Changes to the Bankruptcy and Insolvency Act put on hold.
The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) advised their members today that it is highly unlikely that the changes to the Bankruptcy and Insolvency Act will be proclaimed prior to 2007.
We had previously been advised that the new bankruptcy laws, which were rushed into law on November 25, 2005, just before the defeat of the Liberal government on November 28, 2005, would not come into force until June 30, 2006 at the earliest. The Senate was promised the opportunity to review the legislation and hear the scores of experts and special interest groups who were scheduled to make submissions. The new Conservative government is not bound by these commitments.
CAIRP explained in its April 12, 2006 Bulletin to its members that a period of nine to twelve months is required by office of the Superintendent of Bankruptcy to draft or amend the related rules, devlop or modify its system, and train its staff. It will also take some time for trustees to train their staff, and for software providers to modify their programs.
April 13th, 2006 at 5:38 am
Great! Another year of hell.
April 13th, 2006 at 6:39 am
Bureaucracy wins again. For the same reason that the 10 year rule came into effect, the changes are delayed. They don’t see the real people this hurts and , I’d argue, they don’t care either. High interest rates and unreasonable repayment requirements make students prisoners of debt and destroy hope for the future. Thanks. Thanks a lot.
April 15th, 2006 at 4:13 am
They dont care about anyone other then themselves. I bet if there was a raise that was suppose to be agrued then there was time for that. But for all of us who dont get that chance, we have to suffer and keep on going like we are.. This is not good enough….
April 16th, 2006 at 8:25 am
Hang in there people. I am going in april 26 to declare bankruptcy after my 10 year period of finincial hell. I had a family (seperated) and went through what no person deserves. Student loans are worse than a prison sentence because for good behaviour your term is reduced. Student loans should not be adminstered the way they currently are with personnel that are clueless. Student loan takers are treated worse than any other groups of people. This is disgusting and injust.
April 25th, 2006 at 6:57 am
Amen! There are lots of us in the same boat. The student loans are a trap as far as I’m concerned. I was a kid when I made a mess of my credit. I had no idea what I was doing. Now I’m in my thirties, I can’t own a car or house. I feel so depressed with my financial situation and it imapacts on every aspect of my life. As far as I’m concerned education in this country should be free !! We should never have to deal with this shit !!
April 28th, 2006 at 10:06 am
I have almost a year left to wait out the 10 year sentence. I only earn about $24,000 a year for a family of three. Minimum payments on my loans are almost $600. Not even vaguely do-able. Plus, just got a threat from a collection agency that they are going to take me to court to garnish 20% of my wages. This could just be one of their ploys to get money, but when I have to decide between laundry and groceries…
Can’t register my kid in soccer…can’t do a whole lot of anything. Plus this is a temp job. I’m not a happy camper. Wish I could pay back my loans, but I can’t. I could make more money in a developing country doing ESL than I can here.
May 2nd, 2006 at 8:05 pm
I am waiting patiently. My husband and I taught in Korea for a year to make our loan payments. After 6 months I was carrying my first child. Come home to Canada and there is no mat leave for me.
My husband makes $32 000 a year, we now have 2 kids and are living in his mother’s home (thank God family doesn’t do credit checks). I actually got a casual Education Assistant position this year and Revenue Canada took my $7.98 income tax refund because of my loans. They have been taking my husbands for 3 years. This year the GST credit will be yanked out from us, which we used mostly for repairs to our 10 - 12 year old cars over the past 3 years. Very sad when bankruptcy is the light at the end of the tunnel. I was actually called by a provincial debtors assistance officer and told about the change that was hopefully to come in June.
It has been 7 years this May since I graduated from University My husband graduated in August. Combined we have over $100 000 in loan debt. Worst part is he is working at a call centre and his degree is in Psychology.
I can’t even get them consolidated so I have 4 agencies calling for their pound of flesh. Each wanting at least $200 a month. That is HALF our income a month !!!!!! WTF My kids are taking time between highschool and post-secondary I want them to make an educated choice, not be forced to sign their lives away at 19.
May 16th, 2006 at 2:11 pm
what’s the sense in it? I finished school in 1997, so they are making me and fellow graduates wait the 10 years anyway. Equal rights, what’s that. They flipped the tables over completely on the white heterosexual male the minority. Everyone has more rights then us. The government is a farce.
May 17th, 2006 at 3:27 am
I heard it said that higher education makes you stupid….I now know what they meant. Wasn’ t the education, it was getting the loans. I too am at the almost ten year point. Loans have bounced through 4 collection agencys, one had a garnish of 25% on my last job. Interesting point here was it was the provincial loan that got the garnish. Sadly it does seem that good degrees like fast food. I gave it all up, I now play with horses.
But you all are right…we are the lowest on the totem pole, the next to rule Canada, and have no real say in what goes on. It sure is neat living in a democratic dictatorship eh! And another note; it seems that here a 1 or 2 year community college course gets a better paid job and in the field you trained for. It is also cheaper, go figger eh!
May 25th, 2006 at 8:08 am
I have been a bankruptcy administrator for 25 years, and seen it all. In the 80’s student loans could be discharged from a bankruptcy, however, the government would object to the discharge of the bankrupt. But at least the debt was dealt with. A conditional order for payments was arranged based upon the bankrupt’s income and family situation. Most Trustee’s and administrators are as frustrated as the debtors with the system. In my opinion the debt should be discharged after 5 years, and the government would maintain the right of the objection, which would bring the issues to Court. Let the Court decide, based upon the family situation of the bankrupt and their income for repayment. That way the bankrupt can at least get on with their life.
May 25th, 2006 at 8:21 pm
So, my wife and I are not the only ones going through this. It’s like our own little dirty secret. Who knew when we started school our student loan payments would be more then half of our take home pay? We have absolutely no hope in paying back our loans. It is clear the government doesn’t really care about the little guy. I tried to make alternative student loan payments at the beginning, but creditors only wanted more and more. They started calling me at work, home and even my grandmother’s house. There was absolutely nothing I could do about it (I tried). I lost my “career” job because of it. Now we use call display on our phone, we move to different town every two years and change jobs yearly. We are trying to stay ahead of the harassment until our 10 years are up. My wife and I have three more years left. Everyday we live in fear of creditors calling us because it means we have to move again. Honestly, I should have started growing marijuana in my basement because the punishment (if you’re caught) is nothing like what we are experiencing. But, I am very law abiding so I tried the “good” life path. I received a 17 year sentence for going to University. All I wanted was to be successful so my children would have a better chance at life. My wife and I were both raised in low income families. Our parents couldn’t afford to help us with the cost of school. High student loans are just one more obstacle in an attempt to keep us at our parent’s social class. I’m at the point now that I’m ready to leave Canada and start a new life where a different government will appreciate us.
May 26th, 2006 at 1:44 pm
I used to be a collection agent. If you don’t want to be called by a collection agent demand correspondence in writing only - if they don’t comply complain to the ministry that governs them (can’t recall the name right now)
I am going to school now to make a future for myself - but when I do the math I cannot see how I could ever avoid bankruptcy. Nice…
The truth is, if our government didn’t hand the issuance of currency over to the banks all loans could be issed interest free. Our goverment sold each and every one of us to the banks. If you feel like a slave that is because you are.
This government is nothing more than the administrative arm of the banks!
June 3rd, 2006 at 5:36 am
Hi. All. I just wanted to say that’s it’s terrible how banks get so rich off of students. The percentage of us who couldn’t get a $30,000/year job just sit here and waste away until this new rule comes into effect. My school failed to provide me with transcripts, and they said they didn’t have a list. They then changed their company name and, I can not take them to court. The Director of Education told me that there are no provisions which regulate a school’s transcripts or diplomas. *Aren’t these the 2 most important parts of going to school? To get a diploma and then being able to prove it to a prospective employer? Rich get richer, and the poor stay the same. Very sad.
June 3rd, 2006 at 8:40 pm
Hi Everyone, I’m with you all and know how you feel. I graduated as a database developer a month after Sept11/01. To make matters worse the school I went to filed for bankruptcy the same month I graduated. They closed the doors before I even received my work experience (which was part of the program!). Now I’m left with nothing but a useless diploma and a $20,000 loan. Being a 30 year old single mom of two, I’m barely getting by. I constantly worry about my children’s future. It’s horrible that someone who is irresponsible with credit cards can simply wipe away their debts and get a second chance, yet an individual who tries to get a decent education to be able to provide for their family and be a key contributor to society is simply treated like dirt. How can our government treat us like unworthy citizens and strip us from our human rights when faced in this type of situation??? Besides the financial stress, is it just me or does it seem like nobody at the National Student Loan Centre knows what the heck is going on??? It’s just doesn’t seem fair. Actually let me re-phrase that….It’s NOT FAIR!!! Where is the justice in this country?
July 13th, 2006 at 2:08 pm
Myself and my husband are not alone in this student loan mess. We both work full time and have 3 children. All our student loans are in collection and we make very minimal payments ($50 to each collection agency) to keep them from harrassing us every day. The way I tell it to the collectors is that we are not taking food from our children’s mouth to pay them and take the $50 or you won’t get anything at all. Even though we are both working full time (gross annual salary of approximately $35,000 this year) we still have to tell our kids - no we can’t afford it. We can’t even buy new clothes for any of our kids (its all hand me downs) except for Christmas presents and birthdays. Once the 10 year waiting period is up, we have no choice but to file bankruptcy. Our credit is screwed because of the student loans. We have no credit cards and live cheque to cheque. I don’t feel as though I am not wanting to pay my loans, because if we could afford it, they would be paid. We are doing our best to make ends meet and keep the wolf away from the door. Its time for the government to hears our pleas for help. We went to school to make a better life for ourselves and our family, and we get the shitty end of the stick when it comes to bankruptcy. Meanwhile, big business man, Joe Blow down the street can file bankruptcy on his credit cards/business debt and can still afford to put his kids on expensive sports teams and drive around in a fancy car.
GO FIGURE….. its not fair.
July 15th, 2006 at 9:57 am
I cannot for the life of me understand why it is fair for those who default on their loans on or after May 11, 2004 (and only if they are still in school), to be eligibile for new loans and interest-free status as well as interest relief and debt reduction of their loans, while anyone who defaulted before that is out of luck. If that is not discrimination, then I don’t know what is. It is also arbitrary and stupid. Who sets these criteria?
Why are these programs not available to EVERYONE in financial need? Why is this not one of the changes to the bankruptcy act? It would give honest people a chance to pay their debts and the government a chance to collect on them! As it is, we have to run and hide like fugitives.
One more thing… I was NOT told by my bankruptcy trustee that my student loans would automatically go into default, only that they would not be included in the bankruptcy. If I had known that, I would not have gone through with it because I had interest relief all set up for the following six months.
August 15th, 2006 at 8:57 pm
Sorry everyone out there suffering in this financial hell, but it is good to hear that I am not the only one. I feel like I’m in hiding like a fugitive until my 10 years is up. Well educated now…too bad I wasn’t when I applied for and got $25000 worth of student loans. If only I had known…
September 14th, 2006 at 7:28 am
I am in the same boat, Just waiting for next year. I hope things change. I graduated International Academy of design in 2000. It has never done me any good. I had a loan from the the Quebec goverment for $9300 and now CBCL says it is $15,832.61. Wow talk about depression. I earn a wopping 1200 a month. And they want $600. I feel I need to move again and hide. The depression is just getting to be to much. The school never helped me get a job, never did anything for me. I know most of the students from my same year are in the same boat. I try to do my best. I hurt my back, and now am waitting on Disability, still they want all my blood. They toke my Income tax, what is left. How am I to live ? I pray somone in goverment does something fast. I am amazed that student suicids are not going crazy. It takes strength to hold your head up and feel positive when our schools and goverment looks at us as they do. There is no help ! Bankruptcy here I come, just give me the date and I will be there.
September 15th, 2006 at 5:07 am
Hi All:
I read everyone’s post. I am in the same boat; my story is similar, although I am not running and I do not get harassed anymore- or not often anyway!
I finished in ‘97- my 10 years are up at the end of April next year- and I am patiently biding my time until I can go bankrupt.
September 25th, 2006 at 10:52 am
Well, it’s good to know I’m not alone. My husband and I together owe about $40,000 in student loans. He makes his minimum payments and I pay them $50 a month to keep them off my back. I’m in collections but my husband is not. He’s keeping on top of his. April 2007 is 10 years after I finished my studies and I’m actually looking forward to filing so I can go bankrupt. Our goverment sucks, plain and simple. Tuition fees are through the roof and they wonder why we can’t pay our loans back.
October 11th, 2006 at 7:05 pm
I’ve read all your messages and like the rest of you, am glad to find out I’m not the only one with this dirty little secret. I was at about the halfway point in getting my degree, was a single parent of a teenager and had emergency major surgery with a six month recouperation period. I applied for interest relief twice, the second time, I never heard back from anyone, and when I tried to contact them, found that I was in default. That’s when the nightmare began. I think I’m at my 10 year mark in April of 2007 and its been a long hard road. I finally have a job that is worthwhile keeping and I’m so afraid on a daily basis that the collection calls are going to start again and I’ll be looking for another job. This nightmare can’t be over soon enough for me.
October 12th, 2006 at 1:33 pm
Just about at my wits end with the constant phone calls. I can’t invite people over because the phone does not stop ringing from collectors. I never thought that an education gave you a lifetime of burden. I was always told to get an education to better myself. This betterment led me down the wrong road. Looking for a job with no experience is a nightmare and hence,no job equals no mone,and no money equals loan default. I stopped running 2 years ago and just don’t answer the unknown calls. Thank you call display. I will reach my 10 year mark in april of 2008. I don’t mean to wish my life away,but come on 2008.
October 17th, 2006 at 8:17 am
It figures that there’s no Proclamation Date for the lowering of the eligiblilty for student loans for bankruptcy. After all, it’s just voters, right? If it was a change to a law that allowed lawmakers to get bigger raises, it’d be proclaimed in a heartbeat.
I’m glad (well, not really, but misery loves company, no?) to see I’m not the only one in this boat. Everyone around me talks about bankruptcy like it’s a bad thing, something to be whispered about in dark corners, but it’s the light at the end of my tunnel.
My 10 year sentence is over April 30, 2008, and I’m waiting not very patiently. I will file for bankruptcy on May 1, 2008. I’ve tried my hardest to keep on top of my federal loan ($32,000 and change), but it’s become all but impossible. My monthly payments on the principal (when I’m not behind) are almost the same as my rent. If something like a car repair comes up, I’m automatically behind, and once you get behind, you’re sunk. I have a hard enough time making the monthly interest payments - in the past 8 years I’ve paid at least $11,000 in interest, but my principal hasn’t budged. I’m to the point now where I’m tempted to let them send it to collections - my credit can’t get any worse than it already is.
Student loans are the biggest nightmare ever. If I had it to do over again, I never would have gone to university. So much for higher education!
October 17th, 2006 at 2:31 pm
i have spent my day today in tears. i unfortunately answered the phone to a collection agency. i fell into default when my addict husband beat the hell out of me and have been doing the best i can. i told the collection agency that there is no alimony or child support until court due to a no contact order- even through a third party, and we are trying to get by on e.i. (lost my job a few months ago to make things worse). i was told by this oh so pleasant witch (no offence to pagans intended) to get money from him so that i could pay my loans. (chuckle) kinda hard to pay my bills when i’m dead, wouldn’t you say? i have a year left to deal with these pr.’s - only a year… if I can do it you all can too!!! chin up people and thank you so much for all you comments, it’s so good to know that there are others in the same boat, financially speaking, anyway. at least i know there is hope. be well
November 20th, 2006 at 4:48 am
Well isn’t it nice to know that I am in the same (I’d say boat but) it’s more like a leaky dingy with all my other higher eductaed basically un-employed socialites
When I had first contemplated continuing my education I was sold on the whole Student Loan Scam. About how the Gov’t would help me out by giving me monies for tuition etc… and then I could slowly pay it back at a low monthly rate! Wow I was amazed and jumped on the band wagon even went so far as to get 2 degrees you’d think they would have made me smarter guess not. I’m now in collections on both scores sheesh. When all was said and done after grad it was time to repay my loans they came to me with a whopping “Bank no longer foots the bill and you know owe $57000.00 now pay up or we’re sending the whole shabang to collections”, this from the bank that was soooo darn ready to have me sign my life away on the little dotted line and who said “As soon as you’re done with school we’ll help you get back on your financial track” Yeah right they laughed when I approached them about consolidating and asking for help with the loan thing. All they did was set me afloat in a leaky boat and only a thimble to ascoop the water out.
Drowning in financial debt
November 20th, 2006 at 7:27 am
Is this new rule(student loan bankruptcy allowed after 7 years) law? Is it simply being delayed? Does the present conversative goverment have the ability to not follow through on this new rule without a new vote?
November 20th, 2006 at 12:13 pm
Hi everyone. I to, like many went off to college on a student loan. I was 19 then and not educated at all on finances. Now almost 10 years later, I just wait patiently for my 10 years to end. I’ll be over 30 before I can acually start my life. I believe that a student should have to wait a while before claiming bankruptcy and try to pay off loans but 10 years!!!! Thats to long thats worse than an embezzelment sentence. I now have a 2 year child and would really love to provide a home for her, but with the outstanding loans I can’t get any banks help. I sure hope for my daughters sake and all the young “KIDS” going to colleges or university soon that the student loan just disappears. It ruined my life before I even got a chance to start it. Please drop the 10 year waiting period on student loans, let us now 30 + year olds start over!!!
November 22nd, 2006 at 9:36 pm
I thought I finally got it all figured out. I reached my 10 years out of University in June 2005… a few months later I sold my townhouse and made a little money (it was in my parent’s name, but I paid for everything). So, with the money I had, I went to a Trustee to try to settle my CSL. I owed $31,000 at that time, and I had about $20,000 total. I wanted to see if they’d take a settlement, since my initial loan was only $18,000. The Trustee said I would have to pay them $18,000, pay the Trustee $2,000 and then still file for Bankruptcy and go to court to arrange payments for at least 2 more years. He told me that the court probably wouldn’t forgive the debt even though I’d been out of school for 10 years. So much for the 10 year law! Anyway, shortly after that I got sick and only worked on and off for a year, so the money’s gone. They could’ve taken the $20,000, but looks like now they won’t be getting any unless I win the lottery! Nice system we’ve got!
December 14th, 2006 at 2:44 pm
Hi everyone, I have an idea but I don’t know if it will work. We need to stop being law abiding citizens. What we need to do is apply for lots of credit cards and take the credit cards and pay off the student loans then declare bankruptcy. Ha ha ha…….. I guess the government is not that smart after all………
January 15th, 2007 at 4:24 pm
I am now just starting my ninth year of debt. I owe $35,000 on my student loan and see no end in sight. I just made an offer to my student loan officer to pay a portion of my debt with a prompt ’sorry it doesn’t work that way”.
So let me get this straight….
Businesses and cooporation can ring up millions and file for bankruptcy. Shopaholics can ring up massive personal debt and file for bankruptcy. The government is not accountable for any errors or scandals. Yet a student is held in financial prison for 17 years. Ten years to file for bankruptcy and seven for a poor credit rating with their only crime being INSUFFICIENT FUNDS.
It’s quite funny when bankruptcy is something to look forward to. I can’t wait till next year when I can finally move on with my life; unless ofcourse I win the lottery before.
March 17th, 2007 at 9:59 pm
I too have a similar story. I am quite surprised of so many people in the same vote as me. I too feel like I am in a 10 year hiding. I have about 16000 owing from student loans and a BA to show for it. With no good job. I now am a single mom of a 5 year old and I have been scrimping and saving the last year to pay for a 7 month certificate that will actually get me a 20 dollar an hour job with good benefits….UNLIKE MY STUPID DEGREE…WHICH IS USELESS….you get no assistance or guidance in university. The people who give out the loans should be ensuring the students will have almost guaranteed jobs when they graduate or else it is just a waste of money. Well, not to the bank, they benefit and the students get banged up for a large debt they cannot pay back. It is very upsetting. I try not to think of my debt.
May 18th, 2007 at 12:52 am
I think that this bankruptcy ordeal has ruined the life of many people!!
I’ve come across tons of people with Bachelor/Master degrees and being stuck with low wage jobs and going nowhere in repaying their loans.
I was wondering: is the 10 years waiting period really 10 years or is it more than that….some trustee mentioned to me that it’s 10 years + 6 months?
July 14th, 2007 at 12:31 am
After reading so many dismal accounts of what it is like to be enslaved by this particular form of enslavement, I am all the more depressed. I am 60 and just recently came out of a failed attempt at getting a useless masters degree. I ran up $55,000. 00 in student debt to add to my other debt of an additional $25,000. There really aren’t that many lucrative employment opportunities for someone of my profile. Why was I so dumb to enslave myself in such a manner? I just wanted something better for myself in the form of a career path that was different from the no-where jobs I had held in the past. It was a gamble that I lost. Now it appears that the remainder of my life will pass in grinding poverty and constant battles with low-life debt collectors. I hate to admit it but the S-word is increasingly looking like an attractive escape from this unpardonable financial prison.
Cheers
July 26th, 2007 at 9:17 am
Any news at all on when/if the proposed new bankruptcy law (to reduce the period from 10 to 7 ears for student loans) is taking effect? I graduated in 2002 and am hoping to declare bankruptcy sooner rather than later.
September 12th, 2007 at 9:03 am
I too am in the same boat. Last year I was garansheed 100% and because I couldnt pay they are now demanding full payment of the student loan. The previous debt was not mine but an ex’s that has “run away”. Because I was not divorced from him at the time of debt I had to pay and “add it to what he owes”