Defaulted student loans: what will happen if they are sent to court?
I have federal and Nova Scotia student loans in default. I am self-employed in my area of study. I filed for bankruptcy in 2013 to cover an enormous amount of student related debt on a Professional Student line of credit and credit cards but was only out of school for two years so student loans could not be included. I have received notice that my NS student loans will be sent to court later in December. I know I shouldn’t have ignored it. I was barely breaking even each month and couldn’t afford payments. I didn’t file my 2014 taxes yet, as I couldn’t afford to have my small business taxes done until now (I’m now having them done, everyone I spoke to strongly advised against doing them myself), so I wasn’t able to satisfy the repayment assistance program’s requirement of proof of monthly income. I’m wondering what will happen if it is sent to court and how to best proceed. Any input and advice are very appreciated. Thank you.
It is unclear from your email as to why Nova Scotia student loans are going to Court. It could be because they are trying to obtain a judgement against you for the unpaid debt or are you making an application to Court to have the student loan included in your bankruptcy? Your trustee likely explained to you that once five years have passed since school, you could make such an application. The next question that arises is, if student loans are going to court to obtain a judgment, have you or your trustee been discharged from bankruptcy? These question should be answered before any other answers are given. You should contact your trustee in order to discuss next steps.