student loan garnishment?

June 9th, 2007 by Questions

I have old student loans from 1996. I did take some courses part-time a few years ago, which I also owe money for. Is it true that I can’t discharge student loan debts now because of this?
In general I have a high amount of credit card debt, although I have made all my payments on time. Now the collection agency for the CSL is threatening to garnish my wages. I offered them a monthly payment I thought I could afford, but they refused it. Im considering a consumer proposal if they do this as I wouldn’t be able to afford my rent on a reduced paycheque. Would the consumer proposal still stop the garnishee?


One Response to “student loan garnishment?”

, A licensed trustee said:

A consumer proposal will stop a wage garnishee (except in cases of support) so this solution might work for you. They are called proposals because you are making an offer that your creditors may vote on. Your student loans are a creditor and therefore may also vote – you may want to discuss how the voting works in detail with your trustee before you file. Depending on the relative size of your student loans in comparison to your other debts, the proposal may or may not get approval.

Good luck sorting things out.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)