Bankruptcy just a couple weeks after 7 year mark
I have to wait until June 2014 to declare my student loans in bankruptcy. The CRA is garnishing my income tax returns, and I am to be making $25 a month on top of that for the federal part of my loan and I just got a call from the provincial part of my loan stating they will not l take the $25 a month that they need at least $100 a month and that I may have my wages garnished.
My question is that because they have started taking my income tax returns, and if they start garnishing my wages can I still include my OSAP loans in bankruptcy? I don’t want to go through the whole process and find out that in the end it cannot be cleared with bankruptcy. I know I still have 3 months to wait until the 7 years is up and believe me its a long wait until June. Is there any way I can apply now instead of waiting until June? In June 2014 I will be out of school for 7 years.
You have to have been out of school for seven or more years in order for student loan debt to be erased in a bankruptcy.
The fact that CRA is garnisheeing your wages and taking your tax returns does not mean that debt cannot be erased in a bankruptcy.
– Licensed Insolvency Trustee