Financial Experts Grade New Bankruptcy Legislation: Student Loans: D, Tax Debts: D, Average Consumers: B+

    OTTAWA, Feb. 7 /CNW/ - Today at their appearance before the Senate
Standing Committee on Banking, Trade and Commerce, Douglas Hoyes and Ted
Michalos give the new bankruptcy legislation a very low grade for former
students and for tax debtors, and a B+ for the average consumer.
    "Former students are still getting the short end of the stick under the
new legislation," says Douglas Hoyes, a trustee in bankruptcy with over 20
years professional experience. Our research demonstrates that people who file
bankruptcy owing money for student loans tend to be younger,
disproportionately female, and have lower incomes than other bankrupts. These
are people who truly need help, so we urge the government to stop punishing
bankrupts with student loan debts."
    "The new rules encourage debtors to file proposals to avoid bankruptcy.
That is why we have given it a higher grade," said Ted Michalos. "However,
while one branch of the government is encouraging proposals as an alternative
to bankruptcy, another branch of the government, the Canada Revenue Agency, in
many cases prefers bankruptcies over proposals. We believe all branches of the
federal government should work towards the same objectives."
    Amendments to the Bankruptcy & Insolvency Act contained in Bill C-12 were
given Royal Assent on December 14, 2007, but have not yet come into force. The
Senate is continuing to hold hearings on future bankruptcy reform.
    Although they are encouraged by the revised bankruptcy legislation, both
Hoyes and Michalos encourage the government to improve the legislation to make
it more equitable to former students, and to eliminate the inconsistencies in
the application of the rules between various government agencies.

    Hoyes, Michalos & Associates Inc., a trustee in bankruptcy firm with
offices throughout Ontario, helps people in financial difficulty. Further
information, and a complete copy of the submission to the Senate Committee,
can be found at

For further information:

For further information: Douglas Hoyes, CA, Trustee in Bankruptcy,; Ted Michalos, CA, Trustee in Bankruptcy,,

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