I have student loans from 1990 to 1992 and they have tried to garnish my wages when I worked at my last job.
I ended up quiting the job before this happened and remember that they wanted to take a lot of money each month... around $300. When I only make $2400 a month. My father suggested I file bankruptcy because I have a lot of unpaid debt that I can't pay. But I worry about having bankruptcy on my record forever and that it will look bad on me whenever I try to get credit for anything else. A friend said that creditors don't care if you have a banksruptcy because their insurance companies pay them and they get paid back anyway. Is this true and will it not be a big deal to have bankruptcy on my record or will it cause me problems and look bad for me if I ever apply for credit again? The other question is will my school loans come off with bankruptcy ? If not, is there a limit to what they are allowed to garnish out of my wages?

OK... im not a financial counsler or anything but I know quite a bit about it and I listen to Dave Ramsey everyday. If you haven't heard of him I suggest that you check out his website. It is daveramsey.com His program changed our life and our marriage! You can call into his show and ask him about your specific information... he will likely tell you that you aren't at the point of bankruptcy. Bankruptcy is a last resort.

Now to answer some of your questions. It depends which type of bankruptcy you file for. One is on your credit report for 7 years and the other for 10 years. And it will affect your ability to get credit for the years that it is on your record. For example you may not be able to get a house, etc. So it will be an undesirable thing to have on your report.

School loans do not come off when you file for bankruptcy. So that won't help you out there.

Bankruptcy is not a fix to your problems... it only masks the symptoms. If you file bankruptcy but do not change your lifestyle then you will soon find yourself back in the same situation. Whether you decide to file or not you need to make some changes. Millions of people live very well on less then what you were making because they make the right choices. You need to stop borrowing money, get a job if you don't have one and spending money on stupid things like eating out, partying, and buying frivolous things such as clothes you don't need, etc while you are getting out of debt or recovering from bankruptcy. If you need to take more then one job to make ends meet then do it... it will only last for a little while if you get intense about your situation and you can go back to one job and doing things you enjoy while staying financially stable.
I highly recommend Dave Ramsey, his radio show which can be listened to on his site for free, and his program. Please do at least check out the site before you file... you could save yourself a ton of stress and issues in the long run.

Good luck to you...

There are a few things that can't be wiped out either under chapter 7 or 11... student loan, taxes, and restitution. Filing bankruptcy is not always a solution. Face the reality, it's better to have discussion with lender and make some adjustment to your payment plan, etc.

First of all, why are you still not paying for student loans from 1990-1992? When you took out your student loans, was it your intention to default on the repayment terms and not honor your obligations? If that was the case, your application was fraudulent.

I question your integrity and that of your father for advising you to file bankrupcty over a $300.00 a month garnishment.

Government insured student loans are not dischargeable in bankruptcy and in Cailifornia, 25% of your gross income can be garnished. I suggest instead of hiding from this debt that you grow up, pay your obligations and move on.

Not paying back student loans will bankrupt the system for future students who need financial assistance.

No, Student loans will not be discharged in bankruptcy