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Aroha68
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Posted: 09/July/2008 at 5:57pm |
This is great news.. if it is in fact true. My question, now that I can supposedly declare bankruptcy (it's been 8 years since I attended school or received $$ from student loans) is this... I recently married (4 years ago). Will my husband's income come into play if I try to declare bankruptcy (he makes decent money)? He wasn't even known to me while I was in school, and should not be responsible for my debts. I am under the assumption that he will end up having to contribute to this bankruptcy, should I decide that is the route I will take. Can anyone answer this? Is it even worth the hassle?
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indeeptrouble
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Joined: 10/July/2008
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Posted: 10/July/2008 at 2:12am |
I need immediate help .. I filed for bankruptcy 2 years ago and has been out of school since 2000. My canada student loan has been forwarded to a collection agency. They have contacted me on several occasions and they want to settle ofcourse. I just want to know if I could be discharged from the loan based on the new Bill. plz help.
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administrator
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Joined: 25/January/2003
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Posted: 10/July/2008 at 4:22pm |
Student Loans
The waiting period before which a student loan may be discharged is reduced from 10 years to 7 years. The period before which an application may be made to court to request a discharge on the basis of hardship is reduced from 10 years to 5 years.
The new time frame of 7 years will apply to all those who file for bankruptcy after the coming into force date and to undischarged bankrupts, i.e., student-loan borrowers who have become bankrupt but who have not yet been discharged.
Section 178(1.1) (the "hardship provision") will be available to all bankrupts, including those who have been discharged prior to the coming into force of the provision.
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Chapter 47 reduces the discharge prohibition period from 10 years to 7 years. Furthermore, the court may, on the application of the bankrupt, discharge the debt five years after the completion of studies, if the court is satisfied that the bankrupt has acted in good faith and will continue to
experience such financial difficulty that he or she will be unable to repay the debt.
Bill C-12 clarifies that when the new seven-year discharge period comes into force, it will not only apply to individuals who file for bankruptcy after that date, but also to those who have already filed for bankruptcy and have not been discharged. (The five-year waiting period will apply to all bankrupts, past, present and future.(47))
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From what I read here, if you have already been bankrupt and have been discharged from your bankruptcy, then you can apply under the 5 year hardship rule. If you have declared bankruptcy and have not been discharged, then the 5 year hardship, or the 7 year rule will apply depending on your situation.
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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indeeptrouble
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Joined: 10/July/2008
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Posted: 11/July/2008 at 8:37am |
thanks ..
one more question..do I need to hire a trustee or a lawyer to aply for discharge or can I do that myself?? if so..where do I get info/ application ??
thanks again..
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administrator
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Posted: 11/July/2008 at 1:54pm |
For the info or application, depends on the province. You should probably contact your former trustee...
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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old hippy
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Posted: 11/July/2008 at 3:12pm |
hmmm.....
Regarding bankruptcy - are RRSP's safe? If someone had the "means to pay" their student loan - but less than 15 yrs. left to retirement...is this "extenuating circumstances"? I'm getting a little tired of handing over $450 mth in interest.
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administrator
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Posted: 12/July/2008 at 6:38pm |
Apparently one of the other changes was that RRSP's are safe although contributions in the prior 12 months might not be...
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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ryderfan`
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Joined: 15/July/2008
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Posted: 15/July/2008 at 5:21am |
Hello everyone, this is my first time here. I am just wondering ... my husband has a huge student loan debt and we are entering our seventh year. We are able to pay for all other bills and living expenses but just not the student loan. Is there an option of filing for bankruptcy just on the student loans only? We are wondering if that is an option for us in the upcoming year. If anyone knows any information regarding this issue, I woudl greatly appreciate it.
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SolveStudentDebt
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Joined: 05/November/2003
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Posted: 15/July/2008 at 10:33am |
Bankruptcvy is not negotiable. You are either bankrupt or you are not. Everything has to be included.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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akasnowflake
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Posted: 15/July/2008 at 11:02am |
Actually I was informed that as long as the monies owing are not from a finanical institution and you have been making payments they don't have to be included in your bankruptcy....such as my car. Its financed through a company not an institution therefore I don't have to include it. I just got the call from my financial advisor today regarding my up coming bankruptcy. Wish there was another way.
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SolveStudentDebt
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Posted: 15/July/2008 at 1:37pm |
Your car loan is secured. That is a different matter. However, if you have a mortgage on a property, and there happens to be equity in it, then the properrty is at risk. Tell us your story. what makes you bankrupt?
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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old hippy
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Posted: 15/July/2008 at 1:40pm |
Make sure you do your homework ryderfan - there's lots of bankruptcy sites on the web and the exemptions may vary by province. Here's one site:
I've been doing a little reading up on the bankruptcy thing myself....and I don't like the sounds of the "surplus income" payments - do they ever end? It's consoling that you're allowed to keep your clothing and household pets though.
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tlstevenson2006
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Posted: 16/July/2008 at 12:03pm |
And that's not fair because I have good credit other than my student loan why should my credit card suffer because of the GOVERNMENT!!!!! A student loan which I just found out is put back which is what is said on the papers I got 6 months ago and I applied again didn't hear from them again for 6 months and another 2000 worth of interest!! This is not right I only need a solution to the student not my credit card!!
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Tracey Stevenson
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masy
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Posted: 17/July/2008 at 5:10am |
I now qualify to file. However I've been paying on this loan for 4 years now and have become adjusted to living a bit below my means. I am rebuilding my credit and establishing a relationship with my bank. As much as I would like to wipe out that debt and have the extra cash, I would be back to square one with my credit and have to start rebuilding from scratch. For me, it's not worth it to file but I know it's different for others. It depends on your financial situation and what your long-term finanical goals are.
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cayt
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Posted: 17/July/2008 at 5:45am |
On June 20th I declared bankruptcy for a variety of reasons including high student loan debt. While my student loans are not included the nine month bankruptcy timeline does offer some relief. I reside in Alberta and while I understand bankruptcy laws differ from province to province, most are relatively the same. I surrendered my truck because with the student loan payments I could not manage both. I was not required to surrender my vehicle because there was no equity. In Alberta you are required to surrender all credit cards as well regardless of a strong credit history. As a single mom I am allowed to make up to 2200.00 per month without penalty. Any surplus monies up to 1000 I make stipulates I return 50% of those monies to my trustee. Anything over is divied up by the trustee to be applied to my debts. I too had an impecable credit history with my vehicle loan, credit cards, mortages etc. but with such extensively high student loans could not manage all of the payments. I am so frustrated over the student loan program I wish I had never gone to school with student loan funding. These loans should have minimal interest with flexible repayment plans not be seen as a monetary gain for the government. The stressors myself and many others have experienced is unsurmountable. And while I know that my decision to declare bankruptcy is entirely my doing, I do feel somewhat 'pushed' towards making this radical change in my life by those who were to offer support and opportunities. Declaring bankruptcy is a personal choice and for me has offered and provided a great deal of relief. But it isn't for everyone. Changes are occuring and hopefully the governmental sectors will respond to this disastourous program.
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mommyto4in08
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Joined: 25/April/2008
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Posted: 17/July/2008 at 8:32am |
Regarding this new 7 year rule, can anyone say for sure whether or not using/exhausting Interest Relief sets the clock back?? I have heard yes and no?
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
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Posted: 17/July/2008 at 9:19am |
If you have been out of school for 7 years. Interest relief is not an attendance issue. Good luck.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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mommyto4in08
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Posted: 17/July/2008 at 9:47am |
Thanks Johnny!
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SolveStudentDebt
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Posted: 17/July/2008 at 2:07pm |
The system must also be satisfied that you have acted in good faith, and are not seeking bankruptcy as a way to frustrate the system. Make sure you I's are all dotted, and your T's crossed. Don't go bankrupt unless you are truly bankrupt. Trustees in bankruptcy don't care abotu this. They just seek people to bankrupt. This causes A LOT of problems for people who are really not bankrupt, you see.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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SolveStudentDebt
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Posted: 17/July/2008 at 2:41pm |
Here are some snippets of the BIA.
The changes are clearly made (from 10 years to 7) in respect of section 178, item gii which reads:
Debts not released by order of discharge
178. (1) An order of discharge does not release the bankrupt from (g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
(i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or
(ii) within ten (Now Seven) years after the date on which the bankrupt ceased to be a full- or part-time student; or
(h) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (g).
Now, for those of you who think that there is an automatic discharge, you should read the following, as outlined in section 170.
(7) A creditor who intends to oppose the discharge of a bankrupt on grounds other than those mentioned in the trustee’s report shall give notice of the intended opposition, stating the grounds thereof to the trustee and to the bankrupt at or before the time appointed for the hearing of the application for discharge.
And ...
170.1 (1) The report prepared under subsection 170(1) shall include a recommendation as to whether or not the bankrupt should be discharged subject to conditions, having regard to the bankrupt’s conduct and ability to make payments.
And ...
Factors to be considered
(2) The trustee shall consider the following matters in making a recommendation under subsection (1):
(a) whether the bankrupt has complied with a requirement imposed on the bankrupt under section 68;
(b) the total amount paid to the estate by the bankrupt, having regard to the bankrupt’s indebtedness and financial resources; and
(c) whether the bankrupt, if the bankrupt could have made a viable proposal, chose to proceed to bankruptcy rather than to make a proposal as the means to resolve the indebtedness.
And ...
(a) refuse the discharge of a bankrupt;
(b) suspend the discharge for such period as the court thinks proper; or (c) require the bankrupt, as a condition of his discharge, to perform such acts, pay such moneys, consent to such judgments or comply with such other terms as the court may direct.
So, please think before you take the dive and make sure there is water in the pool!
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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