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Being sued..

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Zeldaqueen View Drop Down
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    Posted: 29/March/2017 at 9:54pm
Im looking for some advice regarding my situation. I went to college in 2008. I took out a provincial and federal student loan. I only went to school for 1 1/2 years, so I didn't not finsh my schooling. I have not made any payments on my student loan up to this point and have not acknolwged the loan. The CRA has been keeping my tax return for the past several years to use towards the unpaid debt. The loan is going to be at the 7 year mark in a few months. I was recently served a letter that I'm being sued for the unpaid student loans and it is being taken to court next month. I have been a stay at home mom for almost 3 years now, the only income i have is my child tax benefit, my husband pays all our bills and supports me and my son. I have been recently considering filing for bankruptcy on this student loan debt, but was unsure once it's gone to court and whatever the outcome is, will that take away my ability to be able to file bankruptcy on my student loans? And what action can be taken against me to have the debt collected, seeing as I have no actual income? Is there any action that can be taken against me that will not allow me to file for bankruptcy on my student loans? Any advice would be greatly appreciated! Thank you!
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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 30/March/2017 at 10:50am
You were issued a letter citing they are considering or actually served with a statement of claim, the plaintiff being the office of the receiver general of Canada in right of Her Majesty? 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Zeldaqueen Quote  Post ReplyReply Direct Link To This Post Posted: 05/April/2017 at 5:49pm
Yes, I was actiually served papers. It says this is the plaintiff "her majesty the queen in right of Canada, as represented by the minister of national revenue.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2017 at 11:55am
That is a statement of claim then. You have 20 days (or thereabouts) to file a defense I suspect. If the loan is statute barred after the action was started then it won't fly if you can prove that it is barred. Usually though, the government will resort to litigation to keep the loan from reaching a limitation issue thus starting it sometime before the day in which it is due to bar out. 

You have two options - do nothing or face them and negotiate your way out of this. If you were gainfully employed then it would be worse for you in regards to the way they could force you pay.

Good luck and I hope it works out!  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Zeldaqueen Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2017 at 1:23pm
Thank you for responding. I don't really understand what status barred means. How would I find if my students loans are status barred? If the loans are status barred does that mean I can no longer go bankrupt on my debt when it comes time I am able to file in a few months? Thank you!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2017 at 4:47pm
Statute barred means that the time the loan provider has to collect the debt has expired.  Anyone can go bankrupt. However, a bankruptcy filing will cause a student loan to survive any limitations that make it unrecoverable. Bankruptcy proceedings represent one of the 4 acknowledgment actions that resets a limitation clock, and the debt survives bankruptcy. If the debt is discharged in bankruptcy then it doesn't matter.  The risk of a student loan not being discharged is a real issue and that is something you will not know until the time comes for the case to go before the court. 

A limitation discovery is something that has to be researched. You have to know what to look for and how to do maneuver without prejudicing your own case. Hire an attorney to do it or one of us who specialize in these matters if you need to. If you cannot afford it then approach a university law group or some pro bono law resource if you can locate one. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Zeldaqueen Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2017 at 5:23pm
The loan itself is almost 7 years old, and I have not made any payments. So once this case goes to court and a judgement is made against me, does that mean my student loans are no longer statue barred? I'm
Assuming the next step will be wage garnishment and seizing of assets to collect the debt, once this is taken against me and A judgement is made does that mean the loan is no longer statue barred? Therefore bankruptcy is not an option to get rid of the loans at that point?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2017 at 5:41pm
If the loan was statute barred BEFORE the legal proceedings were commenced then it is statute barred. You have to prove it though, if they take the position that it is not statute barred. One thing is for certain, you were served with writ and that is what you described. So, as far as they are concerned, the loan is not statute barred. Otherwise, they would not be suing you right now. 

If you defend and plead limitations then they have to show that it is not. Simply put. Their claim is clearly written up in the documents you received. If you disagree with any of what they are citing in their statement of claim then you should address it properly. 

As I said, anyone can go bankrupt. It is an option for you yes, of course. It is for anyone in debt distress. Bankruptcy does NOT nor CANNOT guarantee that the debt will dissolve in the insolvency proceedings because the government has the right to oppose your discharge - and they often times do. 

If you want to "get rid" of the student loan then you have to give someone a darn good reason to release you from it. Saying you cannot pay is not enough. Show them you cannot pay, and the debt serves as a set of handcuffs and leg irons that will bind you for as long you exist. 


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 06/April/2017 at 5:55pm
If you are unsure how to proceed simply contact an attorney and have him or her represent you. 
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