On April 17, 2025, the Supreme Court of Canada (SCC) released its decision, Piekut v Canada, 2025 SCC 13, in which the SCC declined to release the plaintiff from her student loan debt, finding that she sought relief too close to when she ceased being a student. Significantly, this decision clarifies how courts across the country should interpret federal bankruptcy and insolvency law.
Specifically, the Bankruptcy and Insolvency Act, RSC 1985 c B-3 (the "Act"), states that a bankrupt individuals may receive a discharge order releasing them from all of their debts, subject to exceptions listed in Section 178(1). One exception under Section 178(1)(g)(ii) of the Act applies to student loans, where the date an individual files for bankruptcy must not fall within seven years of the date that the individual ceased being a full or part-time student.
Prior to this decision, there was no universal approach for how courts across the country interpreted the date on which an individual ceased being a student. Rather, provinces typically interpreted the legislation in one of two ways, using either a single-date or multiple-date approach. Specifically, courts in Quebec...
