I was told that in Oct/96 the Canadian Govt would not allow people to claim bankruptcy on student loans. Then another friend said that if you havent paid your student loan in over 10 years they become eligible for bankruptcy. Is this true? I have 10000 in student loans and have not ever paid on them since the first payment was pulled from my bank acct against my wishes back in Dec 2006.
Student Loans
Posted on Friday, February 2, 2007
posted by Questions @ 1:16 am
1 Expert Comment:
At February 5, 2007 |
11:55 am
, Barton Goth, GCO Inc. Bankruptcy Trustees Said...
Your friend was correct, once 10 years have elapsed since you last attended school, your student loans become eligible to be discharged by filing for bankruptcy.
One thing to be very cautions about is timing. While the Bankruptcy Act Stipulates 10 years, the way this is actually measured is they look at the last day you attended and the last day of that month is considered the last day attended. For instance, if you attended school last on April 4, 1996, then your last day of attendance according to the legislation is considered to be April 30, 1996. Therefore if you filed a bankruptcy at any time prior to May 1, 2006 your student loans would not be cleared.
The best thing to do is to contact a licensed trustee in your area and they will be happy to look at things and determine what would be the optimal time for you to consider filing.
Please type your comment below:You must be logged in to post a comment.
