Student Loan and Bankruptcy

November 17th, 2006 by Questions

I was discharged from bankruptcy in January of 2001. I still owe 8000 on my provincial student loan and 8000 on the guaranteed portion of the federal loan. I finished university in April 1999. Both loans are in collections and I am not covering much over the interest. What exactly are the rules with having any this covered in my previous banruptcy. Would this mess up my credit any further?


One Response to “Student Loan and Bankruptcy”

, A licensed trustee said:

A government guaranteed student loan is only dischargeable in a bankruptcy if the student loan is more than 10 years old. Since you finished school in 1999, your loans are not yet 10 years old, so they are not discharged in your bankruptcy.

You have four options:

1. keep making payments on the loans;

2. Wait until the loans are ten years old (in 2009), and then apply to bankruptcy court to have the loans discharged;

3. File a consumer proposal in an attempt to have the student loans included in a proposal; or

4. Wait until 2009 and then go bankrupt again.

Full details on the treatment of student loans in bankruptcy can be found at, or contact a licensed trustee for more information.

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