Bankruptcy Question & Answer Forum - Canada

Author:		Jay
Date:		October 29, 2005
Question:		I have student loans in canada and i did my graduate studies in the united states. As i have just begun work in my field I am unable to meet the high monthly payments set out by the creditors. What outcome will filing for bankruptcy in alberta have on the canadian student loans and the american liquidity student loans?
From:		Bruce, Alger & Associates Inc.
Date:		October 31, 2005
Answer:		By statute, Section 178 of the Bankruptcy and Insolvency Act, you must be out of school for 10 years before Canada Student Loan obligations are eliminated by bankruptcy. However, filing in Canada would deal with your U.S. loans as long as you are in Canada. In the event that you moved to the U.S. you would have to consult with a U.S. bankruptcy attorney as to how to handle this debt down there. Bruce Alger phone: (403) 296-2970 balger@alger.ca