Filing for Bankruptcy in Ontario: Discharging Student Loan Debts

Ontario is home to a number of institutions of higher learning, like the University of Toronto. While knowledge is power, and studying in a university is one way of acquiring it, not everyone has the resources to pay the necessary tuition fees. Education may be a right, but with the rising cost of tuition fees, it has also become a privilege.

Fortunately, there are various local and national student loan programs that enable qualified students to enroll. However, any loan must eventually be paid—and that can sometimes become a burden. In such instances, properly filing for bankruptcy in Ontario may be the only way to discharge student loan debts, and companies like Paddon + Yorke Inc. can provide help.

A student’s life is not always a bed of roses, especially if one has to work to support one’s education. Although an approved student loan can seem like manna from heaven, circumstances arise that can affect your debt payments. Some unforeseen financial difficulties may arise, and this may prevent you from settling your unpaid student loan.

However, filing for bankruptcy is not your only recourse, as financial help in Ontario is available for students with loan problems. This comes in the form of a Repayment Assistance Plan to make it easier for borrowers to pay back only what they can afford. You are qualified to receive this assistance if you’re a resident of Canada, or if you or your spouse (or common-law partner) is a member of the Armed Forces stationed abroad. Participants of an international internship program are also eligible.

If the Repayment Assistance Plan is still not enough to settle your student loan debts, you may have to resort to filing for bankruptcy. The good news is that under Canadian law, if you declare bankruptcy seven or more years after the date that you stopped being a full-time or part-time student, all your debts—including your student loan debts—will be eligible for discharge. However, the date when you ceased to be a student is determined by local legislation.

Moreover, you can even reduce the period to be released from your obligations under the “hardship provision” of the law based on certain conditions. Being unable to pay your student loan is not really the end of the road. Companies like Paddon + Yorke Inc. can provide solutions to all your loan problems.