I have a osap loan which I have to pay back through royal bank. (I live in ontario) I filed for bankrupcty in 2002 and I still owe on the loan because I've been out of school less than 10 years. After the bankrutpcy in 2005 I was required to start repaying my loan (nobody could touch me during the bankruptcy), I've been paying but it doesn't leave me any money for savings. Is there a statute of limitations in ontario, canada for student loans where if you stop paying they can't touch you after a certain amount of time?

I don't believe there is a SOL on OSAP.

Status of limitations is something that government made up. If you owe a debt, you owe it forever. But the government of Ontario says, you only have 2 years to get around to suing. That is so their court systems don't get overcrowded.

But when it comes to themselves, they make special rules.

I have a state tax lien I am considering filing a chapter 13 if I file will the lien come off so I could sell my house

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Originally Posted by vwwicz

i have a osap loan which i have to pay back thru royal bank. (i live in ontario) i filed for bankrupcty in 2002 and i still owe on the loan because i've been out of school less than 10 years. after the bankrutpcy in 2005 i was required to start repaying my loan (nobody could touch me during the bankruptcy), i've been paying but it doesn't leave me any money for savings. is there a statute of limitations in ontario, canada for student loans where if you stop paying they can't touch you after a certain amount of time?

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Canada Student loans granted under the Canada Student Loan Act and the Canada Student Financial Assistance Act have a six year limitation with exceptions as outlined in the Acts. Read them as they can be read online. Ontario has no limitation period for student loans. The new Limitations Act which has a basic limitation period of two years specifically notes that such limitation period does not relate to student loans. See also Interpretations Act in Ontario re crown debt.

If you have gone bankrupt prior to the expiration of the 10 year limitation period set out in s. 178 1g of the Bankruptcy and Insolvency Act, you may apply to the bankruptcy court after the expiration of the 10 yr period for an order including the loans in your earlier bankruptcy provided you have acted in good faith regarding payment of the loan and the debt continues to be an ongoing burden. See s. 178 1,1 of the BIA. I have made over 70 such applications for clients all of which have been successful.

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Originally Posted by Iknowalotofstuff

Canada Student loans granted under the Canada Student Loan Act and the Canada Student Financial Assistance Act have a six year limitation with exceptions as outlined in the Acts. Read them as they can be read online. Ontario has no limitation period for student loans. The new Limitations Act which has a basic limitation period of two years specifically notes that such limitation period does not relate to student loans. See also Interpretations Act in Ontario re crown debt.

If you have gone bankrupt prior to the expiration of the 10 year limitation period set out in s. 178 1g of the Bankruptcy and Insolvency Act, you may apply to the bankruptcy court after the expiration of the 10 yr period for an order including the loans in your earlier bankruptcy provided you have acted in good faith regarding payment of the loan and the debt continues to be an ongoing burden. See s. 178 1,1 of the BIA. I have made over 70 such applications for clients all of which have been sucessfull.

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How does one go about doing this, do you need to go to a lawyer, bankruptcy trustee?

The rules changed on July 7, 2008. To apply for hardship relief under s. 178 1.1, you now only have to out of school for 5 years rather than 10. If you have been out of school for 5 years and are a discharged bankrupt, your student can become part of your earlier bankruptcy provided you can establish that you have acted in good faith and are experiencing current and will experience ongoing financial hardship with respect to your student loans. This application can be made by your trustee for a fee, by another qualified person or by you if you can find out the process.

What province do you live in? When did you go bankrupt? When were you discharged? When did you end your studies financed by student loans? Do you have ability to pay your loans? Are the loans with the government or a collection agency? If you provide more information, I will provide more detail.

Iknoalotofstuff...

My situation is as follows:
I've been out of school since 98 or 99 (last student loan issued was may of 98) making me well over the 10 year limit (which is now 5?).

I initially had ~45k of osl and csl which I 'think' over the years has been 'reduced' to ~18k. I might be wrong in thinking it's been reduced. My basis for this is the letter I regularly receive from HRSDC which only lists CSL at ~18k with no mention of the OSL..

I've been harassed by collection agencies ever since I defaulted (1 or 2 years after ending school). Now the case is back at HRSDC and collection agencies are out.

I don't make enough to make payments; have family of 5 to take care of. My study is irrelevant to my job. Would I be eligible for hardship relief? If so how can I go about doing this? If not, are there other options available?

To: hackex
You did not mention whether you had made an assignment into personal bankruptcy or made a consumer proposal. Hardship relief is only available to those who have made an assignment or proposal.

To: vwwicz:
I hope you have followed the posts. There is help for you. There is a process to have your student loans included in your earlier bankruptcy if you have been out of school for 5 years and are discharged and can demonstrate good faith, current and ongoing hardship.

To: rshepherd31
I believe we have already talked.

Wlb

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Originally Posted by Iknowalotofstuff

To: hackex
You did not mention whether you had made an assignment into personal bankruptcy or made a consumer proposal. Hardship relief is only available to those who have made an assignment or proposal.

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Neither an assignment or propsal have been made. If I do bankruptcy now it'll wipe out the csl too right? But is there some other way besides this? Thanks. Also, is it okay to contact you through your website email regarding this?

To: VWWICZ
There are Limitation statutes but (a) they do not apply to ON student loans and (b) are tough to deal with for CSL.

There is one question you must answer for yourself. Will reasonable efforts based on your current income and projected income retire the debts in a reasonable period while affording you a reasonable standard of living?

IF the answer is YES, keep paying and retire the debt.

IF the answer is NO, there is an option for you. Provided you are discharged (and you say your are) AND you have ceased to be a full or part time student funded by student loans for a period of 5 years, under the amendments to the BIA of July 7, 2008, you are eligible to make an application under s. 178 1.1 of the Act. An order granted under this section will render your student loans subject to your earlier discharge. The criteria for discharge is proving on the balance of probability that you have acted in good faith and are experiencing and will continue to experience financial difficulty with respect to your student loans. Your story appears to meet these qualifications.

IF you were to Google "take control don't be controlled", you might be able to find someone to help you with this application.

To: hackex
Since you have been out of school for 7 years, a proposal may deal with both loans as well as a bankruptcy. I do not promote bankruptcy as the only way only an option. Simply I am not a soloist but a voice in a chorus. There are many options available from paying the full amount to going bankrupt. You have to decide what is best for you.

If you Google "take control don't be controlled", there mght be some help for you. You can also Google "iknowalotofstuff" and see what pops up.

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Originally Posted by Iknowalotofstuff

To: hackex
Since you have been out of school for 7 years, a proposal may deal with both loans as well as a bankruptcy. I do not promote bankruptcy as the only way only an option. Simply I am not a soloist but a voice in a chorus. There are many options available from paying the full amount to going bankrupt. You have to decide what is best for you.

If you google "take control don't be controlled", there mght be some help for you. You can also google "iknowalotofstuff" and see what pops up.

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Quick question, am I right in assuming the osl is no longer there as the letter I regularly get only mentions csl? Is there a way I can verify this...

You are incorrect. Since you have not gone bankrupt or made a proposal and OSL are not subject to limitation, you still owe them.. They may have lost you but you still owe the money. You can call he Ministry of Training Colleges and Universities and give them your SIN and they will tell you if the loan is still outstanding. With respect to student loans, do not assume anything. Student loans seem to pop up when you least expect them.

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Originally Posted by Iknowalotofstuff

You are incorrect. Since you have not gone bankrupt or made a proposal and OSL are not subject to limitation, you still owe them.. They may have lost you but you still owe the money. You can call he Ministry of Training Colleges and Universities and give them your SIN and they will tell you if the loan is still outstanding. With respect to student loans, do not assume anything. Student loans seem to pop up when you least expect them.

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Thanks for the clarification, I will do just that and get in touch with the ministry.

Iknowalotofstuff ~ how do you go about claiming your student loans under an earlier bankruptcy? How are you eligible for this? Is there a certain form you fill out from the courthouse? Student loans is suing me after 12 years of default in Small Claims Court. I am a single parent of 4 children and I have offered payments that the collection agency has simply snubbed their noses at saying it is not enough. I don't have $600.00 a month to pay them. Please help me, I am so distraught over this situation and simply want to resolve this! I'm scared they will put a lien on my home and my home is all I have for my children.

To: iknowalotofstuff

My boyfriend graduated in 2006 in Ontario from 4 years of university unfortunately from a program that is his passion and very good at(acting)but has not made a steady income in that field and has a current job unrelated to that field and makes about $2000/month. He has been applying for interest relief for the past 3 years and been approved because he never made enough money (working at clubs, then little contract jobs here and there through a hiring agency so he could act on the side)he recently got hired full time from one of his contract jobs he obtained from a hiring agency 'adecco'. I am not making this up when I tell you his circumstance;
BOTH parents are unemployed, with addictions and medical issues. They are on welfare and my boyfriend supports THEM, they are his dependents, they live with him and he pays all rent and expenses (the parents welfare check is very small and pays for their storage unit that has their stuff because they got kicked out of their house). Things got really tight and he was in over his head in credit debt so he applied to credit counselling a year ago and is on a plan that DID NOT include his OASP debt because at the time he did not owe it and for other reasons we have no idea, but he did mention it when they were discussing all his debt. His rent is half of what he makes a month, he has to keep the place because he has ZERO CREDIT with this credit counselling and will have a hard time and has had a hard time finding cheaper rent and being accepted when once they check his credit. He has $500/mo that goes to his credit counselling debt (a four year program) and the last $500 goes to insurance, gas, phone and groceries. ZERO money left over and barely making it. Just recently he was DENIED interest relief, most likely because he finally got a steady full time non contract job and they are asking for $300/month he cannot afford... so after all this info (sorry) my question is WHAT IS HIS NEXT STEP? Should credit counseling pay it off also and he owes the creditors instead? Is there a form or application for him to supply document or plead his case that on that income he takes care of himself plus two other adults? Can he ask to pay under $100/month in OSAP and just pay it his whole life? He honestly is stuck and is beside himself which is why I am here trying to figure SOMETHING out to give him some sort of hope and push...

There is a legal process under s. 178 1.1 that is made in Bankruptcy Court. It can be done by a lawyer or by the debtor. All you need is the proper documentation.

Google: "bathurst take control don't be controlled" and read about the orocess

I have a question. I haveabout 70K total osap debt and about 190K in student line of credit from RBC. I finished dental school in 2009 and am now in residency for endodontics in the US. OSAP doesn't consider residency 'school', even though Im paying 60K of tuition per year. I cannot afford tomake payments on my OSAP or pay interest on my RBC line of credit. I am honestly considering bankruptcy right now because I am not getting any more funding from anywhere and don't have finances to make payments while Im still in school. I cannot focus when I have all of these creditors are harassing me.

Please advise.