Going back to school, filing for bankruptcy, will student loan be taken with other debts?
I am a single mother to a 7-month old baby boy. I am considering to file for bankruptcy, since all my bills are too much for me to handle being in this expensive province and all.
I want to do better for my son`s future and am wanting to go back to school to get a better career.
Because I can`t pay for school by myself I`ll need funding assistance from the government (student grant/loan), so that I will get help paying for my course, which is 9 months, paying for rent and living needs for my son and I.
Will this student grant/loan have to be included when I file for bankruptcy? Will it also be discharged along with my other debts? How will it affect my credit later in the future for my son and I?
Posted from: British Columbia
When you file for bankruptcy all of your debts must be listed, including student loans. However, student loans are only cleared from a bankruptcy if you have been out of school for greater than 7 years. So the student loans will not be discharged by a bankruptcy.
As for a grant, this is typically something that doesn’t have to be paid back so you shouldn’t have any issues there.
As for impacting your credit in the future, you will have an R9 that is listed with the credit bureau for 6 years from the date you are discharged.