2025 SCC 13 – Piekut v. Canada (National Revenue)

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Bankruptcy and insolvency — Debts not released by order of discharge — Student loan debt


(00:00:38) Summary
(00:03:23) Held (Karakatsanis, Martin and Moreau JJ. dissenting in part): The appeal should be dismissed
(00:03:30) Per Wagner C.J. and Côté, Rowe, Kasirer, Jamal and O’Bonsawin JJ.
(00:14:34) Per Karakatsanis, Martin and Moreau JJ. (dissenting in part)


(00:19:27) Reasons for Judgment: Jamal J. (Wagner C.J. and Côté, Rowe, Kasirer and O’Bonsawin JJ. concurring)
(00:19:36) I. Introduction – 1
(00:23:21) II. Background – 9
(00:26:11) III. Judicial History – 15
(00:26:14) A. Supreme Court of British Columbia, 2021 BCSC 1883, 92 C.B.R. (6th) 255 (Milman J.) – 15
(00:29:55) B. Court of Appeal for British Columbia, 2023 BCCA 181, 480 D.L.R. (4th) 530 (DeWitt-Van Oosten J.A., Willcock and Horsman JJ.A. Concurring) – 19
(00:31:27) IV. Issues – 22
(00:32:04) V. Discussion – 25
(00:32:06) A. Relevant Statutory Schemes – 25
(00:32:21) (1) The BIA – 26
(00:32:23) (a) The BIA Limits When an Order of Discharge Releases a Bankrupt from Student Loan Debts – 26
(00:38:09) (b) A Bankrupt Can Be Released from Student Loan Debts Under a Consumer Proposal Subject to the Same Limitations as an Order of Discharge – 31
(00:40:08) (2) Student Loan Legislation – 34
(00:43:33) B. Principles of Statutory Interpretation – 42
(00:47:45) C. When Does a Borrower Cease To Be a Full- or Part-Time Student Under Section 178(1)(g)(ii) of the BIA? – 51
(00:47:54) (1) The Date on Which the Bankrupt Ceased To Be a Full- or Part-Time Student Under Section 178(1)(g) Is Determined by the Applicable Student Loan Legislation – 51
(00:54:32) (2) The Text and Context of Section 178(1)(g)(ii) Support the Single-Date Approach – 63
(01:00:54) (3) The Single-Date Approach Promotes the Purposes or Policy Objectives of Section 178(1)(g)(ii) – 74
(01:02:24) (a) The Legislative History of Section 178(1)(g) Reveals Several Mutually Supportive Purposes or Policy Goals – 77
(01:04:13) (i) Reducing Government Losses on Student Loan Defaults – 82
(01:05:55) (ii) Ensuring the Sustainability of Student Loan Programs for Future Generations – 86
(01:07:22) (iii) Providing Borrowers With a Reasonable Time After Finishing Their Studies To Capitalize on All Their Education, Encouraging Repayment of Student Loans, and Deterring Opportunistic Bankruptcies – 89
(01:12:27) (b) The Multiple-Date Approach Produces Absurd Consequences – 97
(01:15:03) (c) The Single-Date Approach Is Fair to Borrowers – 102
(01:18:44) (4) The Residual Presumption of Restrictive Interpretation Does Not Apply – 108
(01:20:47) (5) Conclusion – 112
(01:21:01) D. Does a Student Loan Creditor Have the Burden To Prove Their Claim Before It Can Be Enforced Under Section 178(1)(g) of the BIA? – 113
(01:25:36) VI. Disposition – 122


(01:25:46) Reasons Dissenting in Part: Karakatsanis J. (Martin and Moreau JJ. concurring)
(01:25:53) I. Introduction – 123
(01:32:23) II. Analysis – 134
(01:56:15) III. Conclusion – 170