Need Help! - Consumer Proposal and the Afternmath!

Hello, everyone,

I really need some advice. Sorry this is so long.

I finished a consumer proposal in the fall of 2011 - paid off $37,000 in 5 years! Ya for me, or so I thought...

I filed in September of 2006 and graduated in October 2006 with my Ph.D. Obviously 7 years had not passed, so my student loan debts were not included - approx. $55,000 worth.

This I understood, but at the time had consumer debt of about $27,000 that I was struggling to pay, with upcoming student loans of $55,000. And I was working at a relatively low paying job - relative to my debt load- making $33,000 a year.

My rationale for going with the proposal and the way that I understood it from my trustee was that,

a) I was having trouble paying my debt and was already ruing my credit,

b) did not currently have a higher paying job but could expect a higher paying job in the next 3-5 years,

c) a consumer proposal would allow me to address my consumer debt, and then once I was in a better position (3-5 years) be able to pay my student loan debt.

d) Although not part of the proposal, student loans received payments from the trustee (which now I don't understand)

Fast forward to today,
1. Completed proposal in Sept 2011.

2. What I've now realized is that even though they received payouts from the consumer proposal - my loan has been in default all along, and now that I am done the proposal, my debt is being sent to collection agencies.

2. In the last month received a call from NCO Financial Group - my OSL portion of my student was now in default (b/c of being on CP last 5 years) and had been sent to collections; owe them $14,000, now paying them $200/month

3. National Student Loan Centre - still haven't received notification that I have completed the proposal, have sent them a letter from the trustee allowing them to accept payment, now paying them $200 a month

4. CIBC Student Loan Centre - have sent my loan to collections with Metropolitan Adjusters. Received a call (I verified with CIBC that this had occurred)that I owe $21,000, with $11,000 past due.

***This is why I am feeling desperate***

I offered to pay Metropolitan $200 a month also, bring my debt payment per month to $600, I could up this potentially to $300 for them for a total of $700 being paid.

They have told me in no uncertain terms that they will not refuse my payment, but this will not do anything to address the issue of my past due balance.

In the last 3 days I have talked to family members and friends. I have spoken to 2 financial institutions so far, who will not lend me money, even with co-signer to address at least the overdue portion of the collection amount because I have a consumer proposal in my recent past. I have spoken to the Credit Counselling - their advice was to offer the $200, that I was unlikely to be able to secure any loan amounts even with a co-signer given the proposal, and that they are "unlikely" to sue.

I called back today and spoke to Metropolitan and told them that thus far I am unable to come up with the $11,000, or the $17,000 they said they would take to close the account completely. Again I offered them the $200/month.

She said, they would not "refuse" but again, they have the authorization to escalate my account to get payment. I don't know what this means. I know they are in the business of scaring people, but it seems like a legitimate threat, given the size of my debt and the fact that I know make $60,000 a year, I feel like the possibility of them taking me to court is very likely.

I will start making payments to them, first by April 30th. I just feel hopeless - i thought a proposal would help things but realize that unless they are released with a consumer proposal they actually do more harm than good.

I'm trying to do the right thing - I want to make payments, and I realize that initially all of these payments will go to interest. But I am acting in good faith. Any advice?

Does anyone know of lawyers or organizations that specialize with consumer proposals and students loans?

I'm realizing now from talking to various people - trustees, credit counselling, banks, collection agencies, that everyone seems to have a different understanding of what is correct when it comes to student loans, and I feel like I desperately need some help in navigating this. I don't know what is true and what is not. Even what I was told regarding my loans by my trustees was incorrect - i.e. my loan being on hold (i.e. it's not really on hold, it's just there, getting worse and worse)

Do I just pay them and sit tight - and wait to see what Metropolitan does?

Thanks so much!

Desperate

There are a couple of tricks the collection agency is using.  "Escalating the account' is a scare tactic.  They work on commission, so they are trying to get the maximum out of you so they can get their commission..

When they changed the bankruptcy laws to 10 years, they left in the rules that student loans are defaulted automatically if a proposal is filed, even though they were not longer included in bankruptcy or a proposal.  If you can afford the actual payments... pay off the interest and make 6 months payments you can try to rehabilitate your loans....

Hope you find some answers on this site..  Talk to Johnny... and read some of the links on collection agencies on the red menu at the top of this site....

Mark

Hey, I am going through the same situation right now. Please email me directly jeff.maxner@**** or post update! Thank you