Fiance 100k in unpaid student loan debt, does not want to pay. Consequences?

[dasflux]

My fiance collected a lot of debt before we got together. She makes 34/year. She is in chapter 13. Ends next year. Lawyer says she can file for chapter 7 to clear the rest next year. Her loans are collecting a lot of interest. She tells me she doesn't want to pay on them. I see they can garnish her paycheck at 15%. Well I pay all the bills and have encouraged her to do something about it eventually. She literally has 250$ a month after chapter 13. I know she has to go before a judge again or something at the end. Apparently there is more debt after the chapter 13 is done, that is why she wants to do a chapter 7 afterwards. I dont know all the details.

I don't see how they can just let her get away with paying that 15% when she can pay something. What are her consequences? Will they sue her for not trying? What will happen if she doesn't do a payment plan and can?

[MooseBucks]

If the loans are federally insured filing BKO is not going to help. I'd suggest she speak with her atty about what is going to happen once her bko is discharged.

[bjl584]

Typically, Federal student loans are not forgiven in bankruptcy.
You or her may have received bad information or are confused about something.

You may want to seriously consider holding off on saying "I do" for the time being. This sounds like a mess that you may not want any part of. At least until it's cleaned up and your fiancé has demonstrated an ability to be responsible going forward. Because, keep in mind, that after the bankruptcy everything is going to have to go in your name and use your credit. House, car, everything. She won't have the ability to buy anything on finance for several years. If she has been cavalier enough about money up until now I have to wonder what her views are on a budget, saving for retirement, living below your means, credit cards, and all the rest. This situation seems to be stressing you out, and you aren't even married yet. Imagine the stress after the marriage if she doesn't change her behavior.

I don't mean to judge, but this looks like a tidal wave headed your way, and you currently still have time to head for higher ground. Good luck.

[~bs]

don't marry until she gets her issues resolved.

[dasflux]

This is what i read in google. It is a federal loan.

"Federal law allows creditors who own student loans guaranteed by the federal government to garnish up to 15% of your disposable income. Disposable income is your after-tax or “take-home” pay after federal and state taxes are withheld."

15% isnt very much to garnish. How can she get away with just that? She walks away with most of her paycheck the rest of her life. Can't buy house or car. But im just like why? Is this legit? Is this all that is gonna happen to her? This is why theres a damn rumored bubble coming if thats the case.

[HundredK]

I could be off base, but it seems like you're more horrified by her willingness to do this. I personally wouldn't marry someone if I felt I had to rely on government regulations to get them to be responsible.

So, I think the question to ask is not "How can they let her do this" and more "How can she do this in good conscience".

[dasflux]

If the loans are federally insured filing BKO is not going to help. I'd suggest she speak with her atty about what is going to happen once her bko is discharged.

What is BKO? And what would this result of?

[Singuy]

Look into income base payments and 25 year forgiveness..but the income based payments are based on household income so for her it'll go up after marriage.

[snafu]

So many unrelated choices use FICO type score to play a role. Bankruptcy remains on her record for 7 years. Many employers are reluctant to promote or hire staff with poor credit scores. Insurance rates/premiums factor in credit scores. Many vendors don't accept clients with poor credit, future credit requires significantly higher than average interest rates. CC can ask for co signer and ridiculous rates. She will be limited in who will loan money, certainly not be eligible for lowest rates. Landlords and rental agencies often deny access. Utilities require a deposit that the rest of their clients don't require. Major sums remain in limbo for years. The mortgage or car loan is difficult to get approved

[YULACU]

15% isnt very much to garnish. How can she get away with just that? She walks away with most of her paycheck the rest of her life. Can't buy house or car. But im just like why? Is this legit? Is this all that is gonna happen to her? This is why theres a damn rumored bubble coming if thats the case.

The government is going to use every tool in it's toolbox to get it's money back. If garnishing her paycheck isn't enough they will withhold her tax refund. Once you're married you'll have to file as an injured spouse to get part of your refund back. If she still owes once she begins collecting Social Security Retirement, the government will garnish that as well.

Student loan debt is like the STD of the millennial generation. Personally, I would steer clear of anyone that doesn't have a plan to deal with it.

[Gailete]

I agree with the others about even thinking about marrying this woman. I'd be running in the opposite direction! She spent $100K to go to school and now makes $34K a year? Something is screwy there. Either she was using those loans for pizza, because she doesn't seem to be working at her potential considering how much she took in loans.

You say you pay for everything right now and that she ONLY has $250/month after her Chap. 13. What is she doing with that money? Is it supposed to be her spending money to fritter away? Wish I had that kind of spending money! I realize we don't know her or why you want to marry her, but she sounds like she wants a sugar daddy to take care of her. First the loan guys so she could go to college without getting a job or doing work study (say scrubbing toilets like I did), now she has you taking care of her, and she is quite happy to let Uncle Sam take care of her bills for life. I can't even understand the attitude at all. Grown ups work for their money, they pay their own bills, they support themselves not waiting around for someone else to do it.

You two obviously aren't of the same mindset about money. Do you think it is going to get better? What happens when you have a kid and she insists on keeping the little one in the finest of baby togs and supplies? Do you really want to be covering bills for crap that wasn't necessary just because she wants it? I've seen these studies saying how much it cost to raise a child and I know it sure didn't cost me that but then I didn't mind washing diaper and hanging them on the line to drive. Are top name brands what trips her triggers or do you see her trying to be frugal. $1 a bottle Suave cleans your hair as well as top of the line shampoo. What do you see her buying? Is this what you want to pay for the rest of your life. Her extravagances. You write as if she doesn't care in the least that she owes this much money. She expects others to cover her needs. She has some serious issues. Please don't marry her until she has proved herself to you and to her that she can be responsible with money and finances and that she isn't going to drain you dry.

She is never going to change unless she wants to or has someone yank the rug out from under her and suddenly she has to sink or swim. In the meantime those bills are NOT yours. Don't make them yours. I have seen many boyfriend/girlfriend situations here on this forum and as a much older woman, I have never understood why they are helping to pay their SO bills out of their own paycheck. They don't owe that money and it is money they will never ever see again. When retirement age hits and those guys and gals have left them behind, I hope they left enough good memories to make up for the deficit in their retirement accounts. Yes, if bills are made while you are married, they are both of your responsibilities, until you get to the point that you can't deal with it any more when the other refuses to change or even try to change. That is yet another situation.

Sorry I can't say anything positive, because I just can't think of anything positive about this situation.