Loosing job, can`t afford to live, have student loans and I don`t know what to do.

Posted on Monday, May 12, 2008

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Hello, I am 29 yrs old and have been strugging with debt since 2000 (when I finished University). I have exhausted interest relief, but have been making steady payments on my student loans since 2000, I have had a decent paying job with a large corporation, but I just found out that I am being let go due to downsizing. I have approximately $27,000 in credit card debt, another $10,000 in personal loans and about $20,000 in student loans. I haven’t been able to keep up with everything as it simply is to tight. Now because I am going to be unemployed as of the end of June and not able to make the payments I don`t know what to do. If I don`t find another job right away can I still file for bankruptcy while on EI. Also, I believe there are special rules around the student loan det, am I able to include the student loan debt in bankruptcy if I filed now? I also read somehting about a rule change of 10 years to 7 years, has this happened? Do you know when it is supposed to happen?

Thanks for your help… this forum is a huge help to a guy like me.

Filed under: Student Loans and Bankruptcy
 posted by Questions @ 7:53 am
1 Expert Comment:

 At May 15, 2008 | 9:55 am , Barton Goth GCO Bankruptcy Trustees Said...

There is nothing that would prevent you from filiing bankruptcy if you are on EI, people do it all the time. However, the trick is going to be your student loans. Right now unless 10 years has elapsed since you last attended school, then the student loans cannot be cleared by a bankruptcy.

You are also correct that this is a change to the legislation that is coming that will reduce this 10 year period to 7 years. The big difficulty is that we don’t know when this is going to take place. The latest rumors have suggested November 2008, but I have been hearing rumors for the last 2 years so I am not confident that these rumors will hold true. If you are interested in being informed about these changes the best and quickest way to do so is to fill out the Orange box to the left of the screen. After you have done so you will be added to an email list that will notify you of any updates we receive.

Other than that if you have any further questions feel free to email me directly using the above box or the following link: http://www.bankruptcy-edmonton.com/bankruptcy-trustees-in-edmonton.htm

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