Student Loans Question
I graduated from University in May, 2007, and have not received OSAP since December, 2005. I took a few years off of school and was supposed to start paying back my loan years ago. I have read that after seven years out of school I can include my student loans in a bankruptcy. Does this mean seven years after I ceased to receive OSAP or does this mean seven years after I cease to be enrolled in school?
Student loans are dischargeable by a bankruptcy if you file for bankruptcy or make a proposal more than seven years after the last day of the last term for which you received student loans. If the timing is close, check your statements carefully or call Canada Student Loans and find out the day they consider to be your last day. If you are in difficult financial circumstances, and you need to file within the seven year period, you are still protected from collection action. However, interest does still accrue, so it is best to keep communications open, even during the proceedings. N.B. There is a provision in the Bankruptcy and Insolvency Act for those who have filed after five years to have the debt discharged (at the discretion of the court), if both ongoing financial hardship and good faith in respect of repayment can be demonstrated.
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