Hoyes Michalos Senate Testimony

On February 7, 2008 Doug Hoyes and Ted Michalos appeared as expert witnesses before the Senate Standing Committee on Banking, Trade and Commerce to provide their testimony on changes to Canadian bankruptcy law. Doug and Ted testified as to the impact of bankruptcy on the average insolvent debtor based on their semi-annual Joe Debtor study.

You can read the entire Report to the Senate prepared by Hoyes Michalos.

Bankruptcy law in Canada changed significantly in 2008 and 2009, including:

  • Student loans are now automatically discharged after seven years, as compared to the old 10 year rule;
  • RRSPs are now exempt from seizure in a bankruptcy (under certain conditions) and;
  • Tax refunds in bankruptcy now seized for the entire year of bankruptcy.
  • All bankrupts are now subject to an income test. If you have surplus income of $200 or greater each month, the bankruptcy period is automatically extended from 9 months to 21 months (or in the case of a second bankruptcy, the bankruptcy period is extended to 36 months);
  • The debt limit to be eligible to file a consumer proposal was increased from $75,000 to $250,000.
  • A secured lender cannot terminate a contract simply due to the filing of bankruptcy.


Senate Testimony: Introductory Remarks

Doug’s Opening Remarks

In his opening remarks, Doug discussed the people that we have helped since 1999 (2:40 min).

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The Stigma of Bankruptcy

In his opening remarks, Doug discussed the people that we have helped since 1999 (2:40 min).

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Student Loans – Part 1

In our testimony we discussed allowing students to discharge their student loans, in cases of hardship, after two years (2:42 min).

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Student Loans – Part II

Senate Testimony: Student Loans, Part II

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Student Loans Part III

Later on in the session, the Senators asked more questions about bankruptcy rules on student loans (8:44 min).

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Senate Testimony: Student Loans, Part IV

Student Loans Part IV

More on the changes to the bankruptcy rules and the new treatment of student loans (7:01 min).

In his opening remarks, Doug discussed the people that we have helped since 1999 (2:40 min).

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Consumer Proposals

In our testimony before the Senate we discussed the Hoyes Michalos’ approach to avoiding bankruptcy by filing a proposal (6:49 min).

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Canada Revenue Agency – Part I

The Senators asked a number of questions about Canada Revenue Agency and proposals (8:29 min).

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Canada Revenue Agency – Part II

The Senators asked more questions about Canada Revenue Agency and proposals (6:01 min).

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