Bankruptcy Debt Erased.

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Bankruptcy Debt Erased.

Most unsecured debt is erased in a bankruptcy or a Consumer Proposal.   Secured debt such as registered security on a vehicle is not erased, unless the vehicle is turned back to the secured creditor.

Unsecured Debts that are not erased are as follows:

  1. Fines imposed by a Court;
  2. Money owing for things stolen;
  3. Things obtained by misrepresentation;
  4. Alimony or maintenance payments.
  5. Award of damages by a court for intentionally inflicting bodily harm or sexual assault.
  6. Student loans if bankruptcy is filed prior to or within seven years after the finish of studies.

E.I. Debt:

An overpayment of E.I. benefits is a debt that is not erased.  It is considered to have been obtained by misrepresentation.

CRA Debt:

Many people are surprised (and pleased) to find out that CRA debt can be erased in a bankruptcy or a consumer proposal.

Student Loan Debt:

If a person has filed bankruptcy and the student loan has not been discharged because it was less than 7 years since the debtor was in university that person in cases of undue hardship,  may apply to the Court to obtain the discharge of the student loans after five years since the schooling. For the Court to discharge on hardship grounds, it must be satisfied that the debtor has acted in good faith and is expected to continue to experience financial difficulties.


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Bankruptcy Essentials Book.

Exemptions are included in the Bankruptcy Essentials Book.

This book is a “MUST HAVE” for anyone considering bankruptcy or a proposal or considering using a credit counsellor.

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Download this book in PDF format to your laptop or remote devices.