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Effective June 18, 1998, a student loan is not discharged (meaning that you are still responsible for paying) in a bankruptcy unless the debtor has completed his/her studies greater than ten years prior to filing for bankruptcy. The legislation was amended on July 7, 2008 to shorten the time period to seven years for all bankruptcies filed after this date. There are specific provisions for extreme hardship for the debt to be written off after five years. Students who file for bankruptcy after May 11, 2004 will be eligible for new loans and interest-free status as well as interest relief and debt reduction of their loans while still in full time studies at school. Further information is available from the Trustee at our Hamilton, Burlington or St. Catharines offices. |
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