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Being sued for my student loans

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amandars2622 View Drop Down
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    Posted: 09/November/2009 at 2:10pm
I finished University April 2003.  When I finished I had my loans with 4 different institutions, totalling about 30,000. Over the years I have paid off 2 by negotiating with collections (about $16000). The remaining two were forwarded onto HRDC which is now under some other government heading. When that change occured I lost track of my remaining 2 loans. For the past 3 years (excluding this current year) my tax returns went directly to my loans. other than that, no money has been paid to these loans, because a)I have and had no money due to paying out the other loans. and b)no one could tell me where to make any payments when I could make them sporadically.

I am now being sued for $16,000 (including interest over 7 years) by the Attorney General of Canada. I'm very upset. I had no warning! Some unpleasant man showed up at my door (I still live with my parents because i'm so poor) and served me! I have no money, and just also received termination of employment as the Ontario Government is shutting down the local driver and vehicle licence office I currently work at for $12.75/hr!

I am in a horrible situation and don't know what to do. I can't afford a lawyer, I can't afford to pay the loan, and I'm loosing my job as of February 2010 in a job market that just isn't hiring. Legal aid won't help me, and both my local MP and MPP have been no help whatsoever over all the years i've been stressed out by this.

Any suggestions on how to now handle this? I feel like my future is looking even more pathetic than it is now-when I have just enough money to pay for my nessesities while I live rent free with my parents. I'm almost 30 years old, and I feel like there's no hope left. Help me!

Is there any chance of beating this in court without having it cost more money?
 
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mr.o View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 10/November/2009 at 12:02am
Wow! They may come for me yet! Have you been getting any correspondence by mail...up to this point?  Remember,they can't get blood from a stone.
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old hippy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 10/November/2009 at 10:45am
From what I was told years ago, they CAN get blood from a stone if they "Squeeze hard enough".  The main reason I continue to make interest-only payments today, to keep from defaulting on my student loans.  I couldn't live with that kind of stress.  Looking on the bright side (?) it would be a much more horrible situation if you weren't living at home rent-free. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2009 at 6:52am
Originally posted by old hippy old hippy wrote:

From what I was told years ago, they CAN get blood from a stone if they "Squeeze hard enough".  The main reason I continue to make interest-only payments today, to keep from defaulting on my student loans.  I couldn't live with that kind of stress.  Looking on the bright side (?) it would be a much more horrible situation if you weren't living at home rent-free. 
so you haven't applied for the rap...for some reason?  I get more questions than answers from this board,as of late.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lalala Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2009 at 10:48am
Originally posted by amandars2622 amandars2622 wrote:


Is there any chance of beating this in court without having it cost more money?
 
 

There is nothing really to beat. This court appearance is probably just going to establish two things: first, that you do in fact ‘owe’ these loans—they will produce documentation to prove it, and second, to seek permission from the court to garnish your wages.  They will probably win on both counts.  I think some people have even skipped going to this court appearance, in which case they are just ruled against anyway.  Perhaps having your ‘day in court’ would be productive if you brought along a budget proving your financial hardship, so the judge could award less percentage of your wage toward the garnishment.

 

Collection agents often don’t even proceed with the actual garnishment …but the threat of that ‘day in court’ sure must stir up a lot of cash for their system.  The government, however, might decide that because you work for them, it will be very easy to just memo HR and attach your wages.

 

I don’t think you should fear the court date ...you are losing your job anyway.  Its not like you were hoping to be promoted next spring and now have to fear embarrassment …you are leaving anyway, right?  It might even take a few paychecks before the paperwork goes through for the garnishment …if they even proceed with it, who knows.  But if they are taking you all the way to court ...they are probably trying to garnish your wages.

 

They can also garnish your E.I after you are laid off, if they decide to go that far.  It seems that having documentation, such as a budget of how you spend your money, is what can help keep these payments somewhat reduced.

 

However, I wouldn't fear the court date …they aren’t going to put you in jail!  Just tell them how it is.  If you have no job and you live in your folk’s basement, then they can’t even have anything anyway …and they just wasted their day in court harassing you.  They are NOT going to condemn you; they are just going to ask to garnish your wage …for a job they are firing you from anyway.

 

Don’t sweat it …and in the meantime, documenting your monthly expenses to prove your poverty seems like a good defense.  It will help to keep any payments that they do take a low as possible.  If you ever have no job ...they can't take anything can they ...and at least your parents can supply a home to be in.

Chin up ...its just the new Canada, eh ...

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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2009 at 11:57am
Lalala,
Thanks for posting this response. It think it is well written and provides support.
 
Ironically,  a few years ago people couldnt get their day in court because the collection agencies would back off then continue to harass.   Now that its under the CRA, people can have their day in court and judges will see how  stupid the system is and the overwhelming the debt load is.  Although it may not feel nice, this may be an opportunity in the long run.
 
Also try to explain that you dont qualify for interest relief etc or the new RAP program.... make that part of your statement.
 
 
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Mark O'Meara

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old hippy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2009 at 12:15pm

Hi mr.o,

Answer: I played around with the RAP calculator & the "affordable" payments they would want from me are over $1,000 mthly, although I'm not sure for how long as I've already put in 5 yrs. on interest relief, and I'm not sure if that amount is for both Federal & Provincial.  That's higher than my regular payments are now, spread over 15 yrs.  Although I finally have a good job, it's a contract position and not secure.  I have no pension, and I'm concerned about paying off the student loans only to be left high & dry in my retirement, or if I lose my job and can't find another.  I also have trust issues with this new program, how long it will last before they change it up again, and I doubt they know what they're doing.   Age is a factor in my situation as well, and the size of my loan ($65,000).  I'm just living in limbo right now by making interest-only payments to keep from defaulting.  Not too sure which way to go, but eating catfood in my retirement years isn't an option...
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Buff Quote  Post ReplyReply Direct Link To This Post Posted: 12/November/2009 at 9:23am
Originally posted by lalala lalala wrote:

They can also garnish your E.I after you are laid off, if they decide to go that far.  It seems that having documentation, such as a budget of how you spend your money, is what can help keep these payments somewhat reduced.

 
They can garnish EI for student loan debts? I thought it was only for EI debts.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lalala Quote  Post ReplyReply Direct Link To This Post Posted: 15/November/2009 at 8:56am
Originally posted by Buff Buff wrote:

They can garnish EI for student loan debts? I thought it was only for EI debts.
 

I think its less a matter of 'can or can't' and more a matter of 'what can they get away with'  There is one person on this site who lost 50% of their EI to the fed, but only after the fed said in court that it was a tax debt ...and then that it was an EI debt.  The subject in question didn't have any tax or EI debt at all, only student loans.  So they have definitely done this in the past, although it probably is a rare tactic.

 

Ask yourself this:  can they intentionally force people into default by, oops ...losing payments and documentation on purpose, purely because it is more profitable for them to have you in default status?

 

No, obviously not ...but they do it all the time.

 

It’s called bureaucracy, and it’s the perfect scam.  You'll never prove any wrongdoing, and it is always just an unfortunate error by the system.  Oh, and they are always very sorry I'm sure.  What a wonderful society we have become ...a generation of people willing to consume its own offspring in order to make a quick buck.  But hey, that's class warfare for ya ...

 

...'let them eat cake'.

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amandars2622 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote amandars2622 Quote  Post ReplyReply Direct Link To This Post Posted: 17/November/2009 at 3:29pm
thanks for all the advice. so far i was laughed at by a jerk of a lawyer whose name was provided to me by the Ontario Lawyer Referral Service - not reccommended :)
I'm procedeing to with all the court b.s. It's a stressful and discouraging journey. I have paid over $5000 to the $14000 they're going for, but aparently that wasn't enough. They are sucking the life out of me.
 
As far as them taking  my EI - they take up to 50% which is just retarded.  I'm so frustrated. If I get a job, they'll take up to 30% of my wages. If I don't get a job they take up to half my EI!?!?! What's the point anymore? I already live paycheck to paycheck without that even being enough!
 
Our Government does not care about it's people. That is now obvious to me. In a matter of months my hopes at a better life than living in my crappy shed at my parents house has been all but obliviated by the Provincial and Federal GOvernments. And today I heard the Ontario Lottery Gaming Commision just wasted 40 Billion dollars on building a power station at a casino? Funny.
 
Anyways, thanks again for the support and some great info. Looking forward to more!
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old hippy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 18/November/2009 at 3:33am

I've read another post somewhere about student loan payments being taken from EI.  There are gov't programs that are protected I had assumed - such as pensions, welfare, EI.  How can gov't programs that were set up to assist people in specific circumstances, be raided by other gov't programs? It doesn't make sense, and if it's happening - it shouldn't be.  Where would that end?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote esperansa1973 Quote  Post ReplyReply Direct Link To This Post Posted: 31/January/2012 at 7:26pm
I pay TCR every month. I direct deposit $20 because its all i can afford. I have been paying for about 2 yrs now and the gov takes my income tax returns. Now i recieved a letter saying i had to fill out questionair because they want all my info and i do not trust them. They also say if i do not contact their office they will contact ministry  goverment services to take further action. I have expalined to them in the past this is all i can pay more and they understood. Now a new guy  contacted me the day after i spoke to someone already and tried to scare me. Why should i give them my info if the government is already taking my incomtax plus they see my tac info every year? and can they sue me even if i pay monthly?
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