Cook (Bankrupt), Re, 2010 NSSC 224

• Court: Supreme Court of Nova Scotia (Canada)
• Case Date: April 23, 2010
• Jurisdiction: Nova Scotia
• Citations: 2010 NSSC 224;(2010), 291 N.S.R.(2d) 380 (SC Reg.)

Cook (Bankrupt), Re (2010), 291 N.S.R.(2d) 380 (SC Reg.);

    922 A.P.R. 380

MLB headnote and full text

Temp. Cite: [2010] N.S.R.(2d) TBEd. JN.038

In The Matter Of The Bankruptcy of Lisa Ann Cook

(B34482; Estate No. 51-963372; 2010 NSSC 224)

Indexed As: Cook (Bankrupt), Re

Nova Scotia Supreme Court

In Bankruptcy and Insolvency

Cregan, Registrar

June 14, 2010.

Summary:

The 37 year old bankrupt, the single mother of a teenager, applied under s. 178(1.1) of the Bankruptcy and Insolvency Act for an order relieving her of her student loan debt of approximately $90,000.

A Registrar of the Nova Scotia Supreme Court, in Bankruptcy and Insolvency, allowed the application and made the requested order.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - The 37 year old discharged bankrupt was the single mother of a teenager - She attended university from 1991 to 2003, obtaining three degrees - She financed her education with student loans having a balance of $80,750 in 2007 when she made her assignment in bankruptcy - The total accrued debt, with interest, was now $90,000 - She was unable to find full-time teaching employment until 2008 - She earned $53,000 per year, with net monthly income of $3,305, just slightly above her reasonable usual monthly expenses - The bankrupt applied under s. 178(1.1) of the Bankruptcy and Insolvency Act for an order relieving her of her student loan debt - A Registrar of the Nova Scotia Supreme Court, in Bankruptcy and Insolvency, granted the order sought - If the order were not granted, the bankrupt would likely have to make a second assignment in bankruptcy, with her discharge from a second bankruptcy not being normally available for 36 months - During that time, she would most likely (based on current income) have to pay to the trustee surplus income of $500 per month - The Registrar was satisfied that the s. 178(1.1) requirements of good faith, and continuing financial difficulty rendering the bankrupt unable to pay the debt, had been met - The Registrar noted that it would take a considerable period of time, possibly 25 years, for the bankrupt to pay off the debt - The Registrar stated that "it is fair to say that she is an honest debtor who has experienced misfortune. To laden her with this debt for most of her remaining working life or to require her to make a second assignment in bankruptcy is more than what should be expected of such a person".

Bankruptcy - Topic 8988

Discharge of debtor - Liabilities not released by discharge - Student loans - [See Bankruptcy - Topic 8804 ].

Cases Noticed:

Kelly (Bankrupt), Re, [2000] O.T.C. Uned. C47; 20 C.B.R.(4th) 251 (Sup. Ct. Bktcy. Reg.), refd to. [para. 16].

Minto (Bankrupt), Re (1999), 191 Sask.R. 1; 14 C.B.R.(4th) 235 (Q.B. Bktcy. Reg.), refd to. [para. 16].

Hankinson (Bankrupt), Re (2009), 280 N.S.R.(2d) 266; 891 A.P.R. 266; 2009 NSSC 211 (Bktcy. Reg.), refd to. [para. 18].

Wood (Bankrupt), Re (1998), 133 Man.R.(2d) 230; 7 C.B.R.(4th) 23 (Q.B. Bktcy. Reg.), refd to. [para. 18].

Cardwell, Re (2006), 278 Sask.R. 106; 2006 SKQB 164 (Bktcy. Reg.), refd to. [para. 19].

Rendely (Bankrupt), Re, [2003] O.T.C. 987; 3 C.B.R.(5th) 136 (Sup. Ct.), refd to. [para. 20].

Pyke (Bankrupt), Re (2005), 230 N.S.R.(2d) 104; 729 A.P.R. 104; 2005 NSSC 33 (Bktcy. Reg.), refd to. [para. 21].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 178(1.1) [para. 13].

Counsel:

Lisa Ann Cook, bankrupt, representing herself;

Mark S. Freeman, for the Attorney General of Canada.

This application was heard on April 23, 2010, before Cregan, Registrar, of the Nova Scotia Supreme Court, In Bankruptcy and Insolvency, who delivered the following judgment on June 14, 2010.