Bill C-55

June 7th, 2005 by Questions

\”To soften the blow, the bankrupt may apply to the court if their student loans are more than five years old, and the court may discharge the debt if the bankrupt has acted in good faith, and the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the debt.\”What does acting in good faith mean and how much difficulty does one need to show to qualify for the 5 year case?\”

Thank you.


One Response to “Bill C-55”

, A licensed trustee said:

At the present time, we don’t know the answer to your question. We assume that “showing good faith” means that you have attempted to make payments when possible on your student loan, but due to your financial situation you have been unable to pay the full balance owing.

If and when Bill C-55 is passed into law, there will no doubt be a number of court cases that will provide us with further direction on this issue.

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