When will the new rules become law?
As readers of this blog know, Bill C-55 received Royal Assent on November 25, 2005. However, once a bill is passed, it takes time for the government to prepare the rules and regulations explaining how the new legislation will work in practice, so the date that the new rules will become law is not yet known.
Because Bill C-55 was passed with virtually no opportunity for corrections or changes, Industry Minister David Emerson has advised the Senate Committee on Banking, Trade & Commerce that the new rules will not come into force before June 30, 2006. Click here to read the letter from Industry Minister David Emerson.
It would appear that early in 2006 the Senate Committee on Banking, Trade & Commerce will conduct hearings into this legislation (even though they have already passed it), and it is likely that changes will be made to the legislation before it comes into force. If the changes are extensive, it is possible that the changes will not become law until late in 2006, or perhaps even until 2007.
Stay tuned to this student loan bankruptcy blog for more information as it becomes available, or consult a licensed trustee to determine how the new rules will impact on your student loan, if you decide to go bankrupt.
hi, I was wondering if you could help me out with my situation. I went to school from 1996-1998 and then from 2000-2002 accumulating a lot of student debt. I went bankrupt in 2003 and was discharged in 2004. How will the new law impact my situation, specifically will I get some relief from this large debt burden that I just can’t pay off given my current income? I have about $35,000 outstanding.
I assume the new law will not be retroactive, so it will not impact your situation directly. However, it is possible, once your loans are ten years old (under the current law) to apply to court to have them discharged. You should contact a bankruptcy trustee or a lawyer to discuss this possibility.
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