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Hello, and thanks so much for any thoughts you can give.

I am a 44 year-old male in the process of divorce.
There is a student loan servicing company called Mohela, who serviced one of my loans from 1998-2001.
I currently owe about $8500 on it. They are refusing, at this point, to negotiate any more (for a long time, I made payments of $20.00 per month).
I have no assets, except a car that I recently purchased for $2800.00. I recently began a full-time job that I earn 42,000 per year, and owe about $15,000 on taxes that I know the IRS will begin asking for soon. In addition, I have Federal Student loans in the amount of $150,000, and an unemployment deferrment that I had will be ending on June 15th, with payment expected on July 15th.

I know the answer is out there, but as of this moment, don't know what to do.
I declared bankruptcy in 2009.
Although they're not a Federal program, they are contracted with the Federal Government, and I don't believe they go away in bankruptcy. I would like to propose $50 per month, but seeing they recently turned down a $4000 settlement offer from me, I don't believe they'll accept a measly $50 per month, and are asking me to complete paperwork listing my assets and wages.

What can I do to help myself short of having my wages garnished, or my car reposessed?
 

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Before I work on answers, I will ask the obvious - what the heck kind of degree costs over $160,000 but pays only $42,000 after a decade of work experience??

They are refusing, at this point, to negotiate any more (for a long time, I made payments of $20.00 per month).
Your $240/y payment is less than 3% of the loan, the loan is probably growing rather than going down? So obviously, after more than a decade, they are concerned about getting stiffed for their $8500. They may go for your $50/m off, that is 7%, at least it pays the interest (if not any principal).

You're right about the $150,000 not being discharged in your bk - student loans do not qualify for bk forgiveness. (The history is that, decades ago, fresh grads (JDs, MDs, etc, that had high loans but no assets, simply filed for bk upon graduation). Do a bunch of these student loans belong to your ExW? And are there children involved?

How much will you be paying on the $150k loan after July 15? If it's a 6.8%, 20 yr amortization, it will be about $1150/m. Maybe you can negotiate for a 30 yr payoff, that will be $978/m. Even that cuts deeply into your $42,000 paycheck. What can you do toward earning more money? This would make a lot more sense if you were earning $150,000/yr rather that $42k.
 

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#1 - Find your BK paperwork and see if they were discharged. Some student loans are and some aren't. Most aren't but maybe you'll be lucky!

#2 - Contact the IRS NOW and start the "Offer in Compromise" process. DO NOT wait for the IRS to contact you!

#3 - What is an unemployment deferment? Please explain.

#4 - If you paid cash for the car, why would it be repossessed?

#5 - If they garnish your wages, they have to leave you enough to live on. If you get a summons to court, GO!

#6 - The obvious choice is to work with this company (if the debt wasn't discharged). Give them the facts of your assets, debts and income. Lay it all out for them. There is a hierarchy in debt and child support comes first if you will be ordered to pay that. The federal student loan payments will be next as will your IRS debt (you'll be able to make payments to them).
 

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#1 - Find your BK paperwork and see if they were discharged. Some student loans are and some aren't. Most aren't but maybe you'll be lucky!
Yeah, you'd think after 7 years someone would know what was and wasn't discharged.

#3 - What is an unemployment deferment? Please explain.
I'm guessing this is when someone is unemployed, they don't have to pay their student loans. This doesn't last forever, and usually interest still accrues.
 

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You will need to go on an income contingent plan. Mohela is just a servicing company. They have no say. I'm assuming your student loans are non-private. I'm a CPA and I've done offers in compromise with success for clients. They will look at your ability to pay, your assets, and the amount you owe them. Do NOT wait for them to contact you. Worst case: You will have to pay all your debt but they will only take a portion of your income.
 
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