The current economic climate is putting a pinch on many Canadians. It is hard enough to deal with the more normal debts of life like auto and home loans and credit cards, but those young Canadians saddled with thousands in student loan debt have an added burden. Can a Lethbridge bankruptcy trustee help deal with Canada student loans?
Absolutely. An initial consultation with a Lethbridge bankruptcy trustee is free of charge so you have no reason not to take advantage of their professional advice.
It is possible to deal with Canada student loans on your own by negotiating directly with the lenders. A trustee can help you work out a personal budget to see how much you can realistically expect to contribute towards those student loans. Few people today actually adopt and stick to a budget. Without one, it is impossible to figure out how much you could afford to pay without undue hardship.
If you talk directly to the lender and can negotiate a reduction in interest rates and lower monthly payments stretched over a longer period of time, you might be able to handle those loans on your own.
If your loans are more than 7 years old, you have additional options a trustee can help you with – personal bankruptcy and a consumer proposal. Loans like these are dischargeable in a declaration of personal bankruptcy. In addition, significant reductions in the repayment amount of loans older than 7 years are possible through a consumer proposal.
Any Lethbridge bankruptcy trustee can advise you as to whether a consumer proposal or a declaration of personal bankruptcy is a better option for you. With bankruptcy, you risk losing assets but you emerge from the process virtually debt free. With a proposal, you commit to repaying an affordable portion of what you owe. Proposals are costlier than a bankruptcy. The trustee can cost both options out for you.
Sounds great. But what if your Canada student loans are less than 7 years old? Is there anything you can do about these loans?
Bankruptcy might still help you out. These loans would remain if you filed for personal bankruptcy. However, a Lethbridge bankruptcy trustee can do the math for you and determine whether the elimination of the unsecured debt forgiven in bankruptcy would allow a less painful repayment of those student loans. In almost all cases, eliminating your monthly unsecured debt repayments makes those Canada student loan repayments manageable.
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