Student loans and legislation change
It appears that I will be forced to file bankruptcy for tax reasons. I currently have outstanding student loans (over 5 years old, but less than 10) I have read that the legislation is going to change, allowing for the discharge of student loans after 5 years. If I file bankruptcy before the legislation change, but complete my bankruptcy after the legislation change would my student loans be included in the bankrupcty proceeding?
Unfortunately, until the government publishes the regulations relating to the new law we can’t answer that question. Keep checking back to see if the law has been enacted – we’ll post something as soon as we know.
I filed Bankruptcy before the legislation {July 13/2005},and if all goes well should be discharged in 9 months April 13 .
When I met with my trustee in November I was advised that as first time bankrupt if I had any surplus income by end of 9 months would have to continue paying for another 12 months .
Under guidelines before legislation I am supposed to be discharged after 9 months , but looks as if even though this legislation [Nov 25/05] apparently to be put into law by June 2006 ?I have to follow the new legislation even if my bankruptcy should be ending before it becomes law , does this seem right .
The changes proposed in Bill C-55 indicate that if you have surplus income you are automatically bankrupt for 21 months. Under current law, if you have surplus income, you will PROBABLY be bankrupt for more than nine months, often 21 months.
In other words, the new laws are not a significant change; they are just a codification of what is already happening. The new law is designed to make the approach consistent across the country.