student loans and bankruptcy

August 1st, 2005 by Questions

Me and my wife graduated from University in 1999. We have gone through interest relief. We have also both received debt reduction of $10,000 each. I owe around $40,000 and my wife owes the same.(total around $80,000) I work and she stays home with our 4 kids. I currently make $40,000/year and cannot afford to make payments on my student loan. They are getting ready to put me in collections. We currently own a house together with about $30,000 in equity. I have a job offer in another part of the country and if I put 80 hours of work in a week I could possibly make around $100,000/year. I plan on selling my house and putting $10,000 on my student loans and then start making regular payments. Am I responsible to pay back my wifes student loans? If they change the bankruptcy act will she be able to go bankrupt in the spring of 2006(7 years after graduation) What effect will this have on me? What about the equity in our house that we plan on selling in the next month or so? does that have an effect on her?

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One Response to “student loans and bankruptcy”



, A licensed trustee said:

You are not responsible for your wife’s debts, unless you co-signed for them. If Bill C-55 becomes law, student loans greater than 7 years old will be discharged in a bankruptcy. Bill C-55 has not yet passed; you can check for updates at http://www.student-loan-bankruptcy.ca.

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