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It is a good idea to have an in-depth discussion with your bankruptcy trustee if your student loan is causing you enough financial hardship to consider a consumer proposal or bankruptcy. The situation is fairly complex, as student loans may be divided among three creditors (federal, provincial, and financial institutions). Since July 2008, student loans are not automatically discharged during the proposal unless the debtor has not been a full or part time student for a minimum of seven years (prior to July 2008 it was ten years).
The creditors who hold portions of your student loan are not allowed to contact you while the proposal is active, but they will resume their collection process as soon as it is discharged. Hopefully, your earnings have increased to the point where you can now service the debt without undue hardship. Or, if your student loan has gone to a debt collection agency, you can try making a lump sum offer—most collection agents work on commission and may be willing to take payment right now rather than collect a bit at a time.
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