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.


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    Posted: 20/December/2007 at 4:23am
BANKRUPTCY NEWS!
To quote http://www.student-loan-bankruptcy.ca/ "In a stunning shocker, on December 13, 2007 The Senate of Canada gave third and final reading to Bill C-12 (which contains the new student loan bankruptcy rules). The Bill has now passed both the House of Commons and the Senate, so the Bill is now law. The next step is Royal Assent, which is a mere formality, and is expected to happen any day now." The bill apparently recieved royal assent on Dec 14th... THIS LAW CHANGES THE 10 YEAR RULE TO 7 YEARS. Please note that this change does not become effective until a "COMING INTO FORCE DATE is set. For more info check out http://www.student-loan-bankruptcy.ca/

There is another bill on the table to change the 7 years to 2 years and initiate a hardship hearing - details at http://www.bankruptcy****/studentloans1.htm
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tconley View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tconley Quote  Post ReplyReply Direct Link To This Post Posted: 20/January/2008 at 4:26pm
So if I have loans older than 1999 will I be able to claim bankruptsy? I have 4 altogether-2 are Federal and my CIBC is quite old now....2 are prov. and one of the prov. ones is at least 7 years now...but is the calculation from the time of graduation? and if you went on to getanother degree-wil the old loans be timed with the new ones?  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 21/January/2008 at 8:20am
Anyone can file an assignment in bankruptcy whenever they want. It is up to the trustee to live up to their responsibilities and bankrupt only the people who it really applies to. If you are asking whether or not you would be discharged, no one can tell you that. It is like going to a casino and asking the slots manager if the machine you are are thinkng about playing will pay out if you play it.
 
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Blue_Thunder Quote  Post ReplyReply Direct Link To This Post Posted: 24/January/2008 at 7:26am
Just a footnote to add to all of this. As a lot of people have heard, there is a senate bill on the go to get the now 7 year period down to two years with the option of a financial hardship hearing in dire situations for student loan debtors. I am not optimistic that senator Goldstein's (I think that is his name) attempt will work even if he can convince the majority of senators that the previous 10 year, now 7 year, rule is grossly unfair.

Sorry to be the Bad News Bear, but the reason for this is because any Senate Bill directly brought about by the Senate must be approved by the House of Commons and then get Royal Assent, the reverse process of which a Bill introduced directly by the Lower House has to be approved by the Senate and then get Royal Assent. As we all know, the Lower House and the Senate are co-equal.

As a result, do not expect the majority of Liberal and Conservative MPs to support the senate bill.

In other words, no matter what bills are introduced or who introduces them, all roads lead through the lower House and those majority of MPs who are totally opposed at granting us Student Loan debtors proper justice.

Let's just go out and file a class action lawsuit against the government for creating this sinister, profit making system that was doomed from the beginning, as well as blaming the failure of the system (ie. the defaults) on borrowers rather than the politicians who created the mess in the first place.

What we need is another Erin Brockovich or A Civil Action type of true story line to inspire us that if these events could be accomplished, then we can certainly do it to our own government. If anyone out there has not seen these two movies based on true stories, I highly recommend them for inspirational and motivational reasons.

Cheers!
The greater access to higher education, as a result of student loans, has flooded the job market. Therefore, supply exceeds demand. Thus our credentials are not as valuable as, say, 30 years ago.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote battleweary Quote  Post ReplyReply Direct Link To This Post Posted: 24/January/2008 at 12:46pm
To further the "bad news" check out the "new" bankruptcy laws - 9 months of paying significant money for first time bankrupts, - if you have been bankrupt previously (even 20 years ago) you are looking at 36 months of huge payments (depending on income) before you can be considered for discharge, with no guarantees. Hope is dashed and there seems like there really is no way out. My advise to anyone. DON'T  stay in school. It is a lifetime poverty sentence. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lovecraft Quote  Post ReplyReply Direct Link To This Post Posted: 19/April/2008 at 6:06pm
OK I am no lawyer but upon investigations I found something interesting.  http://www.parl.gc.ca/LEGISINFO/index.asp?Language=E&query=5298&Session=15&List=ls#endnote45
According to this site the section of bill C-12 that concerns student loans is

6. Discharge of Student Loans(45) (Clause 107(2))

and the information listed for coming to force is The provisions of Bill C-12 come into force on the date of Royal Assent, with the exceptions of clauses 1(1), 1(5)-(7), 3, 6, 9(3), 12, 13, 14(2), 14(3), 15(2), 15(3), 16(2), 16(3), 17(2), 19-22, 25, 31, 34, 35, 37, 42, 44, 46-48, 50, 51(1), 55-57, 58(2) and 67, which come into force on proclamation.

The point is that unless I am misreading the information, or grossly misunderstanding the fairly plain language the section of bill C-12 that concerns us all is already in force.  Any clarification on this would be much appreciated.  I seems straight forward to me though.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 20/April/2008 at 3:05am
1. It is not changed as of yet.
 
2. The issue is that you can "apply" to have your loan discharged. It does not mean that you will be discharged. If you judged as bankrupt, and there is no opposition, then discharge will happen. If you are truly not bankrupt, and are perceived or judged as using the insolvency system as a means frustrating the system, then a discharge is unlikely.
 
This is what people hqve to realize.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote lovecraft Quote  Post ReplyReply Direct Link To This Post Posted: 20/April/2008 at 4:24am
So.  Just to make sure I understand this correctly.  I went bankrupt several years ago, it has been more than 7 years since I was a full time student, I am supporting a family of 5 on PT income.  I can at this time see a lawyer to apply to have my student loans discharged under the new law?
Many a fool has sought to oppose my diabolical will, only to find out later that they probably shouldn't have tried to do that
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 20/April/2008 at 11:31am
You have to file again, unfortunately. If your hardship carried extenuating circumstances, then it is worth a shot. However, no one can guarantee you a discharge. That is the other matter. It is all in the hands of whomever makes the ruling.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote lovecraft Quote  Post ReplyReply Direct Link To This Post Posted: 21/April/2008 at 5:20pm
Why would I have to go bankrupt again.... and I thought that the 7 year rule was automatic..... I went bankrupt about 4 years ago... should I not just have to apply to have it done now..... that is what my trustee said.... it was just the time we were unsure of.

Many a fool has sought to oppose my diabolical will, only to find out later that they probably shouldn't have tried to do that
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 21/April/2008 at 11:46pm

The new change has not taken effect, and there is no automatic discharge, lovecraft. THe student loan provider is allowed to oppose the discharge, which the government will do in most cases, depending on your financial position. Who knows how long it will take. Your past bankruptcy did not involve the student loans. Therefore, you will likely have to file a new assignment.

So you all know - when you come a point when you can apply to have your student loans discharged under the insolvency act (section 178), it means just that. You can "apply" to have it or them discharged. It does NOT mean that you will be discharged. The act does not state that a discharge is automatic. However, if your life and financial circumstances are so bad that you will never be able to repay the loan back, then the chance of discharge is great. When it involves student loans, everything is open to examination by the opposition. Remember, the government has the right to oppose, and they do so religiously.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote cayt Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2008 at 4:53am

When your loans are in collection or when you can claim bankruptcy,  what can the governement or student loans collectors seize?   What if I own a 12,  000.00 mobile home - not the best but all I have as my primary residence for me and my son.  Can I lose this?  I am asking because I am currently in collections with both federal student loans and the BC student loans and should I lose this trailer we would essentially be homeless - I can't afford the high rents elsewhere. 

Also,  if an effort to work with student loans,  I have requested the forms to document my monthly statements.  In five months I have made three requests and have not yet received any documents.  Each time I phone they tell me they have mailed me the documents.  To date I have not received anything except nasty letters demanding payment immediately.  I am at my wits end and don't know what to do.  Every time I try to engage with student loans I never receive any documents.  When I had attempted to apply for interest relief,  I missed the deadlines waiting for papers.   How can this continue to happen.  I am so frustrated.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote akasnowflake Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2008 at 8:20pm
This is all good news to me! Im in my 7th year and was paying my student loans until I lost my job. Now on EI and have creditors calling more than 4 times a day! There's nothing I can do as I don't have an income that allows me to pay them. For months now agencies have been telling me to wait on this bill being passed......I can't wait for it to be over. My student loans are the only things on my credit!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/April/2008 at 8:18am
Hi,
 
10 years from the day you have ceased to be a student. Unfortunately, what you are describing is a common occurence.
 
 
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote gozonuts Quote  Post ReplyReply Direct Link To This Post Posted: 17/June/2008 at 3:04am
I am sorry to flog a dead horse, but this ten year period after you were a student, does this mean full time student , part time, or just taking one course?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote icemaiden129 Quote  Post ReplyReply Direct Link To This Post Posted: 18/June/2008 at 7:39am

10 years means being a student at any time.  The best thing to do speak with your original loan source to find out when your last study date was, the 10 years would generally start from the dat after that.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 18/June/2008 at 12:57pm
Section 178 clearly states that you can apply to have your loan discharged 10 years from the day you ceased to be a full or part-time student. So, if you were a student yesterday and not today, the legislation is pretty specific. However, everythign is subject to interpretation. Maybe spend a buck and get obtain a ruling on this (?).
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote stardustnf Quote  Post ReplyReply Direct Link To This Post Posted: 08/July/2008 at 10:59pm
Check out this news story....the new bankruptcy rule of 7 years for student loans was signed into law yesterday.

http://network.nationalpost.com/np/blogs/legalpost/archive/2008/07/08/bankruptcy-law-changes-impact-rrsps-and-students.aspx

It's about time!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 09/July/2008 at 5:02am
It is good for those with extenuating circumstances, and who truly cannot contribute. However, you have to question the sales pitch of this article because there is no automatic discharge. It is telling people to rush out and see a bankruptcy trustee (which is what that industry is promoting). A free consultation results in thw bankruptcy sector telling you "oh yes, you definitely should go bankrupt". Let's face it, although change is good but the way this is written certainly does not offer consumer comfort or protection in an unwarranted filing of insolvency. The bankruptcy sector's concern is bankrupting people, and not teaching them how to avoid these proceedings. There is one thing that the bankruptcy secotr fails to deliver and that is the fresh start that they solicit to you. They really cannot give you that as it requires a lot of restorative or relationship developments, and that sector is not capable of providing it.
 
 The student loan provider can still oppose a discharge if a borrower is examined as being able to pay. These are areas that borrowers have to be cognizant of.
 
Johnny
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 09/July/2008 at 7:45am
I also understand that the rules and regulations have not been published yet. I agree with Johnny and disagree with the article. There is no indication that its an automatic discharge.
 
But at least its seven years not 10.
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