What happens if I file for bankruptcy?

Under federal bankruptcy legislation, the waiting period before a student loan debt can be discharged from bankruptcy is seven (7) years from the last time you attended post-secondary school (and, in the case of exceptional financial hardship, five (5) years).

This means that you must continue to make payments on your government student loans because they are excluded from your estate.  After five (5) years have passed from your study end date, you are then eligible to apply to the courts for discharge.  These timelines apply only if your loans were discharged from bankruptcy on or after July 7, 2008.

To be eligible for further student financial assistance after having your student loans included in a bankruptcy, you must either:

• pay off your previous student loans in full, or
• wait three (3) years from the time you receive a court-ordered discharge on your student loans