What Debts Are Not Discharged In An Ontario Bankruptcy?

| Category: Bankruptcy FAQ | Debts In Bankruptcy
Category: Bankruptcy FAQ | Debts In Bankruptcy | (4) 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.


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