When I graduated from University I had a total student debt of $80,000 before interest now that the interest has been added on it’s well over $100,000. Out of fear, threats from collectors and really bad advice, I sought out bankruptcy.
My first bankruptcy was granted on July 24, 2003. It was the result of a my student loan creditors simply debiting my bank account without notice and making a demand for unrealistically high repayments of my student loan. This demand was not negotiable with these creditors, the federal and provincial governments and the CIBC. Together with my other personal obligations, this placed me in an impossible position where my total monthly payments exceeded 75% of my take home income. In effect, my other creditors at that time (credit cards, auto loan) were forced to accept a complete loss by the non-negotiable stance and actions of the student loan holders.
This indebtedness was primarily as a result of higher than expected education expenses and related living expenses due to a) two changes in Universities, which greatly increased the necessary number of courses and semesters, and b) a later change in my faculty and degree to give me the qualifications permitting me to apply for my present job.
In the end, my income level was and will be lower than I then anticipated relative to my debt. Even with reasonable advancement, I could see that repayment of all of my obligations, particularly my student loan, which continued to accumulate interest, was impossible. Since I was told that my student loan provisions were not negotiable, my original bankruptcy was filed to include all of my indebtedness, including student loans (then at about $80,000).
Since then, and while under the relief of the current bankruptcy application, my student loans have continued to accumulate interest at a high compound rate and repayment terms have remained non-negotiable. I applied for interest relief and was refused because the qualifying terms are extremely narrow.
My Second bankruptcy was shortly after the first due to fear of collectors and the set repayment terms on my student loans as they were non negotiable at the time. Also the second trustee which I went bankrupt with told me that it would solve all my debt problems and they would keep my file open for 3 years in which time the collectors could not collect from me. With this in mind I went bankrupt again just on the student loans.
Three years later my second bankruptcy discharged and my debt problem still existed plus all the interest that added. I was getting very desperate as the collection calls and really scary threats started again. Through some research I found a local credit counselor who claimed to be able to settle all my student loans down to $18,000, for a fee of $1500. This seemed great to me after all I had been through the 4 years previous years. Well, that didn’t work either, and the counselor who told me that my debt “would” be settled couldn’t deliver. This is because those creamy-sounding credit counseling agencies offer a program that is pretty much the same thing as a bankruptcy proceeding called “Orderly Payment Of Debts”. The credit counseling organization did nothing for me to say the least because their primary focus is unsecured consumer-type of debt, and not student loans.
Finally when I was surfing the net for information that could help my situation I found the Canada Student Debt website. That is where I found John Leblanc’s name and what he has done for others. I called him and he actually solved the better part of the problem for me, and is helping me through the rest, which is going very well. I still owe the student loans, but what a difference in how things are in comparison to before. For a reasonable fee he was able to help me achieve payment terms that fit my income and the collectors no longer calling me. He is also even helping me understand the basic principles and financial strategy, which has actually enabled me to get some credibility back regarding my credit rating and some pretty decent relationships in the financial area. With his guidance and teaching, I even qualified for a new credit card, and got financing for a car at a lower rate of interest than I though I would ever qualify for. That is rather wonderful given the fact that two bankruptcies had taken place. John at The CFW Group has helped me get my life back and I am very grateful for having found him. He has worked wonders for me. Thank you John.