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getting sued by Attorney General

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Topic: getting sued by Attorney General
Posted By: FreedomFighter
Subject: getting sued by Attorney General
Date Posted: 28/April/2011 at 3:19pm
Just got served by the Sherrif's office... being sued by the Attorney General of Canada, oh joy!!! I am recently getting caught up on my taxes (there will be well over $4K going towards my $10K outstanding loan) - anyone gone through this? Any suggestions or easiest way to get it over with? I'm not trying to get out of paying, just want the most painless way of going about it and I don't want to pay lawyers thousands either.

 In the gigantic package, there is a form that gives me the options and one is to accept the debt and make payment arrangements - thinking of going with this and hoping I can make some payment arrangements for the remaining total after my taxes are filed. Argh!!! What a freakin' nightmare.

Should have never gone to University...



Replies:
Posted By: FreedomFighter
Date Posted: 05/May/2011 at 6:01pm
Wow, not much happening on this board... but if anyone out there is interested I have recently found out a ton of information, talked to lawyers and have an idea of how to move ahead. This one loan, like most of us, is only a small part of a larger student loan which is now broken up into at least 4 different places for me. It's completely unmanageable and it's ridiculous that we're being put in this position!!!

A big FYI to those struggling and feeling overwhelmed - YOU ARE NOT POWERLESS!!!!!  There are a lot of options out there, regardless of what the collection agencies are telling you and no matter what stage your loans are at.


Posted By: fifteen year hell
Date Posted: 13/June/2011 at 10:10am
I would certainly like to hear what you learned. With the stress that this debt caused me and their inflexibility for payments, I had a heart attack out of the mess at the age of 38. 


Posted By: morena53
Date Posted: 14/June/2011 at 2:35am
I just got sued too.. what options do we have now? I'm thinking of hiring a lawyer?


Posted By: SolveStudentDebt
Date Posted: 14/June/2011 at 4:40am
More - you don't need to hire a lawyer if you don't want to. THat would be costly. If you want this solved at a low cost I will help you. The government of Canada is on the hunt for money and they only way to do that effectively is to do what they are sdoing to you. You will read in other posts I have put up that that government is suing borrowers more frequently now. They are hungry, and CRA is a for-profit Crown corporation. They care about money - not truth.
 
I can mediate this to a solution for you. I specialize in this as well.
 
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.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: lola36
Date Posted: 21/July/2011 at 7:40am
The problem is the government wants there money and will do anything to get it.   They can put you in jail for not paying a deliquent debt.  Then once your time is served they will still make you pay the restitution on the debt owed.   I would take this matter very seriously.  If your family can help pay a portion it will go in your favour in court.  If I were you I would try to negotiate a settlement with the Attorney General's office.   If you can't afford a lawyer they always have someone on duty counsel in the courthouse.  They may be able to represent you and your case.  You may also qualify for legal aid.  Once a debt has gone into the Attorney's General office you need to get legal representation right away.   


Posted By: SolveStudentDebt
Date Posted: 22/July/2011 at 3:16am
They cannot put you in jail for not paying a student loan. LOL Negotiating a settlement (reduction of the debt) with the AG's office would be a futile effort. The crown does not "just" settle. You have to give them a reason to, and even then it is extremely difficult. Legal aid does not handle these types of cases either.
 
 
 


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: Jona
Date Posted: 04/August/2011 at 4:23pm
I certainly sympathize with your situation! My health has been permanently damaged from the stress. I would also like to know what the previous person found out as well.


Posted By: calgary
Date Posted: 03/October/2011 at 3:13pm
Hi Freedom Fighter - I am in the same situation and feel like I have no options.
 
It sounds like you found some solutions and I would appreciate any suggestions you could offer. I'm not really finding many answers on here & I don't know where else to look. I feel sick about this & would sincerely be so thankful for any tips you could offer. If you'd like, I can also give you my email ..
 
Thank you!!!!!


Posted By: SolveStudentDebt
Date Posted: 03/October/2011 at 3:53pm
You call up CRA Legal Services or Justice Canada Collections & Litigation Services and ask them to accept your payment arrangements. They may ask you to fill out and return a signed financial declaration to determine what you shoudl pay based ont heir standards. Be honest with them and they will help you if you really can't pay what the requirements are. If you lie to them and they catch you then they will call you out and do things you won't want them to do.
 
If you want to kniow what your payment requirements will be, please desc ribe what your yearly income is, and what the amount is that you areing sued for, the province and city you reside in, marital status, and number of dependants. I will tell you. If you are experienceing hardship, describe it for me and I will make an assessment for you and tell you how to approach it.


-------------
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: chipsotoole
Date Posted: 07/December/2011 at 1:44am
You can be put in JAIL for not paying a debt? What century are you writing from and how did you get internet service there? Don't just write whatever is on your mind, make sure it has some truth to it - or are you a collector trying to put the scare on people here?


Posted By: administrator
Date Posted: 07/December/2011 at 5:20am
Re-read the forum. It says you CAN NOT be put in jail.



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Administrator

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Mark O'Meara



Posted By: lola36
Date Posted: 07/December/2011 at 7:46am

My first response was to the question being asked.  If a creditor takes you to court in regards to your outstanding debt and they make a judgement against you in a legal sense.  You will need a lawyer to represent you in court if you are being sued by the Attorney General.  If you made the agreement and failed to make the payments they then could send you to jail for contempt in court.  That is what I should have stated on the first response.   Creditors by law can take legal action if you have an outstanding debt on a loan.  That is why I suggest you make an arrangement to pay back the student debts if you owe on them and contact a lawyer for your legal rights in this matter.   I am not a collector or creditor but have had dealings in this type of situation and suggest you take action now.   If you can only afford a couple hundred a month then make arrangements to pay it back.  They will take your income tax, garnishee your wages and everything.  This will affect your life more than you know.  This isn't something to scare youbut it has happened to several people.  If you make a deal with a collection agency for pennies on the dollar of the student loan you will save yourself a lot of hassles in the future.   In court if you can prove you cannot afford the debt due to harsh circumstances that can also go in your favour depending on the judge.  I can't say because I have never had that problem.  I have always made my deals directly with the collection agency or the government institute to avoid problems like this.  If you borrow money from someone the right thing to do is to pay them back. 

 
   


Posted By: FreedomFighter
Date Posted: 06/March/2012 at 6:35pm
Hey everyone - sorry I didn't come back and update, I HATE when people do that!!! :)

I talked to a couple of lawyers and they were super helpful in that they really set my mind at ease. The first thing the one lawyer said (as I was freaking out on the phone), was calm down! He said 'people get served papers and panic, don't panic...'

He suggested I take all of the information about all my student loans and go to court with this. He said the judge will want to make payments reasonable for me and the fact that the loans are ALLLL over the place and I'm not able to control them or pay EVERYONE back, will factor in on the case.   I emphasized that I DO want to pay them back, I would love to end this nightmare that CIBC started for me in 1999!!!!  He was all for me going to court about this.

I then met with the rep for the Attorney General and a moderator/judge or whoever he was at the law courts.  The Feds actually set out a suprisingly low minimal payment, much less than the minimum payment stated in my monthly statements.  So when I realized I could pay it, I figured that I'd get the feds paid off first, then worry about the rest later.  I was paying a couple of collection agencies, and upon getting the lawyers advice, I ceased all payments and told them I wanted a complete financial history breakdown and when I got that, I would arrange payments. I've yet to receive anything. oh, I still get the nasty phone calls, but I'm also recording them(everyone should do this!!!) and they don't intimidate me in the least. I know they have very little power and they can drag my ass to court for all I care.  In fact I will not pay them anything until they do take me to court.  I will have countless records of their harassing phone calls at work and at home, recordings of their numerous threats and verbal abuse, etc. I'd LOVE to play those in court!!!!

Oh and I asked the lawyer I talked to right then if i could hire him, he was so awesome. He just laughed and said "you can't afford me!"

So - my advice - don't panic! Do your research, talk to people, connect with them and share your stories!  I even browsed CanLii for weeks looking at old student loan cases and that was helpful.


Posted By: FreedomFighter
Date Posted: 06/March/2012 at 6:38pm
Originally posted by morena53 morena53 wrote:

I just got sued too.. what options do we have now? I'm thinking of hiring a lawyer?


If you can afford it, GO FOR IT!!! I almost did the same and would do it in the future in a heartbeat if I had to.  The peace of mind you get turning it over to a professional is worth it!


Posted By: FreedomFighter
Date Posted: 06/March/2012 at 6:46pm
Originally posted by calgary calgary wrote:

Hi Freedom Fighter - I am in the same situation and feel like I have no options.
 
It sounds like you found some solutions and I would appreciate any suggestions you could offer. I'm not really finding many answers on here & I don't know where else to look. I feel sick about this & would sincerely be so thankful for any tips you could offer. If you'd like, I can also give you my email ..
 
Thank you!!!!!


I hear you, there are many others like us out there stressed out and feeling like there are no options. My financial situation is so screwed up right now, I have no hope of straightening it out anytime soon. I've really just learned to live with the crap credit rating I have and adapt. It sucks, but I'm also in a way better mental state since I got sued!!LOL  Hope that gives some of you  hope!! :)

For now, I'm not going to let those f*cking student loans define me. I feel ok about it because I'm paying off what I can. And if some asswipe from ARC wants to make my life hell or ruin my day with verbal abuse, well, they can try. But it isn't going to work. 13yrs of abuse from them has certainly given me thick skin!!

If you want to share more of your situation with me, feel free.  Or any questions... let me know.


Posted By: FreedomFighter
Date Posted: 06/March/2012 at 6:49pm
Originally posted by Johnny Johnny wrote:

You call up CRA Legal Services or Justice Canada Collections & Litigation Services and ask them to accept your payment arrangements. They may ask you to fill out and return a signed financial declaration to determine what you shoudl pay based ont heir standards. Be honest with them and they will help you if you really can't pay what the requirements are. If you lie to them and they catch you then they will call you out and do things you won't want them to do.
 
If you want to kniow what your payment requirements will be, please desc ribe what your yearly income is, and what the amount is that you areing sued for, the province and city you reside in, marital status, and number of dependants. I will tell you. If you are experienceing hardship, describe it for me and I will make an assessment for you and tell you how to approach it.


CRA didn't ask anything about my finances or filling out financial forms. I just had a straight across "this is the minimum payment we want" and that was it.  No financial discussions before or after.


Posted By: FreedomFighter
Date Posted: 06/March/2012 at 6:55pm
Hell yeah, you can pass it around to anyone it might help!!!


Posted By: SolveStudentDebt
Date Posted: 07/March/2012 at 2:58am
Hey Freedom - That's awesome. Thumbs Up
 
The reason no financial or payroll informnation was required is because you agreed to their minimum payment requirements. As long as borrowers agree to ther terms then they do not require any further paperwork and accept the arrangement. However, other cases are bnot as cut and dry as yours unfortunately.
 
The way CRA Legal services determines minimum payment is all bqased on the size of your debt. They require student loans to be paid out within 5-7 years in some cases. In cases whereas loans are quite large they agree to longer-term amortizations of up to 10 years.
 
Going to court is a good experience for some poeple. For others though it is not. Each case is different. I would guess you owed less than $12,000.00 and the set a repayment term of 5-6 years.
 
 


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: FreedomFighter
Date Posted: 10/March/2012 at 4:02pm
Nope, I owe more than that.  And they had a "minimum payment" but I was able to negotiate it lower during the meeting.  They still did not ask for any financial info.


Posted By: SolveStudentDebt
Date Posted: 11/March/2012 at 8:41am
Perhaps you can provice the name of the law firm, paralegal at that firm, and volunteer that information so everyone can benefit from it. THis way everyone gets treated equally, like the CSLP laws require.


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: SolveStudentDebt
Date Posted: 11/March/2012 at 8:44am
I connect with justice Canada and CLAS almost daily. Perhaps you and I can put something together for the community who this situation applies to. ` That way when the system doesn't work for people like it did for you, there is an outpost fro them to resort to.


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: Nora
Date Posted: 30/April/2012 at 11:14am
Hello,
I received a letter saying my wages are going to be garnished, I need to respond within days. They also added a fee of $850.00 called " bill of costs"

It inlcudes,
Pleadings, drafting, issuing.... $500
Under it says
The limit of recovery in all cases when the matter is uncontested is 50% of this amount.

What does that mean?



Posted By: SolveStudentDebt
Date Posted: 30/April/2012 at 11:31am

It represents a portion of their costs which is passed on to the defendant.



-------------
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: champwithin
Date Posted: 24/April/2013 at 5:17pm
John....

The lawyer that the c-i-b-c sent my student loan to filed a suit to sue me. I went to a legal clinic to find out how to file a defense. They told me to admitt to owing the principal, but deny owing the interest . so this is how I wrote up my defense, got it noterized and sent it in.

2 weeks later The lawyer called me ...screaming through the phone...I guess he didn't like me defending myself...anyway, its been 3yrs ago now since i filed my defense and nothing further has come. So i don't know if it still could come up for trial, or what

The loans are from 1998, I read on here that you said if you admit to owing anything then they can still take action against you. So i would assume they still can since thats what i said in my defense.

C-R-A does take all my income tax returns,g-s-t,/h-s-t credits etc....they were not garnishing my wages at least up intill i was laid off a year and hald ago. while I was on E-I they didn't take anything off that ...but i m wondering if maybe when i do get workng again if they might.

is there any advice you can give me ?




Posted By: SolveStudentDebt
Date Posted: 26/April/2013 at 1:07pm
You should check the court where the claim was filed and ask what the latest action or event was. Chances are they just left it there to dry out. CIBC's third-party legal agentd are known for that nonsense here in the East Coast.
When was the last time you made a payment or issued a signed letter or document to them prior to the action being taken? Who is the attorney representing CIBC or the collection agency that recommended the action be taken?
If the debt is statute barred and you filed your defense improperly then that may likely reset the clock on limitations. Filing a defense is easy to do and if you suspect there is a limitation issue in place then filing a defense in that manner may cause problems in the sense of making the argument.
KRMC is a law firm they use in Toronto who profess themselves to be creditor's rights lawyers who are vicious towardd student loan borrowers and anyone CIBC puts on their hi tlist.  I have seen them do some pretty shady things over the years.
 
If you have a debt owed tot he Crown, namely student loans, they will take any income tax rebate you are entitled to IF the loan is in default, and CRA assigned to collect it. Same goes for provincial guaranteed or direct loans. They have a federal set-off gateway that alows them to wet their beaks with your rebate money.


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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: ZOTAM
Date Posted: 11/January/2014 at 4:11am
Hi Johnny!

You seem to be very knowledgeable I will be sure to check out your website.  Could you please provide your opinion on my situation?

I live in the US, for the past 5 years.  I was on interest relief because my hubby and I were unemployed.  I am an artist and have been living below the Ontario/Manitoba mandated poverty line due to infrequent work.  I owe appox $20, 000 to Canada Student loans I took out in 1999.  CRA has been calling me as  my debt has been transferred from NLSCC to CRA last year 2013.  My husband got a job in 2012, that year my interest relief was denied, even though my individual income continued to be below the poverty line.   My 2011 tax return indicated to me that there is a garnishee on my any credits/refund that I may be entitled to from both Federal and Provincial tax returns for the last year I lived in Canada 2010.

My question is this:   A credit counselor told me the worst thing I could to was be put on any payment plan.  She advised me to file banckrupcy, or offer CRA a consumer proposal so I could , and pay an affordable lump sum.   But can they sue me if I never return to Canada?

b) If I win an monetary award for my work from the Canada Council for the Arts - can they seize this money from my bank account?  The award is for 5000.  


Posted By: erinm1980
Date Posted: 26/January/2015 at 3:22pm

Hi Johnny.

I really need your help! I got a letter delivered to me at work today saying I was being sued. The last page of the document said I have 20 days to make arrangements! I've never paid on my SL and I've been out of school since 2005. What should I do?



Posted By: SolveStudentDebt
Date Posted: 27/January/2015 at 4:25am

Hi Zotam. Our new web site is coming out shortly. The old one is still good though.


Erin, if they are suing you then you have to address it. Otherwise it will escalate out of control. I can help you in many ways but I need to know your circumstances in greater length here to determine strategy and plan it's action to make this a productive solution for you. There are fees for justice intervention and mediation work I do. You would fall in this category given the nature of your problem. If you want a consultation and quote I'd be happy to talk with you and open a file. If interested you can go to http://www.cfwgroup.ca" rel="nofollow - www.cfwgroup.ca and fill in a request for consultation by phone using the "contact us" page. Or, call us here at 902-861-1210. Leave your contact info in the voice mail message.

 





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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: SolveStudentDebt
Date Posted: 28/January/2015 at 5:33am

Hi Erinm1980, I am in discussions with Justice Canada this afternoon for you. Check in with me tomorrow afternoon. 



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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com


Posted By: trzaman
Date Posted: 29/August/2017 at 6:36am
Hey Freedom,

I just got served papers from Superior Court Justice for my remaining student loans even though I just paid a large amount of over $4000 a couple of months ago.

I just had a couple of questions and i'm hoping you can help:

1. Did you contact the lawyer that served you these papers? If so, what did you call to inquire about?
2. Can I call CRA directly to arrange payment with them, overstepping the lawyer that served me?
3. Did you have to submit a defense and an Affidavit of Service?

Thanks I would really appreciate your guidance as your situation sounds very similar to my own.

Take care and hope to hear from you soon.

Thanks,
T


Posted By: Sasha s
Date Posted: 04/November/2017 at 5:04pm
Hello,

I recently received a letter telling me to contact federal student loans office or they will serve me with legal papers or garnish my accounts. I just want to know what happened with your situation. Did you settle? Did you get a warning letter before you were served? also, did they serve you at home, in person?

Any advice would be greatly appreciated!


Posted By: DEBTOFDESPAIR
Date Posted: 28/November/2017 at 11:11am
Same thing just happened to me. Waiting on Freedom/Johnny's reply as well... Not sure what the first step is. 

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Sarah


Posted By: SolveStudentDebt
Date Posted: 29/November/2017 at 3:41am
If you are looking for professional assistance from CFW Group Inc concerning student loan problems or crisis, please visit: 

  http://www.cfwgroup.ca/assessment-cfw-group" rel="nofollow - http://www.cfwgroup.ca/assessment-cfw-group . 

Here, you will receive analysis, advice, and a best approach. It is the best DIY solution for people.  



-------------
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com



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