student loan after bankruptcy
If I declare bankruptcy and my student loan is discharged (I have not been a student for over 10 years) will my mother, whom I seem to remember signed as a guarantor, be penalized in any way?
If I declare bankruptcy and my student loan is discharged (I have not been a student for over 10 years) will my mother, whom I seem to remember signed as a guarantor, be penalized in any way?
Call the school that you want to attend next year and discuss with them the rules and regulations regarding bankruptcy and OSAP. The rules have changed a couple of times in the last few years and I don’t want to send you in the wrong direction.
Yes your mother would be responsible for this debt if you filed for bankruptcy in Canada. The nature of a cosignor or a guarantor is they have obligated themselves to ensure that the debt is paid in full, regardless of what happens to the other party (bankruptcy, death…). So if you file for a bankruptcy you mother will be responsible to ensure that the student loan is paid.