Canada Student Loan Bankruptcy Legislation

As I reported last month, on December 14, 2007 the new bankruptcy rules received Royal Assent. However, as of today, they have not yet come into force.

That means that the old rules are still in effect: Student loans are only automatically discharged in a bankruptcy if you have ceased to be a student for 10 years or more at the time you go bankrupt.

When will the new rules come into force? As of today, we don’t know. As soon as we do know, I will post it here.

Also, on February 7, 2008 Ted Michalos and I will be testifying before the Senate Standing Committee on Banking, Trade and Commerce. I will be arguing for a reduction in the student loan rule from 10 years currently to 2 years (the new legislation proposes 7 years). The chances of any further changes happening at this time are slim, but I’ll give it a shot.

You can watch the testimony live on the internet at noon eastern time on February 7 on the Senate web site. I’ll report back as to how it went.