Will the Student Loan Bankruptcy Laws in Canada Ever Change?
As we have reported many times in this student loan bankruptcy blog, Bill C-55 passed in November, 2005. As of today, nothing further has happened. Our expectation was that the Senate Committee on Banking, Trade and Commerce would hold hearings on possible revisions to Bill C-55 before a coming into force date would be sent. However, according to their web site, no meetings are scheduled.
Even more bizarre, as we await further details on Bill C-55, a private member, Ms. Charlton of Hamilton, has introduced a private member’s bill, Bill C-270, which contains proposed changes to the Bankruptcy & Insolvency Act. While these changes have nothing to do with student loans, and the member is not a member of the government and therefore it is unlikely this private member’s bill will become law, it is interesting that members are proposing changes to the Bankruptcy & Insolvency Act even before Bill C-55 from the previous session of Parliament becomes law.
I interpret this to mean that we will not see any changes to student loan bankruptcy legislation in 2006, although, as always, stay tuned to this blog for more information.
I hope that they change the laws. My husband and I both have student loans…almost $80K between the two of us. We have seen a financial advisor and he said that there is no way we can make the payments. We have 2 small children. We don’t own a home, we have a car that is in bad need of repair. Our credit is ruined. We can’t buy a house, or a car. I feel like I have killed someone and I am serving my time… I am a good person. My husband and I have jobs…we get 18 dollars and hour. We made a mistake…we were young. I would NEVER get a student loan now…EVER. I always warn people when they tell me that they are getting loans. I wish the government could see people like me…and see how much we are suffering because of student loans. It has been just over 5 years since we finished school…we have another 5 years of harassing phone calls, threats, and bad credit and high debt ratio. My kids will be 8 and 5. This tears my heart out.
Hello Anonymous!
I totally hear you my dear, there are soooooo many of out there this is why the rules have been changed in the first place.Second class citizens with companies able to declare bankruptcy but not citizens.
Ugh!
I went to the nonprofit credit counciling that advertises on TTC they told me soo many poeple are sitting waiting to declare bankruptcy. The people who made these rules have no idea!
Please keep in mind there are lots of us out there and you aren’t alone, no shame just huge debt. We’ll all get through it.
Also kow your rights around collection calls.
BIG big hugs!!!
Hang in there!!!!
i am in the same boat. i took out 3 student loans for schooling i attended from 1999 – 2001 totalling about $20000. with the exception of the first year or two after school, i have not been able to keep up any kind of regular payments, as my credit card debt was also pretty high from school and my present income in barely enough to pay my present bills. I have been out of school almost six years now, and I just found out today that the government might be changing the 10 year waiting period to 7 years. That would help me greatly…I also made a mistake and would advise anyone not to get a student loan unless they are absolutely sure they will have the means to pay them back…
I too have experienced the incessant and possibly illegal harrasement of collection agencies, and the horrible stress and worry.
I’ve had loan officers and collection agents lie to me, make false statements about ‘warrants and court orders being issued against me’ (which never came to light, and which i never even recieved in the mail) and so on. If my credit is ruined already then bankruptcy will be a welcome relief…
no matter who is in power – it never ceases to amaze me that they are all full of ##$%.
I am into my tenth year right now following my student loans and went bankrupt three or four years ago – I guess I will have to go through the processes since it doesn’t look like there will be any developments on this issue prior to it being used as an election platform – and god knows how long that will take
The programs are failing us. Me, single mom, student debt of $28,000 in collections. No hope of ever being able to take advantage of the interest relief or debt reduction programs that the government boasts about! All because in order to qualify for interest relief, you must be caught up in your interest, thereby forcing someone like me with little income to try to come up with a $400 payment in 2 weeks (because they didn’t receive my financial statement proving I fall in the $0 dollar payment category) or it goes to collections. If I had the $400 I wouldn’t be needing interest relief in the first place!!! Here I am only able to make a dent in the interest while the loan increases year after year. People say to me, “Oh you don’t want to go bankrupt. It will ruin your credit!” HA! I’ve been living like that for years now because of these loans in collections. I haven’t been able to get a car loan, a Bell bundle without securing $500 (yeah like I have $500 kicking around), or a $250 overdraft on my bank account. What could be worse? Certainly nothing would change for me if I went bankrupt, except finally having a glimmer of hope for the future.
I’m three years out of school with no chance of getting a home or car because of my loans. almost $40,000 and still growing. Tried for Debt relief but they told me I had to be caught up first. That makes sense. Collectors have phoned demanding all or nothing not willing to take any payment forcing me to avoid their harassing calls all together. My loans are now with the federal collection agency. I make payments and it doesn’t even put a dent in the interst. What really angers me is that even talking to a trustee won’t help in negotiating a plan because student loans doesn’t need to negotiate. I wouldn’t even need to declare bankruptcy at this point if Student Loans could be negotiated into an overall financial plan and I had some sort of resonable payments. Education is supose to secure a future not ruin one. Never take out a student loan.
so, do you still have to wait the 10 years or not? I was told that you cannot declare bankruptcy on federal student loans anymore. anyone have th e real answers or where I can find them??
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