December 20th, 2007 by Questions

I have a large amount of debts(credit cards, student loan), which make me impossible to repay, `cause I don`t have a job. Right now, I`m on mat. leave till July, and I`m known that my job has been relocated, which means I won`t have any job when I come back from mat. leave. I am out of school since 2000. Do you think I should file bankruptcy now? And I do, then I won`t have any money to pay trustee during bankruptcy period? Please advise. Thanks


One Response to “Unemployed”

, Barton Goth GCO Bankruptcy Trustees said:

Filing bankruptcy right now will likely not help substantially depending on how much of your debt is related to student loans.

The reason for this is that for a student loan to be cleared by a bankruptcy 10 years must have elapsed since you last attended school.

As well, right now with limited income there is really nothing the creditors can do to force payment, this is a condition we refer to as creditor proof. As a result you may be better off to wait until you are back at work.

In addition, there are some changes in the works to reduce the 10 year student loan rule to seven, so with a little luck the may be in place by the time you file.

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.)