Cusack (Bankrupt), Re, (2014) 445 Sask.R. 1 (QB Reg.)

• Jurisdiction: Saskatchewan
• Judge: Thompson
• Neutral Citation: 2014 SKQB 136
• Citation: (2014), 445 Sask.R. 1 (QB Reg.),2014 SKQB 136,445 SaskR 1,(2014), 445 SaskR 1 (QB Reg),445 Sask.R. 1
• Date: 06 May 2014
• Court: Court of Queen's Bench of Saskatchewan (Canada)

Cusack (Bankrupt), Re (2014), 445 Sask.R. 1 (QB Reg.)

MLB headnote and full text

Temp. Cite: [2014] Sask.R. TBEd. JN.026

In The Matter Of the Bankruptcy of Lara Cusack

(23-913251; 19062; 2014 SKQB 136)

Indexed As: Cusack (Bankrupt), Re

Saskatchewan Court of Queen's Bench

In Bankruptcy and Insolvency

Judicial Centre of Regina

Thompson, Registrar

May 6, 2014.

Summary:

Cusack filed an assignment in bankruptcy on December 1, 2006. On September 2, 2007, she received her discharge from bankruptcy. She was released from liability for all of her unsecured debts, except her student loans. Cusack now applied for an order discharging her student loan debt.

A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, ordered that s. 178(1) of the Bankruptcy and Insolvency Act did not apply to Cusack's student loan debts that met the description in s. 178(1) of the Act.

Bankruptcy - Topic 8988

Discharge of debtor - Liabilities not released by discharge - Student loans - Cusack filed an assignment in bankruptcy on December 1, 2006 - She declared unsecured liabilities of $170,000, $35,367.52 of which were student loan debts - On September 2, 2007, she received her discharge from bankruptcy - She was released from liability for all of her unsecured debts, except her student loans - Cusack now applied for an order discharging her student loan debt (approximately $31,505.89) - Cusack had obtained a doctorate in veterinary medicine in May 2005 - She had completed a wildlife training program at the University of Illinois - She received her Internship Certificate in Wildlife, Zoo and Exotic Animal Medicine in July 2007 - She had not been able to find a full time position since June 2006 - She was presently enrolled in a veterinary residency training program (akin to an apprenticeship) in Georgia, which was expected to continue for three years - Her income continued to be below the Superintendent's standards for a family of one - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, ordered that s. 178(1) of the Bankruptcy and Insolvency Act did not apply to Cusack's student loan debts that met the description in s. 178(1) of the Act - Cusack had acted in good faith in connection with her student loan liabilities - Her expenses were modest - She had extenuating non-monetary circumstances that supported her application for relief - Cusack had and would continue to suffer undue hardship to the extent that she would be unable to pay her outstanding student loan debts.

Cases Noticed:

Minto (Bankrupt), Re (1999), 191 Sask.R. 1; 14 C.B.R.(4th) 235 (Q.B. Bktcy. Reg.), refd to. [para. 22].

Dustow (Bankrupt), Re (1999), 193 Sask.R. 159; 14 C.B.R.(4th) 186 (Q.B. Bktcy. Registrar), refd to. [para. 22].

Swann (Bankrupt), Re, [2001] B.C.T.C. 1175; 28 C.B.R.(4th) 137; 2001 BCSC 1175, refd to. [para. 22].

Kelly (Bankrupt), Re, [2000] O.T.C. Uned. C47; 20 C.B.R.(4th) 251 (Sup. Ct.), refd to. [para. 22].

Hankinson (Bankrupt), Re (2009), 280 N.S.R.(2d) 266; 891 A.P.R. 266; 2009 NSSC 211 (Bktcy. Reg.), refd to. [para. 22].

Cote (Bankrupt), Re, [2010] B.C.T.C. Uned. 490; 66 C.B.R.(5th) 45; 2010 BCSC 490, (Master), refd to. [para. 22].

West (Bankrupt), Re (2009), 355 Sask.R. 7; 61 C.B.R.(5th) 240; 2009 SKQB 400 (Bktcy. Reg.), refd to. [para. 22].

Fournier, Re, [2009] O.J. No. 2561 (Sup.Ct.), refd to. [para. 31].

Doucet (Bankrupt), Re (2009), 345 N.B.R.(2d) 379; 889 A.P.R. 379; 2009 NBQB 183 (Bktcy. Reg.), refd to. [para. 38].

Wood (Bankrupt), Re (1998), 133 Man.R.(2d) 230; 7 C.B.R.(4th) 23 (Q.B. Bktcy. Reg.), refd to. [para. 42].

Counsel:

Anne Hardy, on behalf of Lara Cusack (the Bankrupt);

Eric Marcotte, on behalf of Canada Student Loans.

This application was heard before Thompson, Registrar, of the Saskatchewan Court of Queen's Bench, In Bankruptcy and Insolvency, Judicial Centre of Regina, who delivered the following judgment on May 6, 2014.