While most debts can be included in a bankruptcy, there are certain debts that cannot be discharged through bankruptcy. It is important to be aware of this when deciding if bankruptcy is the right option for you.
Are there any debts that can’t be included in a bankruptcy?
Yes, there are certain debts that cannot be discharged by way of bankruptcy.
These debts are listed in section 178. (1) of the Bankruptcy and Insolvency Act and include:
– any debt or liability for alimony;
– any debt or liability for child support, spousal support or maintenance;
– student loan debts where the end-of-study date is less than seven (7) years ago;
– liability for a dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee;
– any debt or liability arising from fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity;
– any debt that arises from obtaining property or services by false pretences or fraudulent misrepresentation;
– fines or penalties imposed by the court or arising out of recognizance or bail;
– interest owed in relation to any of the above debts.
If you have any questions about how this could affect you please email me [email protected] or call 709-221-5500.