consumer proposals and student loans
if i’ve gone through a consumer proposal and have since been discharged from it, do i still owe the remaining balance on my student loans? from my understanding, the original proposal did include canada student loans and payments were distributed to them.
are they exempt from the process?
This is a slightly confusing area and therefore is a very common question. The way the system works is that student loans will not be cleared by a bankruptcy or proposal unless you have been out of school for 10 years. The confusing part is that they are still considered a claim provable (i.e. will be listed on your proposal documents, be eligible for dividends within the proposal), but unless that 10 year mark has passed you are still responsible for the remaining balance (i.e. the total you owe including interest less the disbursements received under the proposal). For more information I recommend contacting your trustee for a more involved explanation.