default/stats barred

Okay, slowly gathering all the pieces of the puzzle, but still a few missing.

1.  despite the fact that legally, bankruptcys do not include student loans- if you do declare you loan automatically defaults?

2.  is it just in the States where defaulting on s.l. is changing to 270 days versus the 90 it is now?

3.  If I make a payment every three months (assuming it isn't the 270 days) do I keep my loan out of default?

4.  If I successfully ignore it for 6 years it becomes stats barred.  At that point will I be able to start rebuilding my credit rating?  Does the time frame only prevent C.A.'s from pursuing you?  Are you perpetually renewing the default no matter how long it is - every month you don't pay?

5.  It is a Canada student loan.  What is the likelyhood of them taking me to court?  What is the likelyhood of them garnishing my wages - if it will cause undue hardship?  (single parent paying child support, no CTB, working on call..................)

Any answers to my puzzle would be greatly appreciated

Thanks

you can make payments on your student loan while you are bankrupt, otherwise you will default and have to deal with a CA.  if you are already in finacnial trouble i would strongly suggest seeking the advice of a professional.  credit counsellors are fine but you should bite the bullet, spend some cash and seek the help of johnny.  with your student loans he is the best person to deal with, most credit counsellors dont have a clue about SL's.

i would guess that unless you can make your payment equal to the total that you are in arrears ( ie 3 months worth) you would default regardless of making a payment every three months.  i would advise you to try making regular monthly payments regardless.

trying to outwait the statues is unrealistic and dangerous and if i may say so a little immature on your part.  this shows you have no desire to honour your obligation to repay your loan.  this site does not offer advice on how to skip a debt.  its not a good idea to try and duck your obligations.  think of your student loan as an obligation, just like child support.  you wouldnt duck paying that for months at a time, would you ?

if you are deliberately trying to evade them they will take you to court, regardless of where you live.  and depending on what you owe yes they will garnish your wages if you are uncooperative with the CA the CA will turn your file back to the feds and they will probably sue you, guarnishee your wages, sieze your income tax etc.. 

...............and

am I even allowed to make payments on my student loan (for the nine months) if I go bankrupt?  I was told I was not allowed to favour one creditor over another.

You said,

"am I even allowed to make payments on my student loan (for the nine months) if I go bankrupt?  I was told I was not allowed to favour one creditor over another."

Truth be told, the experts put you in a position to pick favorites by picking and choosing who you can and cannot include in bankruptcy. You can pay anyone you want ant any time..

I dont believe anyone was intentionaly coming down on you, csd.ca is a site that was intended to assist people in in rehabilating and repairing damaged credit caused by corruption in the system.

when some new members have joined as of lately it seems the underlying reason has not been for advice to repair, but rather to avoid. It is really unfortunate that all new posters are being painted by the same brush.

I think if you hang around, keep asking questions, read past posts/threads you find all the answers you are looking for.

As for Johnny, he is always going 100 miles an hour, im sure he will contact you soon!

Troy

Thanks for correcting me, Mom and Cargo...I had no idea that you could continue to try to keep student loans in good standing despite bankruptcy.

Whi-CHA! And a wet noodle whooping for me!

Poly

Hi, thanks everyone - I guess I am a little touchy - this is causing me a lot of sleepless nights!

1.  I have exhausted all interest relief and my loan payment cannot be negotiated any lower $344/m.  I have used up all my interest only months as well.

2.  I do not qualify for debt reduction as my income is $2000 over the $30,000 mark.  My work income last year was 25,000 (gross) and EI brings in $7000.

3.  I do not pay child support per see, rather I give up my half to my ex.

4.  I work on call, and can (usually) safely count on bringing home $1800.

5.  Monthly expenses - debt servicing, bills and rent come to $2400.  $1200 goes to debt.  No room for wriggling.

6.  I pay my groceries, gas and student loan with my credit card.

Yup, I feel like I am between 2 rocks and a hard place.  Of course Christmas doesn't make it any easier.  I still don't have enough money to go bankrupt if I still have to pay my student loan, AND the $150 per month for bankuptcy fees.  Honestly at this point I don't care about my credit rating cause I don't know how I am EVER going to be in a position to do anything which requires credit anyway!  Saying that however, I do see my obligations and have been raised to meet them.  The thought of bankruptcy makes me sick, but so does this tunnel without an end in sight.

Teacher...

Just so you know...you sound much like I did a couple of years ago...

It isn't hopeless...It will get better!

Johnny can help!

Poly

nago

nothing is totally hopeless.  there are always things to try, appeals to make, letters to write.  i'd be happy to help in any way, i've been told i have a rather effective writing style.  i'm also a good listener, and an objective ear and someone to talk to may help.

if you're interested i can email you privately and we can start there.

Johnnyl88,

Here is a posting from Johnny who is well versed in this area:

Here is an old posting that I wrote pertaining to the way collection agencies are supposed to treat CSL accounts and clients.

 Things are pretty much the same for agencies conducting CSLP collections. The only differences are that they are required to "more respectful", and have VERY STRICT rules, and directives to follow. These directives are issued from the CSLP. Do they follow these directives in most part? well, after reading what is going on in here (canadastudentdebt.ca), I would think NOT.

Agencies are TERRIFIED of complaints, but they handle them with a grain of salt. In many cases, complaints are resolved without incident, and other times they are "bone crushing". CSL collectors operate daily in the hopes that they don't get caught doing or saying something that will jeopardize their employment, or the agency's standings with the CSLP.

3rd Party PCA collectors are required to have a copy of the directives near them at all times to refer to. The problem is that these directives do not allow the collector to "push the buttons" that they feel will secure a payout. So, they tend "bend the rules".

1) They cannot threaten legal action unless all of the criteria to justify this activity is met.

2)They cannot disclose, nor discuss you indebtedness with ANYONE OTHER THAN YOURSELF, UNLESS AUTHORIZED SO IN WRITING BY YOU.

3)They are NOT ALLOWED to treat any CSL client disrespectfully, or in any manner that constitutes harrassment and intimidation.

4) They cannot demand that the full balance of your CSL be paid unless you offer to do so.

5)They cannot call you at your place of employment if you instruct them not to.

5)They cannot refer you for "juctice" unless the required "checklist" has been explored.

a)must be gainfully employed
b) the csl has flatly refused to repay, and file the mandated financial statements
c)all reasoble efforts to reach a payment arrangement have been explored.
d)All the neccessary collection letters sent prior to referral. (1st,2nd,3rd, and final)
e)If not payment has been made within a 6 month period
f)If the "stats barred" legislation will not be in place within 12 months of the justice referral.
g)One last phone call to try to arrange repayment, and to verbally inform that the account "MAY" be reffered for justice.

... These are just a few of these directives.

 Johnny

Hope that helps!

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