am i reading this right?

from what I have seen in some of the posts please correct me if i am interpreting this wrong. I have a proposal and in about a year my student loans will be over the 7 year mark, i can then have my trustee apply to have them included into the proposal and they will be gone in 3 years when my proposal is concluded?

Posted from: Ontario

One Response to “am i reading this right?”

A licensed trustee said...

You are not quite right. If you had not been out of school for at least 7 years when you filed your proposal then your student loans will not automatically be discharge when your proposal is complete.

If the 7 yeras lapses while you are still in your proposal YOU have the right to apply to the Court to ask that the loans be dicarged when your proposal is complete. It requires a motion which the student loan lenders have the right to attend. At the hearing (for the motion) you have to make the case that your finances have not imporved and that you should not have to repay the loans – the lenders of course may argue against you. This motion usually isn’t made until just before (or immediately after) you complete your proposal. Lawyers typically charge $2500 or so to make this motion.