Denied again, again they’ve made error!
Printed From: CanadaStudentDebt.ca
Category: Government Program Problems
Forum Name: Applying for Student Loan Disabilty Relief
Forum Description: help others going through this crazy process!
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=48
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Topic: Denied again, again they’ve made error!
Posted By: markomeara
Subject: Denied again, again they’ve made error!
Date Posted: 16/August/2002 at 8:47pm
I spoke with HRDC this afternoon. My claim has been denied
again. This time they have provided a more detailed explanation.
As mentioned last week, they have accepted my disability. What remained was to assess my finances for undue hardship and ability to pay.
I was advised me they review financial statements, assets and income and then use the superintendent of bankruptcy Surplus Income table for hardship, HRDC says this sets the threshold income to determine financial hardship.
This table sets the threshold income at $1602 gross income. If you earn above $1602 there is no hardship, below, there is.
Since my gross earnings were $2100. I am disqualified.
Further, she said they look at the long term situation. Since I am on OPD, and my doctor says that I will not likely get worse, they say they can assume that I will be able to make the minimum OPD payment of $25.
Here are my comments:
I advised her that she is misusing the bankruptcy regs. It is not a hardship threshold. It is a threshold for determining payments to creditors. Anything above $1602 gets sent to the creditors while you are bankrupt. According to my trustee, the $1602 was net income not
gross. Also, the $1602 doesn?t include debts that are not discharged ie student loans. In bankruptcy hearings the student loan payment would be added to the $1602.
I paraphrased, and said. So if you make over $1602 and your loan is $2000 you would be disqualified. If you make over $1602 and your loan is $30000 you would still be disqualified. So they claim it doesn?t matter how much your payment is. If your loan is make 1601 and you owe
$2,000 you would qualify? and if you make 1601 and your loan is 30000 you would still qualify. I told HRDC this doesn?t make sense.
They are incorrectly using the ?surplus income calculation ? of section 68 of the bankruptcy act. This section does not set out criteria for hardship.
I will confirm with the superintendent of bankruptcy that this is net income. Also, I will confirm that un-discharged debts (loan payments) and medical expenses would be added to this amount.
Regards,
Mark
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