Are there any debts that can’t be included in a bankruptcy?
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.
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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 sean@srstack.ca or call 709-221-5500.