Bankrupcty Charter Challenge Update
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Topic: Bankrupcty Charter Challenge Update
Posted By: administrator
Subject: Bankrupcty Charter Challenge Update
Date Posted: 26/May/2005 at 11:53am
May 26tth
Spoke to CFS today. With the government counsel a letter has been written to the judge asking when the decision will be ready.
Of note as well is that Senator Moore has introduced a bill in the senate to change the bankruptcy law from 10 years to five
Note that even the current law states that the discharge is not automatic. The debtor must satisfy the court that they can not pay the debt and have acted in good faith.
http://www.parl.gc.ca/38/1/parlbus/chambus/senate/bills/public/S-28/S-28_1/S-28_text-e.htm - http://www.parl.gc.ca/38/1/parlbus/chambus/senate/bills/publ ic/S-28/S-28_1/S-28_text-e.htm
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. (1) Subparagraph 178(1)(g)(ii) of the Bankruptcy and Insolvency Act is replaced by the following:
(ii) within five years after the date on which the bankrupt ceased to be a full- or part-time student; or
(2) The portion of subsection 178(1.1) of the Act before paragraph (a) is replaced by the following:
Court may order non-application of subsection (1) (1.1) At any time after five years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that:
(a) the bankrupt has acted in good faith in connection with the bankrupt's liabilities under the loan; and
(b) the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the liabilities under the loan.
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Posted By: administrator
Date Posted: 06/June/2005 at 5:00pm
Taken from http://www.student-loan-bankruptcy.ca/...
Bill C-55 To Reform the Bankruptcy & Insolvency Act Introduced in the House of Commons on June 3, 2005
After much anticipation the government has finally introduced Bill C-55, succinctly titled: An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts.
In what is probably the biggest disappointment to former students, the much anticipated reduction in the student loan discharge period was not substantially reduced.
Since November, 2003 when the Senate Committee on Banking, Trade and Commerce released a report called Debtors and Creditors: Sharing the Burden: A Review of the Bankruptcy and Insolvency Act, former students have hoped that the government would reduce the discharge period on student loans from 10 years to 5 years, as recommended in the above noted report.
Under current law, a student loan is only automatically discharged in a bankruptcy if the student has been out of school for over ten years.
If Bill C-55 passes, subparagraph 178(1)(g)(ii) of the Bankruptcy & Insolvency Act will be amended to reduce the period from ten years to seven years. In other words, if you have ceased to be a full time or part time student for seven years when you go bankrupt, your student loans will be automatically discharged.
To soften the blow, the bankrupt may apply to the court if their student loans are more than five years old, and the court may discharge the debt if the bankrupt has acted in good faith, and the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the debt.
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Posted By: administrator
Date Posted: 04/July/2005 at 6:12am
The Bankrupcty Charter Challenge decision has been released.
Not good news I'm afrain..
Read info at CFS website
http://action.web.ca/home/cfs/en_alerts.shtml?x=78914&AA_EX_Session=59e03f3f757e70e3eca5665cee1ccec4 - http://action.web.ca/home/cfs/en_alerts.shtml?x=78914&AA_EX_ Session=59e03f3f757e70e3eca5665cee1ccec4
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