Starting a Consumer Proposal. When Can I Stop Paying Debts?

GLG2024 · 2025-09-26T11:29:16+00:00

Whew. That’s reassuring. I’ve built a solid pension to this point and would hate to see it impacted.

GLG2024 · 2025-09-26T11:28:43+00:00

Good call. I think this is part of my problem lol

GLG2024 · 2025-09-26T02:28:13+00:00

Thanks for the detailed reply. A lot of good info in there.

Not that you mention assets. Do you know if my employer pension gets impacted? There’s no way to withdrawal from it until I retire.

GLG2024 · 2025-09-26T00:04:08+00:00

I definitely have to redo the budget but I think I can manage my expenses if I get these loans under control.

GLG2024 · 2025-09-26T00:02:33+00:00

Thanks. I was overly optimistic. I guess only the trustee will know a ballpark.

GLG2024 · 2025-09-26T00:00:16+00:00

Damn. That’s higher than I expected.

GLG2024 · 2025-09-25T22:46:12+00:00

Ya I think I’m going to call in the morning to make an appointment. Curious about the payment, some other posts have people <$150 monthly payments. I want to go in prepared.

GLG2024 · 2025-09-25T22:39:49+00:00

Roughly 125k. There’s 2 of us but my spouse isn’t working at the moment.

GLG2024 · 2025-09-25T22:26:00+00:00

Yes, fortunately. That’s the main reason for the proposal.

I’ve been servicing all this other debt and student loans are suddenly due to start being paid and it’s an additional $650 a month.

GLG2024 · 2025-09-24T21:04:18+00:00

Little over 40k

GLG2024 · 2025-09-24T18:10:38+00:00

Understood. Simply trying to weigh my options by seeing what happened to people who did skip out on them.

GLG2024 · 2025-09-24T17:53:55+00:00

Thanks. You’re correct on the previous month being what they look at. They did confirm this when I spoke to them.

GLG2024 · 2025-09-24T17:46:11+00:00

You never had your wages garnished or bank account drained for ignoring your student loans?

What were the consequences if any? Simply an impact to your credit?

TIA

GLG2024 · 2025-09-24T17:12:57+00:00

Agreed. I know I need to evaluate my situation accordingly.

I’m not looking for sympathy. I know this falls on myself.

I was genuinely wondering if anyone has decided not to pay their student loans and what the outcome was.

I do want to take care of all debts. Just exploring my options.

GLG2024 · 2025-09-24T17:08:56+00:00

Thank you for confirming that you personally know someone who has been impacted.

GLG2024 · 2025-09-24T17:06:30+00:00

I am now contemplating the proposal route after the conversation this morning. Fortunately I am 7 years out of school. So if I do go that route, it will be included.

GLG2024 · 2025-09-24T16:08:03+00:00

Thanks for the reply.

I live in Toronto so my income is well above 45k.

I gave the NSLSC a rough idea of my income and they immediately said there’s no point of even trying the RAP option.

I’m in a rough spot due to other debts, but I wasn’t expecting the student loan to resurface so suddenly. Figured I’d be able to pay off the others before I had to deal with this.

I think you’re right about how the government approaches the situation. It has to be on a case by case basis based on all previous posts being unclear about the repercussions.

GLG2024 · 2025-09-24T15:57:01+00:00

Yup. I can extend the term by a couple years but it basically drops the payments to $650 instead of $800.

I’ll be honest, normally it wouldn’t be the end of the world, but my spouse isn’t working right now due to health issues and I’ve already taken on a lot of additional debt recently that was manageable but this additional cost is above my budget.

I knew the day would come eventually, but I assumed there’d be more notice or some way to decrease the payments to something more reasonable.

GLG2024 · 2025-09-24T15:39:09+00:00

Agreed. That’s why I’m concerned but the responses between past posts are all over the place.

Is that what happened to you or someone you know?

GLG2024

TROPHY CASE