Bankruptcy Services of Collins Barrow Limited - for Calgary and Edmonton, Alberta

Author:		B Bahariaen
Date:		May 17, 2001
Question:		I am 21 years old and I have a debt accumulated of approxamatley $65,000. I owe all this money to visa/m/c $25,000 and the rest to the Associates and Avco etc. I am not even able to pay my minimum payments anymore as the interest is so high. If I claim bankruptcy, will this eliminate my debts to the Associates and Avco? None of the debts to these companys are loans, they are all store purchases that they have financed. I have since been selling my assets (TV's, VCR's, and computers, etc) off to try to pay for my debts. What does the discharge period mean? If I file for bankruptcy, will I be eligable for a government student loan?


From:		Ann Clarke, Collins Barrow Limited
Date:		May 17, 2001
Answer:		Your question and situation is too involved to answer on the web site and I would suggest you contact a Trustee such as Collins Barrow to discuss your financial problem. The Associates/Avco loan may be secured by the assets you are selling, in which case you could be creating a legal problem as well as a financial one. Generally, a personal bankruptcy lasts a minimum of 9 months after which a discharge from the debts is granted. Whether or not you are eligible for Student Loans depends on the policy of the institution granting the student loan. Given your credit history you will likely have difficulty obtaining more debt. Ann Clarke phone: (403) 296-2972 aclarke@moneyhelp.ca