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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My visit at David Sklar & Association was great. I met Samycha and she was amazing and treated me with compassion and was never judge by anyone there at the office. I will recommend anyone that is looking for a new start in life again to book an appointment at David Sklar & Associate's. All the staff there is very polite and treat you like you are special.
Sheena
Extremely professional, empathetic, honest and down to earth.I felt as those I had previously known Samycha for years. Her ability to relate, understand and assist with my situation was comforting. Very happy with their services.
Simone Foster
The company as a whole is fantastic. If you’re not ready or serious they won’t harass you with cold calls but when you are ready they will help you with a realistic plan. Everyone I’ve worked with is efficient and knows what they’re doing. Just like everyone in the comments I have to praise Cori who I would describe to people like the auntie who knows best lol thank you for everything.
Ricardo Villa
Jerry Janiec and Hernee Templonuevo have been very helpful from beginning to end. Hernee is knowledgeable of what it is that is required of you regarding pertinent documents that they need. Jerry provides a clean picture of your options and makes recommendation that is suited with your current situation. Thank you, both.
Trish Gee
David Sklar & Associates… they work for you. They do everything they can to help you get out of debt. They lower your debt, then help you rebuild your credit. They care about helping Canadians get out of debt.I’m in a fair amount of debt, and they almost cut my debt in half for me, and in just five years, I will be debt-free, because of them. I’ve been sick because of the amount of debt looming over my head. After my first meeting with Grace, I feel so much better. Grace set up a Consumer Proposal to help me get out of my debt, and I can see an end to my debt. My mental health has gotten so much better since that first meeting, and I owe it all to Grace, and everyone at David Sklar & Associates. Thank you, all!
ronald hall
Trina was the one who handled my case. She was understand, patient and professional.
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Prompt and very professional responce,By my counsellor Jerry JaniecMake me belive, I'll be out of woods!
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Cori was very helpful and kind. She thoroughly explained the process and guided me patiently all throughout. David Sklar & Associates is truly commendable.
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It was a good experience with this company. I appreciate the time they took to help with my experience. Thank you very much and look forward to further business with you.
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