devil in the details. canada student loan default.

http://student-loan-bankruptcy.ca/

 So, for example, if you graduated in May, 2005, you have to wait until June, 2012 before you can file bankruptcy and expect for your student loans to be automatically discharged.

There is a special rule that says that, in cases of “hardship”, the bankrupt may apply to bankruptcy court after five years to have their student loan reduced or discharged.

In addition, even if a student loan is more than seven years old, it is possible for the government to oppose the former student’s discharge and request that the bankrupt repay some or all of their student loan.

You read that sentence correctly: even if your student loan was more than seven years old when you went bankrupt, the government could object, and you could still end up being required to pay some or all of it back.

If a former student applies under the “hardship” rule for five year old student loans (section 178 (1.1)), or if a creditor opposes the discharge of a bankrupt even when the loans are more than seven years old, the student must satisfy the court of two conditions:

1. they acted in “good faith” with respect to their student loans.
2. they would experience financial difficulty if they were to try to repay the student loan.

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D - so if your situation is dire, you might be able to discharge that student loan at FIVE vs SEVEN years.

But if you don't act in good faith and are not in financial duress,  the gov't may not accept a bankruptcy even at SEVEN.

The easiest way to act in good faith is small but regular token payments. I say token, but I mean an amount you can afford on your budget. Even $50/ month per loan (you cannot favour one over another, despite variable interest rates), which likely is just the interest on the loan, accomplishes that.

Plus your take-home pay better be pretty modest.

If you are living like a rock star with a good job, well, don't say I did not warn you.

D.