What Debt is Included in Bankruptcy? - Bankruptcy and Credit Counselling St. John's | S.R Stack Skip to content

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.

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.

Did You Know?


Many people who file for bankruptcy get to stay in their home.


In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.


Many people who file for bankruptcy are able to keep their vehicle.


Most bankruptcies are NOT published in the newspaper.


Student loans can be included in a bankruptcy if they are more than seven (7) years old.


A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.


In NL, people ages 30 to 39 years old file for bankruptcy more than any other age group. [source]