Comments for Canada Student Loan Bankruptcy Legislation

Comment on Senate Committee Testimony on Student Loans and Bankruptcy by Anonymous

Anonymous — Tue, 12 Feb 2008 04:56:00 +0000

Thanks for the effort.
I think another important component of the current situation is that if a person were to return to school 9.9 years after the date of their last credit course, their 10 year clock would start all over again (even if they didn’t use a student loan to take that single credit course). Due to a a series of unfortunate, unexpected, and unpreventable events that occurred within two years of my leaving school(medical and accidental) I was shocked to find myself even considering bankruptcy… But pragmatically I must. Now, 6 years latter, realize I will have to declare bankruptcy (I have been counseled by professionals as such as well). Now the rub is, that I have had the opportunity to take a course or two, with my employer paying for it. But it would get me a credit, and it would have to be in my name, so I had to decline. I cannot have that ten year clock start over again.
This ten year rule has been devastating to my life. I will never fully recover from the stress and I can imagine it has fruitlessly caused immense hardship on so many who otherwise would have been able to recover and look to becoming productive citizens again.

Comment on New Student Loans Bankruptcy Rules Unexpectedly Passed by Parliament by J. Douglas Hoyes, CA, Trustee

J. Douglas Hoyes, CA, Trustee — Sun, 03 Feb 2008 15:05:00 +0000

Lots of questions; here are some answers:

First, there are two different bills; Bill C-55 which was passed in November 2005, which contained the new "7 year rule", and Bill C-12, which was given Royal Assent on December 14, 2007, and didn't change anything regarding student loans. As of February 1, 2008, neither Bill has come into force, presumably because the government needs time to prepare for the changes. Read my post on November 26, 2007 for more details.

If you already went bankrupt and your student loans were not discharged, you can go to court once ten years is up and ask the judge to discharge your student loans. To do this, contact your trustee, or a lawyer.

Comment on If someone filed bankruptcy prior to the 10 year period, can they later be discharged? by Anonymous

Anonymous — Fri, 01 Feb 2008 02:02:00 +0000

My husband and I claimed bankruptcy in 2005. Obviously, my student loans were not discharged. One loan is in default and the other with bank. It has been over 7 yrs. If the new law comes into effect soon am I able to get the loans discharged? Will this affect my husband? The loans were taken out b/f we met.

Comment on What are the Proposed New Student Loan Bankruptcy in Canada Rules? by Anonymous

Anonymous — Mon, 21 Jan 2008 19:07:00 +0000

Under the proposed changes, what would happen if someone was out of school 8 or more years and had already declared bankruptcy but was not yet discharged? Could they claim the student loan too?

Comment on Will the Student Loan Bankruptcy Laws in Canada Ever Change? by christine

christine — Mon, 21 Jan 2008 18:10:00 +0000

so, do you still have to wait the 10 years or not? I was told that you cannot declare bankruptcy on federal student loans anymore. anyone have th e real answers or where I can find them??

Comment on How Do I Know When My Ten Years Is Up? by Anonymous

Anonymous — Thu, 17 Jan 2008 16:44:00 +0000

as a point of clarification regarding the 10 year rule (soon to be the 7 year rule)

i graduated with an undergrad degree in april 2001. i took a student loan every semester i went.

then, in the fall of 2002, i took 3courses. i didn't get a loan for this semester.

so, does my clock start in april 2001 or december 2002 (when that semester ended)?

if someone could help me out here, it would be very very much appreciated.

Comment on New Student Loans Bankruptcy Rules Unexpectedly Passed by Parliament by Anonymous

Anonymous — Sun, 06 Jan 2008 02:14:00 +0000

I have read c-12 as passed and student loans are not mentioned even once? It appears that there is no amendment to the section of the act that deals with student loans.

Comment on New Student Loans Bankruptcy Rules Unexpectedly Passed by Parliament by Anonymous

Anonymous — Thu, 03 Jan 2008 18:03:00 +0000

I went bankrupt 3 years ago and my 10 year mark for student loans is this year. Does this mean that I could apply to have my student loan discharged in my bankruptcy? If so, who would do this?

Comment on New Student Loans Bankruptcy Rules Unexpectedly Passed by Parliament by Raylene

Raylene — Thu, 03 Jan 2008 04:30:00 +0000

Looking for some help here. I spent a few hours this evening trying to read where the change was made to Subsection 178. The only thing I found was in relation to 178(e) and not 178(g) or 178(h)which speaks specifically of student loans.
I have been trying to find discussions on amendments or even a copy of the bill as was read without any success. Any help you can provide would be appreciated. I am under 10 years but over 7. This could be my happy new year wish!

Comment on If someone filed bankruptcy prior to the 10 year period, can they later be discharged? by Anonymous

Anonymous — Sun, 23 Dec 2007 23:42:00 +0000

Holy Merry Christmas to everyone who has been waiting for this news