February 27th, 2007 by Questions
i was under the assumption that student loans could not be written off if you claimed bankruptcy.
February 28, 2007 at 10:59 am, Barton Goth, GCO, Bankruptcy Trustees said:
In some instances student loans can be written off.
The Section of the Bankruptcy and Insolvency Act that deals with student loans is 178(1)(g). It sets two conditions under which a student loan may not be discharged by bankruptcy or a consumer proposal.
The first condition is that the bankrupt is still a student when they file.
The second is that it has been less than 10 years since the bankrupt attended school (either full or part time).
To determine how your student loans will be treated it is best to contact a licensed trustee directly and he will be able to help you determine whether filing a bankruptcy or proposal will have any impact on the student loans in quetion.
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