6. Discharge of Student Loans( http://www.parl.gc.ca/LEGISINFO/index.asp?Language=E&query=5298&Session=15&List=ls#endnote45 - 45 ) (Clause 107(2))

The new change has not taken effect, and there is no automatic discharge, lovecraft. THe student loan provider is allowed to oppose the discharge, which the government will do in most cases, depending on your financial position. Who knows how long it will take. Your past bankruptcy did not involve the student loans. Therefore, you will likely have to file a new assignment.

When your loans are in collection or when you can claim bankruptcy,  what can the governement or student loans collectors seize?   What if I own a 12,  000.00 mobile home - not the best but all I have as my primary residence for me and my son.  Can I lose this?  I am asking because I am currently in collections with both federal student loans and the BC student loans and should I lose this trailer we would essentially be homeless - I can't afford the high rents elsewhere. 

Also,  if an effort to work with student loans,  I have requested the forms to document my monthly statements.  In five months I have made three requests and have not yet received any documents.  Each time I phone they tell me they have mailed me the documents.  To date I have not received anything except nasty letters demanding payment immediately.  I am at my wits end and don't know what to do.  Every time I try to engage with student loans I never receive any documents.  When I had attempted to apply for interest relief,  I missed the deadlines waiting for papers.   How can this continue to happen.  I am so frustrated.

10 years means being a student at any time.  The best thing to do speak with your original loan source to find out when your last study date was, the 10 years would generally start from the dat after that.

This is great news.. if it is in fact true.  My question, now that I can supposedly declare bankruptcy (it's been 8 years since I attended school or received $$ from student loans) is this... I recently married (4 years ago).  Will my husband's income come into play if I try to declare bankruptcy (he makes decent money)?  He wasn't even known to me while I was in school, and should not be responsible for my debts.  I am under the assumption that he will end up having to contribute to this bankruptcy, should I decide that is the route I will take.  Can anyone answer this?  Is it even worth the hassle?

I need immediate help .. I filed for bankruptcy 2 years ago and has been out of school since 2000.  My canada student loan has been forwarded to a collection agency.  They have contacted me on several occasions and they want to settle ofcourse.  I just want to know if I could be discharged from the loan based on the new Bill. plz help. 

This is a summary of changes from
http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01782e.html - http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01782e.html

Student Loans

The waiting period before which a student loan may be discharged is reduced from 10 years to 7 years. The period before which an application may be made to court to request a discharge on the basis of hardship is reduced from 10 years to 5 years.

The new time frame of 7 years will apply to all those who file for bankruptcy after the coming into force date and to undischarged bankrupts, i.e., student-loan borrowers who have become bankrupt but who have not yet been discharged.

Section 178(1.1) (the "hardship provision") will be available to all bankrupts, including those who have been discharged prior to the coming into force of the provision.

Chapter 47 reduces the discharge prohibition period from 10 years to 7 years. Furthermore, the court may, on the application of the bankrupt, discharge the debt five years after the completion of studies, if the court is satisfied that the bankrupt has acted in good faith and will continue to

experience such financial difficulty that he or she will be unable to repay the debt.

Bill C-12 clarifies that when the new seven-year discharge period comes into force, it will not only apply to individuals who file for bankruptcy after that date, but also to those who have already filed for bankruptcy and have not been discharged. (The five-year waiting period will apply to all bankrupts, past, present and future.(47))

For the info or application, depends on the province.  You should probably contact your former trustee...

Make sure you do your homework ryderfan - there's lots of bankruptcy sites on the web and the exemptions may vary by province.  Here's one site:

And that's not fair because I have good credit other than my student loan why should my credit card suffer because of the GOVERNMENT!!!!! A student loan which I just found out is put back which is what is said on the papers I got 6 months ago and I applied again didn't hear from them again for 6 months and another 2000 worth of interest!! This is not right I only need a solution to the student not my credit card!!

The system must also be satisfied that you have acted in good faith, and are not seeking bankruptcy as a way to frustrate the system. Make sure you I's are all dotted, and your T's crossed. Don't go bankrupt unless you are truly bankrupt. Trustees in bankruptcy don't care abotu this. They just seek people to bankrupt. This causes A LOT of problems for people who are really not bankrupt, you see.

Sorry bout that.

I am aware of what the argument could be. However, like I said, you have to step outside of the box and have a peek at things through their lens. That's all. They have to be satisifed that the amount you are offering is all you can afford. If you owe the government of Ontario, this is going to be difficult. A section 178 is not granted just because a creditor is not willing to settle. However, demonstrate that the loan default was erroneous, and that you have suffered because of the system's failure, then you have a better argument. Anyway, at the end of the day, bankruptcy is never a cheaper way of dealing with a financial problem because it carries far more hard costs to you in both short and long term.

For one, if you cannot pay the full amount that they are demanding in one lump sum payment, all you have to do is have your attorney issue a letter (signed and stamped) to that effect. They will back off. As for the payment application, it is written in the agreement that payments you make are applied to any interest outstanding. That is the way it is for millions of Canadians who in the same pickle with student loan debt. This is how they make their money (ROI in a sense).

Write to me from the web site http://www.cfwgroup.ca - www.cfwgroup.ca . Click on the "contact us" tab and connect with me that way. Or, simply call me at 902-835-1210.

Yes, I think 200 was your last period of study its now 2008...thats about 8 yrs right...and the law says out of school for 7 yrs right!!!

It is not about "when" you can file for bankruptcy. It is "when" you can apply to have your student loan discharged. Just because you go bankrupt, and 7 years has passed since you finshed studies, there is no guarantee that your loan will be discharged. An application for discharge can be opposed, and with student debt, that appears to be the result.  m told that if you can demonstrate to the one adjudicating the case that you are experiencing hardship with extenuating circumstances, and cannot pay in the near future, and/or cannot contribute anything in the long-term, then your chances of discharge are better. However, simply saying that you cannot afford to pay it now (or ever) without any demonstration that supports this will trigger opposition.

DB, from what you are describing, you are in hardship. The best thing for you to do would be to talk to the superintendant of bankruptcy office in Ottawa and ask him to advise you. This way the information you receive comes right from the horse's mouth. That office s required to provide the public with adequate informtion, and also oversee and police the private groups that administer this program.

Johnny

YOu should call the Supie of BAnkruptcy in Ottawa and find out for sure if it is in effect.

DDR - no.

You are always responsible for your debt. Can you be more clear on this, perhaps? In any event, make sure that your loan is current before you go bankrupt. If you remain current (meaning not in default), and the systerm defaults you while engaged in bankruptcy proceedings, make the argument and make it stick using the legislation. System failures do occur. Read through this site. It is loaded with descriptions of them.

If the timelines described in section 178 have surpassed n respect of an application for discharge, you may apply. When you go bankrupt - all your debt is bankrupt, except that which is endorsed by another, perhaps. Creditors do reserve the right to oppose your discharge, as is usually the case with the Canada Student Loans Program.

Thanks for your feed-back!!

So, can you Johnny offer me any solutions to my HUGE debt problem?

Bankruptcy is 18th century. Today's financial problems are 21st century. Bankruptcy is not effective. Generation Y has grown up with a lot of exposure to bankruptcy in one way or another (more so than the boomers). In the youthful days of the boomers, bankruptcy was talked about very little and kept private. A bankrupt boomer was not likely to come out and say, "hey guys, guess what/ I went bankrupt!. You should all give it a try!" Bankruptcy was more of an embarrassment or disease that no one wants to discuss. Today, bankruptcy is talked about as if it is latest fashion trend that more and more people want in on.