Student Loans in Bankruptcy Blog

Canada Student Loan Bankruptcy Legislation

Student loans in Canada are not automatically discharged in a bankruptcy or consumer proposal unless they are over 7 years old. This blog tracks changes to this legislation, and current student loan and bankruptcy developments.

Private Member’s Bill Introduced to Amend Bankruptcy Legislation

A private member’s bill was introduced in the House of Commons on October 20, 2004. Bill C-236, An Act to amend the Bankruptcy and Insolvency Act (student loan), was introduced by Alexa McDonough, the Member of Parliament for Halifax.

In her bill she proposes that all student loans two years and older be automatically discharged in a bankruptcy. The current status of this bill is available from the Library of Parliament’s web site.