Student Loans

 Although student loan debts must be disclosed to your trustee and listed on your statement of affairs, the debt will not discharged by bankruptcy if at the time of filing for bankruptcy you are a student or have been a (full or part-time) student in the immediately preceding seven (7) years. Even if you have completed your studies, the collection of the surviving student loan debt may not be enforced until after the trustee has completed the administration of the bankruptcy estate and has been discharged. The trustee’s discharge is not to be confused with the bankrupt’s discharge which comes earlier in the process. Further, even though collection of the surviving student loan cannot be enforced, interest continues to accumulate on the outstanding debt. You may, if you wish and your finances permit, start making payments on the student debt. If you have not yet completed your studies, interest will generally not begin to accumulate and repayment is not required until six (6) months following the completion of studies. If you have any further questions, please contact us and one of our trustees or estate administrators who will be happy to assist you. To find the office most conveniently located near you, please visit http://www.mnpdebt.ca/contact/ontario/default.aspx