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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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Zeldaqueen View Drop Down
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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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Zeldaqueen View Drop Down
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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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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: 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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sophia Quote  Post ReplyReply Direct Link To This Post Posted: 01/August/2017 at 6:08am
Hi I was served papers to go to court for unpaid student loans.
I have two loans Ontario portion and Federal potions but I'm only
being sued for the Federal potion of $33,233. Since 2014 they
have being taking my income tax as a repayment. I couldn't pay the
monthly payments that they were asking for at the time $998...per month
because I wasn't making nothing close to that and still cannot afford it. I
want to pay but the fee is to high. I'm very desperate and scared about this lawsuit
I'm the sole provider for my family. My limitation is ending in August 2019.
On the paperwork it says that I can pay the plaintiffs claim of $1000 within
the time of serving and filling statement of defence to have it dismissed by the court
or $400 for the cost to assessed by the court. Please help me I don't know what to do
and the paperwork was done in Mar 17, 2017 and I received this in July 24. Please help
Should I file for bankruptcy/consumer proposal



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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/August/2017 at 10:03pm
You wrote: 

" My limitation is ending in August 2019" 

If by this you mean that the student loan will reach a limitation issue in August of 2019, and to them be written off, unfortunately this is not the case now. Once the Crown starts an action the limitation period is reset. If the action occurred in Ontario, then once judgment is taken there will be no limitations binding them (CRA Legal Services). 

As for bankruptcy, you can file an assignment and hope that remedies the case. However, if the government opposes your discharge and makes argument to that effect, and they are successful, then the debt will survive post bankruptcy. It really all depends on your overall financial position. If it is "just" because of the student loan you will likely meet some opposition. 

If you can't afford to pay anything then a consumer proposal would not be helpful, unless you can meet the terms of payment should the government of Canada agree to accept the proposal by the trustee.  

Bankruptcy is expensive, ironically enough, more so in the longer-term, depending on how it plays out. The fees are thousands of dollars. 

If the action is dated March 17, 2017 and you are just getting this now, it is likely because they did not have your service address at the time, and had to resort to tracing your whereabouts.

It is scary to most people when the federal government takes legal action. I work with people who have been sued by Justice Canada and minister every day and the fear is real. Without knowing the history between you and the Canada Student loans Program, and your financial situation past and present I can't really offer any solid advice. This would take about an hour to an hour and a half of time to assess. 

I do mediation and intervention work for student loan borrowers facing legal proceedings by the government.  The following are a few of the things that I do for student loan borrowers going through these legal proceedings by the government:    

a) If you are looking to appeal to the government and Ministry to have the loan set aside due to hardship with extenuating circumstances, this is a very difficult process. It requires a great deal of analysis, assessment, and documentation. The hardship must have history, be on-going, and will continue to be in order to get them to consider it. Also, the hardship would have to show inability to make payment or contribute. 

 
b) If you have a case to approach them for compromise, of which would benefit you with a reduction of the debt or settlement, then this is something my group can help you with. 

c) If you want to address the government and it's attorneys, and establish a relationship that would calm the current situation, and open doors of benefit and opportunity in the future. 

What are you looking to achieve?  




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Sophia View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Sophia Quote  Post ReplyReply Direct Link To This Post Posted: 03/August/2017 at 11:21am
Thanks for answering. I want to pay but cannot $998 per month. I get paid a $1000 every two weeks my rent is $1100 + utilities and other bills. I don't know how to go about it. I'm the primary provider for my family and I'm scared to get a lawyer because I might not be able to afford it. I don't know if I should just let it go to court and see if the judge will give me a lower payment plan when they garnish my pay because I have no assets and already have bad credit...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 06/August/2017 at 10:21am
If you are in hardship then it has to be demonstrated in order to gain any opportunity or benefit. I can help you with this but in order to determine what the BEST opportunity will be is to know all of what went down from the time you took the loan out - to current. Building a case that will get you where you need to be requires a hefty analysis and assessment of the back and current. 

Doing nothing and letting them go on unaddressed is not a good move. 

If you require a lower payment plan and have a case for it I can help you get that. It is not going to cost you what lawyers charge on an hourly basis, but there is a cost. That depends on the time requirements. Once the short-term problem is solved then I can help you work out the longer-term problem and strategy. So, getting the matter addressed and mediation to settle the action and establish a relationship that you need here is only going to cost you a few hundred bucks I would imagine. 

Then, we can scope out the longer-term strategy to determine best opportunity and benefit to getting out from underneath of it. You'd be surprised how open-minded some government ministries are. If you have a case for something then it is a huge benefit in itself. 
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DEBTOFDESPAIR View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote DEBTOFDESPAIR Quote  Post ReplyReply Direct Link To This Post Posted: 28/November/2017 at 1:46pm
Can I hire you? Lol

If you are not local to me, what type of services should I search for locall other than legal? I can't afford a lawyer. 

Are we allowed to defend ourselves in court?

Sarah
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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: 29/November/2017 at 7:47am
Here is the cost effective way:  

 http://www.cfwgroup.ca/assessment-cfw-group

I think you already booked in though. If so, talk to you later today. :) 
The Canadian Financial Wellness Group (CFWG)



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