can’t wait to go bankrupt

My husband and I have aprox. $100 000 in student loans, 4 kids and make just above poverty level.  We've been making payments on our student loans for years (what we could aford, not what they wanted).  Our loans have only increased over time.  I've been out of school for 8 years.  My husband went back to school (no loans this time) in 2000.  I have a judgement against me and can't wait to be eligible for bankruptcy as there is no way we could pay this massive mortgage like debt.  I want despirately to get on with my life, i.e., get a house, savings account, etc...   Does anyone else share my situation and can offer some advice/support?  Is it likely that I would even be discharged at the 10 year mark (or 7 if bill c-55 passes) if and when I declare bankrupcy?  What criteria do they use to determine if I can pay back my loans or not?  If you have any advice and don't represent a debt repayment business, please reply.

 

Hi Vickie,

your story struck a note with me...i have 4 kids as well. they are grown up now but while i was in uni, they were teens and i was newly widowed. ended up with a degree, a huge debt load and sporadic work...so i do get how overwhelming it feels and the desperation to get on with your life unencumbered. my small payments never make a dent in that growing monster.

I made the mistake of filing for bankruptcy 2 years ago and yes, it was a mistake. my student loans were not included, so that is different from your situation. However, i have found that bankruptcy is not the clean slate we hope it will be. There are ways to rebuild your credit for that home, etc...lots of advise concerning that on this site. they are not quick or easy though. i have lost my eligibility for interest relief and debt reduction. neither can i ever claim my saved up tuition credits on my tax return again. with part-time work and a smattering of ei, this has resulted in me owing revenue canada as well.

Bankruptcy may be the answer for you. all i am saying is: arm yourself with as much info as possible about what life will really be like post-bankruptcy, look into any and all alternatives available to you. above all, keep enjoying the important things, like your family, in the meantime. yeah, i know, easier said than done sometimes.

Hi;

My situation is very similar to that of dujylyn and I have 4 kids too.

I declared bankruptcy 6 years ago. The collection agencies are still on my tail. One of them got a court order to gaurnish my salary and they are doing that. The other one, representing the federal portion of the loan is threatening to do the same. Any solution for me?

Would I benifit from Bill C 55 if and when it passes?

Thanks

Sorry to be the wet blanket but I would not hold out for bill c-55. The wording is clear that you have to PROVE THAT YOU CAN NOT PAY THE DEBT! not now and not in the future. No measures have been suggested to determine this.

We need to ask the bigger question = why should someone have to declare bankruptcy to deal with their student loan? There should be better interest relief and debt reduction programs in place. - and available for defaulted loans - especially because of the rate of errors resulting in default.

Bill C-55 is in the committee stage. The BQ has already stated that amendments are necessary. This will be a committee fight that will likely go past the length of time that the government is in power, meaning the bill will probably never get passed.

Lobby for changes to Interest Relief and Debt Reduction.
Why are defaulted loans ineligible for interest relief and debt reduction. This is a stupid policy. Also Bill C-55 has no provision for those who went bankrupt between '98 and the passing of the new bill. Who can afford a lawyer to test the courts? Will we have to go bankrupt AGAIN just to get a hearing? No one knows. This is a major flaw with this bill.

Oh, they have. Check out their website.

They are struggling with their reputation as the lobbyists for the "Looney Left", and have had an increasingly harder time being taken seriously.

I don't think it helps that membership necessarily has a constant turnover due to graduation.

As much as I supported most of what the CFS fought for, it didn't represent ALL its constituents. I think the members of this forum represent a very diverse population that are usually ignored in the press and within student lobby groups...

I wish there was an alumni lobby group...