My husband and I both filed bankruptcy in 2001. We were subsequently discharged in 2002. I had two student loans that were not able to be claimed in the bankruptcy because I had not been out of school for ten years. Both student loans are in collections, and have been for a number of years (aprox. 5 years). I am about to pay one student loan off, that is the lesser loan of the two. That particular collection agency gave me a bit of a break and took some funds off the amount owing, if I paid out in one lump sum. That collection agency filed the debt on my credit bureau in 2002. This collection debt was never brought up when I applied for a mortgage, and qualified. In regard to the second student loan, I would like to know a few things: 1) What is the statute of limitations on collection of a debt? 2) Are student loans exempt from a statute of limitations? 3) This collection agency has NOT reported the debt to the credit bureau....even though its been outstanding for a very long time. Why would they have not reported the debt? It seems strange to me, but of course, I don't want to "tip my hat" and tell them that its not on my credit bureau. So, if a collection agency does not report to credit bureau, then are their rights and entitlements to collect the debt any different than if it was on my credit bureau? 4) The collection agency has been threatening me with guarnishment of my salary.....but they currently do not know where I live or work. They do however, know my phone number. So, since they don't know my home or work address, what would they have to do to notify my of their intent to begin a court case for guarnishment? 5) Do you know of any "caps" that collection agencies must follow, according to government regulation, as far as how much they can reduce the debt, for a settlement amount and lump sump final payout?

The Statute of Limitations for debts in Alberta is 2 years but I'm unsure whether it applies to government debts such as Student Loans. I'd suggest you contact a lawyer or the Alberta government, Consumer Information, about allowable collection practices in Alberta. Their website is www3.gov.ab.ca/gs/information/consumer/index.cfm The Credit Bureau is merely a reporting agency that creditors may use if they choose.

Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca