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lost job and unable to pay

I went bankrupt in 2000 due to financial difficulties. At the time, they told me I was unable to include my student loans. I started to repay my student loans but then I lost my job. I have currently $7000 owing and no income. The collection agency has sent me a letter and the government has sent me a letter to withhold my income taxes. I have had to move back in with my family but have no savings or income at this present time. Would the collection agency/goverment be able to press criminal charges? The reason I am asking is the collection company threatened me and said it was `fraud`. Is this a scare tactic?

One Response to “lost job and unable to pay”

A licensed trustee said...

There are no Debtors Prisons or Workhouses in Canada – you don’t need to be worried about being locked up.

Fraud is a very serious offence, but I can’t quite figure out how failing to pay a student loan could be turned into fraud – it certainly sounds like a scare taqctic to me. In fact, you might want to register a complaint with the government regarding the collection agencies tactics as they sound inappropriate.