discharge of loan

June 11th, 2008 by Questions

I graduated from University with a teaching degree in May 2002, and I have been unable to secure a contract position. I have been working as an occasional teacher for 6 years. During the current school year, there has been a shortage of assignments and my earnings are very low (less than 7,000 so far in 2008) The prospects for getting a full-time teaching job appear bleak, and I have over $65,000 in student loan debt. My 5 year interest-relief period is over, and I am struggling to apply for debt reduction, as I missed 3 payments earlier, and need to make 6 consecutive payments to apply.

Reading this blog has given me hope, especially in regards to the pending changes in the Bankruptcy Act. My question is, if I apply for bankruptcy (after the changes take effect) what is the likelihood of the Government of Canada opposing my discharge? If they do oppose, what happens then?

Thanks in advance!

Posted from: Ontario


One Response to “discharge of loan”

, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:

This is a quetion that I don’t have the answer to and no one will be able to comment on this until after the changes to the legislation are effective and we are able to see how / if the student financing departments change their existing policies. Right now they don’t oppose discharges except in very rare circumstances, but I don’t know if this is going to change or not.

In terms of what happens with a creditor opposition. Essentially a court date is scheduled, the creditor is given an oppertunity to air their concernes in front of the court and the registar will then make a decision as to whether or not to grant a discharge, refuse a discharge, or grand a discharge subject to certain conditions. These conditions can be anything from a requirement to make additional payments into teh turstee’s office to simply a period of time your must stay in bankruptcy untily a discharge will be effective.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)