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Your Question: I have a US federal student loan of $25k from 20 years ago that I used when i came to study in Canada. I have incrementally paid off some of it over the years. But it has grown to 5 times the original amount. I have been a landed immigrant in Canada for 15 years. I am a US citizen. I just got a lay-off notice from my job in Canada. Do I declare bankruptcy in the US or Canada? I own nothing in either country.
Response 1: You have to file for bankruptcy protection in Canada. Since you now live in Canada and do not have any assets in U.S., the proper venue for your bankruptcy case would be in Canada. Under 28 U.S.C. Section 1408, a debtor may commence a bankruptcy case in any federal judicial district in which the domicile, residence, principal place of business, or principal assets of the debtor have located for 180 days prior to the bankruptcy petition, or for a longer portion of that 180 days than any other district.
Is there any other way to achieve this stafford loan debt forgiveness?
Response 2: There is none except applying for loan forgiveness (which you chance of success is little to zero) or transferring (consolidation) your loan back to the U.S. Department of Education, through the Ford Direct Loan Program where you can pay monthly based on your income and since you do not have any income, your payment would be zero. You would look into Income –based Repayment Plan (“IBR”). For more information on Ford Direct Loan Program, click on the link below:
What happens to me if I just stop paying and default?
Response 3: Nothing. If you do not have a job and do not have any assets that can be reached by your creditor, there is really nothing the creditor can do to you. Even if the creditor files a lawsuit and prevails, the creditor would not be able to enforce the Judgment because of lack of assets. You are deemed to be Judgment Proof at that time.
I am married to a Canadian for 12 years. She owns nothing. Does she have any [email protected]
Response 4: Your wife absolutely has no liability for your student loans.