| Author: |
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Rob |
| Date: |
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November 27, 2002 |
| Question: |
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I am aware that student loans can't be discharged within 10 years of leaving school. Are there any exceptions to this rule? My wife and I are 27 and 23 and we have a combined debt of $55,000. However $26,000 is student loans. I make 30K and my wife has no income. If I declare bankruptcy, would that dissolve her debt as well. We are not behind on our credit bills but we are on utilities. It won't be long before the rest catches up.
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From: |
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Shane Brenneis, Collins Barrow Limited |
| Date: |
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December 2, 2002 |
| Answer: |
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There is no exception to the ten year rule. If you file bankruptcy now, you can apply to court at the end of the ten years to have the debt forgiven if you are still unable to pay the loans. Also, you get a nine month stay of proceeding from the debt collection and filing could also discharge your consumer debt. You and your wife are two separate legal entities. Your filing bankruptcy does not discharge her debts.
The Orderly Payment of Debt Program offered through CCSA may be an option. They can extend payment of your student loan debt for fifteen years. Their number in Calgary is 265-2201.
Shane Brenneis, CA • CIRP
phone: (403) 296-2975
sbrenneis@moneyhelp.ca
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