Can You File Bankruptcy on Student Loans?
Filing Bankruptcy & Student Loans
One of the most common causes of debt, student loans are subject to a unique set of rules when it comes to bankruptcy.
The first important thing to know is that you must have been out of school for at least seven years to file for bankruptcy – if you want that bankruptcy to factor in your student loans.
The rule applies to both provincial and federal student loans.
However, once you are out of school for the seven-year period (or more) you can declare bankruptcy to discharge these debts.
Of course, due to the adverse impact on your credit score, this is not an ideal debt management solution.
There are many other things you can do to handle this debt before seeking out bankruptcy.
Helpful Steps for Dealing With Student Debt
The first thing you should do if struggling to repay your student debt is to contact the issuing agency – whether it is federal or provincial.
Based on income, there are different measures available to offer reduced monthly payments on your loans.
Depending on the situation, this can offer you the breathing room necessary to regain control over your finances.
Depending on province of origin, there are different resources when it comes to student loan debt management.
Services range from interest relief to the chance to defer your payment. In order to learn more about these programs and see how they can benefit you, reach out either federally or provincially.
The best way to retake control of your fiscal wellbeing is to act as soon as possible.
If you are struggling with regular payments on your student loans, seek out the assistance of the programs in place.
The longer you wait, the more challenging it can be to gain access to the best possible terms and arrangements.
You deserve financial wellness – get started today.