Student loan and consumer proposal

Now that the Bankruptcy laws state that student loans can be wiped clean in a bankruptcy after being out of school for seven years rather than ten, what does this mean to consumer proposals?

If I file for a consumer proposal and I have been out of school for more than seven years what happens with my student loans? Can I make a proposal to pay them off, or can they be wiped clean somehow?

Posted from: Ontario

One Response to “Student loan and consumer proposal”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

This same 7 year law also applies in consumer proposals as well. So if you file a proposal and the necessary 7 years has expired since your last attendance at school, then your consumer proposal will be cleared just like it would in a bankruptcy.