Bankruptcy and Proposal Info and Issues

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Can someone help me?

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Forum Name: Bankruptcy and Proposal Info and Issues
Forum Description: Get your questions answered about bankruptcy and proposals
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=1335
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Topic: Can someone help me?

Posted By: JoelTD
Subject: Can someone help me?
Date Posted: 21/July/2004 at 9:43am

I went to Toronto School of Business twice the first time graduating in 95 then went back and graduated in 96, now my CSL defaulted and I have 2 creditor companies after me for the money, my provincial loan was moslty forgiven and I have paid it off allready.

The 2 companies are:

Fist there's Total Credit Recovery (Collection Agencies for the HRDC) which I owe less than $6000. For the next 2 months I have sent them $50, and from Sept till Dec of this year I have sent them $55 a month.

The second is Collectcorp (Collection Agencies for the CIBC Bank), I am having a really hard time to deal with them. They are always trying to have me ask a family member or a friend for the money I owe them, I will not do that, I owe them around $8500. For the next 2 months I have also sent them $50, and from Sept till Dec of this year I have sent them $75 a month.

So in total I owe almost $1500, which is alot to me, a single person with a bad job in a call centre as a telephone survey interviewr, that I whish I could quit. When I am lucky and working FT during days I make aroud $1000 a month, but on average I have made $400 every 2 week for the last 10 pay periods.

The problem I think I have at this time is that I went back to school for a web page desing course which only lasted about 10 to 15 weeks in 2001 which was paid in cash through welfare.

Would that have reset the clock on the 10 year rule, meaning I would have to wait till 2011 or 2006 if they change it to 5 years before I can get my loan discharged when filling for bankruptcy?

What can I do? Do I have any other options? I am willing to listen to anything at this time. Any advice would be apreciated.

Joel

Replies:

Posted By: masy
Date Posted: 22/July/2004 at 9:48am

I think the 10 year rule applies to the time you got a loan to go to school, so your recent course shouldn't affect that if it was paid in cash.

Posted By: JoelTD
Date Posted: 21/August/2004 at 2:27pm

I have posted this message a month ago, I only have 1 reply and no real advice or anything that can help me.

I want to know if there's something I can do, or will I have to keep paying the Collection Agencies till I have paid them off, which at this rate will take a long time.

Please I need help.

Posted By: SolveStudentDebt
Date Posted: 21/August/2004 at 3:41pm

Joel,

Read this - and pay attention to anything you see highlighted in red. This answers your question(s).

You have returned to studies so the 10 year rule would apply after the date you ceased to become a full or part-time student regardless of how you paid for the education.

DEBTS NOT RELEASED BY ORDER OF DISCHARGE Section 178 (1) An order of discharge does not release the bankrupt from
	a)	any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;
	a.1	any award of damage by a court in civil proceedings in respect of (i) bodily harm intentionally inflicted, or sexual assault, or (ii) wrongful death resulting therefrom;
	b)	any debt or liability for alimony;
	c)	any debt or liability under a support, maintenance or affiliation order or under an agreement for maintenance and support of a spouse or child living apart from the bankrupt;
	d)	any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity;
	e)	any debt or liability for obtaining property by false pretenses or fraudulent misrepresentation;
	f)	liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim, or
	g)	any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred (i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or (ii) within ten years after the date on which the bankrupt ceased to be a full- or part-time student; or
	h)	any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (g).
	(1.1) At any time after ten years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that
	a)	the bankrupt has acted in good faith in connection with the bankrupt's liabilities under the loan; and
	b)	the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the liabilities under the loan.
	(2)	Subject to subsection (1), an order of discharge releases the bankrupt from all claims provable in bankruptcy.

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: JoelTD
Date Posted: 22/August/2004 at 8:17am

Johnny

Thanks for the quick reply and answering my question about the 10-year rule, even though I am not happy that I will have to wait till 2011 or 2006 if they change the rule to get my load discharged on a bankruptcy.

I would like to know is there anything I can do to pay it off faster, at the rate I am going it will take a long time. Without the interest it would still take me about 5 years to pay it off.

Thanks again for your quick reply.

Posted By: SolveStudentDebt
Date Posted: 23/August/2004 at 7:45pm

I would have to know your financial detail and situation, as well as assess your ability to manage in order to help you there. This would take some time,of course.

Posted By: danny
Date Posted: 26/August/2004 at 12:22pm

dont forget you probably wont get your student loans disharged from bankruptcy

given the political climate, student loans initiatives to foster paying them(ie. ir, debt reduction)

thats leaves two choices pay or take off and go for stats barred

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Johnny save me!!!!!!!!!!!!!