Tip:
Highlight text to annotate it
X
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 a loan that will eventually enable them to
earn income in the future. Student loans fall into this category, as theĀ loan would theoretically
enable a person availing an education to earn an income from his education in the future.