Can my student loan be discharged

September 13th, 2007 by Questions

I have been told that for a student loan to be cleared by banckrupcy a person has to wait a period of 10 years.

I completed my studies in 1996..declared bankrupcy 1998 and was disharged.

Technically, I should be cleared from paying the debt…

Here is the problem…neither a trustee nor a lawyer want to handle this case…I was told there is no chance that the loan will be discharged…any suggestions ?


One Response to “Can my student loan be discharged”

, Barton Goth GCO Bankruptcy Trustees said:

Technically you can’t be cleared from this debt but it is no wasy guaranteed. The way the act reads is that an applicaiton can be made on your behalf (and to do this you would likely have to hire a lawyer) to request that the provisions of s. 178(1)(g) do not apply (i.e. you will be cleared from the debt).

In order for the court to consider this application you must have actid in good faith with respect to this student loan (i.e. acted honestly with every intention to pay back the funds) and teh debt will continue to experience financial difficulties to an extent that you will be unable to pay the liabilities under the loan.

As you can see the release of this debt is possible, but not guaranteed.

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