can’t wait to go bankrupt
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Forum Name: Bankruptcy and Proposal Info and Issues
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URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=3042
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Topic: can’t wait to go bankrupt
Posted By: vickie
Subject: can’t wait to go bankrupt
Date Posted: 12/October/2005 at 5:20pm
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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.
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Replies:
Posted By: administrator
Date Posted: 12/October/2005 at 10:56pm
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The laws are completely untested, but since you have acted "in good faith" it looks better. keep trying to make the payments - this works in your favour.
The law is currently 10 years. But new laws have been proposed but it will be a while. Have you tried to apply for Debt Reduction? If you are out of school for 5 years then you may qualify. Go to the Canlearn.ca site for more info... Mark Mark |
Posted By: dujylyn
Date Posted: 13/October/2005 at 8:02am
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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. ------------- if you cannot be a good example, you will just have to be a horrible warning |
Posted By: vickie
Date Posted: 13/October/2005 at 6:34pm
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Thanks guys I don't think I qualify for debt reduction as my loans are not in good standing. Thanks anyway. Is there anyone out there who has successfully filed bankrupcy on student loans since the 10year rule came about? |
. It's so great to hear from others in similar situations. It's so easy to feel like your the only one who has this "problem" with student loans. I like the idea of getting as informed as possible. It just seems like even the "experts" contradict each other.
Posted By: akef
Date Posted: 14/October/2005 at 3:32am
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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 |
Posted By: dujylyn
Date Posted: 14/October/2005 at 5:28am
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Vickie, what a great question, "has any one successfully filed bankruptcy on a student loan after the 10 year rule?" I would love to hear from someone who did but somehow, i doubt they would have any reason to be on this site!
perhaps, one of the reasons that there is so much contradictory advise is that this is all uncharted territory. (How i long for a clear path thru this).student loans are obviously different from other debt and it seems that no one has had any concern for the devastating effect it has on many of our lives. Akef, sorry to hear about your situation. others on this site are more qualified to advise you on the gaurnish of salary...sorry, don't know much about it.and, sounds like you need some help now. anyone? as for if and when c-55 passes, hard to say how things will unfold for us. i see it as a glimmer of hope....a wee light at the end of the tunnel. ------------- if you cannot be a good example, you will just have to be a horrible warning |
Posted By: administrator
Date Posted: 14/October/2005 at 4:36pm
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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. |
Posted By: vickie
Date Posted: 14/October/2005 at 5:21pm
| I like the idea of lobbying for changes in the current system, like debt reductions for defalted borrowers, and interest relief. I wonder if the Canadian Federation of Students would like to take this on. Or maybe they already have. It would be a worthy cause. |
Posted By: polyhymnia61
Date Posted: 15/October/2005 at 11:06pm
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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... ------------- Home is where you are allowed to prosper. |