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student loan 10 year rule

when can you included a student loan in a bankruptcy, I heard that the law recently changed from 10yrs down to 8yrs after the last day of your schooling you can include it. Is this true????..

Posted from: British Columbia

One Response to “student loan 10 year rule”

Barton Goth GCO Bankruptcy Trustees said...

A student loan is always included in a bankruptcy, but it can only be cleared if you have been out of school for greater than 10 years.

There are changes in the works that will reduce that down to 7 years, but they are not active law (rumor has it they will be enacted in November 2008, but I have heard these rumors for 2 years so I have know way of knowing if this is factual or not).

If you want to be kept upto date concerning these changes go to the /student-loan-debt and you will find a place you can sign up for an e-newsletter that will be sending around updates concerning this legislation.