Bankruptcy and Proposal Info and Issues

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HRDC CSL arrears

Printed From: CanadaStudentDebt.ca
Category: Immediate Attention and Info!
Forum Name: Bankruptcy and Proposal Info and Issues
Forum Description: Get your questions answered about bankruptcy and proposals
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=6861
Printed Date: 27/March/2026 at 2:16am
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Topic: HRDC CSL arrears

Posted By: familyfirst
Subject: HRDC CSL arrears
Date Posted: 01/April/2014 at 8:56am

My husband and I are looking at either bankruptcy of consumer proposal.

The trustee will only visit our area if they have 3 or more cases, and that maybe another 2 months.

I have 30,000 student loan defaulted and held by hrdc as well as 10,000 OSAP in collections. I have been out of school for 8 years.

I have been very lucky to have finally gotten a fabulous person from hrdc on the phone and they have changed my min payment to $30 for a few months.

I am asking if either a consumer proposal or bankruptcy will remove the student loan from hrdc or will it need to be rehabilitated first?

I can not afford to rehabilitate it unless i use credit.

Thank you, I am very glad to have found this forum!

Replies:

Posted By: administrator
Date Posted: 01/April/2014 at 9:19am

With a consumer proposal you need to make payments... If you can only afford $30 a month, I don't think you have the funds for a proposal. From what I've heard in terms of how banks and credit reporting agencies treat proposals, they are treated just the same way as bankruptcy..

Also, HRSDC and OSAP are not known to accept proposals...

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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: familyfirst
Date Posted: 01/April/2014 at 9:32am

Thank you so much for the info! i appreciate it very much. We were advised by financial counsellor to file for bankruptcy two years ago, but we really wanted to try before giving up.

We have come to realize that this may be the best for our family even though it is a sad and difficult undertaking :(

I really hope that my student loan will be included as it is our largest debt and largest monthly payment. It was $658 per month.

OSAP collections are the most horrid people to deal with :(

they called multiple times a day asking for payment in full and refusing any monthly payments.

We are not frivolous people and had zero debt before starting University and subsequently a family (at a much later stage of life than most).

It will be good to move on

Posted By: administrator
Date Posted: 01/April/2014 at 10:01am

Years ago I was in the same boat as you. I tried my best, did everything I could, and yet was still in financial trouble. I ended up volunteering for a motivational event where they had some really dynamic speakers. I had the chance to speak with three very successful people. I explained my situation and they said "have you done all you can?" I said yes, and all three said "then walk through that door and get it over with." All three confided that they had all been through bankruptcy and started over. It was good advice, and it was still difficult for a few years..... but it was good advice to try to clear things up and move forward. Back then loans weren't discharged but at least that's all I had to deal with after the bankruptcy. It wasn't ten years (no changed to 7 and 5 if hardship) since I finished so my student loans weren't included.

Keep us informed of how things go... The student loans system is broken... and you're honestly trying to work with a broken system.

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

Posted By: Insane
Date Posted: 05/April/2014 at 8:45am

You shouldn't have to wait months to file bankruptcy. People file bankruptcy from out of the country. If you know you are going to be filing bankruptcy, making payments on your debt is throwing your money away. Find a new trustee.