When will the new rules become law – an Update
We have a short update on when the new rules will become law: we have no idea.
As mentioned in our previous student loan bankruptcy blog entry, the Senate passed Bill C-55 with no debate just before Parliament was dissolved on the understanding that the new rules would not come into force before June 30, 2006 to give the Senate Committee on Banking, Trade & Commerce an opportunity to review the legislation, and make whatever changes are required. In a somewhat ironic twist, this commitment was made in a letter from then Liberal Industry Minister David Emerson, who has since crossed the floor to become a minister in the new Conservative government.
What does this all mean? According to Parliament’s web site, the Throne Speech opening the new session of Parliament will be read on April 4, 2006. It will presumably take a period of time thereafter for the Senate Committee on Banking, Trade & Commerce to convene hearings and call witnesses, so it is unlikely and hearings will occur before early May, 2006.
If hearings last for two weeks, and the Committee takes a further two weeks to make it’s recommendations, the Committee’s report may be available by early June, assuming Parliament has not already risen for the summer break.
Government officials at Industry Canada, the division of the government responsible for putting the legislation into the written rules followed by trustees, will no doubt want a few months to draft the rules, seek input from stakeholders, and then give all stakeholders a few months notice before .
Again, what does this mean? In my opinion (and this is purely a guess), the only way the new rules will come into force on July 1 will be if the Senate forgoes hearings, and the rules pass as noted in Bill C-55. If the Senate does hold hearings, it is conceivable that the new rules will not come into force before January 1, 2007.
If you are overwhelmed by your student loan debt, contact a licensed trustee to fully explore your options, and your bankruptcy alternatives.
Is there a way to speed the process up? ie> petitions, constant mail to those who are involved?
I am not aware of any way to speed up the process. The Senate is set to review the legislation, and they tend to work on their own timetable.
Have the Senate had their meetings yet? If not, are they scheduled for a particular time? Also, if they recommend changes, are these changes to the bill itself or are they regulatory changes? When do you think the legislation will be coming into force?
thanks in advance.
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