Minto (Bankrupt), Re, (1999) 191 Sask.R. 1 (QB Reg.)

• Court: Court of Queen's Bench of Saskatchewan (Canada)
• Case Date: December 06, 1999
• Jurisdiction: Saskatchewan
• Citations: (1999), 191 Sask.R. 1 (QB Reg.);1999 CanLII 13045 (FCA);1999 CanLII 13045 (SK QB);14 CBR (4th) 235;[1999] SJ No 798 (QL);191 Sask R 1

Minto (Bankrupt), Re (1999), 191 Sask.R. 1 (QB Reg.)

MLB headnote and full text

Temp. Cite: [1999] Sask.R. TBEd. DE.049

In The Matter Of Brian Alvin Minto

And In The Matter Of An Application under section 178(1.1) of the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 as amended

(Bankruptcy No. 4725; Estate No. 025841)

Indexed As: Minto (Bankrupt), Re

Saskatchewan Court of Queen' Bench

In Bankruptcy

Herauf, Registrar in Bankruptcy

December 6, 1999.

Summary:

A former bankrupt applied for the dis­charge of his student loan debt.

A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, allowed the application.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - Section 178(1)(g) of the Bankruptcy and Insol­vency Act provided that certain student loans were not released upon a bankrupt's discharge from bankruptcy - However, s. 178(1.1) permitted a bankrupt to apply for an order that s. 178(1)(g) did not apply to his or her student loan - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, interpreted the meaning of the word "bankrupt" in s. 178(1.1) and con­cluded that it included a discharged bank­rupt - See paragraphs 13 to 23.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - Section 178(1)(g) of the Bankruptcy and Insol­vency Act provided that certain student loans were not released upon a bankrupt's discharge from bankruptcy - However, s. 178(1.1) permitted a bankrupt to apply for an order that s. 178(1)(g) did not apply to his or her student loan - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, rejected an argument that an application under s. 178(1.1) should be made in the ordinary civil courts rather than to the Bankruptcy Court - See para­graphs 27 to 30.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - Minto, a discharged bankrupt, applied for the dis­charge of his student loan debt - Section 178(1)(g) of the Bankruptcy and Insol­vency Act provided that certain student loans were not released upon a bankrupt's discharge from bankruptcy - However, s. 178(1.1) permitted a bankrupt to apply for an order that s. 178(1)(g) did not apply to his or her student loan two years after ceasing to be a full or part-time student - Minto was currently a paid apprentice journey­man machinist who worked 44 weeks a year and received employment insurance during the eight week period he attended the class portion of his appren­ticeship program - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, held that Minto was no longer a "student" and therefore not prevented from seeking relief under s. 178(1.1) - See paragraphs 31 to 50.

Bankruptcy - Topic 8804

Discharge of debtor - General principles - Considerations - Student loans - A dis­charged bankrupt (Minto) applied to dis­charge his student loan debt ($21,000) pursuant to s. 178(1.1) of the Bankruptcy and Insolvency Act - He never completed the course that resulted in the loans - He enroled in a machinist apprenticeship program and earned $8.50/hr. - He was laid off two months each year to attend the class portion of the program - He was separated from his wife and paid $225 monthly child support and shared day-care costs - He never made any loan payments prior to his bankruptcy - Upon completing his apprenticeship in two years, he could earn $10.50/hr. - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, allowed the application - Minto dealt with his student loan obliga­tions in good faith - He was unable to discharge the obligations in the past and was unlikely to be able to do so in the foreseeable future - See paragraphs 53 to 92.

Bankruptcy - Topic 8988

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

Words and Phrases

Bankrupt - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, discussed the meaning of this word as used in s. 178(1.1) of the Bank­ruptcy and Insolvency Act, R.S.C. 1985, c. B-3 - See paragraphs 16 to 20.

Words and Phrases

Debtor - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, discussed the meaning of this word as used generally in the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3 - See paragraph 21.

Words and Phrases

Student - A Registrar of the Saskatchewan Court of Queen's Bench, In Bankruptcy, discussed the meaning of this word as used in s. 178(1.1) of the Bank­ruptcy and Insol­vency Act, R.S.C. 1985, c. B-3 - See paragraphs 31 to 50.

Cases Noticed:

Rizzo & Rizzo Shoes Ltd. (Bankrupt), Re, [1998] 1 S.C.R. 27; 221 N.R. 241; 106 O.A.C. 1, refd to. [para. 13].

Marquete (A.) & Fils Inc. v. Mercure, [1977] 1 S.C.R. 547; 10 N.R. 239, refd to. [para. 15].

Langlois, Re, [1998] N.S.J. No. 369, dist. [para. 24].

Wood (Bankrupt), Re (1998), 133 Man.R.(2d) 230; 7 C.B.R.(4th) 23 (Man. Q.B.), dist. [para. 25].

Dominguez Estate (Bankrupt), Re (1999), 139 Man.R.(2d) 174 (Q.B. Bktcy.), dist. [para. 26].

Statutes Noticed:

Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sect. 2 [para. 27]; sect. 178(1)(g), sect. 178(1.1) [para. 5]; sect. 183 [para. 27].

Lender-Financed Saskatchewan Student Loans Act Regulations (Sask.), Regula­tion 3, sect. 2(1)(i), sect. 2(1)(u), sect. 2(1)(y) [para. 44]; sect. 2(1)(K) [para. 43].

Authors and Works Noticed:

Driedger, Elmer A., Construction of Stat­utes (2nd Ed. 1983), generally [para. 13].

Driedger, Elmer A., Construction of Stat­utes (1974), pp. 12 to 14, 72 to 79 [para. 14].

Counsel:

Anne E. Hardy, for the applicant, Brian Alvin Minto;

W. Brent Gough, for Saskatchewan Stu­dent Aid Fund;

Mary Lou Senko, for Canada Student Loans (prior to Aug./95);

Gary Cooke, Loan Control Manager, Sask­atoon Credit Union, for Federal Loan (post. Aug./95).

This application was heard before Herauf, Registrar in Bankruptcy, of the Saskatchewan Court of Queen's Bench, In Bankruptcy, who delivered the following judgment on December 6, 1999.