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billyjean 
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 Topic: Notice of Civil Claim - Minister of National Reven
Posted: 04/January/2017 at 9:42am |
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Good afternoon,
I am hoping for some advice or information, and this is somewhat urgent.
I have been served with a Notice of Civil Claim, Plaintiff is Minister of National Revenue, for approximately 14,000 in total.
The lawyer's letter states that I can call and make payment arrangements to pay the debt. This is the route I would like to take because I do not want the judge adding court costs to the amount I already owe should this go through court.
Crap hit the fan in my life for quite a few years and I was not able to pay and unfortunately neglected it altogether and now I would like to get this paid off before it spirals even more out of control.
There is no possible way that I can pay a lump-sum, I have no savings, bad credit, etc. Does anyone know what type of monthly payments they will demand or will they even allow me to make payments on this? (in BC)
Thank you for any information!
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administrator
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Joined: 25/January/2003
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Posted: 04/January/2017 at 3:06pm |
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Check the document thoroughly. Is there a date to appear in court? Some collection agencies were sending out notices trying to scare people. Make sure it is a legitimate document.
What province are the loans from? How old is the loan? The loan might be or is approaching statute barred status.
The fact that you can call their lawyer and make payment arrangements sounds suspicious. Do not reply or send a payment until you verify whether your loans are statute barred or not. Any payment or acknowledgment of the debt would cause you to lose that protection if it is in place.
Let us know what you find out.... Additional comments anyone?
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Mark OMeara
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billyjean
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Posted: 05/January/2017 at 3:43am |
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Thanks for your reply!
It is definitely a valid document filed with the court (reputable well known local lawyer office, not a collection agency, I was served), this is for the Supreme Court of BC. I have 21 days to respond to the civil claim. But they also gave the option to discuss the matter and make arrangements to pay before that 21 day limit is up.
Loans were obtained in BC, for the Canada Student loan program. 2 loans taken out in 2009/2010 that total approx. 14,000.
I have reviewed the limitation act and see the 6 year limit, so I do believe these loans might be statute barred. There has never been payment, never wrote or spoke with them. But I have read numerous things on this site that unless you know for a FACT they are statute barred that you should deal with it, or they will get the judgement (and tack on court costs to my debt and then likely garnishee my wages).
With less than 20 days to deal with this I don't know how I would ever find out if they are actually statute barred, no money for lawyers, etc. It is so hard to find any help dealing with this as the information out there about students loans is few and far between, particularly surrounding limitations.
So I guess I am wondering if anyone knows what the options are for me?
- I could just "assume" the loans are statute barred, but how do I reply to this civil claim? Or do I ignore it? Does the court look at the dates and see they are statute barred or is that on me to prove?
- If I go the other way and call them to make arrangements to pay, do they typically take reasonable payments based on my income, or do they ask for ridiculous high amounts?
- If I don't make the payment arrangement and it goes to court, and the courts rule judgement, would this method be harder on my credit record? I think I read that a judgement stays on your credit report for 10 years. However, it doesn't seem that these loans ever fall off the credit record regardless, so just curious which is the harder hit?
Thank you for any information, I appreciate it!
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billyjean
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Posted: 05/January/2017 at 4:08am |
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Just a thought about the limitation act, it doesn't make a lot of sense to me that the courts would even look at cases where the limitation period has passed. I would think that would be the courts first question when looking at a debt that falls past the standard 6 year limit ..."this appears to be past the limitation period, lets look at that before proceeding". And it makes no sense why proving limitation is on the person being sued to prove, if that is the case. The person/company doing the suing should have to prove that they are within the legal time frame to take these actions.
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billyjean
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Posted: 05/January/2017 at 5:17am |
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Sorry for adding multiple comments, couldn't find a way to edit.
I was just reading over some information on another website, the person stated that the the limitation period would have begun on the last payment date, or last written acknowledgement and if there were no payments ever received then the limitation period starts on the date when payments would have started according to the contract. Is that correct?
In the civil claim they state that a Consolidated Student Loan Agreement was prepared, but the "defendent" (me) failed to enter into the Consolidated Agreement. I never received any such agreement, so how could I have failed to enter into this agreement if it were never received? This section states that the first payment would have been payable in early 2011. Which puts us at a few weeks before the 6 year limitation period. Would the limitation period be the loan dates (2009/2010) they list or the payment start date in 2011?
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SolveStudentDebt
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Posted: 06/January/2017 at 6:09am |
If you are being sued by government of Canada or Province then this is to keep it from passing through the limitation issue. You have to prove that it is in order to have it thrown out. I doubt it is barred though, unfortunately.
The consolidation agreement is the document you sign during the 6-month grace period post studies. It is worded that way because in fact, one was never filed. If they sent it you at an address they had on file, and you did not receive it, that is problematic. However, the onus is placed on the borrower to communicate and maintain uniformity at all times.
The way limitation trigger points work is simple. In the risk-shared generation, federal guaranteed loans, the date of subrogation is the day. Once it is returned to government for collection, the limitation period begins. For federal loans taken out after in the integrated program, there is no process of subrogation like the risk-shared generation. so, the day the loan became due and payable would be the trigger point, and timelined.
If you truly believe it is barred then you simply file a defense disputing the claim due to the statute of limitations. That is the only way, unless you can determine if it is (or isn't) without filing a defense.
A lawyer would simply file a defense and then pray that the limitations are positive. If it is not statute barred then you can bank on them pursuing you aggressively once the judgment is registered up.
If you have circumstances that prevent you from paying the student loan now (or in the past), then you have options. However, if you are gainfully employed, or at least benefitting from the education professionally and economically, are not in hardship, and it can be proven through discoveries that you could have and can to this day contribute towards your student loan based on the minimum requirements but did not, then it gets very problematic.
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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: 06/January/2017 at 7:01am |
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How soon after the initial default must the loan be subrogated? Can the bank hang onto the loan for 8+ years and then return it to the government, defeating the statute of limitations?
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billyjean
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Posted: 06/January/2017 at 10:16am |
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Johnny, thank you very much for the detailed, thorough information, it is greatly appreciated! You provide a wonderful service for the people who come to this forum. Thank you again!
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SolveStudentDebt
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Posted: 06/January/2017 at 10:25am |
With the risked-shared generation, subrogation tends to occur anywhere after 200 days by the govenrment of Canada from the NSLSC. Subrogation applies to the govenrent guaranteed loans only. The "put-back" agreement applies to the banks. The rule is that a bank that is participating as a student loan provider is permitted to submit a small percentage of non-performing loans in default to the government for purchase, at a crazy low rate of 5%. The government takes it over and proceeds to collect 100% of what they bought. It's the same business practice as the debt buyer's business model. Buy cheap - Collect huge. The govenrment of Canada has more power because of the income tax and GST set-off program, as well as an endless supply of tax payer money to spend on the best legal assistance to ensure that debt is recovered.
As for put-back, as in a CSL2 being purchased from the the bank by the government, that can happen at any time as long as the account is legally recoverable. The government will not allow a put-back on a barred loan. If they did, there would be no way for them to collect on it and, like other dysfunctional government expenditures, it would represent just another careless use of tax payer dollars. The hiring collection agencies to recover Federal debt was a large scale reckless use of tax payer dollars. NSLSC included.
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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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Notice of Civil Claim - Minister of National Reven