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CAUT Bulletin Archives

September 2002

Student Bankruptcy Law Challenged

Recent amendments to the Bankruptcy and Insolvency Act bar students from declaring bankruptcy on student loans until 10 years after the completion of their studies. The Canadian Federation of Students argues this restriction discriminates against students and therefore violates the Canadian Charter of Rights and Freedoms. In 1998, CFS announced its intention to launch a legal challenge under section 15 of the Charter. On Dec. 6, 1999 a former stu-dent had her outstanding debt discharged, with the exception of her student loans. CFS filed notice of intent to appeal that judgment on her behalf, and on Dec. 7, 2000 officially filed the case in the Ontario Superior Court. The case is expected to proceed to the trial phase this fall and a decision is expected within six months of the trial.