Bill S-219 explained in plain English
An Act to amend the Bankruptcy and Insolvency Act (student loans)
Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.
At a glance
Official Parliament of Canada snapshot for 40th Parliament, 2nd Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.
Our plain-language take, written for civic education.
Source: By PoliticalData.ca
Bill S-219, if enacted, would amend the Bankruptcy and Insolvency Act to alter the conditions under which bankrupt individuals are released from student loan debt and would allow individuals to apply to the court for relief from such debt under specific financial hardship conditions.
This bill proposes to amend the Bankruptcy and Insolvency Act to change the rules around the discharge of student loan debt in bankruptcy. Currently, a bankrupt is generally released from student loan debt if seven years have passed since they stopped being a student. This bill would shorten that period to five years. It also introduces a new provision allowing a bankrupt to apply to the court at any time for an order to be released from all or part of their student loan debt, or to set terms for repayment, if they have acted in good faith and are experiencing significant financial difficulty. The bill also includes transitional provisions for how these amendments would apply.
- It would change the Bankruptcy and Insolvency Act to state that a discharge from bankruptcy does not release a person from student loan debt if the bankruptcy occurred within five years after they stopped being a student.
- It would introduce a new process allowing bankrupt individuals to apply to a court for an order to be released from all or part of their student loan debt, or to have repayment terms set.
- It specifies that a court may grant such an order if the bankrupt has acted in good faith and is experiencing financial difficulty that prevents them from paying the debt.
- It outlines factors the court must consider when deciding on such an application, including efforts made to repay, future earning capacity, and other obligations.
- It sets out transitional rules for how these changes would apply to discharges and bankruptcies occurring before or after the amendments come into force.
- Individuals who declare bankruptcy and have outstanding student loan debt.
- Courts that handle bankruptcy cases.
- Lenders of student loans.
- The right of a bankrupt individual to apply to the court for relief from student loan debt under certain conditions.
- The obligation of the court to consider specific factors (e.g., good faith, financial difficulty, future earning capacity, family obligations) when hearing an application for relief from student loan debt.
- The condition that a bankruptcy discharge does not release a bankrupt from student loan debt if the bankruptcy occurs within five years of ceasing to be a student.
- The amendments related to the five-year period for student loans would apply to discharges occurring on or after the day on which that subsection comes into force.
- The amendments related to the court application process for student loan debt would apply to any person who becomes bankrupt before, on, or after the day on which that subsection comes into force.
- The bill text does not specify the exact date the proposed amendments would come into force; this would be determined through the legislative process.
- The bill outlines general conditions for court relief (good faith, financial difficulty) but the specific interpretation and application of these conditions would be up to the courts.
- The bill does not specify the sources or types of student loans that would be subject to these provisions beyond referencing federal acts and provincial enactments providing for student loans or guarantees.
This bill proposes changes to specific sections of the Bankruptcy and Insolvency Act, particularly concerning the discharge of student loan debts and the conditions under which a bankrupt individual can seek relief from such debts through the court.
Source: Section 1
Specifically, it seeks to replace subparagraph 178(1)(g)(ii) which relates to debts not released by a discharge in bankruptcy, altering the timeframe related to being a student from seven years to five years for student loans.
Source: Section 1(1)
It also proposes to replace subsection 178(1.1) and add new subsections 178(1.2) and 178(1.3), creating a court application process for bankrupt individuals with student loan debt to seek release or repayment terms.
Source: Section 1(2)
Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.
Official textParliamentary Process
Bill S-219, aimed at amending the Bankruptcy and Insolvency Act concerning student loans, was introduced in the Senate but was ultimately withdrawn after a point of order was raised and a Speaker's ruling.
Bill S-219, concerning student loans and the Bankruptcy and Insolvency Act, reached its first reading in the Senate on February 3, 2009. It later proceeded to second reading on February 5, 2009. However, a point of order was raised regarding the bill's acceptability. Ultimately, the bill was dropped from the Senate's Order Paper on May 5, 2009, following a Speaker's ruling, and was not proceeded with further.
Bill S-219, an Act to Amend the Bankruptcy and Insolvency Act (student loans), was introduced and received first reading in the Senate on February 3, 2009.
On February 3, 2009, Bill S-219, an Act to Amend the Bankruptcy and Insolvency Act (student loans), was introduced and received first reading in the Senate. This procedural step means the bill has been formally presented to the Senate for consideration but has not yet been debated or voted upon. The artifact does not contain details about the bill's content or any discussion related to it; it primarily records the procedural action of its introduction.
Bill S-219, aiming to amend the Bankruptcy and Insolvency Act concerning student loans, was withdrawn from the Senate Order Paper in May 2009 after procedural issues were raised during its second reading.
Bill S-219, concerning student loans and the Bankruptcy and Insolvency Act, reached the second reading stage in the Senate on February 5, 2009. A point of order regarding the bill's acceptability was raised on April 1, 2009. Ultimately, the bill was dropped from the Senate Order Paper on May 5, 2009, after a ruling by the Speaker. The bill was not proceeded with and was considered withdrawn.
The Senate's second reading debate on Bill S-219 regarding student loans was adjourned, alongside other parliamentary business and tributes to a retiring senator.
On February 5, 2009, in the Senate, the second reading debate for Bill S-219, an Act to amend the Bankruptcy and Insolvency Act (student loans), was adjourned. The sitting also included tributes to Senator Marilyn Trenholme Counsell, who was retiring, tabling of various reports, questions regarding Arctic patrol ships and Budget 2009, and the first reading of a bill to amend the Canada Elections Act and the Parliament of Canada Act. The second reading debate for Bill S-220, an Act respecting commercial electronic messages (anti-spam bill), was also adjourned.
During the Senate's second reading debate on Bill S-219, Senator Goldstein argued for changes to bankruptcy laws to allow for the discharge of student loans under specific hardship circumstances, after which the debate was adjourned.
This record details a Senate debate on February 5, 2009, concerning Bill S-219, which aims to amend the Bankruptcy and Insolvency Act regarding student loans. The debate occurred at the second reading stage. Senator Yoine Goldstein introduced the bill, explaining that it seeks to make student loans dischargeable in bankruptcy under certain conditions, arguing that students take a similar risk to entrepreneurs when investing in education. The bill proposes that student loans would be automatically subject to discharge if bankruptcy occurs more than five years after studies end. It would also allow former students facing severe financial difficulty to apply to a court at any time for discharge, provided they acted in good faith and meet specific criteria. The debate was adjourned and the bill has not proceeded further. The majority of the artifact consists of tributes to Senator Marilyn Trenholme Counsell upon her retirement from the Senate.
During a Senate sitting on April 1, 2009, a point of order was raised concerning Bill S-219 (student loans) and the need for a Royal Recommendation, with the Speaker reserving a ruling, while other legislative matters and procedural issues were also addressed.
On April 1, 2009, the Senate met. The sitting included official greetings, the tabling of reports, question period, and debate on several bills and inquiries. The main procedural event related to Bill S-219 was a point of order raised concerning whether it required a Royal Recommendation. The Speaker reserved a ruling on this matter. The sitting also included debates on Bills C-9, S-213, S-220, S-222, and an inquiry regarding Budget 2009. Various questions of privilege were also raised and rulings were reserved or made.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
We don't have a plain-language summary for First reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Second reading yet. The official source linked below is the full record.
We don't have a plain-language summary for Consideration in committee yet. The official source linked below is the full record.
We don't have a plain-language summary for Report stage yet. The official source linked below is the full record.
We don't have a plain-language summary for Third reading yet. The official source linked below is the full record.
Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.
Vote Summary
This bill is still active. We only show vote counts after the legislature publishes a recorded division.
No published representative vote breakdown
This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.
Official sources
Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.
How this data is sourced