Click here to submit your question or Go back to Home Page

Author:		Darren
Date:		November 15, 1999
Question:		I have accumulated $45,000 in student loan debt along with an $18,000 line of credit which is secured by a co-signer. I also have $13,000 in credit card debt. I just don't make enough money to make the payments but I have read that you can't get student loan debt discharged. Does this mean that if I declare bankruptcy that the only loan that will be forgiven will be the $13,000 in credit card debt? Can I get a part of my Studen loan reduced if I declare bankruptcy? Would I have the negative effects of being a bankrupt and still owe $63,000?
From:		Shane Brenneis, Collins Barrow Limited
Date:		November 17, 1999
Answer:		You are correct in your assumption that the student loan is not discharged. The co-signed debt will be discharged from your point of view, but the co-signor is responsible, so depending who this is, you may still need to pay this person back. The best plan for your student loan may be the interest relief program. You should talk to your bank to see if you are eligible for this. Also, the Orderly Payment of Debt program may be an option as they can deal with student loans. Under this program you are paying back creditors over a period of time. The phone number for this program in Calgary is 265-2201. You may also want to talk to a Trustee regarding your financial concerns. To obtain a free assessment of your financial concerns, you should contact a Trustee in your area by looking in the yellow pages under "Bankruptcy". If you have any further questions or want to come in for a free assessment to our office, please call or email me using the information below. Shane Brenneis phone: (403) 298-1575 sbrenneis@collinsbarrow.com