Frequently Asked Questions
- Are Student Loans Dischargeable?
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<p>Section 178 of the Bankruptcy and Insolvency Act contains a list of debts which are not released by bankruptcy or generally in a proposal.</p>
<p>Presently a Student Loan must be at least 5 years old in order for it to be released. An application to court is necessary which we are able to assist you with. It will be necessary for you to prove that:</p>
<ul> <li>It has been at least 5 years since you received any funds from the Student Loan and since the last date you received any education funded by the loan.</li> <li>That you acted in good faith during the 5 years, i.e. that you attempted to make payments as required under the loan and</li> <li>That you are experiencing hardship, i.e. that you could not easily repay the remaining Student Loan debt in a reasonable period of time.</li> </ul>
<p>A student loan of over 7 years will automatically be released upon filing for bankruptcy.</p>
<p>As these provisions could change at any time we recommend that you contact the student loan authorities directly for up to date details of their present policies.</p>
<p><strong>Whom to Contact For Clarification:</strong></p>
<p><strong>National Student Loans Service Centre</strong></p>
<p><strong>Public Institutions Division: 1-888-815-4514<br /> Private Institutions Division: 1-866-587-7452</strong></p>
<p>E. & O. E.</p>
DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.
To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.