This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities have been forced to cancel programs and layoff hundreds if not thousands of full-time and contract instructors.

Again, the Liberal government has messed up the education environment.


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Forum LockedCRA opposed my discharge!!!

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coconutprincess View Drop Down
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    Posted: 03/September/2013 at 9:27am
I claimed bankruptcy in 2011 (my second bankruptcy) to finally be able to include the student loan in my bankruptcy (I couldn't do it in the first bankruptcy) and after speaking with a trustee, it seemed better to file again rather than try to include it in my first bankruptcy.

I owe close to $30,000. I always kept in contact with CRA over the years (student loan is 18 years old) and attempted to pay as much as I could, but the last 5 years or so I would just inform them that I was unable to pay and would send them financial info to show this. After I received notification that Canada Revenue Agency was going to take me to court, I decided to file for bankruptcy immediately.

About 6 months into my bankruptcy, I received notification that Canada Revenue Agency had opposed my discharge. I am finished my bankruptcy on Nov 29-13 and will have to go to court after that at some point.

Has anyone ever had this happen to them and what was the outcome? Why would they take me to court when I clearly am unable to pay? Would the court order me to pay more to them and something outrageous like $550 a month (which is what they wanted from me the last few years)?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 03/September/2013 at 10:11am
I just mentioned the Crown's option to motion an opposition of discharge. It is a common.
 
What people are not aware of is that simply filing a stament of inability to pay to CRA and filing general issue financial information forms doesn't really do anything. If you asre in hardship then you have to poke through this barbaric system and present a demonstration of hardship ith extenuating circumstances to either have it removed temporarily - or permanantly, depending on the scope and cicrumstances underlying hardship. The system (CRA and HRSDC) make it VERY difficult for borrowers by discouraging them though a preliminary assessment, which is done verbally by a CRA collection rep. These representatives are collectors who have no experience or eeucation in economics, human/consumer behavior, or analysis. They just "tell you" for the most part - "sorry, won't qualify".
 
In my opinion, CRA commenced or threatened to commence an action (and carry forward with it) for the purpose of protecting their own best interest, that being the prevention of a limitation issue from happening. I work with these cases by the hords every month. It is fascinating to see the money and lengths the government will go to make a statement or a point.  The scariest part is that this is the tax payer's money and not theirs yet they do not care or worry about anyone raising a fuss. It's the government and in Canada, Uncle Charlie and Stephen are impervious to a lot of things really.
 
The outcome of whatever requirement to pay is will depend on your financial posture and overal situation. If you area homeowner then you can expect them to place a lien on any property in your name - or that you are married into, in such a case. If you are working then they will seek either a payment arrangement that they deem fit - or attach wages if they are not satisfied.
 
These are the nuts and bolts of cases as you are describing and I know them very well because there so many clients of ours that are within this particular scope of intervention and mediation.
 
If you want me to do an assessment and analysis you can book one for tomorrow, or any day there is space available.  If you want to subcribe online, make sure you identify yourself from here at http://www.cfwgroup.ca/contact-us.html. Or, call 866-239-7889 and leave a detailed message and contact information, and best time to reach you.
 
Best,
 
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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