bankruptcy/default

I am starting to get a little nervous...ok a lot nervous, and sick, and demoralized.  I only have 4,ooo$ worth of credit left, and since I am using my credit card to finance the $400 or so a month I don't bring home from work, time is running out.  I want to declare bankruptcy, but the major hitch is that rather large student loan.  I could declare bankruptcy on my personal debt but then would not have anyway to pay the student loan (I work on call so budgeting is a nightmare)  I then considered declaring bankruptcy on the personal debt and defaulting on the student loan, but I have some questions.

1.  is one worse than the other credit rating wise at the end of the six years?

2.  at the end of the six years is everything wiped clean regardless of the method getting there?

3.  if the time line every changes, can you declare bankruptcy on a defaulted loan?

4.  what would I be getting myself into if I defaulted?  what information could I arm myself with to help keep my sanity during the time of "collection company calls"

5.  what the heck does "forseeable future" mean?  time is relative correct?  when will this judge come up with a decision on the 10 to 5 year rule?

help.......please!

teacher

read through some of the other threads.  there is a wealth of information on this site which may help to alleviate some of your fears.

im not the financial expert around here but im pretty sure bankruptcies take 7 years to disappear off your credit report.  also, it costs around 1500 bucks to file for bankruptcy and you cannot include your student loans unless you have been out of school for 10 years.  if you do opt for bankruptcy, once it has been 10 years since your last day of school i think you can go to the courthouse and get them to include your student loans without having to go bankrupt again.  johnny and 2laural are the experts here, seek them out to get the cold hard facts.

if you default on your loan and do not acknowledge the debt for six years - ie no payments nothing in writing - then your loan is classified as stats barred.  check the posts for a definition.  also check for info on how to deal with a collection agency - its all here or use google and look up the guidelines for your province.

johnny is definately the guy to talk to if you need help here.  do your homework and ask lots of questions before you make any decisions.  many posters here will tell you they filed for bankruptcy and regret it.  dealing with collection agencies is no walk in the park, either.

moonlight

a CSL has limitations.  to quote johnny...

when student loans have reached the limitation point, they are not "dissolved".  they remain on file in an "incative" section.  if a person acknowledges a CSL or Crown loan after the limitation period has run its course, the debt can be resurrected.  the Governments do not close student loans at any time unless they are paid in full - or other circumstances warrant such a closure:  death, permanent disability claims, etc.

the statutes simply deactivate the debt and make it uncollectable - legally or not.  the only way it can beome collectable is to revive it.

(from canadastudentdebt.ca/forum_posts.asp?TID=1613 )

does that help ?