Question: Is your credit card debt wiped out when you file for bankruptcy in Ontario, or can the credit card company still demand payment?
A bankruptcy is an effective way to eliminate unsecured debt, including credit card debt.
Credit card debts are discharged when you go bankrupt or file a consumer proposal in Ontario.
The only exception would be if you have committed fraud. For example, if you bought a $3,000 big screen TV on your credit card the day before you filed for bankruptcy, that would be considered fraud, and you would be required to repay that amount. Maxing our your credit cards immediately before going bankrupt can also cause difficulty in your bankruptcy. Your creditors, if they find you have done this, can object to your discharge and request additional payments or terms and conditions before you are discharged.
While there are some debts not discharged in a bankruptcy, a bankruptcy is a way to eliminate most unsecured debts including not only credit card debt but unsecured lines of credit, payday loans, bank loans and even tax debts.
If you owe a significant amount of credit card, or other unsecured debt, contact a trustee today. The sooner you contact us, the sooner we can eliminate your debt problems.