What about child support arrears? Student Loan Debt?

Child support is a special obligation that is not discharged through either bankruptcy filing or proposal filing.  In other words, if you owe child support, it will survive.  In fact, child support payments and garnishments of income (seizure of income) due to child support arrears is not halted by filing a bankruptcy or a proposal.

Regarding federal or provincial student loans, they will ‘go-away’ if you last attended at school over seven years ago.  But as it stands in Ontario at the moment,  if you returned to school at any point within the last seven years –even if you did not obtain additional student loans when you returned–then the loans will survive both bankruptcy and proposal filings!

But stay tuned, the Court of Appeal in British Columbia will decide whether government-backed student loans  should ‘go-away’ in proposals and bankruptcies based solely on the date the student last attended school for which they received federal or provincial student loans.  ( Piekut v. Canada (Minister of National Revenue), 2022 BCCA 50).


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