Bankruptcy and student Debt

I'm now more discourged then ever.

Like in Peewee's example, I AM 40 and I'm looking at a lifetime of debt. The principle of my debt is so enormous that interest charged is also large - and like I said in my previous post, my monthly payment doesn't come close to touching the principle. Unlike Peewee's example, my annual salary is NOT 50K - and I can't see it being close to 50K for another 5 years or so. I can see the future... I will never be able to pay off this debt.

Johnny - I truely appreciate your frank and honest answers. I'm glad to have the information. It's great to have a resource like you on this forum.

But where's the hope? Up until now I've been placing hope in the Charter Challenge; should I still? If the Ontario Supreme Count finds that the 10 year rule is discriminatory, so what?! What difference will it make?! From what I'm reading and learning, my hope has been misplaced. In fact, I'm finding that there is little to be hopeful for. Sad but true. I will be dealing with my creditors for the rest of my life (won't that be fun... a lifetime of financial reports and hassling phone calls). I'll never be able to afford to send my children to university (can't even afford to get my growing son new shoes today). I won't be able to save for my retirement (closer than I'd like to think). I'll never be able to open a bank account, build credit, own a car or a purchase a home - all things that the average Canadian can take for granted.

I'm usually a pretty up-beat person... but I'm feeling very glum today.

Thanks, Blah... I re-read my posting above and I do sound very doom-and-gloom, don't I?! Don't worry about me, folks! Sure I'm struggling a bit with the idea that I may never be able to get this anvil off of my back, but I'm a fighter; as soon as I can I'll be filing for bankruptcy and preparing myself for any challenge! I may have lost a little hope, but I'm definitely determined to find an answer.

I agree with you that it would be great to hear personal stories of people that have attempted to include their P and CSLs in bancruptcy. What kinds of challenges did they have to contend with/overcome? And what were the results? I suspect that most of us participating in this forum haven't had this experience (some, like Peewee, have claimed bankruptcy but didn't include their student loans) and so won't be able to share personal anecdotes. Others, like you Blah, have had friends/collegues that have been successful. So come on, everyone... lets dig around a little, do a little research, and then get what information we find back to the group!

Blah... as an aside - a couple of years ago I left beautiful BC to work in South Korea (some city near Pusan). I lasted 7 months! It was a great experience and I'd love to return (vacation), but I missed home very much. Got hooked on kimchi, though! Best of luck to you there!

Tangotori

Tang,

When i said that i didn't include my student loans in my bankruptcy, that was a niiave idea of mine that they would remain in interest free status (i was a student at the time) if i didn't list them in my bankruptcy debt.  however, a week after i filed, RBC included them for me and they automatically went into default.  and under the current rules, my SL's have survived my bankruptcy and i am no longer eligible for any type of interest releif or debt reduction program regardless of how low my income may be.  in my hypothetical example above i mentioned an income of $50K.  this was just a number i threw out there.  i am unemployed rite now.

had i done my homework, i would've known that this would happen. it's in the canada student loans regulations clear as day.  as well, i also got bad advise from my trustee who said if i didn't list them then RBC wouldn't find out.  trust me, as soon as i found out that RBC had defaulted my loans, i tried to reverse my bankruptcy but it was too late.

so....to be clear....even though it was not my intention to default/go bankrupt on my SL's, that is what happened anyways.  i will have to wait 10 years from the date of my discharge  i.e. sept 2014 to apply to have them dissolved under the 10 year rule and that is if i am careful not to enrol in classes of any kind that could be regarded as "education"  because apparently i will reset the 10 year rule clock if i do.  .  I will be 50 years old at that time. 

my bankruptcy is not discharged yet as i am awaiting the outcome of the charter challenge, just in case.......

 I am happy that you have come and added to this, Laurel. Thank you very much. You know the system well enough to see where I am coming from.

 Good to see you again.

 Johnny

It was my understanding that if you did not recieve an absolute discharge (after bankruptcy) that you would only be required to pay a lesser amount for say a few years. Does anyone know about this?

I am also wondering about consumer proposals (after the now 10 year period)??

Myself: i am in major debt but am fortunate to have a fairly decent paying job (teacher 53, 000/year with wife and one child), however i am fedup of paying over 700 month in student loans. i have been out of university for 5 years and have made little (if any) dent in my loans which total close to $60, 000!

With my wife's student loans (after she's finished her doctorate) we will owe well over 100, 000! Yikes.

We have been married over 10 years and have not once been able to take a vacation or buy things that this education was supposed to bring. If not for her parents we would still be living in poverty as after loans are paid, rent... there is not a cent left at the end of the month. I will be near retirement by the time i pay off these damn loans--maybe then i'll get my vacation (or sweet death)

What ticks me off is that i have a friend who had no student debt (parents paid) but tallied up 10's of thousands of dollars in credit card debt. This guy took vacations, dressed to the nines... He ended up decaring bankrupcy and was discharged having to pay a very reduced amount for 2 years (i think). What ticks me off about this is that these kinds of bankruptcies are discharged and student loans (with morgage sized debts) are not even considered. Education is not a privilege it's a right.

For the record i am considering making a proposal after the 10 year period (or if the period changes). As a child grew up in poverty.There have been many times that i wished i had just stayed in my old neighbourhood and went on welfare. School is the ticket out but it comes at a very high, very stressful price. Students should not be racked with this kind of debt. It is not right.

My RANT--very cathartic

It was my understanding that while student loans are not usually discharged they can be CONDITIONALLY DISCHARGED (after the ten year period of course). This means that you would pay a set amount per month for 2 or 3 years. After this you are completely discharged.

Does anyone have information on this?