CP or Bankruptcy + Interest Releif ??
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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=4033
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Topic: CP or Bankruptcy + Interest Releif ??
Posted By: Secshunate
Subject: CP or Bankruptcy + Interest Releif ??
Date Posted: 17/January/2007 at 1:57am
I am reluctantly, but seriously considering a CP or Bankruptcy now.
I have am $18,000 and growing defaulted student loan that has gone to CBV Collections.
I defaulted on it because I also have $19,000 in other unsecured consumer debt and can barely pay one, let alone both.
I got in this state by taking 4-years towards a double major, not finishing, going back to work then having my wife take four years towards a BA which she will finish this year.
over the past year I have watched my credit score fall from the high 700's to it's current 570. It will keep going down if I don't do something.
I have been to see a Trustee yesterday. They can reduce my non-CSL Debt by 50% and then my payments would be manageable and I could probably get my CSL back into good standing within a year.
I have read that it is very hard to get a CSL that has been sent to collection back into interest relief or debt reduction and impossible to do so with defaulted interest.
It seems to me the only way out is CP or Bankruptcy.
I know the CP will give me R7 credit for 3-years after the CP and that scares me because I am only 28 and will be wanting to own a house and start a family within that time.
I am also married. My wife will not be part of the CP or Bankruptcy but I don't know if she will be any better off to apply for a mortgage during that time. We do have good co-signor options though.
I am also scared to do either because I want a career in law enforcement and they frown heavily on bad credit history.
I'm stressed right out and am haven't slept well in along time.
I think I am going with the CP but wanted to ask you all for advice before I go ahead with it.
Thank you for this space and your time.
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Replies:
Posted By: administrator
Date Posted: 17/January/2007 at 5:35am
Talk to John at CFW Group... he can sort this out for you... banktruptcy is rarely the solution, and a consumer proposal is really another form of bankruptcy. Both will clobber your credit rating for along time.
You have to watch the Consumer Proposal because there are a whole bunch of regulations that kick in regarding your student loans. Even if you're paying them, they may be treated as being in default because of the CP or bankruptcy. Your trusted (as usual) probably doesnt know this.
Talk to Johnny... and glad you found support on this site...
Mark
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Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
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