Is it possible to revise a Consumer Proposal to include Student Loans?

May 4th, 2011 by Questions

I am currently 2 years into a 5 year Consumer Proposal , in 2009 when I started the consumer proposal I was told I would not be able to include my Student Loan debt. I understand now that Student Loans can now be included in a Consumer Proposal as long as you have been finished school for 7 years. It has been 8 years now since I completed school, would I be able to revise my current Consumer Proposal to include my Student Loans? If not what are my options as I understand interest is currently accumulating on my Student Loans and once the Consumer Proposal is completed I will be expected to repay.

Posted from: New Brunswick

Questions

One Response to “Is it possible to revise a Consumer Proposal to include Student Loans?”


May 04, 2011 at 9:17 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

Unfortunately you are not able to re-vise your consumer proposal to now include your student loan. You are bound by the laws that were in place when you originally filed the proposal. So your options are to default on the proposal and file for bankruptcy, or pay the proposal and deal with your student loans at the end (well you could default and pay everything in full, but I am assuming that is not feasable). Technically you could default on the consumer proposal, go to court to ask permission to file a new proposal and if they say yes, then it would include the student loans, but it it would be a new proposal, and you would have to start all of the negotiations from square one.

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