The student union at Cape Breton University is planning to declare bankruptcy after losing a recent court case involving unpaid dues to the Canadian Federation of Students.

Brandon Ellis, president of the Cape Breton University Students' Union, said it's a sad day for CBU students because they'll lose representation.

"In terms of the potential payment plans that we have been looking at with the Canadian Federation of Students and with the overall judgement, we could not operate with such a crippling debt," he said.

In 2008, students voted 92 per cent to drop out of the federation because of a lack of local representation.

The federation, in response, argued its bylaws required six-month notice before students could opt out.

Last month, an Ontario judge ordered the union to pay close to $300,000 in dues and another $100,000 in legal costs.

"We've gone through every possible option that we can," Ellis said.

"We made a trip up to Ottawa about two weeks ago to negotiate with CFS. We have negotiated with them over the past month. And there hasn't been an amicable decision reached as of right now."

Ellis said the university administration, other student unions as well as the local community have shown their support over the last few months.

Ellis said the campus will lose around 30 jobs once the bankruptcy takes effect.