December 2, 2003
The Senate Committee recommends a 5-year period
Prior to 1997, student loans were treated in the same manner as other debts; they were discharged if the debtor filed an assignment in bankrutpcy. In September 1997 the Bankruptcy & Insolvency Act was amended so that student loans were only discharged in a bankruptcy if they were more than two years old.
In 1998 the rules were changed again, increasing the time period from two years to ten years.
In November, 2003 the Senate Committee on Banking, Trade and Commerce released a report called Debtors and Creditors: Sharing the Burden: A Review of the Bankruptcy and Insolvency Act.
The Senate Committee recommended that the 10 year period be reduced to 5 years.
Categories: student loan debt in bankruptcy
YES,
I REALLY THINK IF STUDENT LOANS ARE MORE THAN 5 YEARS OLD IN A BANKRUPTCY, THEY SHOULD BE DISCHARGED.
THANKS YOU VERY MUCH,
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