We have written many articles over the years about student loans. We recently found the enclosed article which details the history of student loans and bankruptcy in Canada. It is reproduced in its entirety:
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
The benefits of having a credit card include being able to make large purchases if you don’t have immediate cash, a sense of security in case of extreme emergencies and worldwide convenience and acceptance.
The disadvantages include the fact that you pay much more for an item if you can’t pay off your balance immediately. A few tips if you do decide to use your credit cards include using a two card credit system: use the card with the lower interest rate to buy big purchases because it may take you over a month to pay it off. Use the card with the higher interest rates for smaller purchases you know you can pay off. Most importantly, pay the entire bill on every credit card every month.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
After you are discharged from bankruptcy and perhaps even before you are discharged from bankruptcy, it is time to start researching what steps you need to take in order to rebuild your credit. Once you are discharged, you will be essentially starting over at zero in terms of credit history and standing. Step 1: Research all major credit card companies and find out who is willing to give you a credit card. You may have to apply to a few different banks in order to get approved. Each application reduces your credit score. Mastercard has several credit cards such as Capital One, Canadian Tire and Affirm may be a place to start. You may want to research pre-paid secured credit cards as a safe place to start. Once you have been approved, use your card each month but be careful never to exceed the card limit. It is crucial to pay off these cards in full each month to improve your credit history—this is your fresh start and the foundation of good credit history, it will give you more freedom in the future. Good Luck!
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
I have been researching my options lately because I am considering filing for bankruptcy and have a few questions for you regarding my student loan. I graduated from my undergrad in 2007 and then from my Master’s in October, 2011. I have been applying for the Repayment Assistance Program every 6 months through OSAP which has been very helpful considering I have not been able to make payments for a variety of personal reasons. I am aware that if I file for bankruptcy that I am not able to include my student loan until October, 2016 because The Bankruptcy and Insolvency Act indicates that there needs to be 7 years and sometimes 5 years in between the date that I ceased to be a full or part-time student and the date I file for bankruptcy. So, here are my questions:
If I have been benefiting from the Repayment Assistance Program does this mean that the 5 years changes the age of my loan?
Are there ways to apply to the court to consider my student loan to be discharged by my bankruptcy?
Are you able to meet with me to advise me and give me options?
Thank you
SL
Dear SL,
Yes, if you have been receiving assistance from the repayment program, the age of your loan changes according to the Canada Student Loan Act as well as OSAP (Ontario Student Assistance Program).
There are ways to apply for a Hardship Provision to include your student loan. However, the court needs to have proof of the hardship and the court decides on a case-by-case application process.
Yes, we are able to meet with you to discuss your options and ensure your rights—please give us a call and we can answer your questions and book an appointment for you. There is no charge for the initial meeting. Charges and terms of payment for future work will be discussed at this initial meeting.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
Bankruptcy and Student Loans in Canada.
Bankruptcy and Student Loans in Canada.
The History of Bankruptcy and Student Loans in Canada
Credit Costs You Money
Student Loan: Bankruptcy Questions