Free Consultation

Post Bankruptcy and Adding Student Loans

I was discharged in September 2008 for my bankruptcy, and was just recently advised I could add my old (now eight years old) student loans to the settlement because of new legislation. So, I contacted my Licensed Insolvency Trustee to see what the process was – but both they, and three other trustees – advised me they didn`t have the time.

Can you tell me (a) what laws now affect me in this situation (or refer me to the right place so I can read up?) and (b) what can I do? Thank you kindly.

Posted from: British Columbia

One Response to “Post Bankruptcy and Adding Student Loans”

A licensed trustee said...

As of July 8, 2008 student loans may bedischarged by bankruptcy if you have been away from school for a minimum of 7 years. You might want to ask your trustee to check with the OSB – my understanding is that they’ve made this retro-active for anyone that was not discharged when the law came into affect. If you weren’t discharged until September I think your student loans may have qualified for the automatic discharge (assuming you passed the 7 year test at that time).

If you need to apply to the Court only your original trustee or a lawyer may assist you. Other trustees shouldn’t be performing “legal work” for other trustee’s clients. In Ontario the cost to hire a lawyer runs about $2,500 – I don’t know what they’ll charge you in BC.