Debts Not Discharged by Bankruptcy

Bankruptcy will wipe out virtually all unsecured debts such as credit cards, loans, lines of credit and income taxes.  However, certain debts are not extinguished in a bankruptcy proceeding.

The following are examples of unsecured debts that will not be discharged in bankruptcy:
  • Court fines and penalties;
  • Damages for assault;
  • Child support and spousal support;
  • Debt arising from fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity;
  • Any debt resulting from obtaining property or services by false pretences or fraudulent misrepresentation;
  • Student loans where the debtor was a full- or part-time student at any time within the seven year period prior to filing the consumer proposal; and
  • Interest accruing on those debts.

Also, bankruptcy will not affect secured debts such as mortgages, car loans and other debts secured by your assets. 

For more information and if you have specific questions about debts not discharged in bankruptcy, make sure you speak with a Licensed Insolvency Trustee.