bankruptcy eligibility

Posted on Monday, January 29, 2007

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I have no idea what to do and I need help. I had $35,000 student loan, I neglected to send in my interest relief form and student loans wouldn’t give me any slack, they kept hassling me and wouldn’t give me any space so I paid the whole loan out with my line of credit and credit cards. That was 14 months ago and I haven’t been able to keep up with my payments since, the only way I have been keeping a float is by paying the minimum paymets with cash advances from the same cards

I spoke to my bank yesterday and they it was uncertain what to do and maybe I would have to go bankrupt, but another representative told me that it would be impossible for me to go bankrupt because I paid off my student loan with the intention of going bankrupt and this wouldn’t be allowed. I certainly had no such intention, it was well over a year ago and I really had no idea what else to do. Can I file a bankruptcy in Canada?

Filed under: Bankruptcy
 posted by Questions @ 10:53 am
1 Expert Comment:

 At February 1, 2007 | 2:30 pm , Barton Goth, GCO Inc. Bankruptcy Trustees Said...

There is nothing that can be done to prevent you from filing for a bankruptcy in Canada. What your bank representative is referring to is that if they can demonstrate that if they can demonstrate intent the line of credit may survive a bankruptcy. However, intent is very difficult to demonstrate.
The best thing for you to do is to set up an appointment with a licensed trustee and have them review your financial history. Once this is done they will be in a much better situation to advise you as to the potential consequences.

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