Handspiker (Re)

Handspiker (Re)

Although student loans attract special moral and public policy considerations, where the loans are dischargeable by operation of law (assignment more than seven years after study) and the bankrupt has made meaningful repayment efforts, lacks surplus income, has no realizable assets, and has not engaged in abusive...

Source-derived case information.

Citation
2018 NSSC 333
Parties
Bankrupt: Alyssa Ashley Ann Handspiker; Trustee: BDO Canada Limited
Court
Supreme Court of Nova Scotia
Jurisdiction
Canada
Judgment Date
24 December 2018
Procedural Posture
Bankruptcy and Insolvency / Discharge Application (absolute Discharge)
Outcome
Absolute order of discharge granted.
Legal Topics
Absolute Discharge, Dischargeability of Student Loans, S.178(1)(g) and S.178(1.1) BIA, 50 Cents on the Dollar Rule
Source Language
english
Bankruptcy and Insolvency Student Loans Absolute Discharge Dischargeability of Student Loans S.178(1)(g) and S.178(1.1) BIA 50 Cents on the Dollar Rule

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Parties

Alyssa Ashley Ann Handspiker

Bankrupt

BDO Canada Limited

Trustee

Procedural Posture

Bankruptcy and Insolvency / Discharge Application (absolute Discharge)

Legal Issues

  1. 1 Whether an absolute discharge should be granted where the bankrupt's sole liabilities are dischargeable student loans
  2. 2 How Re Burke (1992) applies after legislative amendments to ss.178(1)(g) and 178(1.1) BIA
  3. 3 Application of the '50 cents on the dollar' fact in s.173(1)(a) (assets not equal to 50 cents on the dollar)

Ratio Decidendi

Although student loans attract special moral and public policy considerations, where the loans are dischargeable by operation of law (assignment more than seven years after study) and the bankrupt has made meaningful repayment efforts, lacks surplus income, has no realizable assets, and has not engaged in abusive conduct, an absolute discharge is appropriate; the Burke principle does not mandate denial of discharge in such circumstances.

Court Disposition

Absolute order of discharge granted.

Orders

  • Absolute order of discharge granted to Alyssa Ashley Ann Handspiker.