STUDENT LOANS

Not sure where to start? - Contact Us Now!

Over the years we have helped thousands of people solve their money problems. No matter how bad your situation, we can help.

Student Loan

HOW BANKRUPTCY AFFECTS STUDENT LOANS

Student loan debts can contribute to mounting, unpayable debt which may result in you filing for bankruptcy. However, some student loans may not be erased by bankruptcy. Whether or not your student loan debt is eligible for discharge depends on when you stopped being a full time or part time student.

IF YOU ATTENDED SCHOOL WITHIN THE LAST 7 YEARS

If you attended school within the last 7 years your debt will not be erased by declaring bankruptcy, and you must repay it. Collections will stop while your trustee is administrating your file, but interest will continue to accumulate on your student loan debt.

IF YOU HAVE BEEN OUT OF SCHOOL OVER 7 YEARS

If you file for bankruptcy 7 years or more after you were no longer considered to be a full time or part time student, your student loan debts are eligible for discharge and are erased by bankruptcy.

HARDSHIP PROVISION: IF YOU HAVE BEEN OUT OF SCHOOL FOR 5 YEARS

In some instances, if the court deems repaying your student debt will cause undue hardship, the court may reduce the period where your student loan debt is erased by bankruptcy 5 years after leaving school. You will have to make an application to the court directly, usually though an insolvency lawyer.

To determine your eligibility for this hardship provision, the court will examine your past financial activities, including how you used your student loan money and if you have completed your educational program. The court will enact this hardship provision only if they are satisfied that you:

  • are experiencing overwhelming financial distress and are unable to repay your debts
  • acted in good faith in your attempts to repay your student loan debt

REPAYMENT ASSISTANCE PLAN

Bankruptcy is always the final option. The federal government offers a Repayment Assistance Plan to help manage the repayment for provincial or territorial government student loans. This plan enables eligible borrowers to repay what they can reasonably afford.

CAN I APPLY FOR A STUDENT LOAN IF I HAVE DECLARED BANKRUPTCY?

Yes, you can apply for a student loan during or after your bankruptcy. However, often they will require some information from your trustee

Testimonials
S
Susan Banasco

Extremely professional service by Mr. Thatcher and his team. Mr. Thatcher and his team were always available and quick to answer any questions concerning bankruptcy. I would highly recommend this company to anyone that would require his services!

I
Isabel K

I have worked with Kevin and his office for many years and would recommend his services to anyone who is having financial difficulties. He is very professional and has spent many years helping people get out of tough debt situation.

S
Sara C

The staff at Kevin Thatcher & Associates are incredibly understanding, non-judgmental people who honestly advised me of all my options before I chose to go bankrupt. I was surprised at how easily they broke down the process for me step-by-step so I was able to meet all the requirements.

J
John D

I just wanted to thank everyone at Kevin Thatcher and Associates for their help. I was at wit's end and couldn't cover most of my bills. I was afraid to answer the phone ever as it might be another collector calling! I was so depressed.

C
Caroline C

I was looking for a bankruptcy firm and was recommended Kevin Thatcher and Associates. I initially spoke with his pleasant and knowledgable staff(Anna) over the phone. I was very impressed by her and her soft approach being in a difficult situation.

S
Sean C

Very kind, caring and helpful group at Kevin Thatcher and Associates.

A
Alan S

I was in a real bind with a lot of debt from credit cards and payday loans but I met with Kevin and his staff were very understanding of my difficulties paying. I paid for 21 months under these federal income rules, but was way cheaper than if I did nothing.

E
Elizabeth E

Staff is extremely kind and knowledgeable! They took a stressful situation and made it more manageable, so thankful for their expertise.

WE CAN HELP!
Speak to an expert today.
BOOK A FREE CONSULTATION