Dobbelsteyn (Bankrupt), Re, (2016) 448 N.B.R.(2d) 181 (QB Reg.)

• Jurisdiction: New Brunswick
• Neutral Citation: 2016 NBQB 58
• Citation: (2016), 448 N.B.R.(2d) 181 (QB Reg.),2016 NBQB 58,448 NBR(2d) 181,(2016), 448 NBR(2d) 181 (QB Reg),448 N.B.R.(2d) 181
• Date: 04 February 2016
• Court: Court of Queen's Bench of New Brunswick (Canada)

Dobbelsteyn (Bankrupt), Re (2016), 448 N.B.R.(2d) 181 (QB Reg.);

    448 R.N.-B.(2e) 181; 1179 A.P.R. 181

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Temp. Cite: [2016] N.B.R.(2d) TBEd. MR.019

Renvoi temp.: [2016] N.B.R.(2d) TBEd. MR.019

In The Matter Of the Bankruptcy of Stacy Majorie Dobbelsteyn

(NB 21596; Estate Number 51-1810734; 2016 NBQB 58; 2016 NBBR 58)

Indexed As: Dobbelsteyn (Bankrupt), Re

Répertorié: Dobbelsteyn (Bankrupt), Re

New Brunswick Court of Queen's Bench

In Bankruptcy and Insolvency

Evans, Deputy Registrar

March 9, 2016.

Summary:

Résumé:

A bankrupt filed an assignment in bankruptcy in 2013 and was discharged in 2014. She applied under s. 178(1.1) of the Bankruptcy Act for release from her student loans.

The Deputy Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, dismissed the application.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - Dobbelsteyn obtained a total of $13,426 from the Canada and New Brunswick student loan programs - She graduated from a community college program in 2008 but was unable to find employment in her field - In addition to obtaining relief under the Repayment Assistance Program, Dobbelsteyn made student loan payments from January 2009 to September 2013 - She filed an assignment in bankruptcy in November 2013 and was discharged in August 2014 - Dobbelsteyn applied under s. 178(1.1) of the Bankruptcy Act for release from her student loans - The Deputy Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, dismissed the application - Although Dobbelsteyn had acted in good faith in connection with her student loan debt, she failed to establish that she would continue to experience financial difficulty to such an extent that she would be unable to pay the debt - Dobbelsteyn was now working 15 to 30 hours/week and earning approximately $875/month - She relied on household expenses as a reason to be relieved from the debt - Therefore, household income was a relevant consideration - Her husband earned more than $40,000/year - The Monthly Income and Expense statement showed a surplus, and certain expenses were excessive for a person asking to be relieved from a student loan debt - Even considering only Dobbelsteyn's individual income, she was able to pay her student loan payment of $164/month.

Bankruptcy - Topic 8988

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

Cases Noticed:

Minto (Bankrupt), Re (1999), 191 Sask.R. 1; 14 C.B.R.(4th) 235 (Q.B. Bktcy. Reg.), refd to. [para. 8].

Legault (Bankrupt), Re (1994), 40 B.C.A.C. 298; 65 W.A.C. 298; 88 B.C.L.R.(2d) 242 (C.A.), refd to. [para. 15].

West (Bankrupt), Re (2009), 355 Sask.R. 7; 61 C.B.R.(5th) 232; 2009 SKQB 400, refd to. [para. 17].

McLeod (Bankrupt), Re, [2001] B.C.T.C. 1150; 2001 BCSC 1150 (Bktcy. Reg.), refd to. [para. 24].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 178(1.1) [para. 12].

Counsel:

Avocats:

Mark Marshall, Allan Marshall & Associates, Trustee;

No one appeared for Her Majesty the Queen in Right of Canada;

Philippe A.R. Thériault, for Her Majesty the Queen in Right of the Province of New Brunswick;

Stacy Majorie Dobbelsteyn, on her own behalf.

This application was heard on February 4, 2016, before Evans, Deputy Registrar, of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, who delivered the following decision on March 9, 2016.