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CIBC student loan

I graduated June 2002 and am looking at a consumer proposal to put all the debts in order. The collection agency says that CIBC typically does not participate in consumer proposals, just bankruptcies. They are the majority when it comes to my debts to the tune of about $17,000. Does the loan not count against the consumer proposal and will I have to pay it once the proposal is complete, or is this just something that the collection agency is saying in order to move forward on their part and not have to wait for the payments from the trustee

Posted from: Alberta

One Response to “CIBC student loan”

A licensed trustee said...

Well, you have to take what a collection agent says with a grain of salt… If you have been out of school for 7 years then your student loans can be dealt with by filing a consumer proposal (or bankruptcy).

The way a proposal works is every dollar you owe represents a vote and you need half of the dollars to agree to your terms. If the student loan represents more than half of the debt then you will have to offer terms that they agree to – what ever trustee you speak with should be able to tell you how much that will be.