I recently declared bankruptcy on my student loans in Ontario (out of school for 7 years). Upon doing so, I had a credit card with a small credit balance which I was, off the record, allowed to hang on to on the condition I didnt use it (my credit at the time was very good). I was sent a new card in the mail recently which I have yet to activate, and I was wondering under which circumstances if any, I can use this card while undergoing my bankruptcy period? I read something about needing to legally report the bankruptcy to the creditor if the debt exceeds $500. Is this true, and if so can I use the card so long as I do not exceed this limit? I dont want to get in trouble for using the card. At what point can I use it without risking getting in trouble? Thanks.
-
-
Well Jerry, you are asking opinions. First of all, DON’T USE IT. Cut it up. What got you here? When you get your “new start” will you be able to be independent?
Next, I have no idea about Canadian laws. You have that above most of us. ‘HubIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010. -
My credit was near perfect when I filed. I went bankrupt on student loans. I have never missed a payment to anyone, but I could not see myself repaying this debt for the rest of my life, in lieu of doing anything else. I do not have "spending" problems.
It was at the advice of my trustee that I keep the card, but he told me this as if he wanted nothing to do with it. That's why I'm asking here.
I dont need a lecture, thank you. I would like to know the answer to the question I asked.Comment
-
Jerry, I don't know if we have the answer on this forum as this one is devoted to US BK laws. Most of us do not know anything about how the Canadian system works. Already your situation is very different from what occurs here because we can NOT discharge any student loans in our BK system and also we can not keep any credit cards. In fact, in our system we have to list all the debt, just some of it is NON DISCHARABLE; which does not seem to be the same with your system, given your post. We do not want to give you the wrong advise. Sorry.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..Comment
-
Student loans are dischargable currently in Ontario after 7 years. I filed the same month they passed the law. I dont believe I am allowed to keep any credit cards either. The trustee saw that I was not a typical bankrupt, and took pity on me, as the card in question actually had a small credit amount (positive balance). The purpose of him doing this was so that after my 9 months of being bankrupt, and a new card was issued to me, I would be able to carry on at my normal credit limit and interest rate without starting over. I am not sure if this was legal or not, but I assume I can do it. Also, here
It mentions that cards with no debt on them may not need to be declared.
So what I want to know is, assuming this is the case, when can I use my new card? Do I need to wait until I am out of bankruptcy, or can I use it now? I don't assume the differences in US law are that different.
Thanks for the response though. Perhaps someone else has encountered a similar situation.Comment
Comment