Can I consolidate all student loans and credit card debt that are all in collections or just file bankruptcy?

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Can I consolidate all student loans and credit card debt that are all in collections or just file bankruptcy?

I am a 22-year-old woman who works part-time as a server at a restaurant. All of my student loans, except my private loan, are in default and in attorney’s offices. I have either 2 or 3 credit cards that are also in collections. I have a $300 monthly car payment along with $550 monthly rent and one credit card payment that I pay $50 on monthly. I cannot attend any schools in the state due to my outstanding balances/debt.

Asked on July 7, 2011 under Bankruptcy Law, Ohio

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

You can certainly try to consolidate your debt. There are many companies that specialize in this. However some are not reputable so be careful to thoroughly check out any companies that you may want to deal with. As for bankruptcy, this may well be a partial solution for you. It will help you discharge your credit card debt and may or may not help you reduce your car payment (it depends on several factors). Also, while you may put off having to pay your rent for a time and be relieved of the obligation of any past due rent, at some point you will have to pay your landlord in full if you have any intention of trying keeping your rental. Finally, I don't think you are aware that as a general rule student loan debt cannot be discharged in bankruptcy. One way or the other you will have to pay these loans.


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