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 LockedWorking in the U.S. Can CRA garnish my wages/sue
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miss00 View Drop Down
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    Posted: 04/March/2013 at 7:13am
Hi all

I had a Canada and Alberta Student Loan to complete my undergrad and masters degree in Canada and the US.  Since then I have been living and working in the U.S.  Times are tough since Im supporting my mother and ill father and Im unable to make my student loan payments. I actually have not made a single payment since my repayment period began and I have been ignoring phone calls and letters from HRSDC. I owe around $52K.  I have not acknowledged my loan in writing since 2011. I am no longer considered a resident of Canada and have no income there.

The CRA recently sent my workplace (in Florida) a proof of employment form to fill out and send back.  I told them not to do it for know until I figure out what its for.  A month or so later, they called my employer asking that they send back that form.  A few questions I hope someone is able to answer as I cant find much information online for those living in the US.
 
1. Is my FL employer legally required to submit my proof of employment to the CRA? Why are they asking for it? Is it legal that they contact my employer like this?

2. Can I be sued while in the U.S?

3. Can the CRA work with the American IRS to garnish my U.S wages or income tax return somehow?


I appreciate any information you can provide. Thank you!! Smile
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emerald View Drop Down
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Points: 30 		Post Options Post Options   Thanks (0) Thanks(0)   Quote emerald Quote  Post ReplyReply Direct Link To This Post Posted: 04/March/2013 at 12:40pm
Originally posted by miss00 miss00 wrote:

Hi all

I had a Canada and Alberta Student Loan to complete my undergrad and masters degree in Canada and the US.  Since then I have been living and working in the U.S.  Times are tough since Im supporting my mother and ill father and Im unable to make my student loan payments. I actually have not made a single payment since my repayment period began and I have been ignoring phone calls and letters from HRSDC. I owe around $52K.  I have not acknowledged my loan in writing since 2011. I am no longer considered a resident of Canada and have no income there.

The CRA recently sent my workplace (in Florida) a proof of employment form to fill out and send back.  I told them not to do it for know until I figure out what its for.  A month or so later, they called my employer asking that they send back that form.  A few questions I hope someone is able to answer as I cant find much information online for those living in the US.
 
1. Is my FL employer legally required to submit my proof of employment to the CRA? Why are they asking for it? Is it legal that they contact my employer like this?

2. Can I be sued while in the U.S?

3. Can the CRA work with the American IRS to garnish my U.S wages or income tax return somehow?


I appreciate any information you can provide. Thank you!! Smile


Yes to number 1 if they have a judgement against you.
2. Absolutely you can be sued.
3. Yes they can.  They suck!
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mcjupto View Drop Down
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They will probobly come after  you.  I would assume with that much education you can look up the appropriate information and call the appropriate departments and ask yourself.

Basically if you cant pay your loans you have three options:

Bankruptcy - (7 years after last day of school basically)

Hardship - prove in court how hard you have it, and prove how little money you make and how little money you will make in the future ( might be hard with so much education) and ask to have them forgiven.

Consumer Proposal - Make them an offer they cant refuse.

Those are if you want them to go away.  If you don't want to pay them and have them stay alive forever but not be actionable/collectable just don't contact the federal/provincial governments in writing acknowledging your loans for 6 years.  After that Alberta/Canada student loans become stats barred=not collectable or actionable from a legal standpoint.

If you have Ontario student loans like me your screwed because they live forever and are not bound by stats barred legislation.  Ontario and Nova Scotia only two provinces that can collect their debt until the end of time.
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miss00 View Drop Down
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Points: 10 		Post Options Post Options   Thanks (0) Thanks(0)   Quote miss00 Quote  Post ReplyReply Direct Link To This Post Posted: 05/March/2013 at 5:48pm
Thanks for the detailed response, much appreciated!  Basically I dont want to call the CRA or anyone to ask for fear it might draw attention to my case Confused

Regarding the stats barred option..if I were to just stay hush and not respond to HRSDC collection calls or acknowledge my loan for 6 years, what can they do in the meantime?  Can they garnish my wages here?  Serve me? Harass my employer?  Also how do I know if there is a judgement against me? Do they notify me via mail?
Sorry for all the questions. Im just trying to learn as much as I can. 

Im aware of the bad credit I will have in Canada but I never intend to live there anymore. I hate that I am having to do this. I always thought I would end up with a high paying job and pay back my loans quick but that is not the case.  That really sucks about the Ontario legislation :(
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Points: 52 		Post Options Post Options   Thanks (0) Thanks(0)   Quote mcjupto Quote  Post ReplyReply Direct Link To This Post Posted: 06/March/2013 at 1:30pm
Hrdc has the power to do anything.   They can even garnish your pension.  If you put down your familys phone numbers on loan applications they will try and use those as contacts and harass your family.  THey will try to find you, and where you work to garnish your wages.  Im not too sure about judgements. 
The try to make your life a living nightmare. 

I dont think they can sue you if they cant track you down, but im not sure...Your employer may not like that your dodging the Canadian government and see that as a character flaw aswell.

If you cant pay them and want to deal with the bad credit, declare bankruptcy or do a consumer proposal.  At least then they are dealt with.
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SolveStudentDebt View Drop Down
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 07/March/2013 at 12:23am
It is more like CRA has thepower to do anything. Lex Luger with Superman's powers, pretty much. For sa student loan issue though it is not in their mandate to seize pension benefits.
 
If they can't find you they can still proceed.
 
Bankruptcy is not the answer if a person is not bankrupt though.
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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miss00 View Drop Down
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Points: 10 		Post Options Post Options   Thanks (0) Thanks(0)   Quote miss00 Quote  Post ReplyReply Direct Link To This Post Posted: 11/March/2013 at 4:16pm
Thanks Johnny.  Do you agree with the previous poster that the CRA can legally garnish my US wages  or tax refund? How would that work? I would assume that they would need to go through the IRS first but why would the IRS care to send their money another country?

FYI HRSDC does have my home address as well as my work address..They did mail my work that proof of employment form for them to fill out.  Please help me understand why they ask for this form. Is it realistic that I will be served at my home or work in florida?
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 11/March/2013 at 8:26pm
No, not your tax refund. THe only way a wage attachment would occur is if a judgment was taken in the US and then acted on there.  
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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miss00 View Drop Down
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Points: 10 		Post Options Post Options   Thanks (0) Thanks(0)   Quote miss00 Quote  Post ReplyReply Direct Link To This Post Posted: 18/March/2013 at 2:42am
Thanks Johnny

Is there some type of warning letter that I will receive prior to a judgement?  Is it common for judgments to be taken to the US, have you seen this happen? 

Thanks again for your time
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