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Statute of Limitations & Bank Risk Student Loans

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Johnny View Drop Down
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    Posted: 23/September/2011 at 9:38am
I receive a lot of calls from people inquiring about limitation issues. The most popular questions being raised are: "Is my loan statute barred?" or, "Why wouldn't my loan be statute barred?". 
 
First of all, this cannot be answered without examination and analysis of the loan, it's history, and yours as well in respect ways in which you have handled it. Also, the examination and analysis of different legislations to determine if they apply or not in your paticular case, and the examination and analysis of the system's actions behind the scenes.  Age of the debt and whether or not you paid attention to it is only a minor part of the equation.
 
Another question is: "how long does it take to find out?". I do these studies for businesses and indivuduals and somewtimes it takes weeks and other times it could take up to a year or more, depending on the complexity of the case.
 
If you want a limitation study performed then you certainly have to be prepared to be patient. Banks are most resistant with these matters. They are defiant to the VERY end and it is a LOT of work.
 
For people who were involved in the first generation of the student loans program (that being the risk shared program), loans that were taken out between 1996 (and earlier) to 1999 may find a benefit of limitations in cases where the borrower has not engaged in any action or communication for a lengthy period of time. 
 
Borrowers who participated in the 2nd generation (Federal and Provincial Integrated) who have graduated or withdrew from studies before 2004, and entered into default with the Federal guaranteed loan before 2005, and have  not engaged in any action or communication for a lengthy period of time (post default) may also find benefit of a limitation issue.     
 
In closing, I want to discuss a limitation as a benefit is it is beneficial to a student loan borrower who is experiencing hardship with extenuating circumstances, and is unable to repay the student loan, and has not been in a position to repay the student loan demands due to hardship over time. People who have the ability to pay, and have benefitted from the education received, should honor the financial responsibility regardless of a limitation issue. 
 
Johnny  
  
 
 
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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debtfreeforlife View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote debtfreeforlife Quote  Post ReplyReply Direct Link To This Post Posted: 23/October/2011 at 9:17pm
Hello, reading some of the old posts about statute of limitation....   I'm looking for further information regarding the limitations on the BC portion of Canada student loans. 

In one of the threads you mentioned doing further research, and I'm curious to know if you found any definitive answers regarding said limitation.

Thank You
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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2011 at 7:20pm
I have all kinds of completed analysis and intelligence in respect to limitation issues. What is it in particular that you want to know?
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 kadavica Quote  Post ReplyReply Direct Link To This Post Posted: 25/October/2011 at 7:49am
Hello, I was asking elsewhere about what might be the status of my old loans.
I had an OSAP loan sometime in 1988-89 and then provincial Quebec loans to attend university which I left in 1995. I had to move away from Canada and have been back. Due to the comparatively low earnings where I've lived and the scarcity of work in my profession, I couldn't afford to make any payments until I recently started making a little bit of money.
I have no idea where the loans could be now and I wouldn't even know where to start looking. I can't really start calling government offices because the long-distance charges would kill me. Plus, I was hoping that I could negotiate a settlement and don't want to get in trouble by acknowledging the loans in case they have expired.
Where are my loans now? Have they become statute barred (I've never talked to anybody about these loans? How would I find if anybody has sued me or is after me? Who and how could I contact regarding potential repayment/settlement?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote debtfreeforlife Quote  Post ReplyReply Direct Link To This Post Posted: 25/October/2011 at 12:55pm
Hello,

I defaulted on an student loan in the '80, and I'm looking for information of getting it cleaned up so I can go back to school, and hopefully apply for new loans

My old loan was part Canada Student loan, and part BC student loan.

I'd noticed too, that in some provinces there seems to be a statute of limitations on debts owed to the province, and in others not.  So I'm also wondering if interest is still accruing, though they stopped trying to collect years ago.

I was disabled and on welfare for years, though never actually on disbability.
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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 27/October/2011 at 9:02am
If you have a Canada student loan collecting dust on the back end somewhere then you will have to repay thast before you would be eligible for any new loans. You can rehabilitate the old
loan.
 
If you acknowledge the Canada student loan it will survive the current limitations in place, and all the interest would be retroactivated from the day it was removed.
 
Nova Scotia and Ontario are the two provinces whereas there are no limitations that restrict the provinces from recovering money owed to them.
 
 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote violet75 Quote  Post ReplyReply Direct Link To This Post Posted: 28/October/2011 at 8:09am
I had a 4000 student loan from BNS in 93. Was very irresponsible and haven't made payments since 2001. Received letters and calls from collections agencies but ignored as I simply couldn't afford to pay :( It was showing on my BNS account and I would like to start making payments but not the 12000 the agencies are asking for. So I thought it would be better to pay directly to BNS, so I made a 100 payment through online banking on my BNS account. It then showed a 100 credit available on the student loan! sometime in the past week, it disappeared frm my BNS online accounts and now the SL is not listed as one of my accounts. Did I make A HORRIBLE mistake in paying the $100? From what I've read here, I'm now afraid I have "acknowledged" the debt :(   I am more than willing to make payment arrangement for 4K or even a portion of the 12K - but not the whole 12K!   I have been with BNS my whole life, and they have never taken money from my other accounts nor have I had any issues with CRA to recover this amount...Would it be better to keep making payments to BNS (I have the account number now in my "paid bills" from the 100 payment a few weeks ago? I thought if I paid off the principal amount to BNS I would have a better chance of the col. agencies dropping the whole issue...
Thanks so much for your time and help! I'm losing sleep :(
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 28/October/2011 at 9:49am
If you want me to provide you with a comprehensive analysis and advice concenring this you have to communicate with me privately. That is a service and it cannot be done on a public message board or forum like this.
 
Here is how you go about doing this:
 
 
Johnny
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote reg bridger Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2011 at 6:45am
First, I am very impressed with this site and your advice.
I have fed and prov loans from 2002 that survived a bankruptcy. Now i am discharged and have been contacted once by the collection agency used by the govt. I said I might be able to make token $100 monthly payments, they said they'd send a form immediately, but  that was seven weeks ago. No word since.
I'm also curious what constitutes "acknowledgement", for example they've taken my income tax for the last three years.
Is there any statue or age of debt thing that might be in play here?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2011 at 9:17am
Making a payment is acknowledgement. Income tax or GST rebate seizures are not admissions of liability. Submitting their financial forms is acknowledgment, and so is anything issued to them by you in writing, whether it contains a promise to pay or not.  a Bankruptcy assignment is acknowledgment, and so is any communication in writing or through disbursment by the trustee. 
 
An action commenced by the department of justice is a forced acknowledgment and is commenced by the Attorney General's office to prevent a limitation period from disarming the Crown from taking action in the future (providing the action is taken prior to passing of the prescribed limitation period).  
   
 
Limitation periods:
 
Federal: 6 years
 
Provincial guaranteed loans:
 
BC: 6 years
AB: 6 years
Sask: 6 years
Man: 6 years
Ont: No limtations binding the government of Ontario from recovering money owed
Que: 5 Years (10 years if final demand document is signed and issued by representative of the Minister of Finance)
NB: 6 years
PEI: 6 years
Newfoundland: 6 years
NS: No limtations binding the government of Ontario from recovering money owed
NWT: 6 years
Yukon: 6 years
 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2011 at 12:26pm
Johnny, if a loan is statute barred and so the pressure is off to pay the accumulated debt (or is it still accumulating???), can anything be done or can time heal the annual snatching of income rebate cheques? (gst never seized).
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2011 at 1:51pm

Depends on the debt. Traditionally, if a debt has been removed from active recovery or set aside as a result of a limitation issue, interest is retroactive rather than concurrent or per diem after the fact.

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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 01/November/2011 at 2:49pm
My Typo up there:
 
"NS: No limtations binding the government of Ontario from recovering money owed"
 
Now you all see how reliant I am on "copy" and "paste". LOL
 
Nova Scotia, not Ontario. LOL 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 02/November/2011 at 4:27am
Originally posted by Johnny Johnny wrote:

Depends on the debt. Traditionally, if a debt has been removed from active recovery or set aside as a result of a limitation issue, interest is retroactive rather than concurrent or per diem after the fact.

Translated I think, "interest is based on the past, not continuing after the statute of limitations and not per day"
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 02/November/2011 at 8:09am

it depends ont he debt though. With certain debt it is extenguished all together so there is nothing for interest to accrue on.

In other cases, the debt is removed from active recovery and interest is not calculated while it is in it's inactive state. However, if one acknowledges the debt in accordance to the legislation that pertains to it, then the debt will become active once again, and all the interest that would have been accruing during the time in which the debt was active would be tallied and added on top of the amount outstanding. It (interest) is a retroactive.  
 
Johnny
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 05/November/2011 at 9:24am
are there cases (I'm betting there are) where two equal debts are not treated the same and it is just luck of the draw who gets taken to task over a debt? Just wondering...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 05/November/2011 at 3:08pm

Given ther way the student loan system and borrower accounts (and relationships) are managed (privately and in government) there si no such thing as equal treatment.

If I understand your question correctly, that is exactly the way it is. Sometimes loans fall through the cracks and others are flagged to prevent it. Each case it totally unique.
 
Johnny
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote wendieB Quote  Post ReplyReply Direct Link To This Post Posted: 11/November/2011 at 2:07am
Nice to read your post. It was something to talk about.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote reg bridger Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2011 at 6:56am
I have been following the statute debate with great interest as I believe it aplies to me, and I agree each case requires analysis. What annoys me is I have asked this question, in a general sense, to two different trustees and they both told me the six year period doesn't bar recovery.
Like I said, it's complex, but I read the statute and I know it exists. Are these people misinformed or misleading? 


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2011 at 10:46am
First of all, it's not in a bankrupty trustee's best interest to tell you limitation issues restrict a lender from recovering a debt. I don't know if it is a fact of being misinformed or if they are intentionally misleading you. What I do know is that many the bankruptcy industry see the world and everything in it in a way that supports bankruptcy and nothing else. 
 
My opinion is that the bankruptcy industry has a significant influence on the consumer population in same fashion in which the pharmaceutical industry has  in the health and wellness business. They have the dominant position. Their focus is to maintain their dominance in position. They only work with and network with organizations that are bankruptcy-related, of course (which explains how the non-profit credit counseling organizations are contracted in and involved in their insolvency practices in Canada).
 
Canada needs consumer and economic stability and growth. Canada does not need a bankrupt population, which is the way it is shaping up. What Canada needs is healthy and balanced consumerism, which will increase the economic recovery and growth. NDP, that one's free LOL
 
The truth is this:
 
The statute of limitations, where it applies to an individual and a specific debt, restricts the lender from taking any "actions" and "proceedings"  from recovering the debt.
 
First of all, the definition of action is the act or process of doing something. It is synonomous to "work", activity" or "doing". If the law says "NO ACTIONS" then that means "NO WORK", "NO DOING", and of course "NO ACTIVITY". But not everyone in the financial community follows the law. LOL
 
The CFW Group specializes in helping people with good intentions concenring limitation issues, and ensuring that the financial community does not infringe on them. I had to underline that because of course we do not accept clients with bad intentions and the desire to use limitation issues to cheat the system. We carefully screen potential clients who come to us for services involving limitation studies and associated services.
 
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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