Does it feel like you’ll never be free from student loans? There IS hope!
As Licensed Insolvency Trustees in BC, we meet with people every day who are struggling to pay off student debt. Some are unable to find work in their chosen field, others are burdened with heavy interest and high repayment terms, trying to pay off student loans while earning minimum wage, or having to deal with other debts at the same time.
If you have been trying unsuccessfully to pay off student loans, it may be time to look at your legal debt options for student loans in BC.
Filing a Consumer Proposal
Filing a Consumer Proposal with a Licensed Insolvency Trustee can wipe out bank-funded student loans and both Canada and BC student loans. If the government is seizing your pay or has frozen your bank account because of student loans these actions will stop immediately upon filing a Consumer Proposal.
- If you’re able to make some payments on your debts but are either unable to repay the full amount, and/or need a break on interest, a Consumer Proposal can be a great debt management solution.
- Consumer Proposals will offer all your creditors a consolidated debt settlement that is normally substantially less than what is owed, and interest automatically stops.
- This specialized debt management tool is only available through a Licensed Insolvency Trustee, and the amount offered to your creditors will primarily be based on your ability to repay given your current income.
Claim Personal Bankruptcy
If your circumstances make a partial repayment amount challenging or impossible, private, federal and provincial student loans can be erased by filing a personal bankruptcy in BC.
- Most of the time, a personal bankruptcy in BC will last for nine months and cost a total of $2,300 (broken into manageable payments). This is also based on your personal circumstance and income.
- Contrary to many fears, most people keep all of their assets in a personal bankruptcy.
- Like a Consumer Proposal, only a Licensed Insolvency Trustee can file a personal bankruptcy for you.
How long have you had your government student loans?
If it has been seven or more years since you were last a student, either filing a Consumer Proposal or personal bankruptcy in BC will release you from your obligations to repay government student loans. If you have been a student within seven years, these student debts will survive and continue to be payable, but your other debts (including any private student loans) would be erased.
A Consumer Proposal or bankruptcy could be beneficial options to deal with student loans even when you have been in school in the last seven years…
Consumer Proposals and bankruptcy extinguish nearly all debts; many people find that without other debts (like credit cards) that they have been trying to pay on top of their student loans, they are able to then pay off student loans faster, and without undue stress on their family’s finances.
- Also, if it has been five or more, but less than seven years since you were last a student and you file a personal bankruptcy or make a Consumer Proposal, you can make a court application to have your student loan debts released under a special hardship provision.
Whether you’re a recent graduate with student loans and other debts, or have long been carrying student loans, take time to meet with one of our caring BC experts in bankruptcy and debt consolidation services to find out what options you have to get out of debt for good.
Enjoy your next class reunion without your student loan debt! Meet with Sands & Associates to find out how you can become debt-free – book your free confidential debt consultation today.