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silentlooker
Premium
join:2009-11-01
reply to bmilone2

Re: General info needed about Statute of Limitations

said by bmilone2:

In most cases, if the creditor plans to go after the debtor they Will do so prior to limitation limits. And the point i was making that a judgment is worse on a credit report then a bankruptcy was just for informational purposes if the poster was considering one or the other.

And not to muddy the waters, in a chapter 13 it will depend on the type of debt as to if it will be discharged or not. If the creditor obtains a judgement prior to the petition date of a Chapter 13, they would be considered a secured creditor and the pre petition portion of the debt would be part of the repayment schedule set up by the court.

While it have become harder to get chapter 7 the reality is a lot of people still get it. It just cost more. So a person just does chapter 7 and all of the debt goes away. Only thing that is not discharge is student loan.

GroovyPhoenx

join:2006-05-22
Gloucester, ON
said by silentlooker:

While it have become harder to get chapter 7 the reality is a lot of people still get it. It just cost more. So a person just does chapter 7 and all of the debt goes away. Only thing that is not discharge is student loan.

Just to stretch the curiosity factor why does it not apply to a student loan? How is that debt different then another? I live in Canada but U.S laws are interesting to me.

JoelC707
Premium
join:2002-07-09
Lanett, AL
kudos:5
The no student loan forgiveness on bankruptcy is one I've heard before but I've never really understood why. I wonder if it's all student loans or just DoE student loans?

IIRC, with the DoE student loans, after something like 20 or 25 years the debt is forgiven. I'm not sure whether there are stipulations like you have to have not made payments for x months or if you're simply still paying on it after 20/25 years the remaining balance is forgiven.

Since you mention the US vs Canada differences, do you know how bankruptcy regarding student loans works in Canada? Just curious to see how they compare.
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