Shane Mila

September 28th, 2011 by Questions

I graduated from a uni in BC in 2005 and up until 2005 I received 40k in student loans from both the federal and the province. I kept my repayments in “non-payment” status due to being unemployed until 2006.

In 2006 I moved to US to continue my studies in a different field where the school tuitions fees costed around 200k. I changed my status in Canada to Student and received another 50k from province of BC. I also got a student loan of 150k from a Canadian bank, and only paid the interest until now, I graduated this year and now I’m unemployed again and now I intend to file bankrupcy in Canada.
What are the possibilities and options for me to be able to file bankrupcy?

If so, will I not need to pay back the bank loan and the government loans?

Thank you.

Posted from: British Columbia

Questions

One Response to “Shane Mila”



, A licensed trustee said:

Based on the time lines you have provided, I suspect filing for bankruptcy will not help you, at least not with your student debt.

If you file for bankruptcy you should expect the bank that granted the loan to apply to the Court to have it treated like government sponsoured student loans. I also expect the student loan program to ask the Court to use your recent graduation date as your end of study date for all of your CDN loans. That means you will have to wait 7 years before a CDN Court will discharge them in bankruptcy.

The idea with the 7 year delay is to give you time to find employment and start earning an income. I don’t agree with the law, but it is the current state of affairs so you need to be aware of how it works.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)