This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their upcoming changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities can't plan. I've heard of courses being cut because the government has no process in place for universities to send the newly required acceptance letters to the government.

This means that students who have been accepted can not attend courses that start in the summer 2024 semester. With cut sections, current Canadian students will have trouble getting courses, and may have to switch to part-time which changes their enrollment status and might trigger repayment of their loans or ineligibility for funding. I've seen this before. It wreaks havoc on the student loan borrowers.

Again, the Liberal government has messed up the education environment. Will the new system needed in a rush for the acceptance letters be the new Arrivecan scandal?

I call on the government to implement a slower phased in approach and delay the requirement of the acceptance letters until a process is in place to submit these letters.


  New Posts New Posts RSS Feed - Bankruptcy Law News!
  FAQ FAQ  Forum Search   Register Register  Login Login


Forum LockedBankruptcy Law News!

 Post Reply Post Reply Page  <1234 5>
Author
Aroha68 View Drop Down
Newbie
Newbie


Joined: 21/June/2006
Points: 1
Post Options Post Options   Thanks (0) Thanks(0)   Quote Aroha68 Quote  Post ReplyReply Direct Link To This Post Posted: 09/July/2008 at 5:57pm

This is great news.. if it is in fact true.  My question, now that I can supposedly declare bankruptcy (it's been 8 years since I attended school or received $$ from student loans) is this... I recently married (4 years ago).  Will my husband's income come into play if I try to declare bankruptcy (he makes decent money)?  He wasn't even known to me while I was in school, and should not be responsible for my debts.  I am under the assumption that he will end up having to contribute to this bankruptcy, should I decide that is the route I will take.  Can anyone answer this?  Is it even worth the hassle?

Back to Top
Sponsored Links


Back to Top
indeeptrouble View Drop Down
Newbie
Newbie
Avatar

Joined: 10/July/2008
Points: 3
Post Options Post Options   Thanks (0) Thanks(0)   Quote indeeptrouble Quote  Post ReplyReply Direct Link To This Post Posted: 10/July/2008 at 2:12am

I need immediate help .. I filed for bankruptcy 2 years ago and has been out of school since 2000.  My canada student loan has been forwarded to a collection agency.  They have contacted me on several occasions and they want to settle ofcourse.  I just want to know if I could be discharged from the loan based on the new Bill. plz help. 

Back to Top
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1798
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 10/July/2008 at 4:22pm

This is a summary of changes from
http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01782e.html

Student Loans

The waiting period before which a student loan may be discharged is reduced from 10 years to 7 years. The period before which an application may be made to court to request a discharge on the basis of hardship is reduced from 10 years to 5 years.

The new time frame of 7 years will apply to all those who file for bankruptcy after the coming into force date and to undischarged bankrupts, i.e., student-loan borrowers who have become bankrupt but who have not yet been discharged.

Section 178(1.1) (the "hardship provision") will be available to all bankrupts, including those who have been discharged prior to the coming into force of the provision.

*********************************************************************
 

 

Chapter 47 reduces the discharge prohibition period from 10 years to 7 years. Furthermore, the court may, on the application of the bankrupt, discharge the debt five years after the completion of studies, if the court is satisfied that the bankrupt has acted in good faith and will continue to

experience such financial difficulty that he or she will be unable to repay the debt.

 

Bill C-12 clarifies that when the new seven-year discharge period comes into force, it will not only apply to individuals who file for bankruptcy after that date, but also to those who have already filed for bankruptcy and have not been discharged. (The five-year waiting period will apply to all bankrupts, past, present and future.(47))

**********************************************************
From what I read here, if you have already been bankrupt and have been discharged from your bankruptcy, then you can apply under the 5 year hardship rule. If you have declared bankruptcy and have not been discharged, then the 5 year hardship, or the 7 year rule will apply depending on your situation.
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
Back to Top
indeeptrouble View Drop Down
Newbie
Newbie
Avatar

Joined: 10/July/2008
Points: 3
Post Options Post Options   Thanks (0) Thanks(0)   Quote indeeptrouble Quote  Post ReplyReply Direct Link To This Post Posted: 11/July/2008 at 8:37am
thanks ..
one more question..do I need to hire a trustee  or a lawyer to aply for discharge or can I do that myself?? if so..where do I get info/ application ??
thanks again..
Back to Top
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1798
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 11/July/2008 at 1:54pm

For the info or application, depends on the province.  You should probably contact your former trustee...

Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
Back to Top
old hippy View Drop Down
Groupie
Groupie
Avatar

Joined: 20/August/2005
Location: Canada
Points: 198
Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 11/July/2008 at 3:12pm
hmmm.....
 
Regarding bankruptcy - are RRSP's safe?  If someone had the "means to pay" their student loan - but less than 15 yrs. left to retirement...is this "extenuating circumstances"?  I'm getting a little tired of handing over $450 mth in interest.
 
Back to Top
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1798
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 12/July/2008 at 6:38pm
Apparently one of the other changes was that RRSP's are safe although contributions in the prior 12 months might not be...
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
Back to Top
ryderfan` View Drop Down
Newbie
Newbie


Joined: 15/July/2008
Points: 1
Post Options Post Options   Thanks (0) Thanks(0)   Quote ryderfan` Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2008 at 5:21am
SmileHello everyone, this is my first time here.  I am just wondering ... my husband has a huge student loan debt and we are entering our seventh year.  We are able to pay for all other bills and living expenses but just not the student loan.  Is there an option of filing for bankruptcy just on the student loans only?  We are wondering if that is an option for us in the upcoming year.  If anyone knows any information regarding this issue, I woudl greatly appreciate it. 
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2008 at 10:33am
Bankruptcvy is not negotiable. You are either bankrupt or you are not. Everything has to be included.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
akasnowflake View Drop Down
Newbie
Newbie


Joined: 28/April/2008
Location: Canada
Points: 2
Post Options Post Options   Thanks (0) Thanks(0)   Quote akasnowflake Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2008 at 11:02am
Actually I was informed that as long as the monies owing are not from a finanical institution and you have been making payments they don't have to be included in your bankruptcy....such as my car. Its financed through a company not an institution therefore I don't have to include it. I just got the call from my financial advisor today regarding my up coming bankruptcy. Wish there was another way.
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2008 at 1:37pm
Your car loan is secured. That is a different matter. However, if you have a mortgage on a property, and there happens to be equity in it, then the properrty is at risk. Tell us your story. what makes you bankrupt?
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
old hippy View Drop Down
Groupie
Groupie
Avatar

Joined: 20/August/2005
Location: Canada
Points: 198
Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 15/July/2008 at 1:40pm

Make sure you do your homework ryderfan - there's lots of bankruptcy sites on the web and the exemptions may vary by province.  Here's one site:

 
I've been doing a little reading up on the bankruptcy thing myself....and I don't like the sounds of the "surplus income" payments - do they ever end?  It's consoling that you're allowed to keep your clothing and household pets though.
 
 
 
Back to Top
tlstevenson2006 View Drop Down
Newbie
Newbie


Joined: 16/July/2008
Location: North Sydney
Points: 2
Post Options Post Options   Thanks (0) Thanks(0)   Quote tlstevenson2006 Quote  Post ReplyReply Direct Link To This Post Posted: 16/July/2008 at 12:03pm

And that's not fair because I have good credit other than my student loan why should my credit card suffer because of the GOVERNMENT!!!!! A student loan which I just found out is put back which is what is said on the papers I got 6 months ago and I applied again didn't hear from them again for 6 months and another 2000 worth of interest!! This is not right I only need a solution to the student not my credit card!!

Tracey Stevenson
Back to Top
masy View Drop Down
Groupie
Groupie


Joined: 13/June/2004
Points: 64
Post Options Post Options   Thanks (0) Thanks(0)   Quote masy Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 5:10am
I now qualify to file. However I've been paying on this loan for 4 years now and have become adjusted to living a bit below my means. I am rebuilding my credit and establishing a relationship with my bank. As much as I would like to wipe out that debt and have the extra cash, I would be back to square one with my credit and have to start rebuilding from scratch. For me, it's not worth it to file but I know it's different for others. It depends on your financial situation and what your long-term finanical goals are.
Back to Top
cayt View Drop Down
Newbie
Newbie


Joined: 28/March/2008
Location: Canada
Points: 14
Post Options Post Options   Thanks (0) Thanks(0)   Quote cayt Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 5:45am
On June 20th I declared bankruptcy for a variety of reasons including high student loan debt.  While my student loans are not included the nine month bankruptcy timeline does offer some relief.   I reside in Alberta and while I understand bankruptcy laws differ from province to province,  most are relatively the same.   I surrendered my truck because with the student loan payments I could not manage both.  I was not required to surrender my vehicle because there was no equity.  In Alberta you are required to surrender all credit cards as well regardless of a strong credit history.  As a single mom I am allowed to make up to 2200.00 per month without penalty.  Any surplus monies up to 1000 I make stipulates I return 50% of those monies to my trustee.   Anything over is divied up by the trustee to be applied to my debts.  I too had an impecable credit history with my vehicle loan,  credit cards,  mortages etc. but with such extensively high student loans could not manage all of the payments.  I am so frustrated over the student loan program I wish I had never gone to school with student loan funding.  These loans should have minimal interest with flexible repayment plans not be seen as a monetary gain for the government.  The stressors myself and many others have experienced is unsurmountable.  And while I know that my decision to declare bankruptcy is entirely my doing,  I do feel somewhat 'pushed' towards making this radical change in my life by those who were to offer support and opportunities.  Declaring bankruptcy is a personal choice and for me has offered and provided a great deal of relief.  But it isn't for everyone.  Changes are occuring and hopefully the governmental sectors will respond to this disastourous program. 
Back to Top
mommyto4in08 View Drop Down
Newbie
Newbie
Avatar

Joined: 25/April/2008
Location: Canada
Points: 10
Post Options Post Options   Thanks (0) Thanks(0)   Quote mommyto4in08 Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 8:32am
Regarding this new 7 year rule, can anyone say for sure whether or not using/exhausting Interest Relief sets the clock back?? I have heard yes and no?
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 9:19am
If you have been out of school for 7 years. Interest relief is not an attendance issue. Good luck.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
mommyto4in08 View Drop Down
Newbie
Newbie
Avatar

Joined: 25/April/2008
Location: Canada
Points: 10
Post Options Post Options   Thanks (0) Thanks(0)   Quote mommyto4in08 Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 9:47am
Thanks Johnny!Smile 
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 2:07pm

The system must also be satisfied that you have acted in good faith, and are not seeking bankruptcy as a way to frustrate the system. Make sure you I's are all dotted, and your T's crossed. Don't go bankrupt unless you are truly bankrupt. Trustees in bankruptcy don't care abotu this. They just seek people to bankrupt. This causes A LOT of problems for people who are really not bankrupt, you see.

Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 17/July/2008 at 2:41pm
Here are some snippets of the BIA.
 
The changes are clearly made (from 10 years to 7) in respect of section 178, item gii which reads:

Debts not released by order of discharge

178. (1) An order of discharge does not release the bankrupt from

(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred

(i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or

(ii) within ten (Now Seven) years after the date on which the bankrupt ceased to be a full- or part-time student; or

(h) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (g).
 
Now, for those of you who think that there is an automatic discharge, you should read the following, as outlined in section 170.

Right of creditors to oppose         

(7) A creditor who intends to oppose the discharge of a bankrupt on grounds other than those mentioned in the trustee’s report shall give notice of the intended opposition, stating the grounds thereof to the trustee and to the bankrupt at or before the time appointed for the hearing of the application for discharge.

 

 And ...

 

170.1 (1) The report prepared under subsection 170(1) shall include a recommendation as to whether or not the bankrupt should be discharged subject to conditions, having regard to the bankrupt’s conduct and ability to make payments.
 
And ...

Factors to be considered

(2) The trustee shall consider the following matters in making a recommendation under subsection (1):

(a) whether the bankrupt has complied with a requirement imposed on the bankrupt under section 68;

(b) the total amount paid to the estate by the bankrupt, having regard to the bankrupt’s indebtedness and financial resources; and

(c) whether the bankrupt, if the bankrupt could have made a viable proposal, chose to proceed to bankruptcy rather than to make a proposal as the means to resolve the indebtedness.
 
And ...

Powers of court to refuse or suspend discharge or grant conditional discharge

(2) The court shall on proof of any of the facts mentioned in section 173

(a) refuse the discharge of a bankrupt;

(b) suspend the discharge for such period as the court thinks proper; or

(c) require the bankrupt, as a condition of his discharge, to perform such acts, pay such moneys, consent to such judgments or comply with such other terms as the court may direct.
 
So, please think before you take the dive and make sure there is water in the pool!
 
 
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
 Post Reply Post Reply Page  <1234 5>

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 12.07
Copyright ©2001-2024 Web Wiz Ltd.