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What can I do?? CRA is threatening to garnish

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Jentastic View Drop Down
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Joined: 08/September/2019
Location: New Brunswick
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    Posted: 21/September/2019 at 7:13pm
Hi! I have “ceased to be a full time student” as of 31 December 2009. I received interest relief for the next few years and essentially did not make any payments. I’m 2012 CRA contacted me demanding payments because I was in default. I was receiving EI at the time on maternity leave with a brand new baby. I can’t recall the actual amount but I can tell you it was more than I could afford. In Novemeber 2013 I missed payments and did not make a payment since. Unfortunately in 2014 I was insolvent and completed it in 2014. My Canada student loan and New Brunswick student loan were included. I had not heard anything about the loan until last week CRA called demanding payments of a minimum of $1500/month for the unforseeable future to cover the interest of the loans. They wouldn’t discuss anything except when I was going to pay. I did not acknowledge the debt, I asked questions about why they were contacting me and why it was still alive to. no avail. They have given me 30 days to contact them and make payment arrangements. In December, it will be 10 years since my period of study end date. My CRA tax account has not mentioned student loan from 2015 until now. In an effort to find out why this suddenly reappeared I checked my credit report. The Canada student loan is reported as paid and the status is OK according to TransUnion. My paper work from the insolvency has the Canada student loan included in my liabilities. Prior to now I believed all was said and done.
When the student loan privacy breach occurred my information was included in the class action law suit. This was settled in July 2019. CRA says this “default recovery action was initiated July 2019 which is NO coincidence. My participation in the class action should have been protected. Ironic that the class action was a breach and my situation now appears to be a breach of my privacy as well. However that aside, I am not keen on a subsequent bankruptcy and a consumer proposal will likely cost me thousands per month for the next five years. I am aware this is my debt but my pattern of life under the belief student loan was no longer an issue would literally make me unable to feed my family.
When I filed in 2014, I wasn’t aware I could petition the court to consider undue hardship which I likely would have pursued.
New Brunswick and federal statutes would apply if it hadn’t been for the insolvency. Turns out the limitation period restarted in 2015 which only makes it 4 years today.
What can I do to clean up this mess? Do I have any alternatives short of losing my shirt?? I am considering getting the analysis but I’d like to know if there is hope prior to spending the money (if consumer proposal or bankruptcy is the only way to eliminate the debt either way..)
Sorry for the not so short synopsis but I thought background might help figure out my next steps
Thank you for any help/insight you can provide to help inform my next steps
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edwards View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote edwards Quote  Post ReplyReply Direct Link To This Post Posted: 27/September/2019 at 2:55am
Just curious, how you discharged your student loan in 2014? In was neither enough old to be discharged (7 years old) and you neither applied to court under hardship provision rule (5 years old).
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macaronicaesar View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote macaronicaesar Quote  Post ReplyReply Direct Link To This Post Posted: 08/October/2019 at 9:11pm
Contact solvestudentdebt.
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