You cannot declare bankruptcy to escape your student loans
Just to share, realised this today when watching a Youtube video about uni. grads.' job and salary prospects: one's HECS debt does not go away even if they declared themselves bankrupt: https://www.afsa.gov.au/insolvency/i-cant-pay-my-debts/what-happens-my-debts-when-im-bankrupt
Bankruptcy doesn't cover all debts, including:
court imposed penalties and fines
child support & maintenance
HECS & HELP debts (government student loans)
debts you incur after your bankruptcy begins
unliquidated debts (e.g. a debt where you and your creditor are yet to determine the amount).
Note: If you require assistance to liquidate a debt we suggest you seek financial or legal advice.
I guess it makes sense that students are presumed to be people without too many assets to start and parliament wants to avoid people declaring bankrupt to escape being weighted down with debt at the start of their working life.
Disclaimer: I have finished school a while ago and am lucky enough to completely paid off my HECS.
Posted Feb 24, 2019, 12:27 PM UTC
I always figured this was common knowledge (Disclaimer: Never finished high school, didn't go to university.)
It is a more than reasonable clause. The premise being, the Australian tax payer has paid for said person to receive said higher education, regardless of what they choose to do with that education, the tax payer should be made whole at the end of the day. This way that money can go to funding the next student etc etc etc..
I get the whole "weighted down with debt" thing but, legit HESC is basically the best loan you'll ever get in your life, when talking about repayments.
It’s better than the American study loan too. The American version’s will not be forgiven even after bankruptcy and have interest rate similar to a home loan or worst.
While hec debt is more like an inflation loan and doesn’t force you to pay until you hit a certain income threshold.
yeah. The aus Version is very reasonable. A uni debt won't destroy your life here like it can in the US.
You know the problem with the US. It's actually very simple. Its really just 1 problem that effects SO FUCKING MUCH of the society/the problems. Its the reason why USA don't have single payer healthcare, the reason your student loan system is so fucked up, the reason why regulations often seem geared to protecting the company and not the people, not the citizens... it all comes back to 1 thing.
People are always fearful of what would happen if Fascism managed to find its way to power in a Democracy (think Hitler) and if it would destroy Democracy. Well; from time to time, Fascism does manage to assend to power in a Democracy but more often than not, it is quickly replaced. Fascism, isn't what is killing/going to kill US. Capitalism will kill US Democracy and the process started back in 1976 with the Supreme Court when they basically said "Money = Free Speech" from that decision, legalizing bribery for politicians, the beginning of the downfall.
That decision started USA on a path from republic to it's current state... Oligarchy. Look at the people in charge, billionaires, country run buy billionaires, for billionaires, giving themselves massive breaks.. it's an Oligarchy.
Extra shot in your coffee this morning?
Id assume that anything to do with bankruptcy is not common knowledge outside of those who have had to do it or those that work in finance in some capacity.
It's probably not something people care to learn about because hopefully it's not something they ever need to know about.
So today I've learner something new :)
Actually you're 100% right.
Spread the knowledge.