I was reading and apparently under the new C-12 law and I think it says student loans can be cleared by a bankruptcy after 5 years if I can prove financial hardship. I know this was just passed but I would just like to get a feel for whether or not I would qualify for this. I haven’t been making my payments regularly due to financial hardship, however, I don’t know how far back they go to look at that information.
Bill C-12 and Student loans and 5 years
posted by Questions @
1 Expert Comment:
At September 8, 2008 |
11:33 am
, Barton Goth GCO Bankruptcy Trustees Said...
You are correct. If you can demonstrate hardship the court has the power to have student loans where you have only been out of school for 5 years as opposed to the regular 7.
Unfortunately I can’t tell you whether or not you would qualify for this without looking at more detail surrounding your situation (i.e. Income, type of employment, payment history etc.).
The other difficulty is that as the changes are so new, there isn’t extensive case law for us to review to get a feeling for how the courts are going to define hardship. So it makes it difficult to know.
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