Describe your Debt Load! - Understanding a defaulted loan.

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Understanding a defaulted loan.

Printed From: CanadaStudentDebt.ca
Category: Other Topics
Forum Name: Describe your Debt Load!
Forum Description: Post stories of your debt and how it affects you and your family
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=1406
Printed Date: 27/March/2026 at 3:46am
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Topic: Understanding a defaulted loan.

Posted By: escapist
Subject: Understanding a defaulted loan.
Date Posted: 10/August/2004 at 5:36am

Hi There,

My loan has been in default since mid 2000. I have been living in Europe since it defaulted. For a myriad of reasons I have not paid anything on my loan since it defaulted.

I am wondering what happens to a defaulted loan. Does it never go away - unless you claim bankrupcy? I was told long ago if you live abroad for more than 5 years your loan gets written off but after reading some messages posted on this site I realise that was probably a myth. What really happens?

Wondering how I should handle this situation especially since I might return to Canada in the next year or two.

Any insight into this is much appreciated.

the escapist

Replies:

Posted By: eshelton
Date Posted: 04/November/2004 at 5:40pm

Have you touched this loan in any way since 2000? If you are looking to return in 2006, the loan is uncollectable (unless you acknowledge it). After 6 years, this information will disappear off your credit report. So I'd hold out for at least 2 years before returning. Don't ever acknowledge it, or you reset the clock.

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"A proof is a proof. What kind of a proof? It's a proof. A proof is a proof. And when you have a good proof, it's because it's proven." - Jean Chretien