I have a question about my situation and would appreciate any feedback that you can give me.

I graduated in 1998 and owed approx. $20,000 in student loans.  I was paying approx. $250/month until August 1999 at which time my impoverished former-student state afforded me the experience of personal bankruptcy.  I was aware at the time that I was NOT declaring my student loans, but was also told that there would be a sort of 'grace period' of nine months (until Discharge) where I would not be required to make payments to them.

During that time I moved home to be with my parents.  When my 'grace period' was up I waited for some indication of how to make a payment - after one month I started to make calls trying to find out what became of my loans. 

I spent three months on hold with various government agencies only to have them tell me that they had no idea where they were -

Approx. one year later I got a letter from a CA - Scotiabank had given them my federal file.  They said 'when you declare bankruptcy your loan goes into default and so Scotia sent it to collections.'  I said - no...my Trustee told me that I didn't have to pay anything for the period of Bankruptcy...anyway - had a little battle, but Scotia reclaimed my loan out of collections and I began making payments to them according to my original terms on a balance of $11000 plus interest.

Then - I had to wait for my provincial loan to find me.  It did in 2002 - wanted payment in full, blah, blah.  I told them I couldn't but would they accept payments and had a good relationship with them making $150 payments per month.  This balance was approx. $9000 + interest.

Last year at tax time I got a letter from HRDC saying they were going to seize my return because I had a SL in collections.  I didn't think twice about it because my OSL was in collections...NEVER OCCURRED TO ME that there was some other loan with my name on it floating around out there.

Now, 2005 - six years after bankruptcy - finally getting there.  In Aug. 04 my husband and I worked our butts off to pay off all my SL's so that I could stay home with our son.  We've made a lot of sacrifices and live paycheck to paycheck.  We don't have enough money to fix our truck - my husband is working two jobs - but our son has his mommy 24-7. 

Then, three weeks ago I get a letter about my taxes again - I figure it's a mistake - call 4 numbers and finally end up with CBCL - Hey - you owe us $5050 and we need it within 24 hours, deposited into our bank account at (transit # and account #).  We can't accept payments and by the way, your original balance was $3000 - $2000 is in interest because you haven't paid in six years.

So, now, here I am.  My CA has called me several times and at one point told me to borrow money from all sorts of places.  She threatened an 'investigation' and 'litigation.'  The government will sue you for this.  I made the mistake of saying 'the government is going to take me to court for $3000 principle?'  She told me that the gov.'s litigation costs would be added to my loan amount.  She also told me that they can put a lein on my husband's house as it is our matrimonial home even though my name's not on the deed (bad credit - remember).

I've told her that me trying to get a loan is not likely but she is putting pressure on me to get my husband to pay it.  But we are so broke.  We might be able to muster enough credit to pay it...but the interest rate will be disgusting.  Besides, we need that credit in case something goes wrong (our furnace dies, etc.). 

So here are my questions:

1.  Can they attach any of this to my husband?

2.  I told her that we might be able to get the money together by June if we both take extra work and she told me that was unacceptable.  Is that unacceptable?  I offered good faith amounts of $100/month until then.

3.  She has refused any payment schedule other than $1000/month and only after I pay off the interest.  Am I able to negotiate for better?

4.  Why did it take 6 years for them to find me?  I would have paid, but I had no idea I owed.  Whose responsibility is it to inform the debtor of debt? 

I thank you all for any information you can give me.  I'm sick over this and worried about how I'm going to pay for groceries and my bills.

wanttobedone (me too)...

1) They can not attach any of this to your husband....unless his name is on the loans which by what you described I doubt it.

2) It's unacceptable only because they always want higher amounts to make more money from it...send in your "good faith" payments...they can not refuse immediate payment.

3)That is straight forward collector script...whatever you pay will go to the interest first until it is paid off unfortuneatly  *sad face*

4) Bottom line is it is our responsibility....somehow we are treated like we are suppossed to be mind readers and know where the loans are!

You may want to contact the specialist in this area of student loan and collections--Johnny CFW group--if things feel too overwhelmed and see if it is feasible for you to have him clear things up for you.

His contact info. is on the home page of this site....good luck!!

Thank you so much for your quick reply.  It's so nice to hear from someone who isn't judging me with that 'how did you not know you owed' approach.

The strangest thing is that when we paid everything off last year I had my credit history checked - just to be sure I was getting everything - and it showed nothing about this.

Here's another question:  Can they force me to go back to work?

Please don't think I'm lazy - it's just that we live in an isolated community and I had to travel 100kms each way to my job.  There's also not many good childcare options here.  I have a small business at home but just can't bear to go back to my commute and leave my child with someone I don't trust.

You won't get any judgements from us on here....

No, they can not force you to go back to work....I don't think you are lazy at all...your concerns regarding child care are valid....I wouldn't just leave mine with anybody either!!!

About the credit check stuff...I really can't answer those questions but there are others on here who can!! I know it is wise to check with the two credit reporting agencies for Canada though...TransUnion and Equifax....some people report differences when viewing each of these reports!!

 Kwelmm,

 You got it goin' on! That is what it is all about.

 Wanttobedone,

 What Kwelmm has told you is VERY important in items 1-4.

 No one can force you to do anything. ONLY if you let them. They can try to install all sorts of fear into your mind and the problem withthis is discerning what is real and what is purely fiction. Not everything a bad collector says is fiction in every case. if there is an avenue of execution, and they have that pathway in front of them, they will walk it.

 If you are self-employed, there are risks, but it would depend on your financial situation, your debt(s), and their positioning.

 If you feel that you cannot deal with it, or are fearful of any events, contact me if you wish and I will protect you from hte things you fear most. Piece of cake.

 Thank you

thank you thank you thank you kwelmm and johnny!

so very, very much!

I may contact you shortly Johnny.

AND THANK YOU FOR THIS SITE - READING THAT OTHER PEOPLE ARE GOING THROUGH ALL THIS IS LIKE THERAPY!