The Cadre +

13 October 1998

a a i a ee News 5

Opposition grows to bankrupcy legislation

BY MELISSA DOUCETTE

A Charter Challenge against recent changes to bankruptcy legislation has been launched by the Canadian Fed- eration of Students (CFS).

The new legislation pro-

hibits students from declaring groups

bankruptcy for a period of ten

years.

Although the CFS con- tinues to lobby Members of Parliamentstrongly against the changes, they are already in effect.

The CFS Week of Ac- tion, October 13-16, will be an opportunity to demonstrate against the bankruptcy legisla- tion

CFS officials are confi- dent they have a strong legal case in Charter Challenge they are pursuing.

The Canadian Charter of Rights and Freedoms does not make provisions for oe group discrimination, but ac- cording to Article 15 (1), dis- crimination on the basis of age is prohibited.

Since 75 of all students who declare bank- ruptcy are under the age of 30,

the CFS is using Article 15(1) as its legal foundation.

The CFS is not alone in condemning the new legisla- ton.

Several communit and government offi- cials have also raised strong objections to the changes.

Libby Davies, NDP MP for Vancouver-East, is intro- ducing a Private Member's Billthis Fall to amend the Bank- ruptcy Insolvency Act (BIA) as it relates to student loans.

In a letter dated August 14, she condemns the current

“(The legislation is) ca- tering to the poring Se which benefits from the prof- its generated from interest ac- cumulated on long-term stu- dent debt,” she writes.

_ _ Many lawyers who ad- minister proce- dures are also unhappy with the ten ow waiting period.

“The [change] seems draconian and punitive since it will punish our poorest and most citizens,” adds Earl Trustee in Bank-

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ruptcy, in a brief submitted to the Minister of Finance.

But Walter MacKinnon, Prince Edward Island Trustee in Bankruptcy, is less harsh.

He cites “massive num- bers” of students declaring bankruptcy as the catalyst for the ten year amendment, but admitted that he had no access to related statistics.

Approximately 8,000 stu- dents declare bankruptcy each year, out of over 1.2 million students enrolled in post-sec-

education in Canada.

ill, MacKinnon did think that ten years was too long of a deferral period.

Robert Maddix, Liberal Education Critic and MLA for Evangeline-Miscouche, is less

ing.

He calls the legislation “very unfair . . . and very unreasonable,” saying that the

needs to work with students that have high debt loads.

A ing to Maddix, students shou the same opportunity given to busi- nesses, which have no time restrictions on declaring bank- ruptcy.

“Students need the same kinds of rights. ... Everybody should be treated fairly,” de- clares Maddix.

they are 22 or older, or if

they have rior loan re- Oaks to the BIA were made wi consulta-

cording to one civil servant in the Education

Note:Although all four Prince Edward Island MP's were contacted for comment, none responded to discuss the issue.

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