| Author |
 Topic Search  Topic Options
|
pantulr 
Newbie
Joined: 05/February/2010
Location: Windsor
Points: 9
|
 Post Options
 Thanks(0)
 Quote  Reply
 Topic: Filing Banruptcy this year or next
Posted: 05/February/2010 at 12:33am |
|
I have substantial debt. Part of the debt is OSAP which is about $60,000. My student loans are going to be 6 years old in April 2010. I have other debts that add up to $ 170,000, which can be cleared in bankruptcy. I was planning to file bankruptcy this year but was told that my OSAP can not be included in the banruptcy due to the 7 year rule. My questions are:
1- If I file bankruptcy this year and get discharged by next year. What are the chances of being able to add the OSAP to this bankruptcy?
2- The CRA is withholding my tax refund for this year and I worked out a payment plan with them but I am not sure how much longer I can keep all my other creditors at bay before they start taking wage garnishment. I would rather wait until next year and file bankruptcy but I am not sure if that is possible. My income is only 20,000 a year. Can other creditors ask for wage garnishments with my income being this low?
Thanks.
|
 |
|
Sponsored Links
|
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/February/2010 at 4:50pm |
Q1: You an apply to have your student loans included in your bankruptcy once you are discharged as you would be out of school for 5 years and provided you meet the good faith financial hardship criteria. The chances depend on your circumstances.
Q2: yes you can be sued and your wages garnished? 20% of net pay
I see you are in Windsor. I am from Chatham. Ask the webmaster to send me an email to contact you directly and I can provide more detail.
|
|
pantulr
Newbie
Joined: 05/February/2010
Location: Windsor
Points: 9
|
Post Options
Thanks(0)
Quote Reply
Posted: 06/February/2010 at 2:08am |
|
Thanks for the reply. I am not sure how to send an email to webmaster. I also have a question regarding the end of study date. I received OSAP while I was in school for my undergrad, which I finished in April 2000. I went back to school for something else in 2003 and came out in April 2004 but at this time did not apply or receive any OSAP funding but I did inform the government that I was in school full time. I used line of credit from bank to pay for my tuition and expenses for that period. When I asked the government about the end of study date, I was tld that it was April 2004. Is that correct? Should it not be April 2000 since that is until I received OSAP funding? Thanks.
|
|
administrator
Admin Group
Joined: 25/January/2003
Points: 1798
|
Post Options
Thanks(0)
Quote Reply
Posted: 06/February/2010 at 5:40am |
|
|
|
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 06/February/2010 at 10:13am |
|
According to case law, non-government funded schooling does not effect the end of study date unless it is an uninterrupted continuation of the student loan funded education. If non-government student loans are subject to discharge then they cannot affect the end of study date.
|
|
pantulr
Newbie
Joined: 05/February/2010
Location: Windsor
Points: 9
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 3:33am |
|
I am still confused about the end of study date. I finished my undergrad in April 2000, received a Bsc. degree. I went to medical school abroad in 2003 but left in 2004 without finishing it. During this period I received student line of credit from banks but I informed OSAP of my studies and was placed on interest free status by them. I did not receive any OSAP loans since 2000. SO, if I declare bankruptcy now can my OSAP loans be included? I was told by the government that my end of study date was April 2004 not April 2000. When I consult with trustees they tell me if the govenment tells me the end of study date is 2004 then they will not be able to include the OSAP loans in the bankruptcy. I hope someone can help me with this situation. Thanks.
|
|
administrator
Admin Group
Joined: 25/January/2003
Points: 1798
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 5:44am |
You might want to get a more knoweldgeabe trustee. The government will tell you that its 2004 cause they want their money. I believe there are court cases that state otherwise, but the government will not tell you this. Sounds like the trustee is being lazy and not doing the proper research on your student loans and is not willing to go to bat for you on this issue.
|
|
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 6:20am |
I would need a little more detail. However, your end of study date could be the end of the interest free period provided by your student loan creditors while you were in school abroad. The schooling abroad fund by non-government student loans itself has nothing to do with the end of study date. The BSc was one educational period funded by loans. The med school abroad was a second educational period funded by personal lines of credit. The forbearance of payment may have extended your study end date. Is 2004 the end of the interest free period?
Call your student loan creditors and ask what your study end date is? Ask them specifically how they arrived at that date? See what they say. Post what you find out. I suspect the end of study date they are giving you is the end of the interest free period.
A trustee just as anyone else can read. The Act states that the end of study date is the last day of the last month that you attended as a full or part time student as interpreted by the student loan legislation. The Courts have interpreted this section over the years. Some trustees are unfamiliar not lazy with respect to student loans.
The question is not whether your student loan is part of your bankruptcy, It is and always will be. The question is whether the student loan will be subject to discharge if you make an assignment or a proposal now.
If you made an assignment today and your study end date was 2004, your student loans would not be subject to discharge. When you were discharged in 9 or 21 months, you could make an application to the court for an order rendering them subject to discharge under s. 178 1.1
|
|
pantulr
Newbie
Joined: 05/February/2010
Location: Windsor
Points: 9
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 10:36am |
|
Yes, April 2004 is the end of interest free period. I will call student loan creditor to find out the end of study date and post it here. If they are using interest free period as the end of study date is there anything I can do? What is the courts interpretation of this? Do courts also take interest free period as the end of study date? Thanks.
|
|
pantulr
Newbie
Joined: 05/February/2010
Location: Windsor
Points: 9
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 10:49am |
|
I forgot to mention that I also received interest relief until August 2009. Does that also affect the end of study period? Thanks.
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 12:24pm |
|
I do not believe the IR you received will affect your end of study date. Only the forbearance while you continued schooling abroad.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 12:42pm |
|
No.
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 07/February/2010 at 12:46pm |
Before I comment on this post, please contact your student loan creditor, ask the end of study date and ask them to provide you with something in writing explaining why your end of study date is not the last day of the last month of attendance as a full or part time student funded by student loans.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 08/February/2010 at 2:06am |
The study end date is the date you completed or withdrew. The 6-month gracre period after exit does not count in the study period.
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 08/February/2010 at 4:55am |
Johnny: I know it is your position that bankruptcy is wrong and that other alternatives may be better. I do not argue that point. Anything that prevents an unnecessary bankruptcy is good. It may be that since you are against it it you are not familiar with bankruptcy, its provisions. and the resulting case law. To make a blanket statement that the end of study date is the date you "completed or withdrew" based on the literal reading of one line in the act is doing a disservice to "pantlur" and any other visitors to this site. The end of study date is not defined as the sum of the words as defined by a dictionary. The end of study date is defined by the BIA and the case law interpretations of the applicable act or enactment. I will reprint the Act to make my answer clear. S. 178 Debts not released by an order of discharge 178.1(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred (i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or (ii) within seven years after the date on which the bankrupt ceased to be a full- or part-time student; or (h) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (g). Court may order non-application of subsection (1) (1.1) At any time after five years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that (a) the bankrupt has acted in good faith in connection with the bankrupt’s liabilities under the debt; and (b) the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the debt.
I have reprinted the exact reading of the BIA. The csse law (copies available if necessary) state that the end of study date referred to under the 7 year rule and the 5 year hardship rule are based not on the actual date you withdrew or completed education but the date determined b definition in the applicable Act or enactment.
The regulations of the applicable act or enactment (Canada Student Loan Act , Canada Student Financial Assistance Act or the Act or the enactment of any Province) suggest that the end of study date may be extended for the last day of attendance to the last day of the last month of actual attendance OR the end of the term or semester OR the end of any forbearance period to allow for the completion of education b waiving a period of repayment.
This is not my interpretation but that of the Court of competent jurisdiction.
You are correct in stating that the 6 month grace period does not affect the study end date.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 08/February/2010 at 7:23am |
Stuff,
The position I take on bankruptcy is right one. It is meant to be the last option. There is something new in the arena and that is The CFW Group Inc. People can access information and services that will prevent them from having to go bankrupt or even have to worry about filing a section 178 in the future.
"It may be that since you are against it it you are not familiar with bankruptcy, its provisions. and the resulting case law. To make a blanket statement that the end of study date is the date you "completed or withdrew" based on the literal reading of one line in the act is doing a disservice to "pantlur" and any other visitors to this site"
The study end date is the last day of the month you ceased to be a student. You are being critical of my error. what I had meant to say was that the study end date should simply be recorded as the day of cessation (graduation or withdrawal). From what I am told this is not the case. I have written this somewhere else. That is that.
So tell me Mr. Bankruptcy, are you an attorney? I would like to know this.
Johnny
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
pantulr
Newbie
Joined: 05/February/2010
Location: Windsor
Points: 9
|
Post Options
Thanks(0)
Quote Reply
Posted: 09/February/2010 at 9:52am |
|
Suppose I wait until May 1, 2011 to file for bankruptcy so that I can include my OSAP loans, and I attend school in September 2011 will my OSAP survive? Will they oppose discharge on the basis of me attending school resetting the clock at zero again? This is so complicated. Thanks.
|
|
Iknowalotofstuff
Groupie
Joined: 29/September/2008
Location: Chatham, ON
Points: 155
|
Post Options
Thanks(0)
Quote Reply
Posted: 09/February/2010 at 11:57am |
|
The important date with respect to the 7 year period is the end of study date. If you can confirm exactly what that date is add 7 years and 1 day and file, the debts would be subject to discharge. Returning to school after you have gone bankrupt paid from your own resources, does not restart the clock.
|
|
administrator
Admin Group
Joined: 25/January/2003
Points: 1798
|
Post Options
Thanks(0)
Quote Reply
Posted: 09/February/2010 at 1:59pm |
I have heard that they use the 'end of the month' of the end of school... i.e if you finished all your studies April 20, they use May 1st. Can you confirm this?
|
|
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024
|
|
ineedtheanser
Newbie
Joined: 09/February/2010
Points: 2
|
Post Options
Thanks(0)
Quote Reply
Posted: 09/February/2010 at 2:18pm |
|
You are absolutely correct. If the last day of study as a full or part time student funded by student loans falls between the 1st day of the month and the last day of the month, the end of study date is last day of the month. This is based on the definition found within the legislation. S. 178 of the BIA states that a student must cease full or part time studies for seven years under the applicable act or enactment.
|
|
Filing Banruptcy this year or next