Bill S-205
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2nd Session, 39th Parliament,
56 Elizabeth II, 2007
senate of canada
BILL S-205
An Act to amend the Bankruptcy and Insolvency Act (student loans)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. B-3
BANKRUPTCY AND INSOLVENCY ACT
1. (1) Subparagraph 178(1)(g)(ii) of the Bankruptcy and Insolvency Act is replaced by the following:
(ii) within two years after the date on which the bankrupt ceased to be a full- or part-time student; or
(2) Subsection 178(1.1) of the Act is replaced by the following:
Application for court order — student loan debt
(1.1) The court may, at any time, on the application of a bankrupt who has a debt referred to in paragraph (1)(g), make an order described in subsection (1.2) if the court is satisfied that
(a) the bankrupt has acted in good faith in connection with the bankrupt’s liabilities under the debt; 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 debt.
Order of court
(1.2) The order referred to in subsection (1.1) is an order
(a) that subsection (1) does not apply to the debt referred to in subsection (1.1);
(b) that subsection (1) does not apply to part of the debt referred to in subsection (1.1);
(c) that subsection (1) does not apply to part of the debt referred to in subsection (1.1) and that, with respect to the part of the debt to which subsection (1) applies, the bankrupt pay moneys in an amount and manner that the court considers appropriate, having regard to the bankrupt’s conduct and ability to make payments; or
(d) that the bankrupt pay the debt referred to in subsection (1.1) by paying moneys in an amount and manner that the court considers appropriate, having regard to the bankrupt’s conduct and ability to make payments.
TRANSITIONAL PROVISION
Transitional
2. The amendments to the Bankruptcy and Insolvency Act, as enacted by section 1, apply in respect of a person who becomes bankrupt after the coming into force of that section.
COORDINATING AMENDMENTS
3. (1) If this Act comes into force before subsection 107(2) of 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 (the “other Act”), chapter 47 of the Statutes of Canada, 2005, then subsection 107(2) of the other Act is repealed.
(2) If this Act comes into force on the same day as subsection 107(2) of the other Act, then subsection 107(2) of the other Act is deemed to have come into force before this Act.
(3) If this Act comes into force before subsection 107(3) of the other Act, then subsection 107(3) of the other Act is repealed.
(4) If this Act comes into force on the same day as subsection 107(3) of the other Act, then subsection 107(3) of the other Act is deemed to have come into force before this Act.
Published under authority of the Senate of Canada
Explanatory Notes
Bankruptcy and Insolvency Act
Clause 1: (1) Relevant portion of subsection 178(1):
178. (1) An order of discharge does not release the bankrupt from
. . .
(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
. . .
(ii) within ten years after the date on which the bankrupt ceased to be a full- or part-time student; or
(2) Existing text of subsection 178(1.1):
(1.1) At any time after ten 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.