If You Declare Bankruptcy

If you are still in school

If you declare bankruptcy while attending school, you can ask for conditional rehabilitation if you want to continue studying full-time in the same study program, and you want to apply for more B.C. student loan funding or to retain your interest-free status.

If you change your program of study, you will have to wait until you have been out of school for 10 years (or 8 years under financial hardship conditions) before you will be eligible for rehabilitation.

To apply for conditional rehabilitation, you must submit a completed B.C. student loan rehabilitation due to bankruptcy appeal form [1mb]. Be sure to include all of these details and supporting documents:

• A cover letter detailing
  • your reasons for filing bankruptcy
  • your current program of study
  • the length of time remaining in the current program
  • your career plans for using this education.
• A current official transcript from your school confirming your program of study and your academic progress to date.
• A recent credit report (dated within the past two months) from Equifax or an equivalent credit-reporting agency.
• Letters (at least one) from responsible third parties that confirm the reasons for your bankruptcy as well as your current plans, career goals and focus for the future (“third parties” can be a counsellor, doctor, religious adviser, relative or family friend).

Send your completed application and all supporting documents to the attention of the appeal committee, StudentAid BC.

If you are approved for conditional rehabilitation by the appeal committee and then you change your program of study, withdraw from school or enter loan repayment, the conditional rehabilitation will be cancelled.

If you declare bankruptcy for medical reasons, you must provide medical documentation indicating the dates of your condition, the length of time a doctor and/or specialist has been involved with your situation, and how the medical condition contributed to your bankruptcy. This documentation must also confirm that you are now able to participate in full-time studies and then enter the workforce.

Send your application to the attention of the appeal committee, StudentAid BC.