Bauckman (Re), 2013 NSSC 34

IN THE SUPREME COURT OF NOVA SCOTIA IN BANKRUPTCY AND INSOLVENCY Citation: Bauckman (Re), 2013 NSSC 34 Date: January 28, 2013 Docket: 36305 Registry : Halifax District of Nova Scotia Division No. 01 - Halifax Court No. 36305 Estate No. 51-1042642 IN THE MATTER OF THE BANKRUPTCY OF ERIK STEPHEN BAUCKMAN __________________________________________________________________ D E C I S I O N __________________________________________________________________ Registrar: Richard W. Cregan, Q.C. Heard: November 30, 2012 Present: Erik Stephen Bauckman representing himself

[ 1 ] This is an application by Erik Bauckman under Section 178(1.1) of the Bankruptcy and Insolvency Act , R.S.C. 1985, c. B-3 ( BIA ) with respect to his outstanding student loans. [ 2 ] Mr.

Bauckman completed the Bachelor of Arts degree at Acadia University in 1997 and the Bachelor of University Studies (Secondary Education) degree at the University of Maine - Fort Kent in 2004. [ 3 ] This education was financed with Student Loans, one now administered by the Canada Revenue Agency with a current balance of approximately $27,000 and the other administered by Provincial authorities with the current approximate balance of $6,000. [ 4 ] He is a high school teacher. He is married. He and Mrs. Bauckman have a daughter who is eighteen. Mrs. Bauckman is a qualified teacher. [ 5 ] He and Mrs.

Bauckman along with her brother were involved in the purchase of a house shortly after he completed his education. This transaction was fraught with problems resulting in Mr. Bauckman making an assignment in bankruptcy in 2008 with debts totalling $83,476.33. He has since been discharged. [ 6 ] They live in a rented house. The monthly rent is $1,100.00. They pay the heating, lights and water. They have two automobiles. One is a 2004 model which he uses for daily transportation to work, etc. The other is a 2002 model which is in poor repair. It is available should Mrs. Bauckman have an opportunity to supply teach.

The cost of insurance, repair and fuel is significant. Their other expenses appear to be reasonable. They have a frugal lifestyle. [ 7 ] Mrs. Bauckman has two student loans outstanding, a Provincial loan with a balance of approximately $37,000 and a Federal loan with a balance of approximately $27,500. She did not advise the court of what she plans to do about these loans. It may well be that she may have to make an assignment in bankruptcy. [ 8 ] Although she is available to supply teach, she admits that her health prevents her from taking any extended assignments.

All she can handle is a half or one day supervisory assignment. She does not have expectations of significant income. In the past year she had take home pay from these assignments of about $2,000. [ 9 ] His monthly take home pay of $3,147 is $116 over the Superintendent ’ s standard for a family of three of $3,031. [ 10 ] To pay off his student loans over a reasonable period of time, say from five to ten years, would require payments from $500 to $350 per month. They are already behind in current expenses. As well there is Mrs.

Bauckman ’ s substantial outstanding student loans which she can only address with token payments. [ 11 ] They have nothing left over to meaningfully address his outstanding student loans, nor Mrs. Bauckman ’ s student loans. They have no expectation that in the foreseeable future their financial situation will be significantly better. [ 12 ] There is nothing to suggest that Mr. Bauckman has not been acting in good faith respecting his loans. He made payments as he

could. He sought interest relief. They have lived frugally. Mrs. Bauckman ’ s health has limited her ability to be gainfully employed. They had the financial misfortune regarding the transactions with her brother. [ 13 ] I am satisfied that Mr. Bauckman has acted in good faith. [ 14 ] I am satisfied that he and Mrs. Bauckman will continue to experience financial difficulty to such an extent that they will be unable to pay off these loans. [ 15 ] He is entitled to relief under Section 178(1.1) . R. Halifax, Nova Scotia January 28, 2013