Getting Out from Under Student Loans with Consumer Proposals

Consumer Proposal Recovery

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 and live in the Toronto area, call us at 416-498-9200 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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Ready to live debt free?

I would say my experience with David Sklar was spectacular, they made it really easy for my through the whole process and now 9 months later my bankruptcy is discharged.i would recommend David Sklar to anyone.
HN
23:00 06 May 21
I had a nagging defaulted student loan that was holding me back. There were a few smaller issues that were compounding. The lockdowns really forced me to look into building back my credit and starting fresh.Ashley at David Sklar & Associates at the Keele and Finch location was a blessing. She was thorough in her explanations and answered any concerns I had. She gave me the options and let me decide what was best. After conferring with her, I decided bankruptcy was the best option. She made the process of filing for bankruptcy easy.There's nothing to be afraid of. Stigma attached to bankruptcy but you can reset if you work hard to make it happen.I highly recommend speaking with Ashley if you have any concerns about debt solutions.
A M
14:39 04 May 21
I highly recommend David Sklar & Associates Inc. They helped me with my finances along with the help of Ashley Carter whom assisted me thoroughly throughout the process of my Consumer Proposal. She is very friendly, professional and updated me occasionally through emails. With her tremendous help, I am very thankful to have accompanied someone like her!
Pilar
21:05 28 Apr 21
In behalf of David Sklar & Associates, Ms. Ashley Carter had been working tremendously and diligently to make people’s lives easier and stress free. Through this debt free program, my husband and I had been relieved from the headaches and worries of our financial standing before. Ashley, a soft spoken lady was very approachable and listened to our concerns. She explained to us very clearly the good things that will happen to our best interest. I believe that she is a great asset to the company and an excellent counsellor. My husband and I can’t thank you enough, Ashley, for all your help during those times when we needed it most. As of now, we are enjoying life in our seventies, though how simple it is we are happy because we have the assurance that sooner we will be debt free. Thank you so much Ashley for your kindness and for always being there for us. May God bless you more especially with good health.
Fribeda Fronda
19:14 27 Apr 21
I was so impressed with the professionalism , the speed, the attention, the compassion, and the efficiency your office of David Sklar provided for me, you provided me with necessary information, you helped me solve a big problem I had , you were always available to answer my questions, I can’t thank you enough ,Will always recommend you to anyone who could use your services, thank youDalia Berger
Dalia Berger
13:49 27 Apr 21
They understand and good advice
Lauren Jordan
13:28 27 Apr 21
The support I received was thorough and timely and the help that I needed with Credit Proposal was addressed in a single interaction. Thank you so much!
Jay Caja
04:19 15 Apr 21
We worked with Jackie. She is very professional and very caring. She is quick to respond and really cares about helping the people in front of her. I went with my uncle, who was scared of the whole process and mentally delayed. Jackie took her time with us and made him feel at ease. She carefully explained things multiple times and was very encouraging. She was a shining light in a difficult process.
stefania cicchino
13:54 27 Mar 21
Jackie is very professional, kind, supportive and super helpful. She was able to help me get back on track. Great service and I will definitely recommend them.
Christine Lowe
16:44 12 Mar 21
Jackie provided me excellent service, was very helpful, and she made feel very secured and she listened to all my concerns.i was speechless with excellent service.
Belen Trava
19:01 11 Mar 21