Getting Out from Under Student Loans with Consumer Proposals

Consumer Proposal Recovery

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Student Loans and Consumer Proposals

For many post-secondary students, student loans are a fact of life. While there is a tendency to lump all loans taken out by students during their studies together, there are significant differences.

Government student loans are loans from the federal and/or provincial governments which have special protection under Canada’s consumer proposal/bankruptcy laws.

In addition to government student loans, many students take out personal loans, use credit cards, and get lines-of-credit – to finance their way through a post-secondary education.

If you are in serious financial distress and are considering a consumer proposal, it is important to understand the difference between government student loans and loans/credit taken out through other sources.

If you have government student loans, under the Bankruptcy and Insolvency Act, you cannot normally be discharged (released) from this debt until seven years after you have stopped being a student.

That means that if you enter into a consumer proposal or declare bankruptcy before the seven years is up, you will still be responsible for repaying the government student loans at the end of the proposal or bankruptcy. For more details on how non-dischargeable student loans are handled in a consumer proposal – visit: Consumer Proposals and Student Loans.

If you have unsecured credit card debt – and you find yourself insolvent and in honest need of the relief provided by a consumer proposal – you may be able to be (discharged) released from that debt.

However, if you took out an education loan or got an education line-of-credit with a bank, it has been our experience, that banks often successfully petition the bankruptcy court to have these types of education-related debts excluded from discharge in both bankruptcies and proposals.

Why Get a Consumer Proposal Then?

Obviously, the benefits vary from person to person – and only after you have discussed your situation it in detail, with a Trustee, will you know if it is in your best interest to file a proposal.

However, in some cases, where former-students have been unsuccessful in getting a strong financial footing, proposals are able to offer a chance to get enough debt relief to enable them to re-group and build a better financial base.

 

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Very knowledgeable, helpful and fast service
Anthony Mcfeat
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I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Deborah
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Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
Crystal Minaker
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Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
Eldon Aubie
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Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
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I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
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Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
gary round
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Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
Marcelina Sunas
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Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
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The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
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