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, or trying to pay off student loans on minimum wage.
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 with a Licensed Insolvency Trustee can wipe out both Canada and BC student loans. If the government is seizing your pay, or has frozen your bank account because of student loans this will stop by filing a Consumer Proposal.
- 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 current income.
- 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.
If your circumstances make a repayment amount challenging or impossible, 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 will cost $200 per month to a total of $1,800. 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 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 student loans. If you have been a student within seven years, those student debts would continue to be payable, but your other debts would be erased.
A Consumer Proposal or bankruptcy may still be options to deal with student loans if you have been to 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 pay off student loans faster, and without undue hardship on their family finances.
If it has been five or more, but less than seven years since you were last a student and you file a personal bankruptcy, you can make a court application to have your student loan debts released under a special hardship provision.
Even if you are a recent graduate, if you have debt in addition to your student loans, meet with one of our 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 a free, confidential consultation in any of our BC offices today.