What Debts Are Not Discharged In An Ontario Bankruptcy?

| Category: Bankruptcy FAQ | Debts In Bankruptcy
Category: Bankruptcy FAQ | Debts In Bankruptcy | (10) comments

Most unsecured debts are discharged at the end of your bankruptcy. Unsecured debts that are discharged include credit cards, bank loans, lines of credit, pay day loans, and taxes.

debts not discharged in bankruptcySecured debts, such as car loans and mortgages on a house, are not discharged unless you surrender the asset (the house or car) at the start of the bankruptcy. For more information about these situations read our FAQ’s about what happens to your house in a bankruptcy and can you keep you car in a bankruptcy.

Debts that are not discharged when you go bankrupt in Ontario include:

  • Student loans less than 7 years old;
  • Alimony and child support;
  • Fines and most court ordered restitution payments;
  • Debts that arose as a result of fraud;
  • Certain government over-payments (this is a complicated area, so if you have received over-payments from the government for unemployment insurance or child tax credits, you should discuss this with your Ontario bankruptcy trustee).

Determining whether or not a debt is discharged in a bankruptcy can be complicated, and the rules can change as a result of court rulings, so it is essential that you review all of your debts with a licensed trustee prior to filing for personal bankruptcy in Ontario.

Book a free initial consultation with an Ontario bankruptcy trustee for more information on whether or not your debts will be discharged in a bankruptcy in Ontario.

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  1. Stuart

    I received an application for employment, from the Gamming Board of BC, in which was a question regarding if I ever declared bankruptcy , which I have , in Ontario in 2001, my question is, do they have the authority to see such files, and if so is there a point in time they cant access them, thanks

  2. J. Douglas Hoyes, Trustee

    The Office of the Superintendent of Bankruptcy maintains a searchable database of all bankruptcy filings in Canada dating back to 1973, so if they search that database they will know that you were bankrupt.

    However, since your bankruptcy was many years ago it will probably not impact your ability to get a job now. I would suggest that you note on your application the date of your bankruptcy, and the date of your discharge (which they can find out anyway), and put a note that you do not have any current financial problems, which is really why they are asking the question.

  3. Tommy W.

    Hi there, I lived in Quebec before and had student loan debt there. I repaid some of the loan, and I lost my job, so I moved to an oversea country and have stayed there for over 10 years. Now I have just come back to Canada and resided in Ontario. Recently I received a letter from Quebec Government demanded me to pay back the loan debt. I am jobless, penniless. I have no way to pay back the debt. Can I declare bankruptcy so that I can restart my life from scratch? This is going to be my first bankruptcy ever. Thank you for any help you can render.

  4. john k.

    my son owes back about $16,000 for unemployment, he pays child support, he rents an apartment, he owes about $11,000 in credit card depts.
    can the $16,000 be wiped out or reduced, he is worried he will go to jail for fraud.

    1. J. Douglas Hoyes, Trustee

      Hi John. The answer depends on whether or not you son actually committed fraud, and whether or not the government wants to pursue him for fraud. In most cases when you go bankrupt the EI overpayment is discharged in the bankruptcy, but it depends on whether or not the situation is serious enough for the government to want to pursue it. He should meet with a licensed insolvency trustee to review his options so he can decide on the best course of action.

  5. Sally

    I got discharged Sept 2019 from bankruptcy. One of my creditors claim shows as secured and unsecured ,admitted and disallowed on the claim register sheet. But on my SOA it is listed as unsecured debt. Equifax is showing as included in bankruptcy and closed. Does it mean it got discharged even though it was disallowed as a proven claim?

    1. Ted Michalos, Bankruptcy Trustee

      If it was disallowed that means your trustee said it wasn’t a provable debt (ie it wasn’t a real debt as far as you are concerned). Equifax reports what it is told to report by the creditors so the creditor must have reported it as closed. I’d keep an eye on it and keep copies of the paperwork from your trustee disallowing it.

  6. Emily

    I’m a single mom of two on disability. I do not have a car or a house. I can no longer keep up with my credit cards monthly interest payments. Is it worth it to file for bankruptcy or just let them bring my debt to a collection agency and put up with the harassing phone calls?

    1. Ted Michalos, Bankruptcy Trustee

      Sorry, but only you can decide if it is worth the cost of filing bankruptcy to deal with your debts. As a person on disability you are not a good candidate to be sued – no Court will allow a collection agency to garnishee your disability income. Have you considered changing your phone number? Unless the collection agencies are really stressing you out, I suspect you have better things to do with your money than pay for a bankruptcy…


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