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Personal Bankruptcy

Debts Eliminated by Discharge

The list of debts eliminated by discharge is lengthy!

Filing for bankruptcy gives you a fresh start. Here is a list of many of the debts eliminated by discharge:

  • Unsecured credit card debt
  • Unsecured retail store card debt
  • Unsecured lines of credit
  • Unsecured personal loans
  • Personal income tax
  • HST
  • Amounts owed due to having guaranteed your partner’s or spouse’s debts
  • Amounts owed due to having guaranteed business or corporate debts
  • Debts owed by virtue of having acted as a director of a corporation – CRA source deductions and HST
  • Amounts owed to mortgagees and lessors post their re-possession and sale of secured assets
  • Utility bills – cable, phone, gas, hydro
  • Insurance bills
  • Memberships – gyms, etc.
  • Medical and dental bills
  • Payday loans
  • Student loans (provided the bankrupt had been out of school for more than seven years on the day they went bankrupt)

Here are examples of debts that are not extinguished and eliminated by discharge from bankruptcy:

  • Child support arrears
  • Alimony and spousal support arrears
  • Fines and penalties imposed by the court
  • Student loans (if the bankrupt had not been out of school for seven years on the day they went bankrupt)
  • Debts attributable to fraud or misrepresentation while acting in a trust capacity
  • Debts attributable to having obtained property or services by fraudulent misrepresentation or false pretences

Does the list of debts eliminated by discharge have you thinking that bankruptcy may be the best option?  Freeing yourself from debt and getting a fresh financial start can make a tremendous difference in your life.

If you are struggling with debt and need financial help and guidance, please contact us to arrange a no-charge initial consultation. You will find it very informative and helpful!


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