Legal Question in Credit and Debt Law in Canada

Re: Student loan in default

First, this has nothinbg to do with "Canada" or the "U.S." as countries; the law on this is specific to the individual Provinces and the individual States. For the purposes of private debt, it can be safely said that the international border is non-existent. As noted on the LawGuru website, questions directed to this firm are answered with reference to British Columbia; the answers given may or may not apply in other Provinces. British Columbia has arrangements with many, if not most, States to recognize judgments from those States so that they may be filed in British Columbia and dealt with as if they were judgments from British Columbia Courts. You can be sued in British Columbia or in the State where the debt originated; if you are sued in the State where the debt originated, and ignore the proceedings believing your assets can not be attached in B.C., you would be wrong. A judgment obtained in most States is enforceable in B.C. so if you ignore any documents served on you, and a judgment is made against you, it can likely be enforced in B.C. Likewise if you ignore documents emanating from a B.C. Court, you will find that there is an enforceable judgment against you. Wages can not be garnished until after a judgment is obtained, but bank accounts and other assets can be. In B.C. you can not declare bankruptcy to excape a student loan granted to you anywhere in Canada; the situation may or may not be different with an American student loan - for that you must consult a Bankruptcy Trustee in B.C. or an Attorney dealing in Bankruptcy in the State where your loans originated.