Student loans are only automatically discharged when you file bankruptcy in Canada if you have ceased to be a student for more than seven years at the time you file.   However, there are cases in which clients cannot afford to wait for the seven year mark to discharge their student debts automatically. Financial hardship for student loans is an application you can make to bankruptcy court to have your student loans discharged five years after you cease to be a student. If the court agrees, it is possible to go bankrupt and have your student loans discharged after as little as five years instead of seven. It's important to note that the time frame is not based on when you got the loan, but when you stopped being a student.

On today’s podcast, we dive deeper into what financial hardship for student loans is and how it works with Richard Howell, a bankruptcy lawyer with Clark Farb Fiksel in Toronto.