The 7-Year Waiting Period for Filing for Bankruptcy with Student Loans
Seven years is the primary period to consider before filing for bankruptcy with student debt. That’s seven years or more from the date of the end of your education.
If you attempt to make insolvency claims before this period is up, it can result in punishment according to Canada’s insolvency laws. If this date is off, it can derail the entire bankruptcy process, even by a few days.
To ensure this waiting period’s satisfaction, you want to consider the last day of your exams for your final semester as your education’s end date rather than the last day you attended class.
Another critically important way to make sure there is no room for error with your waiting periods when making a consumer proposal or filing for bankruptcy with student debt is working with a Licensed Insolvency Trustee. Their experience in handling these cases is an invaluable resource while you navigate a complicated process. Click here to read about why you can trust Licensed Insolvency Trustees.
Once you are sure the seven-year waiting period has been satisfied (preferably with an added 30+ days or so), you are entitled to an automatic discharge of your outstanding student loan. The same rule applies to consumer proposals.