November 28th, 2005 by Questions

I have over $50K in debt, consisting of $42K in personal loans and $12K in student loans. I am currently making $1400 monthly payments and have been doing so for 2 years.

I have no personal assets, with the exception of a car which has $13K owing on it and is worth $12K. My plan is to sell the car and pay off the student loans.

I’m leaving the country and will not be able to continue making payments. However I want to return to Canada in a few years so I need to know what my options are.

I’m strongly considering bankrupcy and wondering where to start and what the legal implications are.

Thanks for your help.



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

The answer to this question is quite involved and unfortunately to long for me to detail via this blog. I recommend sitting down with a trustee (See the “Find a Trustee” on the left hand side of the page) to have him explain Bankrutpcy in detail. Based on the information you outlined, whether it is bankruptcy or some other route, you may be better off to do so prior to leaving Canada as it may allow you to rebuild your credit history quicker upon your return.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)