Bankruptcy and Proposal Info and Issues - If you file for bankruptcy b4 10 years...

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If you file for bankruptcy b4 10 years...

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Forum Name: Bankruptcy and Proposal Info and Issues
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URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=3378
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Topic: If you file for bankruptcy b4 10 years...

Posted By: mark35TO
Subject: If you file for bankruptcy b4 10 years...
Date Posted: 09/March/2006 at 12:28pm

I want to get an answer to this question, hopefully somebody knows...

I found out that legally I didn't wait 10 years to file for bankruptcy (I left school in May/early June 1995, have a diploma dated June 15 1995, filed for bankruptcy on June 20, 2005 when I legally had to wait until July 1st according to OSAP), and still owe my C.S.L. I wasn't told by my trustee about this and I raised hell when I did find out that they screwed up.

Now I have to appeal to have the loan included, but when I demanded that the trustee firm pays for my legal costs, they said "but it would have gone to a hearing anyway because they would have opposed your discharge regardless of the filing date." Is this true and would it have cost less if they had signed the papers after the 10-year waiting period? The trustee is paying for my costs but they are laying a guilt trip on me....does anybody have experience with this crap?

Thanks.

Replies:

Posted By: Hunter2
Date Posted: 10/March/2006 at 2:56am

Mark
My understanding is that the feds will oppose any discharge even after ten years. That way they are recouping some of the money and sending the message that student loan debt is not disposable. If you check out http://www.canlii.org and look up student loan bankruptcy it will display the type of conditions on that you are typically set. In my opinion they are generally fair and include things like stopping interest, making payments income contingent, and setting an amount payable over a set period of time rather than "forever". I do not know how one goes about having a hardship hearing without claiming BK though. Perhaps John can help explain that.

However, do not let the trustee guilt you . They should know their job better than this. Before encouraging people to claim BK only to leave them hanging in the wind? If they knew the feds would oppose the discharge in the first place then why did they not tell you that??????. I mean really if you were aware would you have bothered? The feds would have opposed the discharge regardless of the date set and they should know that. Dunwoody is culpable in the advice they gave. It was incorrect on two counts. Both in terms of the date declared and the unconditional discharge.

You are owed this minimal help from them and in fact may very well set precedent for this type of proceeding. I actually think they are more responsible for the fact that they did not inform you that your student loans were not going to be discharged without a hearing.The date screw up is negligible because the feds would oppose discharge anyway. I think they are concentrating on that aspect to try to make you feel "guilty" like you somehow owe them when in actuality they owe you some help for allowing you to claim BK without doing their job properly and filling you in on the likely opposition to your discharge!
GRRRRRRRRRRR
Good Luck.

Posted By: mark35TO
Date Posted: 10/March/2006 at 11:41am

Great information in your statements and the website provided....Thanks.