Student Loan
I have an upaid student loan of 30000 since 1995. Filled for first bankruptcy 1998 and the second one in 2002. Got registered letter from the debt collection officer asking to repay.
Her is the strange thing, called a trustee and she suggested to file a third bankruptcy
if in 2 bankruptcies the student loan did not get discharged why would I file for the third one…very strange.
I need and advice on how to deal with this loan…thanks
Unless you have accumulated a great dela of new debt, there is absolutely no reason for you to file a third bankruptcy. In fact, if the only debts in your second bankruptcy were student loans you might want to talk to an insolvency lawyer about having it annulled (removed from your record)as you should not have filed twice for the same debt.
Unfortunately, not every trustee realizes that you have the right to apply to Court once your student loans reach the 10 year mark to have the debt discharged from a bankruptcy that you have already completed.
In Ontario, the Court frowns on trustees providing this service to anyone other than their own clients so you’ll need to either ask the trustee that handled your first (or second) bankruptcy or hire an insolvency lawyer to make the motion on your behalf.
Briefly, the lender will be notified that you want the debt discharged. You will be required to disclose income information for the last 3 or 4 years to demonstrate that you can’t afford to repay the debt and then the Court will decide whether or not to discharge the entire amount, a portion or none of the debt at all.
Good luck sorting this out.