I just recently was approved for a new mortgage, on when my credit report was pulled it showed my CIBC Student Loan as written off. I also checked that same credit report and it said nothing more. However, a few days ago I had a collection agency call me in regards to my CIBC National Student Loan. I indicated to the caller that I had claimed bankruptcy a few years ago and I do know that because of interest relief during the time of bankruptcy that CIBC would have been notified. They claim to never have had any new information on me or my where abouts and the student loan is from 1998-1999. The last time this collection agency stated there was any payment made on my student loan was about 6-7 years ago. I find it very strange that after all this time I am just now having a collection agency contact me and never any other communication before hand. I have never received a letter or anything. What do you recommend I do with this happening if anything at all?

In the US Student Loans cannot be discharged by bankruptcy. Also a charge off is simply a tax maneuver and doesn't affect your obligation to pay.

If this is a valid loan and you defualted on it, then you should negotiate a settlement.

The student loan is in Canada, and I was making regular monthly payments until bankruptcy and then I never ever heard from them again, until now 6 years later.

That's why I mentioned the US. Since you din't specify where you were from, I couldn't know for sure.

There is another thread here that specifically mentions Canadain law that does allow Student loans to be discharged. However, as I recall, the law was passed recently.

If it was discharged, just tell the collector that it was discharged and stop bothering you.

Your bankruptcy was after June 18, 1998. On this day, s. 178 1(g) of the BIA was amended to state that the discharge from bankruptcy did not discharge a student loan where the bankrupt had not ceased to be a full or part time student for a period of 10 years. You had not been out of school for 10 years when you filed. You owe the money once the trustee is discharged from bankruptcy. The student loan creditor or collection agency may have lost track of you after bankruptcy. The use of the credit bureau by the mortgage company probably woke them up and now they are after you.

On July 7, 2008, the BIA was amended. Any former bankrupt who has been out of school for five years can apply to the bankruptcy court for an order discharging their student loans as part of that old bankruptcy. This is not a second bankruptcy. All you have to establish is that you have acted in good faith with respect to these loans and they continue to be a present and future financial problem.

I have made more than 150 of these applications for clients with more than a 90% success rate. If I had more detail, I could tell you how to proceed. What province are you in? When did you go bankrupt? When were you discharged?

I went bankrupt in 2004 and was discharged in 2006. I live in Alberta. I was more than willing to pay my student loan as before bankruptcy I paid faithfully monthly. After bankruptcy I never heard another word from them even though they had all my contact info as my trustee had sent them letters stating I was in bankruptcy. CIBC themselves are not even the ones who have contacted me at all to get back on track, they have sent it to collection. Its frustrating, because most collection agencies want huge amounts or it paid in full. I know I can not afford a lot being I just bought a new house, they would be lucky to get $100/month from me!

When was your end of study date? By that I mean, what was the last month or end of semester that you attended school as a full or part time student? If you have now been out of school for 5 years (which it appears you have), you can apply to the bankruptcy court in alberta for an order including your student loans in the bankruptcy discharged in 2006.

I was recently contacted by someone from Alberta who had a CIBC student loan placed for collection with CBV. I did all of the paperwork for him. He served the parties. CBV opposed his application. Even so, the court granted an order discharging the loan as this debtor has acted in good faith with respect to payment before the bankruptcy and the debt remains (as in your case) a serious financial problem.

With more detail, I could help you get your student loan included in your bankruptcy. This is what I do for a living.

Why not send me more detail and I will let you know what to do.

My end of study date was July 2000. I had interest relief for a bit as I took 2 separate programs, and then I started making my monthly payments, one was for $59ish/month the other was for $119. I paid them faithfully every month until just before I claimed bankruptcy. I had 2 loans through CIBC, one was National Student Loan the other was just a Student Loan.. The Student loan is for approx $5400 and when I did my own credit check it is showing up as written off, not sure what that means, but the National Student Loan did not show up on that credit report which leads me to believe it was reported to equifax instead o transuion, so the National Student Loan is for $14,000. When I had been approved for my new home, CMHC asked me about the $5400 one as well telling me it is shown as written off, and them and my bank both said that means because of bankruptcy they decided to just write it off. Let me know what other info you need, I am packed up at the moment as I move in 4 days, so I would have to try find everything. Thanks

Student loan debtors have potentially 3 student loans. First, a Canada Student Loan (HRDSC / CRA), a provincial Student Loan (MTCU) and a Bank Risk student loan (non guaranteed federal loan). Each of these loans is not discharged in a bankruptcy unless the debtor has ceased to be a full or part time student for the prescribed period.

End of Study Date: 2000

As you have made either a consumer proposal that was successfully completed or an assignment in bankruptcy from which you were discharged and you have ceased to be a full or part time student for five (5) years, you can make a motion to the bankruptcy court for an order (under s. 178 1.1 of the Bankruptcy and Insolvency Act) for an order including your student loans in your earlier bankruptcy. In order to obtain this "hardship" relief, you must have acted in good faith with respect to the debt and it must continue to be an ongoing financial hardship.

Based on current case law, I have developed a 10 question test that allows me to determine if you might qualify for the relief:
1. Were the student loans used for their intended purpose?
2. Did you graduate or attend school for the majority of time covered by the student loans?
3. Did you receive a substantial economic benefit from the student loans?
4. Have you made reasonable attempts based on your income to repay the loans?
5. Have you applied for interest relief or loan forgiveness?
6. What % of the debts included in your bankruptcy or CP were student loans?
7. How soon after your end of study date did you go bankrupt or make a proposal?
8. Are you still insolvent?
9. What is your ability to pay? Will that sum pay the debt over a reasonable period?
10. If you went bankrupt today, would the student loans be discharged?

The answers to these questions plus some additional background material should result in a successful application to the Court.

The intent of the BIA is to provide the honest but unfortunate debtor with a fresh start, provide for their financial rehabilitation and reintegration into society. It would be contrary to this goal if the only solution to your student loan problem was a second bankruptcy. You indicate that you paid to the best of your ability. It is obvious that the debt is oppressive. Your best short and long term interests are served by making this application.

There is other good news. You were discharged in 2006. The credit bureau will report your bankruptcy for 6 years from the date of discharge or until 2112. If you are granted relief, the order is retroactive to 2006 and your student loan will come off your credit bureau report in 2112 also.

I am an insolvency consultant in Ontario. While the Court may be different, the process is the same. I charge a fee. I do the work. Your serve the creditors. You appear in Court usually with consent notices. Your student loans are discharged. I am a paralegal licensed by the Law Society of Upper Canada.

You have been suffering with your student loans. You make a plea on a blog for assistance and I have responded. It may sound to good to be true. Is this person who is responding giving me accurate information. Is he after my money? Will he make my situation worse?

I would have the same reservations. So here is what I suggest. Contact your trustee or any trustee and ask them about an application to the Bankruptcy Court under s. 178 1.1 for hardship relief of student loans. Show them your questions and my responses with respect to this process. I am positive they will confirm what I have told you.

Here is what I did for the other Alberta resident who did get relief from his student loans. I obtained all of the necessary information. I prepared all of the court documents. I sent them by email to the client with a specific set of instructions. He paid his fee. He followed the instructions. He appeared in Court. The creditor. CBV, appearing for CIBC opposed. The court granted relief anyway and commended my client for the thorough nature of his application. He no longer has to worry about his big student loan debt.

I am an insolvency consultant in Ontario. While the Court may be different, the process is the same. I charge a fee. I do the work. Your serve the creditors. You appear in Court usually with consent notices. Your student loans are discharged. I am a paralegal licensed by the Law Society of Upper Canada.


I am a Canadian citizen with private American student loans. How can I get a hold of you to discuss my options?

I think you already did.