USA Student Loans Bankruptcy?

I doubt this will actually work. I am not a lawyer with expertise in international or bankruptcy law, however, this probably will not work.

First of all, you cannot discharge student loans in a bankruptcy in the United States. Even if you are eligible for government assistance, that can be seized to pay the debt.

Are you a Canadian citizen? If you are, then you may avoid paying the debt by moving back to Canada. Otherwise, this shall not work.

Unfortunately, the student loans laws have been written against the borrowers. The lenders have all the power and advantage.

If you fled the USA to Canada you would not have to file for bankruptcy in Canada as the debt would not be valid there. Although debt collectors in the USA could call you in Canada, they would have no legal power over you there.

- The bad news: Immigrating to another nation is harder than you think. Even with Canada, its surprisingly difficult. It's not just a matter of crossing the border.

- If you do flee the country for several years, your already large loans will get even larger...2 to 3 times in about 5 years. If you get homesick and want to move back, then you'd be facing wage garnishment and a completely ruined credit rating.

Filing bankruptcy, whether in Canada or USA, isn't going to affect student loans unless they are privately backed loans. No federally backed student loans can be written off in bankruptcy & you would have to show serious issues to get the privately backed ones written off.

Don't believe me? I do probate debt collection. Yes, I collect on the dead & the majority of what I collect every month is, oddly enough, student loans. Not even death keeps you from owing privately backed student loans, why in the world would they write them off for bankruptcy?

Just work out a payment plan with your loan holders and pay the bill. If you can't afford it, don't pay & let them get a judgement against you & they will then have to track down your assets to put liens against them or dock your paycheck or bank accounts.

You may want to check out canadian bankruptcy law. I would doubt that would work. Do you really want to leave the US because of student loan debts?

You are not the first to think of this. Getting permanent residence in Canada , getting a job ( or a work visa) and getting credit , will be a tough, once they realize that you are trying to escape debt. There is no guarantee your plan will work. If you are sent back, and that is a real possibility, that debt will be waiting for you. Think this through before you burn your bridges.

p.s. Expect little sympathy for trying this trick.

Canadian law would not cover US debt.

Moving to Canada may not even work to hide from the student loan collections.

No. Canada has immigration rules. you won't be able to easily "circulate" to Canada. you pick the two a scholar or a activity furnish and a artwork visa -- the two one among which demands evidence of financial statements. whether you (by some potential) have been given into the rustic, attempting to report for financial ruin could be evidence to Citizenship and Immigration Canada which you won't be able to assist your self and your scholar or artwork visa could be pulled and you would be deported. ultimately, any Canadian financial ruin decide, upon seeing you're a US citizen, will require you to return to u . s . of america and report there -- back telling CIC to tug your visa.

no