Bankruptcy and Proposal Info and Issues - 10 year rule clarification

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10 year rule clarification

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Topic: 10 year rule clarification

Posted By: lostyouth
Subject: 10 year rule clarification
Date Posted: 27/February/2007 at 1:26pm

It's been a long time since I've been on this post. What exactly is the ten year rule I keep hearing about. I went through a consumer proposal in 1998, finished it in 2000, bought my first house (with a co-signer) in 2001. Now I work in electrical utility where I am going to be offered an apprenticship this year. I have not been bothered by collection agencies other than the customery hate mail by nordon. I have ignored it beacuse to my understanding my loan is stats barred, ( and with a wife and three kids no $ for the federalies). What happens when I go back to school for 2 weeks a year, does that affect the stats barred status?

Replies:

Posted By: hunter
Date Posted: 01/March/2007 at 5:22am

I believe it means that you are not able to have a student loan discharged through bankruptcy, until the loan is ten years old...
I think though, it changed to 6 with the recent changes to the bankruptcy act...not totally sure thou.

Posted By: administrator
Date Posted: 01/March/2007 at 10:57am

its still 10 years... although legislation was enacted to change it to 7 years, the act hasnt been enacted by parliament so its still 10 years.

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Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024

Posted By: Staretz
Date Posted: 17/March/2007 at 7:43pm

10 years after the end of the month of your last month in studies. Going back to school won't affect the stats barred status. It would probabgly reset the 10-year clock, however.

Posted By: movingon
Date Posted: 27/May/2007 at 3:45pm

The the most insipid part of the ten year rule is that if you return to school with in the ten year time span since getting student loans, your ten year clock starts ticking again. Where I work, I could apply to go take a course and have the company pay for it, but I don't dare because that would start my ten year clock all over again. This ten year rule was the cap of a series of unfortunate events that has ruined my life. Don't go back to school if it means the ten year clock starts again and you realize that you do have to declare banckruptcy. Education is simply not a good investment in Canada.

Posted By: SolveStudentDebt
Date Posted: 29/May/2007 at 2:32am

I have said it from the beginning. Once the turn of 1998 came about, the government closed all of the windows and nailed them shut. It was the easy way out back then and the government and banks took a huge losses. The ghosts of that past still haunt the govbernment and banks, and that is why there is such a negative outlook form their sector towards borrowers.

Johnny

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: susieq
Date Posted: 13/June/2007 at 12:25pm

I have recently underwent the bankruptcy process because of my student loans. My loan was 11 years old in May. I am 3 months into the bankruptcy and still receive the "hate mail" from the government telling me of the interest relief programs that exist for repayment etc. I have a meeting scheduled with my trustee this week. What I am wondering is if there is any way I can still be forced to pay this 11 year old debt, that will continue to haunt me until I die? I have done everything I can and believe me this was the last option, short of being homeless. Is there any relief for me?

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broke in nova scotia

Posted By: SolveStudentDebt
Date Posted: 13/June/2007 at 2:47pm

I don;t want to be the bearer of bad news. Ask your trustee.

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: susieq
Date Posted: 14/June/2007 at 8:18am

That response really worries me. I was under the understanding the ten year rule would apply to me. Believe me I am like everyone else here and absolutely did my best to pay the debt. This is a long and convoluted story and bankruptcy was my only option. I thought I was seeing light at the end of the tunnel but now I am not so sure. Have you heard of cases of CSL's that were as old as mine, filed for bankruptcy and then still hunting them down like a "bail bondsman"?

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broke in nova scotia

Posted By: SolveStudentDebt
Date Posted: 14/June/2007 at 12:05pm

This is why I told you to chat with your trustee and get him or her to sit you down and tell you ALL about student loans and bankruptcy proceedings. Any probmise of discharge should be in writing before you file.

Pratect yaself at all times. If you are going bankrupt for student debt and little to no consumption debt, you are in for some stormy seas at discharge time. The only way to make bankruptcy work for you is to make sure that it is the LAST option you have. Unfortunately, not many can do this.

Johnny

Posted By: susieq
Date Posted: 14/June/2007 at 2:41pm

I have been through a consumer proposal, with horrendous consequences. I was unaware that near the end of the proposal I was to make a 23,000 dollar lump sum payment. I continued to pay on the proposal for several months after this lump sum was not paid and was unaware it was due. Upon what I thought was dismissal I received a 47,000 bill which was the original amount of my proposal. Because this lump sum was never explained to me and I did not know about it the proposal was the null and void. CSL then came looking for the entire amount and the 25,000 I paid into the proposal was up in smoke. I was completley unable to make the 800 dollar a month payment CSL required therefore was forced into bankruptcy. My trustee explained to me I made the only decision possible, and because my loans were more than ten years old and I did make a good attept at payment that I would be alright. However, I don't believe I have that in writing. After reading this blog I am suprised that trustees are not always looking out for my best interests. I do not want to get screwed again like I did on the proposal. Thank you for giving me a little more advice so I can ask some seroius questions to my trustee next week.

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broke in nova scotia

Posted By: SolveStudentDebt
Date Posted: 14/June/2007 at 3:58pm

Trustees sell their products agressively. Student loans realy iritate them and they can only try to sell you past the issues surrounding student debt. I wish it were better for you, Susieq.

Johnny

Posted By: mitchontario
Date Posted: 10/July/2007 at 8:47am

What if you take a course AFTER you filed after waiting the 10 yrs but during the nine month period?

Posted By: SolveStudentDebt
Date Posted: 11/July/2007 at 3:11am

See my repsonses to your other posts. it is all in there.

Johnny