Student Loan bankruptcy question
February 22nd, 2007 by Questions
I’m pretty sure the answer to this question is no, but my situation is so darned complicated, I was hoping a big of clarification would help.
My entire loan, provincial and federal, (about 25,000) was given over to the Canada Revenue Agency, who have made a much better effort than the NSLC of hounding me for the money, including seizing my tax returns and threatening legal action.
When I asked them what sort of legal action, they said either an attempt to gain a ruling against me in court and garnish wages (up to 30%) or a private collection agency.
Here’s my question: My student loan has now been laundered from the NSLC to the CRA, and there’s a chance that it might wind up in the hands of a private collection agency. If and when that happens, is my student loan still a student loan? In other words, could I declare bankruptcy if I owed the collection agency that money instead of the government, or is the money still flagged as student debt?