Student Loans and Bankruptcy Act – An order of discharge

An order of discharge under the BIA releases the debtor from all provable claims of the creditors on payment of creditors. Discharge orders are passed by the Superior Court in Ontario. Discharge orders are either automatic or conditional. The BIA stipulates that any debt or obligation relating to a student loan will not be released […]

Continue Reading...

Licensed Insolvency Trustee (LIT) is the new title for Trustee in Bankruptcy

Who handles my bankruptcy? What is a Licensed Insolvency Trustee Canada bankruptcy and consumer proposals can only be administered by a licensed insolvency trustee Who has been examined and licensed by the federal government Licensed Insolvency Trustees are the only one’s able to impose powerful legal restrictions on your creditors A trustee can also give […]

Continue Reading...

Student Loans and Bankruptcy and Insolvency Act

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 […]

Continue Reading...

Do I still have to pay child support if I go bankrupt?

Oh yeah. Definitely. And if you owe arrears, those remain after bankruptcy. Depending on your situation, the amount you have to pay in a bankruptcy may be significantly lower if you can prove support payments. Remember as well that since going bankrupt or filing a proposal eliminates your other debt payments, the amount of support you […]

Continue Reading...

Student Loan Debt and Bankruptcy – View of the courts

Obtaining a post-secondary education is considered a long term asset as it will continue to generate income. The integrity of the Bankruptcy and Insolvency system would be undermined if the debtor were to retain the entire benefit of the asset without the creditors having a share. This was held in a decision of the Court of Queens […]

Continue Reading...