Student Loan – Bankruptcy
I will be graduating from UofT this spring, along with inheriting a $25 000 debt. In September, I am moving to Europe to do an internship for 6 months. My plan is to stay there after the internship and get a full-time job. Since the salaries over there are in the range of $200-500 per month, there is no way that I can make my monthly OSAP payment, of roughly $500.
So, I am considering filing for bankruptcy before I leave. What would be your advice on this?
Thank you for your time.
Posted from: Ontario
Well, if you’re only just graduating you’ve got to wait 7 years before your student loans may be dischargeable (eliminated) by bankruptcy. You may be able to deal with your other debts, but these will have to wait.
Further, you may be required to attend at your trustee’s office in person of 3 or 4 occasions during the bankruptcy. There’s no rule stopping you from moving to Europe (or traveling anywhere for that matter), but you may have to fly home a couple of times in order to complete the bankruptcy. On $500 a month you may not be able to do that… You might want to wait until the bankruptcy has been completed to leave, or see whether or not you can repay the debt before you go ahead and file.