| Author |
 Topic Search  Topic Options
|
UniRegret 
Newbie
Joined: 25/January/2013
Location: Ontario
Points: 2
|
 Post Options
 Thanks(0)
 Quote  Reply
 Topic: Do forced tax payments recognize the loan
Posted: 01/February/2013 at 8:21am |
|
Question: I have the government taking my tax returns and also 1/2 of any ei payments if I went on EI (For the rest of my life I believe). In terms of recognizing the loans when they collect on one of these does that count as the loan being recognized regarding stats barred loans?
Background: I haven't been on ei for 4 years (and was only on then for 1 month). I also have owed on my last 2 years taxes. I have never made a payment to my Ontario portion of my student loan and the last payment on my federal was 6 years ago. I used up all of my interest relief as well.
I actually worked in Financial Aid for a College and was trainined and approved to administer loans (go figure). In Ontario they used to have a program called debt reduction, The Liberal government got rid of all debt reduction programs about 2 months before I could apply so I just gave up. The new program is they take 20 - 50% of your GROSS income. I make $11/hr before taxes so you do the math.
I have been out of school 8 years now. I finished with 63K student debt, 32 of which was on a line of credit with the bank. My father is a cosigner on the line of credit and I have paid 20K of it off and working on that first. I could have made payments to OSAP at times but could only afford the interest only payments, even during these times the interest only payments would have been tough and essentially would just be burning $160.00/month. I did get a letter threatenning to take me to court. I have since just packed up my car and left to Nova Scotia an they no longer have my contact information.
I have toyed with bankruptcy, and looked into it but I didn't think I would be still in a minimum wage job for the 9 months to avoid the 21 months of payments (job market in NS is horrible and I have been on a temp contract for 4 months now). I am popping anti depresents like there is no tomorrow and wishing someone smacked me in the head and told me not to do post secondary or it would have ruined my life.
Uggghh.
|
 |
|
Sponsored Links
|
|
|
Buff
Groupie
Joined: 15/July/2005
Points: 150
|
Post Options
Thanks(0)
Quote Reply
Posted: 01/February/2013 at 5:16pm |
I guess I lucked out on the EI front. I was on it twice, adding up to more than a year, while in collections. It was never touched, nor did I get any threats of that nature. I don't think having them take your tax returns counts as recognizing your loans. You're not offering them money, the government is just taking it.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 02/February/2013 at 8:46pm |
|
No, it doesn't. Anything voluntary on your part in regards to payment or written instrument.
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
maggie67
Newbie
Joined: 27/October/2011
Points: 9
|
Post Options
Thanks(0)
Quote Reply
Posted: 04/February/2013 at 6:49am |
|
What about if you have been discharged from bankruptcy and the trustee sends a notice of payment (as there were tax refund dollars collected by the trustee) out to your creditors. Does this act "reset" the clock even though I didn't know this would happen? This payment notification was sent out 9 months after discharge.
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/February/2013 at 2:54pm |
Any admission of liability by your trustee in bankruptcy does reset the limitation clock to 6 years renewed. (d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. This can be found in Bill C 28, section 16.1 item 4(d)
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
SolveStudentDebt
Moderator Group
Joined: 05/November/2003
Location: Canada
Points: 5996
|
Post Options
Thanks(0)
Quote Reply
Posted: 05/February/2013 at 2:55pm |
| Acknowledg ment of liability | (3) If a borrower's liability for money owing under a student loan is acknowledged in accordance with subsection (4), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period. | | | Types of acknowledgm ents | (4) An acknowledgment of liability means | | | (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative; | | | (b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay; | | | (c) a part payment by the borrower or his or her agent or other representative of any money owing; or | | | (d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. |
|
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
|
|
Do forced tax payments recognize the loan