How will my student loan be affected?

A bankruptcy can help with student loan debts if you have been out of school for seven years or more.

  • If you have been out of school for 7 or more years student loans are treated like regular unsecured debts.
  • Students, who are experiencing financial problems, and have only been out of school for 5 years (but less than 7 ) may apply to the Court to request their student loans be discharged along with the rest of their debts.

 

For answers to more questions like this, please visit our FAQ page.

How Long does Bankruptcy Last?

calendarA first time bankrupt, without surplus income, would be eligible to be discharged from bankruptcy nine months plus a day from the start of the bankruptcy.

A second time bankrupt, without surplus income, would be eligible to be discharged from bankruptcy twenty-four months plus a day from the start of the bankruptcy.

An Insolvency Trustee can sit with you to discuss your situation and explain how surplus income could change these timelines.

 

For more answers to questions like this, please visit our FAQ page.