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I have posted my whole story under "Tell Student Loan Burden" but realized I might need to ask questions under here. So this is a shorter version (to the point) with Questions.
I owe Student Loans of $27,000 approx. $16,000 to Feds and $11,000 to Provincials.
I never finished my degree because went bankrupt in 2001 and then was declined student loans (even though I asked and was told by trustee and student loan branch that I could still go).
I was discharged in 2003 and have been trying to pay whatever I can from $200 a month (for all 4 loans) down to currently $50 a month (for all 4 loans). My income taxes are taken every year from Feds.
I make consistently under $20,000 per year. The crazy thing is the year I only made $10,000 they took the most money $1700 from me.
Questions
1. Is Bill C-55 passed; it has been 5 years since I went bankrupt? Can I apply for hardship and have the student loans discharged?
2. Do I need to go bankrupt again in order to get rid of the loans. I cannot see paying the $810.00 (3%) per month minimum payment ever. I do not make enough money to pay them a reasonable amount it would take me 50 years to pay it off; I am 42, I do not see how I can pay the loan off (unless I win the lottery or somehow become rich and famous?)
3. Where do I find information on "Good Faith" I am in default, of course, but have tried to pay; does not paying the $25.00 every single month mean it is not good faith? Sometimes I have only paid $5 or $10 (to the feds, I reason they are taking taxes) depending on my bills.
4. Are they allowed to take my income tax like that considering I am below the poverty line? What is the poverty line?
5. What constitutes hardship? What does it take to prove hardship?
6. Where does a person find a guideline for 'reasonable expenses'
I am one of the lucky ones and I do not have to deal with collection agents; I deal straight with both Social development and B.C. Revenue. I give them my financial reports and offer as much as I think I can during the month, but sometimes my bills are behind and I take turns paying bills - in order to send them money??
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There must be a way out of this student loan mess!!!
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