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Iknowalotofstuff 
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Joined: 29/September/2008
Location: Chatham, ON
Points: 155
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 Posted: 15/December/2009 at 11:46am |
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"Interest only" is like treading water in the deep end ... good exercise for a while ... eventually you have to try something else or you drown. If you have a $10000.00 loan at 6%, you pay $50.00 per month but the balance never changes. Hope you do not drown.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 15/December/2009 at 3:30pm |
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CArlo won't drown, stuff.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Broke
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Joined: 16/December/2009
Location: Victoria
Points: 4
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Posted: 16/December/2009 at 1:35pm |
Wow, awesome thread. I'm thinking I might be part of the target demographic for this subject. I was prematurely convinced bankruptcy was the best call for my situation - lots of credit card debt from going to a university in Switzerland that my student loan didn't cover. I have enormous debt, but it is from getting two degrees and having a family. Didn't waste any money (other than perhaps what my degrees ended up being) and had a job throughout school. We've been doing the poverty thing for 15 years.
No one explained I was killing all interest relief and debt reduction qualifications, so the bankruptcy did what it was supposed to for the credit cards and kinda messed up everything with student loans. Anyway, long story short. I was discharged from a bankruptcy on a relatively small debt and instantly on the hook - with no relief - for a HUGE debt.
I have: 48,000 AND 28,000 loan with RBC 20,000 CAN-Sask loan 19,000 with HRSDC
THe RBC loans are in default (as far as I know because there has been a 2 year break in collections harassment and abuse). I just received a notice from a new collections agency about the RBC debt.
HRSDC sends monthly statements asking for a minimum of $885/month, and they add $115/month interest to my loan. They just called and based on my situation were wondering if I could commit to $120 a month to keep the interest at bay.
I am married, with 4 kids, my wife is at home full-time, our youngest is 2. We pay $1,800/month rent in Victoria I make $2000 - $3000 a month depending on the month (self-employed)
I have an MA and a BA and arguably neither have put me in a position to effectively pay my debt.
Aside from being a total drag, I cannot imagine being able to pay off these loans unless I get an unreal boost in income (which I would gladly prefer).
If there is any way, that my loans can be discharged from my previous bankruptcy (discharged January 2005), and I do not have to file for a second bankruptcy, it would be a phenomenal relief.
I can appreciate Johnny's points about avoiding bankruptcy and I think the ideal is to be able to pay it off (or perhaps have more forgiven/reduced). I had a certain amount forgiven each year I was in school, but the bankruptcy reversed all that, all debt reduction.
I won't overstate the dramatic stories and events that have punctuated the lameness - moving my family into the in-law's basement, being told by a collection agent I should recuse myself from my religion because no moral person would have such difficulty paying back loans - but it has been a pretty terrible theme.
I am intrigued by the approach suggested by iknowlotsofstuff. Does it really work? If you apply and fail do they drop the hammer on you?
If I can triple my income, its a non-issue - but until then I feel like I am walking around with a giant karma piano suspended above me - ready to drop at any moment.
Thoughts?
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Iknowalotofstuff
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Joined: 29/September/2008
Location: Chatham, ON
Points: 155
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Posted: 16/December/2009 at 4:23pm |
Broke: Here is link to a Nova Scotia court case where the bankrupt applied for hardship relief. http://www.courts.ns.ca/decisions_recent/documents/2009nssc211.pdf
It demonstrates that I am not making this stuff up. People really do get relief.
There are several other case to read on the Net with respect to this process. If you read the above case, it is not that dissimilar than your case. Income and amount of debt are different but the concept is the same. This person went bankrupt, got discharged, could not pay his loan after bankruptcy, could not make reasonable arrangements, had acted in good faith, is experiencing financial hardship and was likely to continue to so. The ruling of the Court rendered s. 178.1(g) inoperative in the bankruptcy and the student loans became subject to the earlier discharge.
There is no reason not to make an application. You are contemplating a second bankruptcy. This is an alternative if the s. 178 1.1 application fails. Assume you apply and fail. The student loan creditor sues you. You make a second application and have the judgment as proof that you will have ongoing financial hardship.
Why not ask the moderator to give you my email address. I will contact you and see what we can do. I will help you through the process.
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DB1972
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Joined: 22/November/2006
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Posted: 21/January/2010 at 4:10am |
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i did this whole procedure myself. It was abit involved, but successful nonetheless. It cost very little, 10 for the court, about 25 for notary, 20 for postage, and some gas money, time off from work. well worth the effort for me. and hours and hours of research figuring out how to do the affidavit's etc.
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Iknowalotofstuff
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Joined: 29/September/2008
Location: Chatham, ON
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Posted: 21/January/2010 at 6:54am |
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I am glad you were able to do this yourself. Not everyone is that confident or competent to do it themselves. Some may need help. I provide that help.
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seekinganswers
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Joined: 16/March/2010
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Posted: 06/May/2010 at 3:03am |
Not sure what to expect next...
I have applied to have student loans discharged under previous bankruptcy and had my court date recently. A reprensentative from SL showed up and asked for adjournment (due to needing more time to form their argument) and stated they intent to oppose my motion.
Should I be looking into getting a lawyer?
I don't know what to expect next.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
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Posted: 07/May/2010 at 6:51am |
The only thing you can do right now is wait to hear their argument and allow the registrar to make his or her decision. I suspect it is the government of Canada who is opposing. If you have a solid argument and demonstration to back it up then you should be fine with that. The government opposes these motions quite a bit. It is usual protocol. Each case is uniqwue, of course. If your hardship can be demonstrated and the registrar is satisfied that your duties as a bankrupt have been fulfilled, and that your case warrants discharge on the premise of hardship with extenuating circumstances then I can't see why they won't grant you a discharge despite the opposition. The opposition would have to satisfy the registrar by demonstrating that you are able to pay.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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seekinganswers
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Posted: 10/May/2010 at 3:55am |
i was a little surprised to be honest. i did not expect that at all...and it made me feel very intimadated and scared. i am meeting with a laywer this week to get some advice...i guess, i just don't know how to respond. but hearing that they were going to oppose it made me feel really worried.
maybe that is what they want?
i don't know.
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SolveStudentDebt
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Posted: 11/May/2010 at 1:31am |
The government simply wants to protect their own best interest, that's all. It is all up to the court in your case. They have heard your argument. Now they have to hear the Crown's. or whoever the opposition is. You will hear their argument in any event. Don't be intimidated. It is to be expected. You are obviously very clear in your demonstration. It all comes down to 2 things: 1) Who's argument is stronger, and; 2) What the registrar in the court proceedings decides.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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connieo
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Joined: 25/October/2010
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Posted: 25/October/2010 at 5:21pm |
Hi everyone,
This is a very interesting conversation. I have some questions regarding filing the hardship application. Can I file all these years after my discharge? I had ongoing financial difficulties since my bankruptcy. The last two years have been 'hand to mouth' despite my increased income.
I was discharged from bankruptcy in 2003, out of school since 2001. (filed bankruptcy due to an illness which rendered me unable to work or to continue with my school). I was receiving Income Support for a year, returned to work (2500/month) for two years, on EI for a year and back on Income Support for a year. I definitely demonstrate d a financial hardship but still made payments on my Provincial debt, even if it was $5.00 a month. I haven't seen a tax refund since '03, made payments on my AB provincial loan & paid that off. I've been working for the last two years (46,000/a) I've been making $150.0./month payments to HRSDC for the past two years. I raised 2 children in my single income home during this time. One is still in school and financially dependant on me.
Recently, Partners in Credit contacted me regarding my RBC loan. They have been very aggressive and rude, calling my work place and my home at least 10-12 times a day. I decided to do some research before entering into a discussion with the collection agency. It's not that I don't want to pay off my debts, but at the rate of my current payments...
Sorry, hope the verbage isn't too much
The collection agency hasn't made any effort to contact me since '03.. do you think they are hunting for me because of the statute of limitations? I live in Alberta.
Any help or advise would be appreciated,
connie
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SolveStudentDebt
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Posted: 26/October/2010 at 5:01am |
In my opinion I do think that there is a limitation coming up. I would be careful with this one. If you do need help call me. I can navigate you in the process.
Johnny
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Bandawg
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Joined: 10/July/2011
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Posted: 29/August/2011 at 7:55am |
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hey Johnny - I would like to contact you concerning this issue ... let me know how, okay? thanks ;)
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Broke
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Joined: 16/December/2009
Location: Victoria
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Posted: 02/November/2011 at 12:35pm |
Hi there, Where do I find more information on this? Forms for filing for hardship etc. Any help would be great, thank you.
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SolveStudentDebt
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Posted: 02/November/2011 at 1:01pm |
Forms for what? Having the Canada student loan set aside due to a hardship with extenuating circumstances, or for a section 178 application? In the matter of a sec 178 application you can simply draft your hardship in a chronologicical, and include your income over the past 6 or 7 year period. If there is an economic and professional benefit received from the education you received though, you really have to get intot he nuts and bolts of the hardship and pinpoint those extenuating circumstances that prevent repayment of the student loans.
Do you want some professional guidance here? Or is your question just a general one relating to the location of government forms?
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Broke
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Joined: 16/December/2009
Location: Victoria
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Posted: 02/November/2011 at 1:10pm |
Thanks Johnny. I have a previous bankruptcy and so I am interested in the 178 application and the ins and outs, what I have to file etc. I am not consistently employed as a result of my degrees (as in not benefitting professionally or economically), but I have worked on a couple contracts that were related to my education. over the past 7 years it is quite minimal and I've been primarily scrounging for work.
Professional guidance is great, but if you mean hiring you or your company I'd love to but money is too tight.
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SolveStudentDebt
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Posted: 03/November/2011 at 3:08am |
If you can;t afford to hire someone to help you, all you have to do is demonstrate your hardship It's really simple to do for anyone who is experiencing hardship with an extenuating circumstance - or more.
Demonstrate EXACTLY what tyou said in your above post. That is the nuts and bolts of what these demonstrations and applications are all about. If you cannot pay it then you cannot pay it History supports it, and your current situation supports it.
The problem people face here is that the system requires proof of hardship, proof of the extenuating circumstances, and proof of what your intentions are. Telling your story is easy. Proving it sometimes is challenging though. The burden of proof is always on the bankrupt to provide factual proof in cases of sec 178 applications.
Organize your facts - and gather proof that backs up those facts.
In my opinion, I think it would be more advantageous to apply to the government of Canada (HRSDC) for relief due to hardship. Who the heck do you owe here anyway?
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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SolveStudentDebt
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Posted: 03/November/2011 at 4:03am |
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I was referring to who the $48K debt you cited intyour previous message in addition to the three student loans.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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Broke
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Joined: 16/December/2009
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Posted: 03/November/2011 at 5:24am |
Thanks again Johnny, this is very helpful info. I am starting to organize all my data and proof. Is it normal/legal for them to want to see bank statements?
The 48k was a blend of provincial and RBC - I believe it is all owed to RBC but a chunk was guaranteed by the gov, and then they switched systems to the blend with HRSDC.
For a few years I have been getting monthly statements from HRSDC because I was paying a $50/month goodwill payment on a balance of $40,000 ($175/month interest). Then in April my monthly statement stopped listing the Can-Sask Loan and my balance owing dropped to $20,000. No details, no letter, just a drastic change in April of 2011. Each statement since has only listed one loan.
Any idea why that might be?
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Tbeets
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Joined: 23/January/2014
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Posted: 23/January/2014 at 12:42pm |
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I so need help with applying for this, I am lost and overwhelmed at all this and have not a good life at the moment! any help would be great ??
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tbeets
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So what can you tell me about....