Lagace (Bankrupt), Re,

• Jurisdiction: New Brunswick
• Neutral Citation: 2011 NBQB 325
• Citation: (2011), 380 N.B.R.(2d) 138 (QB Reg.),2011 NBQB 325,380 NBR(2d) 138,(2011), 380 NBR(2d) 138 (QB Reg),380 N.B.R.(2d) 138
• Date: 18 November 2011
• Court: Court of Queen's Bench of New Brunswick (Canada)

Lagace (Bankrupt), Re (2011), 380 N.B.R.(2d) 138 (QB Reg.);

    380 R.N.-B.(2e) 138; 980 A.P.R. 138

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Temp. Cite: [2011] N.B.R.(2d) TBEd. NO.039

Renvoi temp.: [2011] N.B.R.(2d) TBEd. NO.039

In The Matter Of the Bankruptcy of Sonia Lagace

And In The Matter Of an Application by Sonia Lagace Pursuant to Subsection 178(1.1) of the Bankruptcy and Insolvency Act

(NB 17250; 51-1066268; 2011 NBQB 325; 2011 NBBR 325)

Indexed As: Lagace (Bankrupt), Re

Répertorié: Lagace (Bankrupt), Re

New Brunswick Court of Queen's Bench

In Bankruptcy and Insolvency

Bray, Registrar

November 21, 2011.

Summary:

Résumé:

A former bankrupt applied pursuant to s. 178(1.1) of the Bankruptcy and Insolvency Act, seeking relief from the obligation to pay the balance on a student loan debt.

A Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, granted the application.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - [See Bankruptcy - Topic 8988 ].

Bankruptcy - Topic 8988

Discharge of debtor - Liabilities not released by discharge - Student loans - Lagace, a former bankrupt, applied pursuant to s. 178(1.1) of the Bankruptcy and Insolvency Act, seeking relief from the obligation to pay the balance on a student loan debt - The student loan was contracted in 2003 to finance a course leading to certification as a medical secretary - The course was successfully completed and Lagace ceased to be a student in June 2004 - She made an assignment in bankruptcy in May 2008 - She received an absolute discharge in February 2009 - Lagace's husband did not declare bankruptcy but filed a proposal on which payments of $250 per month were still being made - Lagace's four year old daughter had special needs requiring ongoing medical and/or psychological care - A financial statement filed by Lagace in December 2010 indicated a monthly surplus of $68.97 - However, Lagace testified that for the previous three months she and her husband had been relying on a payday loan company and that expense had eliminated the small surplus previously recorded - The federal government consented to the relief sought by Lagace - The Province of New Brunswick opposed the application - A balance owing of $8,664.05 was claimed - A Registrar of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, granted Lagace's application.

Faillite - Cote 8804

Libération du débiteur - Principles généraux - Facteurs considérés - Prêts étudiants - [Voir Bankruptcy - Topic 8804 ].

Faillite - Cote 8988

Libération du débiteur - Dettes non libérées - Prêts étudiants - [Voir Bankruptcy - Topic 8988 ].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 178(1.1) [para. 1].

Counsel:

Avocats:

Matthew Munro, Trustee, appeared to assist Sonia Lagace;

Nathalie LeBlanc, for Her Majesty the Queen in right of the Province of New Brunswick as represented by Department of Post-Secondary Education Training and Labour.

This application was heard on November 18, 2011, before Bray, Registrar, of the New Brunswick Court of Queen's Bench, In Bankruptcy and Insolvency, who delivered the following decision on November 21, 2011.