Bill Introduced to Change Student Loan Non-Dischargeability in a Bankruptcy from 10 Years to Two Years.
On May 29, 2007 Senator Yoine Goldstein introduced Bill S-227 in the Senate, entitled An Act to amend the Bankruptcy and Insolvency Act (student loans). The Bill received first reading on that date.
The Bill, if enacted, will amend the student loan provisions, ss. 178(1)(g) and (1.1), so as to provide for:
• a non-dischargeability period of two years from the end of studies (reduced from the current ten years).
• the mercy, or hardship, hearing (in which the court may discharge a student loan despite the bankruptcy having been filed during the non-dischargeability period) may take place at any time, rather than, as at present, only after the expiration of the non-dischargeability period; and
• the court may, at the mercy hearing, fix payment terms and conditions for the student loan, and may discharge part of the debt (rather than all or nothing, as under current jurisprudence:
Senator Goldstein is one of Canada’s leading insolvency lawyers who, before his recent Senate appointment, chaired the Personal Insolvency Task Force and acted as advisor to the Senate Banking Committee’s hearings in 2005 on Bill C-55. Evidently it is his intention to fold this Bill into the Senate hearings that will consider Bill C-62 (the 2007 amending bill) in the autumn, in which he is sure to play a very prominent role.
For more information please refer to Senator Goldstein’s speech to the Senate where he presented background history on student loans and well reasoned arguments for the reduction of the 10 year wait period before student loans can be erased in a bankruptcy.
Thanks to Bob Klotz for bringing this to our attention.
July 11th, 2007 at 5:07 pm
Even though this isn’t exactly a bankruptcy question, are you aware of any way to track bills like this? I’m very interested to see where this is headed as my student loan has recently fallen into 3rd party collections, and I’ve only been out of school for 4 years.
August 26th, 2007 at 11:16 am
This is an interesting concept… considering we are a nation of natural resources with very few managers… it’d about time our goverment realized they have a fiduciary to preserve our prairies, our mining, our forestty…. the North…. Is our Country bankrupt?…. Point the loans in the right direction… clearly above the 49th parallel…
My suggestion would be for Canada to go bankrupt…. we have no adequate control of our finances…How much do we owe?
Got me?
Let’s cut our losses… get a reasonable non-political bankruptcy lawyer and re-buid… the heart is in the country….
SHOW ME THE BOOKS!
Respectfully
Rusty McDowell
September 19th, 2007 at 10:47 pm
Mike, you can track the status of this bill at:
http://www.parl.gc.ca/legisinfo/index.asp?Language=E&Chamber=N&StartList=A&EndList=Z&Session=14&Type=0&Scope=I&query=4975&List=stat
though it looks like it may be dead for this year…
November 25th, 2007 at 8:25 pm
I filed bankruptcy on Nov.2006 and got a conditional discharge last month. I am not discharged yet. If this bill comes to life would I be eligible?
November 25th, 2007 at 8:27 pm
Forgot to mentioned. I am out of school since May 2003 so over 4 years
January 4th, 2008 at 6:53 am
I owe the University of Toronto around $20, 000 and have been forced to drop out because I haven’t paid enough back.
It’s been 2 1/2 years since I last attended, and am wondering if the debt will be erased if I file for bankruptcy, or am I to wait, filing later on?
I also would like to take out a loan to get a car, and go back to school (college most likely as it’s more affordable)
How long would this process take from the time I filed for bankruptcy to the time I was able to successfully apply for a loan (if everything went smoothly)?
What would you guess be a realistic amount I’d be able to borrow (guestimation if you aren’t sure)?
Thanks so much.
January 15th, 2008 at 6:39 pm
My mother went to school around ten years ago, and is still paying back student loans. she’s paid off either the federal or provincial one, im not sure which one. she still owes thousands more, and is only paying the minimum a month. she filed for bakruptcy about 7 years ago. would this new law apply to her?
March 10th, 2008 at 10:25 am
Hello, I declared bankruptcy in 1990, at which point I had been out of school for 6 years. My student was included. 16 years later I receive the letter from a collection agency informing me that I now owe the crown $24,995 ($18,000 interest). When I finally got a hold of someone I was told for the first time about the (ten year waiting period). Although I dont recall being informed of this by my “TRUSTEE” , I question why it has taken 16 years, since declaring bankruptcy, for the government to send notice that this matter is still unsettled….??? ($15,000 interst*#*#*#)
March 10th, 2008 at 10:31 am
Where must I go to obtain record of my bankruptcy,in an effort to determine what may have been missed