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Darkmatter
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Topic: Question about defaulted loan + Disability Posted: 28/November/2012 at 7:05am |
Hi, I live in Ontario and have a student loan that I used for college. After I finished school a bunch of crap happened and now I'm on Ontario Long Term Disability. Luckly I have lots of medical documentation which allowed me to get on ODSP on the first attempt. I didn't even need to appeal, which I am told is somewhat rare. Since I am on LTD now, should I be trying to contact whoever has my loan now so that I can start a process to have my loan forgiven? I would prefer to go that route then go through a bankruptsy, which I could probably do soon since I finished school in 2007 and have never made a single loan payment. On top of the questions above, I do have 1 more very important question: Can they take part of my monthly ODSP cheque and/or take money that's in my bank account? They haven't contacted me in ages so the last thing I would want to do is contact them to ask about loan forgiveness only to have them start garnishing my ODSP cheque. :( Thank-you.
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SolveStudentDebt
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Posted: 29/November/2012 at 5:13am |
ODSP cannot be attached for garnishing.
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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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Royal-NCO
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Posted: 29/November/2012 at 5:38am |
Johnny is right, but don't assume they won't take it if it is being deposited into the same account as you had your student loans deposited into. If it is the same account, open up a new account or have it sent to you in cheque format.
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administrator
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Posted: 29/November/2012 at 9:31am |
Just to clarify, open up a new account AT A DIFFERENT BANK!
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Administrator Mark OMeara Author of Let Go and Heal: Recovery from Emotional Pain https://LaughSingWrite.com - http://bit.ly/heal2024
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Darkmatter
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Posted: 04/December/2012 at 5:06am |
Thanks for the replies. I just want to make sure I got this right. They won't garnish an ODSP payment, but they will take the ODSP money once it's in my bank account? Is that accurate or can they only remove money from my account that came from somewhere other then ODSP? I ask because I don't have any other income then ODSP so there isn't any "extra" money that they could target. All the money I have is from ODSP. I've had that account since I was a kid so losing it is... annoying. Does it have to be a new account at a different bank? One other problem is that I have a special RRSP set up at RBC that is a fairly new program designed specifically for people who are on ODSP. Since this is a special RRSP account (government adds money to the RRSP whenever I put money into it.) I don't know if I could move it. One last thing. Is there a specific number I need to call to try to get my OSAP debt forgiven? Also is there a web page that outlines the process you have to go through to have the debt forgiven? Thank-you in advance for all the help. The collection companies, and even the government seem to go out of there way to make finding out this kind of information very hard.
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SolveStudentDebt
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Posted: 04/December/2012 at 9:48am |
If you owe RBC, Scotiabank, or CIBC for a student loan, and it is in default, and you have an account with the bank you owe, and it has money in it, then the bank can seize money fromt hat account and then apply it to the debt you owe. The set-ff does not take into consideration where the money came from. It just takes it. If this scenario applies to you then open another account with a different bank and protect your financial security. 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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Darkmatter
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Posted: 04/December/2012 at 1:15pm |
Yikes that is scary. I'll see if theres a Canada Trust near me since its a trust, not a bank. (not that I'm up on the difference) Not sure what I can do with my Disability RRSP but since the government contributes to that, they probably can't touch it. I've been using that account all this time, over 5 years, and they've never tried to take any money... I don't know why they haven't, but I don't plan on giving them time to catch up. Thanks for your help. If you know what number/where to start to try to get my loan forgiven please let me know. I need to talk to them, after my account is changed. :)
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SolveStudentDebt
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Posted: 07/December/2012 at 9:40am |
Having a student loan set aside in this manner can't be done by talking to them. You have to provide a written demonstration of hardship that gives them a reason to do so. I can show you how to go about preparing it, and what to provide if you want. That is inexpensive. Just cover an hour or two of my time. That's all. If you want to call them then you would contact the student loan service center for that bank. The main toll free will be able to navigate you to them. 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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Darkmatter
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Posted: 16/February/2013 at 2:59am |
I've moved my chequing account to a different bank. This new account is where my ODSP money is now deposited. I just have 1 final question remaining. Can the collectors touch my RDSP that I have with Royal Bank? I was using Royal Bank when I got my OSAP but I only opened an RDSP a year ago. Thanks for all your help!
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