Monthly Archive: March 2016

Solvency issue resolution

I have my student loans now coming due and today I have a payment of $561.77 due but only have less than $100 in my accounts due to making some more pertinant payments (att bill and a megabook yellow pages bill) that were due yesterday. I am able however to pay the interest that is going to accrue against my student loan for the unpaid amount which will amount to $28.05 so I plan to send a payment of $30 to them and let the bill become wreckage of my past and go unpaid today only to pay it ASAP when cash is available.

Am I still considering myself solvent? I say yes because I have no new debt with paying the accruing interest on that amount of unpaid bill. As for other debts and payments it is one day at a time and today I have 46days without debting.

under Canadian rules an insolvent person is a person who owes more than $1000, can’t pay their bills as they come due and if the person sold their assets they would not be debt free. Is the definitely of insolvent different in the US? Why not put your defer your payments for a few months, until you can make full payments? You can ask for forbearance. Yes interest accrues but at least your credit isnt getting hit constantly and you are not getting charged late fees etc.