Persons declaring Bankruptcy are governed
under the Bankruptcy and Insolvency Act, RSC 1985 (“BIA”).
The purpose of BIA is to provide a fresh start to honest debtors by discharging their liabilities,
pre-existing their respective Bankruptcy. However, the BIA also prevents individuals
from taking advantage of the Bankruptcy system by absolving themselves of an obligation or
a loan that will eventually enable them to earn income in the future. Student loans fall
into this category, as the loan would theoretically enable a person availing an education to earn
an income from his education in the future.