Bankruptcy just a couple weeks after 7 year mark

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Bankruptcy just a couple weeks after 7 year markBankruptcy 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.

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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

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