I have a situation and I am desperatley seeking any advice I can get.Stumbling onto this site has helped me realize I am not alone-and maybe someone out there can give some insight in to what i shold do.

-declared bankrupcy in July98

-discharged in April99

After all this time my trustee who led me to believe that my sl may be covered under bankrupcy. CBCL has informed me that I owe 13000.00 in Canada Stusdent Loans and is payable now in full or my credit is ruined again!!!!Apparently I was never contacted because my trustee nor HRDC bothered until now.  If anyone has any advice on what i should do I would be so happy.  Thjankyou

What type of student loan do you have? If you received it through the federal and provincial government, you can't file for bankruptcy for ten years. Your trustee should know this. Very weird...

Reese,

I Used to work for Both CIBC and the new NSLSC (post 2001) and actually know a decent amount about the loan process and defaulting in particular.

There are 2 main types of Loans that lent out from the Banks, Garenteed and non-garenteed loans. A guarenteed loan is basically backed by the gov't ( either prov or fed depending on the loan type). THis means if you default on the loan, the bank could send it back to the gov't and they will pay the bank for you loan. The Gov't will then send you to an internall collection agency and eventually go after your tax return.  A non guareented loan will not be refunded by the gov't and usually gets sold to a collection agency. CBCL is one of the major players in these types of loans.

CBCL usually buy deliquint loans from the banks for 40-50 cents on the dollar, but they get to keep any payments and any intrest they tack on untill the loan is paid-off.

If CBCL bought you loan prior to you banckrupcy, they may never let it go untill they collect it all. Since you declared bankrupcy prior to 99 (rules changed) and they are a creditor, they should not have the right to collect this loan or ding your credit rating for it. However, they prey on peoples fears, they know 9 out of 10 people will pay them to go away.

Their only intrest is in recieving money from you, They will make all sort of  promisses, they claim they will fix you credit, or return you loan to the bank once you're up to date. This rarely ever happens since to return the loan, the bank would have to buy it back from them, and no bank will buy a loan that's been in default unless they abosolutley need to.

Your best bet, and this is the most under used tactic with Student loans, is to contact your Local MP. Your MP is one of the few people who could make your loan return to the bank from CBCL. It may take a few calls on your part to the MP's office, but once they contact the bank, the issue moves quick. Once the loan has been return to your bank. You should then speak with a bank rep to see if the loan should of been cleared with your bankruptcy.

As a side note (I.e. don't mention this to the MP or the bank until it's amost over). For the bank to request the loan back from the "Hard-core" collection agency, the essetially have to admit that an error on their part was made. once they've admited this, will will have no recourse but to fix this issue on your credit rating if you request it.

Hope some of this Help.

*sorry for the spelling mistakes, I'm french

 Exlinx,

 The banks do not "sell" student loans at time of default. Some agencies do purchase accounts from the banks, however, they are rather aged. This is why the banks entertain bids to purchase old receivables. The rate that they pay is a lot less than 40-50 cents onthe dollar. More like 10-25, depending on the condition of them, and the size of the bulk. CBCL is not a major player inthe purchase receivable of student loans.

 People go to their MP's all of the time. It is certianly something to consider. Bear in mind that many have done this without resolve. It (the student loan administration) is a system of government that is determined to do what it feels works for them.