Hello I was wondering if anyone could answer a question for me.. DUe to un forseen circumstances ( actually a terrible pregnancy) I missed payments on my student loan and as much as it was explained to them by both my self and other family members that i was on bedrest not working and could not  pay anything they would not listen or offer an alternative solution.. I have used all interest relief available to me.. so the other day i get a letter from A credit agency with a smaller amount listed on it and it says HRDC GUranteed.. What does this mean is part of my loan with this agency and the other with the bank still?  I really cant afford it and they want a sheet filled out with all my financial information.. and why is it split into 2 loans now.. someone please offer a suggestion.. on what i should do...   And another question.. has anyone ever tried a consumer proposal with student loans and does it work? The only loans i have ever had are student loans and it was the biggest mistake of my life...

thanks

 This means that the federal portion of your loan has been returned to the HRDC for subrogation (paid back per the guarantee). Once the student loan goes into default, the division process begins. The guaranteed portions go back to the guarantor - and the non-guaranteed portions remain with the originating lender ie bank risk portions.

 The financial data they require is tradition for federal and provincial guaranteed loans. It is a standard financial capacity and assessment form.

 People have gone bankrupt on student loans. It happens. A consumer proposal is bankruptcy none the less. If you choose to entertain a CP, then you will have 5 years to pay the debt, that's all. If you cannot pay the debt, then you will have to make arrangements with your lenders for repayment after the fact. Also, bear in mind the cost of a consumer proposal. You would have to consult with a bankruptcy trustee or adminstrator.  

 I think you should really consider which is your best option. Ask yourself the following questions;

 1) Is my financial situation ever going to change for the better?

 2) What are the long-term affects caused by bankruptcy?

 3) Is there anything I can do to avoid bankruptcy?

 4) what are my future financial objectives and goals - and will bankruptcy restrict my success?

 5) will bankruptcy solve my problem?

 I can help you but this is your decision to make. You have to consider costs. Bankruptcy will cost you a lot in fee - and hard costs down the road especially if it is the wrong decision. You have to weigh everything out.

johnny

what kind of options are there if you cant afford to file for bankruptcy ? 

 The main option right now is to become empowered through awareness. there is nothing that will happen to you legally due to what you have described. The truth about student loans is that they can be negotiable in due process. Healthy financial relationships are the key to success int his category of problem. Bankruptcy destroys relationships regardless of what you hear. If you develop a relationship- nurture it, and embrace it, it will owrk more so for you in due process.

 If it is a problem with colelcotrs calling you and pounding about you with threats.. this can be resolved without going to extremes. If you would like me to help you, feel free to consult.

And how would one go about consulting with you? Here is a question for you.. If i send the  financial form back to total credit recovery with post dated checks  and ask that they contact me in writing in regards to this do you think this would work i just cant handle the phone calls.. also with the part that is still with RBC if i contact them and also send them post dated checks for say $50 which would be all i could afford have u heard of them accepting something of this sort. I think i would really like to look into a consumer proposal.. However my worry is this.. Once you make the proposal for say about half the amount owed if it is accepted  once the 5 years is up is that IT they are gone or can they come after you again.... my provincial loan is with collectcorp and i had made an agreement and sent them post dated checks and havent heard from them since.. which is good.. I actually had an easy time dealing with them..  THe letter i received from HRDC asked me to call and when i did i got a machine however i am intimidated by them and really would rather just send in what i can afford do you think they would accept that?

sorry to babble  :) and thanks for your help

 There is a phone number at the bottom of my post.

 Many people have told - even wrote to the collection agencies requesting no more calls. In most cases it does not work. If collectors had to adherre to these types of instructions, they would never be able to pick up a phone and call people. if there is an authority behind the request or demand, than that is a different story.

 Johnny

 Yes, I am located in Halifax. I service individuals from all over the world though. Distance is not an issue if this is a concern.