Area of Law: Credit, Debt and Bankruptcy
Answer # 0265
Will bankruptcy remove all my debts?Region: Ontario Answer # 0265
Will bankruptcy remove all debts?
Bankruptcy will eliminate most, but not all, of your debts. The following five debts are not cleared by bankruptcy:
1. Secured debts are not significantly affected by bankruptcy. A secured debt is one where the creditor secured one or more of your assets as collateral as a requirement of the loan made to you. For example, you may promise to give a creditor, such as a bank, your car or your home if you do not repay a loan. A secured creditor may seize these assets, but, once they are sold, any outstanding balance will be discharged.
2. Child and spousal support payments.
3. Court fines and penalties.
4. Debts that you obtained by committing a fraud or by causing bodily harm to another.
5. Student loans are not cleared by bankruptcy unless you graduated from school at least 10 years before the date that you filed for bankruptcy.
If you have surplus income as determined by government guidelines, you may also be required to pay some amount to your LIT at the time you are discharged or for a period after your discharge.
A criminal record will affect your ability to get a loan, a mortgage, or a job. To erase your criminal record, call toll-free 1-877-219-1644 or learn more at Federal Pardon Waiver Services. It’s easier than you think..
When you are in a situation of financial difficulty, there are many options to consider before filing for bankruptcy. For easy-to-understand debt solutions on your terms, contact our preferred experts 4Pillars and rebuild your financial future. With 60 locations across Canada, they will help you design a debt repayment plan and guide you with compassionate advice. No judgment. For help, visit 4Pillars or call toll-free 1-844-888-0442 .
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