Consumer Credit Counseling/Bankruptcy - So many questions

Really needing some advice today, as my stress level has been through the roof for months.

Background is basically in my signature, I've been here for three years, two of that on a student visa (not working, living on US student loans, which are now at such an astronomical figure they would make the baby jesus cry)...long story short, I have about $10k in US Credit card debt that has just been unmanageable, and is therefore racking up huge fees/interest every month.

I am finally working, great job in London...and I have about £30 a month after expenses and tube fare that is mine, and is not remotely enough to make payments, let alone a dent in my US debts. I have talked to my bank, they won't even consider giving me a loan to sort it until I have been working for probably another six months. My amazing husband already took out a loan last year when we got married to pay some of it down and for the wedding, so taking out another is ot feasible at this time...so the question...

If I file bankruptcy, I am reading everywhere that my citizenship will basically be outright denied. Does anyone here have experience going through consumer credit counseling in the states while living in the UK? How did that work? Would I have to go back to the US to speak with someone in person? We had hoped to go back for Christmas, but it is looking less and less like that will be possible, so I won't likely be back there in person until May (when my daughter graduates from Uni).

I am hopeful that I will get a new position at work before the new year, but there are no guarantees, and as we have to move in February and will have a substantial rent increase, I don't foresee any of this getting better in the next six months...but I do foresee everything in the States getting worse, as I am gaining debt faster than I can calculate.

Really looking for any advise/practical experience you can offer. I want to pay it down/off, I just literally don't have the means right now...but don't want to apply for citizenship four years from now only to have them laugh in my face and bring down the No stamp as hard as they can.

Thanks in advance for your help....

You'll simply have to wait ten years for citizenship versus the four more you currently have.  Citizenship is a huge expense itself, so I wouldn't be too worried about that just yet.  Do what you need to do to get your head above water.   

In all honesty, you sound like a victim of the dangerously inflated UK housing market.

Ten grand is hardly profligate...that's like an old used Volkswagen. I would think bankruptcy is a pretty big step for such an amount.

The Citizens Advice Bureau gives free advice about debt.  Granted, they may not know much about US debt but it's worth a try.

I would also ask a question like this on Reddit. 

I know this is an older post, but as to the US student loans.... Income Based Repayment.  You might want to look at consolidating your loans with the Feds, then request an income-based repayment plan. There is one where they will look at your income, compare it to the federal poverty level (basically about $11,000 per year) and then you pay a flat 10% of anything you have earned above that amount after they do some additional fiddling with the numbers for living expenses.  I have a huge student loan debt - it's now basically twice what it was when I left grad school because I've been on one reduced payment forbearance or another as I've never really earned enough to make a full payment on what I've owed (when the rolled-over interest was included). My payment on the IBR is now $233 per month. If my income drops, so does my loan payment. If it dropped, hypothetically, low enough, my payment could be $5 per month and it would be considered as meeting the required payment. After 20 years of that, they write it off completely. If you are in the USA working for a nonprofit, in education, or for the government, or working for the US government (or armed forces) abroad, they'll wipe it at 10 years with no tax repercussions on the writeoff.

Something to consider, since you cannot discharge student loans (in the USA) via bankruptcy. They will literally follow you to your grave.

I know this is an older post, but as to the US student loans.... Income Based Repayment.  You might want to look at consolidating your loans with the Feds, then request an income-based repayment plan. There is one where they will look at your income, compare it to the federal poverty level (basically about $11,000 per year) and then you pay a flat 10% of anything you have earned above that amount after they do some additional fiddling with the numbers for living expenses.  I have a huge student loan debt - it's now basically twice what it was when I left grad school because I've been on one reduced payment forbearance or another as I've never really earned enough to make a full payment on what I've owed (when the rolled-over interest was included). My payment on the IBR is now $233 per month. If my income drops, so does my loan payment. If it dropped, hypothetically, low enough, my payment could be $5 per month and it would be considered as meeting the required payment. After 20 years of that, they write it off completely. If you are in the USA working for a nonprofit, in education, or for the government, or working for the US government (or armed forces) abroad, they'll wipe it at 10 years with no tax repercussions on the writeoff.

Something to consider, since you cannot discharge student loans (in the USA) via bankruptcy. They will literally follow you to your grave.

You do know that the write off is considered income though, right? And as US income you'd owe taxes on it that year. It was a bit of a shock to me as well.

It will also vary whether it's 20 or 25 years depending on the terms on your loans.

Yup, the interest added into the taxes owed could make the IRS bill greater than the balance at the time of consolidation.  Just something to be mindful of!

Definitely be aware of that. But if your income is low enough and your other debt is high enough that you could not pay that amount of tax, you can claim insolvency when the tax man comes calling. (Not do a bankruptcy.)

If the loan balance is truly huge and you cannot claim insolvency for the year in which the tax would be assessed, payments of the taxes on the write-off are probably going to be the lesser of the two evils - years of repayment  at the lower rate will allow a younger person to get on their feet without the crushing original payments or being declared in default. And then if they get popped for the tax on the write-off, I've found the IRS to be amenable to payment plans if you truly can't pay the tax as a lump sum, as long as you show good faith. So, again, a lower payment, over time... And, who knows where the thing about people with huge student loans will end up - it's such a bad situation these days that it's possible there'll be some more useful program in the future for dealing with them. In the meantime, keeping one's head above water is the pressing issue. The last thing you want to do is default - they'll come after you for those loans until Gabriel blows his horn and your US credit rating will be ruined. Since Experian is starting to move into the UK, it's possible it'll mess with your UK credit score, too, possibly? 

On the new income-based plan (PAYE?, REPAYE? sorry, don't remember) if you are unemployed or underemployed and cannot make any payment at all, those months are still considered as counting towards the forgiveness clock.

If you have done the public service route, there is no tax on the forgiven loan. The ten years of required public service does not have to be continuous, it can be here or there. As long as it adds up to the 10 years.