Dealing with Debt (10:V) - Revision history

Nate Russell: /* 4. Assets That May be Retained by the Bankrupt in B.C. */

2026-10-06T00:37:14Z

4. Assets That May be Retained by the Bankrupt in B.C.

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	:'''NOTE:''' If the debtor (except anyone in commercial activities (self-employed or business) or in jail) chooses a trustee and is rejected (due to a fee charge) because they are unable to pay, they should contact the Office of the Superintendent of Bankruptcy (“OSB”), and ask to participate in the Bankruptcy Assistance Program. The debtor must obtain a written refusal from 2 trustees and, if they qualify for the program, will then be assigned a trustee in the referral program for a reduced fee (not for free). This program is not available to everyone that cannot afford to pay. Further, it does not exclude non-exempt assets such as GST and income tax refunds from consideration. Information can be found at the Bankruptcy Assistance Program website (https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/you-owe-money/you-owe-money-considering-bankruptcy) or by calling the OSB’s national number at 1-877-376-9902.		:'''NOTE:''' If the debtor (except anyone in commercial activities (self-employed or business) or in jail) chooses a trustee and is rejected (due to a fee charge) because they are unable to pay, they should contact the Office of the Superintendent of Bankruptcy (“OSB”), and ask to participate in the Bankruptcy Assistance Program. The debtor must obtain a written refusal from 2 trustees and, if they qualify for the program, will then be assigned a trustee in the referral program for a reduced fee (not for free). This program is not available to everyone that cannot afford to pay. Further, it does not exclude non-exempt assets such as GST and income tax refunds from consideration. Information can be found at the Bankruptcy Assistance Program website (https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/you-owe-money/you-owe-money-considering-bankruptcy) or by calling the OSB’s national number at 1-877-376-9902.

	:'''NOTE:''' A debtor who is on a low-end fixed income, such as a fixed income pension, with circumstances unlikely to change may have no need to declare bankruptcy as they would be, in essence, judgment-proof. Refer to [[{{PAGENAME}}#C. Communicating with Creditors when Unable to Make Contractual Payments \| Section C above, ''Communicating with Creditors when Unable to Make Contractual Payments''.		:'''NOTE:''' A debtor who is on a low-end fixed income, such as a fixed income pension, with circumstances unlikely to change may have no need to declare bankruptcy as they would be, in essence, judgment-proof. Refer to [[{{PAGENAME}}#C. Communicating with Creditors when Unable to Make Contractual Payments \| Section C above]], ''Communicating with Creditors when Unable to Make Contractual Payments''.

	== I. Student Loan Debt ==		== I. Student Loan Debt ==

Nate Russell: 2026 update

2026-10-06T00:32:43Z

2026 update

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	{{REVIEWED LSLAP \| date= 18 July, ~~2025~~}}		{{REVIEWED LSLAP \| date= 1 July, 2026}}
	{{LSLAP Manual TOC\|expanded = creditors}}		{{LSLAP Manual TOC\|expanded = creditors}}

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	The Financial Consumer Agency of Canada (“FCAC”) publishes a great deal of useful information on ~~consumer’s~~ rights as they relate to financial institutions, including information on opening personal banking accounts and guidelines for garnishing joint accounts: see http://www.fcac-acfc.gc.ca. You should be advised that credit unions in B.C. are governed by the provincial BC Financial Services Authority (“BCFSA”). See https://www.bcfsa.ca/ for further details.		The Financial Consumer Agency of Canada (“FCAC”) publishes a great deal of useful information on consumers’ rights as they relate to financial institutions, including information on opening personal banking accounts and guidelines for garnishing joint accounts: see http://www.fcac-acfc.gc.ca. You should be advised that credit unions in B.C. are governed by the provincial BC Financial Services Authority (“BCFSA”). See https://www.bcfsa.ca/ for further details.

	The Public Legal Education and Information Network's “Clicklaw” web site has a helpful section titled “Debt”. Articles and information on various topics relating to consumer protection, debt and Small Claims Court in British Columbia can be found online at: http://www.clicklaw.bc.ca.		The Public Legal Education and Information Network's “Clicklaw” web site has a helpful section titled “Debt”. Articles and information on various topics relating to consumer protection, debt and Small Claims Court in British Columbia can be found online at: http://www.clicklaw.bc.ca.
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	Creditors will often offer refinancing or debt consolidation as the solution to the debtor’s financial problem. The interest rate may be higher for the consolidation. Terms and conditions will determine total interest paid and the payment period. If making payments in the first place is the problem, consolidation loans may not be the solution. All creditors should be treated on a pro rata basis; if the consolidation only satisfies a particular creditor, the debtor should ensure they are at least able to meet the minimum payments owing to all other creditors.		Creditors will often offer refinancing or debt consolidation as the solution to the debtor’s financial problem. The interest rate may be higher for the consolidation. Terms and conditions will determine total interest paid and the payment period. If making payments in the first place is the problem, consolidation loans may not be the solution. All creditors should be treated on a pro rata basis; if the consolidation only satisfies a particular creditor, the debtor should ensure they are at least able to meet the minimum payments owing to all other creditors.

	:'''NOTE:''' It is important for debtors to be conscious of predatory lending and the ~~current~~ criminal rate of interest under section 347(1) of the ''Criminal Code''~~. Bill C-47~~, which ~~received royal assent on June 22, 2023, proposed~~ an ~~amendment to the criminal interest rate from 47 percent~~ annual percentage rate ~~(APR) to~~ 35 ~~percent APR. Bill C-47 also proposed to adjust the payday loan exemption and limit the interest that can be charged on payday loans~~.		:'''NOTE:''' It is important for debtors to be conscious of predatory lending and the criminal rate of interest under section 347(1) of the ''Criminal Code'', which is set at an annual percentage rate of 35.

	== E. Voluntary Debt Repayment Programs ==		== E. Voluntary Debt Repayment Programs ==

LSLAP at 19:11, 13 October 2025

2025-10-13T19:11:27Z

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	{{REVIEWED LSLAP \| date= ~~11 August~~ 2025}}		{{REVIEWED LSLAP \| date= 18 July, 2025}}
	{{LSLAP Manual TOC\|expanded = creditors}}		{{LSLAP Manual TOC\|expanded = creditors}}

LSLAP: /* 3. Debts That Bankruptcy Will Not Discharge */

2025-09-28T22:47:23Z

3. Debts That Bankruptcy Will Not Discharge

← Older revision		Revision as of 22:47, 28 September 2025
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	The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.		The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.

	A discharge from bankruptcy does not impact a secured creditor's right to enforce their claim against the collateral (see ''[https://www.canlii.org/en/commentary/doc/2024CanLIIDocs3039?searchId=2025-06-23T11:50:45:658/2966448784744ff685eacaa9425bf409&resultId=390fd48b44004691b05fde4591725e3d&zoupio-debug#!fragment/zoupio-_Toc187836378/(hash:(chunk:(anchorText:zoupio-_Toc187836378),notesQuery:'',scrollChunk:!n,searchQuery:'',searchSortBy:RELEVANCE,tab:search)) Secured Creditors After Discharge From Bankruptcy: Revisiting the Debate]'', 2024 CanLIIDocs 3039). However, the discharge does prevent the secured creditor from pursuing the debtor personally for any shortfall, unless the debtor reaffirms the contract with the secured creditor (i.e. reaffirms the personal promise to pay). Continuing payments on a secured loan during or after the bankruptcy might be viewed as an implicit reaffirmation by the debtor (see ''[https://canlii.ca/t/fnll1 Bridgewater Bank v Simms]'', 2011 BCSC 1453 and ''[https://canlii.ca/t/hvk47 Servus Credit Union v Sulyok]'', 2018 ABQB 860).		A discharge from bankruptcy does not impact a secured creditor's right to enforce their claim against the collateral (see ''Secured Creditors After Discharge From Bankruptcy: Revisiting the Debate'', 2024 CanLIIDocs 3039). However, the discharge does prevent the secured creditor from pursuing the debtor personally for any shortfall, unless the debtor reaffirms the contract with the secured creditor (i.e. reaffirms the personal promise to pay). Continuing payments on a secured loan during or after the bankruptcy might be viewed as an implicit reaffirmation by the debtor (see ''[https://canlii.ca/t/fnll1 Bridgewater Bank v Simms]'', 2011 BCSC 1453 and ''[https://canlii.ca/t/hvk47 Servus Credit Union v Sulyok]'', 2018 ABQB 860).

	=== 4. Assets That May be Retained by the Bankrupt in B.C. ===		=== 4. Assets That May be Retained by the Bankrupt in B.C. ===

LSLAP: /* 3. Debts That Bankruptcy Will Not Discharge */

2025-09-28T22:46:11Z

3. Debts That Bankruptcy Will Not Discharge

← Older revision		Revision as of 22:46, 28 September 2025
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	The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.		The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.

	A discharge from bankruptcy does not impact a secured creditor's right to enforce their claim against the collateral (see ''Secured Creditors After Discharge From Bankruptcy: Revisiting the Debate'', 2024 CanLIIDocs 3039). However, the discharge does prevent the secured creditor from pursuing the debtor personally for any shortfall, unless the debtor reaffirms the contract with the secured creditor (i.e. reaffirms the personal promise to pay). Continuing payments on a secured loan during or after the bankruptcy might be viewed as an implicit reaffirmation by the debtor (see ''Bridgewater Bank v Simms'', 2011 BCSC 1453 and ''Servus Credit Union v Sulyok'', 2018 ABQB 860).		A discharge from bankruptcy does not impact a secured creditor's right to enforce their claim against the collateral (see ''[https://www.canlii.org/en/commentary/doc/2024CanLIIDocs3039?searchId=2025-06-23T11:50:45:658/2966448784744ff685eacaa9425bf409&resultId=390fd48b44004691b05fde4591725e3d&zoupio-debug#!fragment/zoupio-_Toc187836378/(hash:(chunk:(anchorText:zoupio-_Toc187836378),notesQuery:'',scrollChunk:!n,searchQuery:'',searchSortBy:RELEVANCE,tab:search)) Secured Creditors After Discharge From Bankruptcy: Revisiting the Debate]'', 2024 CanLIIDocs 3039). However, the discharge does prevent the secured creditor from pursuing the debtor personally for any shortfall, unless the debtor reaffirms the contract with the secured creditor (i.e. reaffirms the personal promise to pay). Continuing payments on a secured loan during or after the bankruptcy might be viewed as an implicit reaffirmation by the debtor (see ''[https://canlii.ca/t/fnll1 Bridgewater Bank v Simms]'', 2011 BCSC 1453 and ''[https://canlii.ca/t/hvk47 Servus Credit Union v Sulyok]'', 2018 ABQB 860).

	=== 4. Assets That May be Retained by the Bankrupt in B.C. ===		=== 4. Assets That May be Retained by the Bankrupt in B.C. ===

LSLAP: /* 3. Debts That Bankruptcy Will Not Discharge */

2025-09-28T22:44:57Z

3. Debts That Bankruptcy Will Not Discharge

← Older revision		Revision as of 22:44, 28 September 2025
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	*An amount obtained under false pretences while acting in a fiduciary capacity;		*An amount obtained under false pretences while acting in a fiduciary capacity;
	*A debt resulting from obtaining property or services by false pretences or by fraudulent misrepresentation (other than a debt arising from an equity claim);		*A debt resulting from obtaining property or services by false pretences or by fraudulent misrepresentation (other than a debt arising from an equity claim);
	*Any debt or obligation for federal and provincial student loans where the date of bankruptcy occurs before the date on which the bankrupt ceased to be a full or part-time student or within 7 years after the last date on which the bankrupt ceased to be a full or part-time student (''BIA'', s 178(1)(g)). The Supreme Court of Canada confirmed that this seven-year period runs from the most recent date the debtor ceased to be a full- or part-time student prior to the bankruptcy, such that restarting studies after a break from or completing studies may reset the 7 year timer: See ''Piekut v Canada'', 2025 SCC 13.		*Any debt or obligation for federal and provincial student loans where the date of bankruptcy occurs before the date on which the bankrupt ceased to be a full or part-time student or within 7 years after the last date on which the bankrupt ceased to be a full or part-time student (''BIA'', s 178(1)(g)). The Supreme Court of Canada confirmed that this seven-year period runs from the most recent date the debtor ceased to be a full- or part-time student prior to the bankruptcy, such that restarting studies after a break from or completing studies may reset the 7 year timer: See ''[https://canlii.ca/t/kblj9 Piekut v Canada]'', 2025 SCC 13.

	The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.		The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.

Nate Russell: review confirmed 2025

2025-08-28T21:25:35Z

review confirmed 2025

← Older revision		Revision as of 21:25, 28 August 2025
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	{{REVIEWED LSLAP \| date= ~~September 2, 2024~~}}		{{REVIEWED LSLAP \| date= 11 August 2025}}
	{{LSLAP Manual TOC\|expanded = creditors}}		{{LSLAP Manual TOC\|expanded = creditors}}

LSLAP at 18:49, 11 August 2025

2025-08-11T18:49:02Z

← Older revision		Revision as of 18:49, 11 August 2025
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	=== 3. Debts That Bankruptcy Will Not Discharge ===		=== 3. Debts That Bankruptcy Will Not Discharge ===

	A debtor should ~~know~~ that ~~filing for~~ bankruptcy ~~will not discharge some obligations~~, ~~such as~~:		A debtor should also be aware that certain types of debts are not discharged in bankruptcy, including:
	*An amount owing on a fine, penalty or restitution order imposed by a court in respect of an offence or debt arising out of a recognizance or bail;		*An amount owing on a fine, penalty or restitution order imposed by a court in respect of an offence or debt arising out of a recognizance or bail;
	*An award of damages by a court in civil proceedings in respect of bodily harm intentionally inflicted or sexual assault (including wrongful death resulting therefrom);		*An award of damages by a court in civil proceedings in respect of bodily harm intentionally inflicted or sexual assault (including wrongful death resulting therefrom);
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	*An amount obtained under false pretences while acting in a fiduciary capacity;		*An amount obtained under false pretences while acting in a fiduciary capacity;
	*A debt resulting from obtaining property or services by false pretences or by fraudulent misrepresentation (other than a debt arising from an equity claim);		*A debt resulting from obtaining property or services by false pretences or by fraudulent misrepresentation (other than a debt arising from an equity claim);
	*Any debt or obligation for federal and provincial student loans where the date of bankruptcy occurs before the date on which the bankrupt ceased to be a full or part-time student or~~, as of June 18, 1998 through an amendment to the Act,~~ within 7 years after the date on which the bankrupt ceased to be a full or part-time student (''BIA'', s 178(1)(g)). ~~Note that the~~ Supreme Court of Canada ~~is presently hearing~~ a ~~case which~~ may ~~impact the starting date for~~ the 7-year ~~period (an appeal of~~ ''Piekut v Canada'', ~~2023 BCCA 181)~~.		*Any debt or obligation for federal and provincial student loans where the date of bankruptcy occurs before the date on which the bankrupt ceased to be a full or part-time student or within 7 years after the last date on which the bankrupt ceased to be a full or part-time student (''BIA'', s 178(1)(g)). The Supreme Court of Canada confirmed that this seven-year period runs from the most recent date the debtor ceased to be a full- or part-time student prior to the bankruptcy, such that restarting studies after a break from or completing studies may reset the 7 year timer: See ''Piekut v Canada'', 2025 SCC 13.

	The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.		The full list of exceptions may be found in s 178(1) of the ''BIA''. Questions about bankruptcy, including specific questions regarding Canada Student Loans, may be directed to a licensed insolvency trustee or the Superintendent of Bankruptcy, at 1-877-376-9902.

			A discharge from bankruptcy does not impact a secured creditor's right to enforce their claim against the collateral (see ''Secured Creditors After Discharge From Bankruptcy: Revisiting the Debate'', 2024 CanLIIDocs 3039). However, the discharge does prevent the secured creditor from pursuing the debtor personally for any shortfall, unless the debtor reaffirms the contract with the secured creditor (i.e. reaffirms the personal promise to pay). Continuing payments on a secured loan during or after the bankruptcy might be viewed as an implicit reaffirmation by the debtor (see ''Bridgewater Bank v Simms'', 2011 BCSC 1453 and ''Servus Credit Union v Sulyok'', 2018 ABQB 860).

	=== 4. Assets That May be Retained by the Bankrupt in B.C. ===		=== 4. Assets That May be Retained by the Bankrupt in B.C. ===

LSLAP at 00:35, 3 September 2024

2024-09-03T00:35:34Z

← Older revision		Revision as of 00:35, 3 September 2024
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	{{REVIEWED LSLAP \| date= ~~July 8~~, ~~2023~~}}		{{REVIEWED LSLAP \| date= September 2, 2024}}
	{{LSLAP Manual TOC\|expanded = creditors}}		{{LSLAP Manual TOC\|expanded = creditors}}

LSLAP at 07:22, 27 August 2024

2024-08-27T07:22:07Z

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