Bankruptcy Question & Answer Forum - Canada

Author:		JDR
Date:		September 1, 2005
Question:		I am considering bankruptcy while still a university student. Due to my poor credit and outstanding debts I can not get a loan. However, I work throughout the year, full time during the summer and part time during the school year, to pay tuition on my own and also my living expenses. If I pay my tuition in September for the school year and file for bankruptcy later, could the courts order me to stop going to school in order to work to pay my creditors rather than university tuition? What should I know about attending university and filing for bankruptcy? Will the money I earn that is for tuition be considered surplus income?
From:		Bruce, Alger & Associates Inc.
Date:		September 1, 2005
Answer:		No, the Court would not Order you to stop school and pay your creditors. However, in setting the terms for any discharge Order, your overall circumstances would be taken into account. For example, someone earning $4000 per month with no dependents who is getting a degree as an accountant, will likely have some sort of conditional discharge Order whereas an Arts degree and limited job job prospects would likely result in an immediate discharge. Bruce Alger phone: (403) 296-2970 balger@alger.ca