IN THE SUPREME COURT OF NOVA SCOTIA
IN BANKRUPTCY AND INSOLVENCY
Citation: Cook (Re), 2010 NSSC 224
Date: June 14, 2010
Docket: B 34482
Registry: Halifax
District of Nova Scotia
Division No. 01 - Halifax
Court No. 34482
Estate No. 51-963372
IN THE MATTER OF THE BANKRUPTCY OF
LISA ANN COOK
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LIBRARY HEADING
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Registrar: Richard W. Cregan, Q.C.
Heard: April 23, 2010
Written Decision: June 14, 2010
Subject: Relief from student loans under Subsection 178(1.1) of the Bankruptcy and Insolvency Act.
Summary: Bankrupt aged 37 had accumulated $90,000 in student loans over several years and only recently been able to obtain permanent employment as a school teacher. She supports a teenaged son. It was admitted that she had acted with good faith, the first test under this subsection. However, it was submitted that she did not meet the second test, namely, that she will continue to experience financial difficulty to such an extent that she will be unable to pay the debt.
Result: It was found that she might well be able to pay the debt but it might take most of the rest of her working life to do so. This is more than the bankruptcy process requires of an honest bankrupt who experiences misfortune. Relief was granted.
THIS INFORMATION SHEET DOES NOT FORM PART OF THE COURT’S DECISION.
QUOTES MUST BE FROM THE DECISION, NOT THIS LIBRARY SHEET .