan will NOT be erased in the US so if you move back to the States the student loans people can pursue you for collection."

I am not looking to discharge my student loans. I am looking at bankruptcy to discharge my personal and business debt, knowing that I will have to continue to pay on both my federal and private student loans after my bankruptcy is completed. I am looking at bankruptcy because I need my OTHER debt discharged so I can move on with my life and have a job that I can support my family with as well as pay on my student loans.

My concern for garnishment of my wages is because the company I work for is a US based company and my paycheck is drawn on a US bank. My guess is if I had a paycheck in foreign currency then I wouldn't have to be worried about them coming after me at all. I do not pay taxes on the money because I live outside the US, however I am concerned they may be able to garnish my check because it's coming from the states.

Thank you all for your input. Outside views are always appreciated.

I'm not looking to have my student loans discharged in the bankruptcy, only my personal and business debt so I will be able to AFFORD to pay my student loans.

I don't understand why they're including your student loans in your total debt anyway. They can't be discharged, they shouldn't be included.

LOL...uh, yes, I agree with that. Maybe someday that will change and they will not include student loans in your total debt since they cannot be discharged. Until then, anyone that makes over 40K for a family of three and has over 360K in debt, even if it's from school, cannot declare bankruptcy. It is insane that there is NO help for people in my situation.

Honestly-- I say stay out of the country. Think of how unhappy you would be if you went back. Right now, they can't do anything to you. As long as they don't get wind of where you are (mention it to as little people as possible) then they can't do anything, I wouldn't think. Just as an opinion, I really don't think you owe them anything. Private lenders are the ones who always get the easy way out and are always helped when they're in a pinch (i.e. the Big Bank Bailouts of 2008) yet they are SO unforgiving to whom they actually lend their money. They are a corrupt, immoral, and, frankly, evil bunch and as a US citizen, I would actually feel you have the right to not pay money to the domestic enemies that are our banks. I know of several people who have left lives of debt and stayed almost completely off the grid and they are some of the happiest, most calm people I have ever met. Keep doing what your doing, but don't let anyone know where you are. You guys don't deserve to be fed to the sharks.