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lisat1607
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Joined: 24/June/2009
Location: Brampton
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Topic: Help... Received Small Claims. Posted: 27/January/2010 at 7:22am |
Time is running out on me to file my defense in small claims court. My end study date was 2002, I filed a consumer proposal in 2006 and have a full certificate for that. My loans are 14K plus 6K Interest. heard about the "hardship application" but not sure where to get help with this. I have until Thursday to file my small claims defense (ARC Collections/Scotia Bank). I need help or advise on this issue. Can anyone help me?
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Iknowalotofstuff
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Joined: 29/September/2008
Location: Chatham, ON
Points: 155
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Posted: 27/January/2010 at 1:20pm |
Since you have been out of school for 5 years and you have a certificate of full performance, you are eligible to make the application. You would be successful if you could demonstrate that you have acted in good faith and experience current and ongoing financial difficulty with respect to your liabilities under the loans. This application can be made at any time after you have been out of school for 5 years and have successfully completed your proposal.
Ask the administrator of this site to send me an email to contact you directly and I can help you through the process. In the alternative, you may be able to do the application yourself if the Toronto bankruptcy Court has some self help material.
As for tomorrow, you owe the money. Admit liability for all or the part of the student loan and dispute the rest. Propose a payment amount and when the payment will start. Do not make the proposed payment larger than you can handle in tough times and give a starting date. This option is on the defence form in SCC. There will be no judgment signed until you are in default of the negotiated terms.
ARC will have 20 days to ask for a hearing if they do not like the proposed payment. This should give you sufficient time to see if you qualify for relief under s. 178 1.1 (hardship application) of the BIA
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 27/January/2010 at 2:41pm |
HArdhsip applications apply to government loans and not the privates, such as the one you are describing. ARC sure is suing a lot of people. They are a very aggressive and competitive agency.
What is the reason for filing an action, other than the fact that you owe this? Have they (ARC) refused a payment arrangement? Are they claiming that you are refusing to pay?
Johnny
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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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lisat1607
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Joined: 24/June/2009
Location: Brampton
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Posted: 28/January/2010 at 1:34am |
Hello Johnny;
My loans were Canada & Federal Student loans consolidated through Scotia Bank. The government is currently withholding tax refunds etc. They (ARC) are saying I refused to make payments...even though I repeatedly contacted them to try to make payment arrangements and THEY (ARC) refused!! ARC wanted full payment immediately, started shouting at me over the phone and calling me at work 2 - 3 times in one day!! left messages on wrong extensions....even after I told them I was on part time duties during maternity leave. Anyway...In 2008 The collection agency I was dealing with was Creditors Interchange..at least I could communicate with them and I made arrangements and paid $50 - $100 each pay. Now after having the baby... I am bearly coping financially so I heard about "financial hardship..after my proposal and think I will be going that route.
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lisat1607
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Posted: 28/January/2010 at 1:51am |
Your response is soooooo helpful!! You really do know a lot of stuff. I contacted the trustee that administered my proposal and they said the same thing you said...they referred me to a lawyer who takes care of these things. She asked me a bunch of questions and thinks I have a shot, especially with a family of 4, net mthly income $4200, I have proof of some payments (very minimal), BA (majored in Psychology), now in sales.
Oh..when I said Thursday...I meant next Thursday 4th Feb. By the way...this lawyer wants to charge me $1000 for preparing court application, serving the documents on the interested parties, filing the application at court and appearing on my behalf. The only problem is I have to come up with $500 for retainer..but by the time I can get that money my small claims defense deadline would have passed. Not sure what to do here? So... If I Propose a payment amount in my defense...will that trump or affect my hardship application? or does a successful "hardship application" trump a small claims judgement?
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Iknowalotofstuff
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Joined: 29/September/2008
Location: Chatham, ON
Points: 155
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Posted: 28/January/2010 at 6:59am |
lisat1607: If you contact me directly through the site administrator, I will get you the necessary information to do this process yourself. I will tell you where and how to serve the documents and what needs to be included. I will help you with all of the paperwork etc. I will only charge you our fee which is less than half of what the lawyer is charging if you are successful.
You have nothing to lose and everything to gain by doing this process yourself.
You may be asking yourself why do it for nothing. I guess I have something to prove to the people reading this site. If you are successful in your application and tell the people on this site that our service has value and is worth the fee, it speaks well of the service I offer.
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lisat1607
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Joined: 24/June/2009
Location: Brampton
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Posted: 22/February/2010 at 8:16am |
SUCCESS!!! Financial Hardship application worked!! I had my day in court last week. The Registrar signed my order...now I go to small claims settlement in April to shove it in ARC's face!!! Thanks for the info. WHOOHOOOOO!!!
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Syne
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Joined: 19/February/2009
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Posted: 23/February/2010 at 3:06pm |
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Awesome news! Keep us updated!! :)
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fiona1985
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Joined: 07/August/2011
Location: USA
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Posted: 31/August/2011 at 11:26pm |
lisat1607 wrote:
SUCCESS!!! Financial Hardship application worked!! I had my day in court last week. The Registrar signed my order...now I go to small claims settlement in April to shove it in ARC's face!!! Thanks for the info. WHOOHOOOOO!!! |
My congratulations, though so late. How were you able to get the applic?
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