Get the Facts: Bankruptcy and Student Loans in the GTA

There are some misconceptions about how student loans are treated in a consumer proposal or bankruptcy in the GTA. At Yanch Dey & Associates Ltd. we’re here to help you understand your rights when applying for a bankruptcy with student loans.

Seven-Year Rule for Student Loan Bankruptcy

According to The Bankruptcy and Insolvency Act, student loans are abolished if you were a full-time student seven years prior to bankruptcy or a consumer proposal.

If you declare bankruptcy seven or more years after the date on which you ceased to be a student, your student loan debts can be eligible for discharge along with your other debts.

Hardship Provision for Student Loans in Bankruptcies

If you graduated less than seven years prior to filing for bankruptcy, you can still make a special application to have the student loan discharged by your bankruptcy. If it has been at least five years since you were a student, you can apply for a discharge of your student loan through a hardship provision. To apply for the hardship provision, you must convince the court that you have experienced a continued financial hardship that stops you from repaying the loans.

When considering the hardship provision, the court will look at how you spent the student loan money, if you completed your education, and what efforts you have made to repay the loan.

To learn more about how to free yourself from student loans when you’re undergoing a bankruptcy or a consumer proposal, call us today.


Yanch Dey & Associates Ltd.

215 Simcoe St N.

Oshawa, ON Canada

L1G 4T1

Oshawa:  905‑721‑7506

Ajax: 905‑427‑6647



Monday - Friday 09:00 AM - 05:00 PM

Saturday & Sunday By Appointment

Evenings by appointment


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