What are my options for possibly settling this matter in my favour?

I'm being threatened with being taken to court by a collections agency for the amount of $8059.54 (plus they'd want me to pay all court fees as well) due to not making the payments they wanted. There was an offer to settle the matter for a little over $3000, but I just don't have that kind of money, I live off of ODSP with my wife as a dependant (I am the dependant, not her). I was told to call relatives to see if they could help me out, but they're mostly all retired and living off of old age pension, ODSP, or Ontario Works themselves, they've got no money to help me. What this is about is, a couple years back when I was in college, I took a course through a private career college, and everything was good, up until I finished my course, and after two months of waiting for my diploma I called the school to see when I was supposed to get it, and I was informed THEN that I still owed them $4000 for the government grant that never came in that I had applied for to help with tuition costs because OSAP wouldn't cover the whole thing for whatever reason I don't remember now. So I guess over time it got put in to collections, which wanted me to pay a ridiculous amount each month, something like $470, which I couldn't afford. Agents and I from the agency that were in contact with me were on and off for up until this point. One of whom I was speaking with, we made an agreement for me to pay $100/month, but my wife and I ended up having a huge argument about it, and I lost the agent's number, so I had no means of contacting him. I then got this notice in the mail stating that someone from their legal department had been given my file and more or less stated that if I couldn't come up with the full amount owed within ten days of getting the notice, the collections agency may ask them to take me to court. I got the notice in the mail just last week, maybe Wednesday the 20th. I called and spoke to one of their legal department managers, and he said that the offer to settle for the $3000 is still on the table, which is where we begin here. What are my options, or what can I do in this situation? Also, I apologize for the novel. I just figured it would be best to explain everything in full context.

Asked over 1 year ago in Peterborough, Ontario
Categories: Small Claims

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Benjamin O Mbaegbu

Answer by Benjamin O Mbaegbu

Not VerifiedOntario lawyer

Sorry for your problems, by the look of things you are liable for the costs. because you must have signed loan forms that included this expenses.
My advise for you will be as follows:
1. ask for a low payment arrangement based on your monthly income.
2. Use a volunteer trustee to declare bankruptcy.

Posted over 1 year ago

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