Student Loan Debtors Choosing Bankruptcy
The big question here; If a student loan debt (a debt to the State) is expunged by bankruptcy, why does a child support debt still exist after bankruptcy?
That enforcement drive is prompting the wave of bankruptcies, she believes. “I think it is becoming more common because the IRD has stepped up collection efforts.”
“If they don’t go bankrupt, the alternative is to be hounded by the IRD forever more,” she said.
She deals with clients from many countries, but Australia is most common.
Anderson gets on well with IRD staff, but acknowledges: “I’m often seeking a different outcome from the IRD.”
All debts to the State are not equal?
If you’re a father with a child support debt, you can be hounded to death by the IRD on behalf of the State, but if you are a student you can either, negotiate a reduction, or rid yourself of the debt by self imposed bankruptcy.
This is interesting.