Category Articles: Debts In Bankruptcy

Filing bankruptcy affects your debts by stopping your creditors from taking action against you during your bankruptcy then, once your receive your discharge, your obligation to repay those debts is eliminated.

Most unsecured debts can be included in your bankruptcy including credit card debt, lines of credit, unsecured bank loans, tax debts, payday loans and even unpaid telephone & other bills. A bankruptcy does not affect the rights of your secured creditors including mortgages and secured car loans or leases. Some debts survive bankruptcy (or a consumer proposal). These include fines and penalties, alimony or child support, debts due to fraud or misrepresentation and court-imposed fines. Other debts receive special treatment in a bankruptcy. Student loan debt less than 7 years old for example is not discharged by filing for bankruptcy although there are special exceptions.

Read more about how debts are treated in a bankruptcy in one of our debts in bankruptcy articles.