Morgan was an 18 year old university student. She had a part time job and got a student overdraft just to get her through the difficult weeks. The part time job enabled her to save up so her student loan didn’t get too large and she was able to pay for some of the fees herself each year. In her second year she got a bank loan to allow her to get a car. The overdraft was interest free so she used that to help pay back the loan. In her third year she got a credit card to help pay for books and when she moved into a new apartment after she graduated she used it buy furniture.
Morgan got a job at the end of her Honours Degree but by this time needed a new car and a new wardrobe for the corporate world. The bank approved a $10,000 loan. There was no problem getting a loan now that she was working. However, the combined loans were now about $21,000 with unmanageable monthly repayments. Her student loan was about $7,000 and came out of her pay regularly. Unfortunately, Morgan lost her job after a few months and was no longer able to make any payments towards her loans.
Morgan’s best option is to contact her creditors and ask them to postpone payments until she can find a new job. If this does not work she should consider a consumer proposal (the student loan will survive the proposal). Bankruptcy is the last option.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.