Can a student with a government student loan go through bankruptcy or get a consumer proposal?
For anyone who is in serious financial distress and is considering help, we recommend that you get in touch with a Licensed Insolvency Trustee for a free consultation. There is a difference between government student loans and loans through other sources. Government student loans have special protection under the Canada’s consumer proposal/bankruptcy laws. Commonly, you cannot be released from this debt until after you have stopped being a student for seven years. If you decided to proceed with a consumer proposal or bankruptcy, you could still be responsible for repaying the government student loans at the end of the proposal or bankruptcy. In the event you that you have other unsecured debt, like credit cards or a line of credit, you may be able to get discharged and released from that debt through a consumer proposal.
MORE QUESTIONS
Do I qualify for bankruptcy? How long will I be bankrupt? How much will it cost? How will my credit rating be affected? If I declare bankruptcy, will I lose everything? Should I declare bankruptcy? Will I still be responsible for some debts after filing for bankruptcy? Does Filing for Bankruptcy in Canada Affect My Spouse? What is a bankruptcy discharge and the process involved? What is the OSB and what are their responsibilities? If I file a proposal or declare bankruptcy, what happens to my credit rating? What happens if my creditors vote against accepting my consumer proposal? Can I leave some creditors out of my consumer proposal? How Do I Get a Mortgage After A Consumer Proposal? Will filing for bankruptcy cancel or reduce my child support payments?
