10 years in 2008!!

March 10th, 2008 by Questions

I dclared bankruptcy due to my student loans in Nov 2001, I had no problems with my other debts only that I had low income and they were in the process of suing me.
Although I kept in touch with my Student loans creditors (cibc) , I made arrangements to pay very minimal payments, after one year a second creditor appeared ( ontario) and also started to pay minimal, about a year ago, a third creditor (federal) came after me, and also have started to pay very minimal pmnts, I cannot afford to make large pmnts, my income range is in the 30,000`s and have a family of 5 to support, I have all the intent to dissolve this debt, but dont have the means, getting a loan is nt an option, I have no assets, no property.
option, I have no assets, no property.
No credit at all, I know I may be able to speak to a trustee and discharged this large debt after 10 years, if thats not possible, can I still do a proposal? even though I declared Bankruptcy, These loans keep accumulating interest and keeps growing. I dont know what to do, I have no peace of mind, and also I have notice that the 10 year rule also re-set if you take classes at school? if this is true, what rules apply?


One Response to “10 years in 2008!!”

, A licensed trustee said:

You have a few options to pick between:

1) try credit counseling in order to make a payment plan for the student debt that may exclude any new interest charges;

2) offer your student loan creditors a proposal;

3) file for bankruptcy a second time; and

4) apply to the Court to have your student debts discharged by your first bankruptcy now that you have been out of school for 10 years or more…

If you have the ability to repay the debt then option 1 will make the most sense – if you do not have the ability to repay the debt then option 4 is probably the best place to start.

Try contacting the trustee you dealt with for your bankruptcy and see if they will assist you (for a fee) or if they prefer that you deal with a lawyer for this kind of thing (a lawyer will likely be less expensive than a trustee).

Good luck sorting it out – it will take a bit of effort, but it can be done.

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