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[Psst-Rolex?]

Just to be clear, I am not championing filing for �B-, but sometimes a person really has no other options.

First to answer Steve, By filing now and not waiting, several advantages are gained. The clock starts ticking on 2 counts, 1) the 9 month period that mpan must remain insolvent 2) the 2 years mpan must wait to have this removed from his/her credit history. 3) The holders of the student loans are forced to negotiate based on mpan�s current income. Generally, student loan lenders offer their services based on the fact that a persons situation will improve over time. Most do. So if mpan waits to file it is likely that his/her income will be greater than it is now. Therefore the payment required will be higher. So to contain the loss as much as possible, sooner is better. Remember that in 5 years mpan can file an Undue Hardship claim (in this case in Dec 2009) or wait a bit longer and file to have the loan wiped out in Dec 2011. This will be determined by mpan�s income at the time he/she files with the courts.

To answer mpan, Canada has something called a Ministers Agreement. This allows one office of the government to suspend a citizens privileges based on the fact that another office of the government has a legal issue with a given person. How this agreement translates to your specific situation needs to be researched. However, I am confident that it applies here. So they could potentially suspend your passport, driving licence, pilot licence, etc�As you indicate you are no longer making payments, this cycle will eventually begin and it is challenging to reverse. I would suggest you go on the offence here rather than a passive defence. Get initial info from a �B- lawyer, ask questions, or express your intent to investigate filing with your creditors (they�ll think your bluffing until you provide a �B- lawyers name that you are speaking to, then your file will get a lot of attention) but do take some type of action. Without your intervention this matter will continue to escalate and potentially create additional legal issues for you.