DEBTS NOT ERASED IN BANKRUPTCY

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WHAT DEBTS ARE NOT ERASED IN BANKRUPTCY?

If you decide that bankruptcy is your best option, your trustee will file the forms with the Office of the Superintendent of Bankruptcy and the administration of your file begins. As soon as you file you are protected from your unsecured creditors. However, it is when you are discharged from bankruptcy that you are legally released from any obligation to repay most of the debts you had at the time of filing for bankruptcy. Discharge from bankruptcy erases your unsecured debts, though there are some exceptions.

SECURED DEBTS

With secured debts, your lender has a security against your property, such as a house or car. Bankruptcy does not erase your secured debts if you have chosen to keep the asset and continue payments, such as car or mortgage payments. It’s essential that you know which of your debts are secured debts.

UNSECURED DEBTS NOT ERASED IN BANKRUPTCY

With unsecured debts, your lender does not have collateral and cannot continue the collection process after you have been declared bankrupt.

Some debts remain even after you are discharged from bankruptcy. These debts include:

  • spousal support (alimony) and child support payments
  • student loans if you have been a part time or full-time student within the last 7 years
  • government overpayments – your licensed insolvency trustee will advise you which overpayments are obliged to be repaid
  • court penalties or fines (this includes parking tickets)
  • court awarded damages
  • debts arising from fraud or theft

DEBTS ERASED IN BANKRUPTCY

Generally, other than the debts listed above, almost all debts are dischargeable in bankruptcy. Including:

  • unsecured lines of credit
  • personal loans
  • payday loans
  • credit card debt
  • bank account overdrafts
  • income tax arrears
  • HST and GST owing
  • unpaid bills such as medical bills; insurance premiums; cable and telephone bills (if you no longer intend to use these services)
Testimonials
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Susan Banasco

Extremely professional service by Mr. Thatcher and his team. Mr. Thatcher and his team were always available and quick to answer any questions concerning bankruptcy. I would highly recommend this company to anyone that would require his services!

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Isabel K

I have worked with Kevin and his office for many years and would recommend his services to anyone who is having financial difficulties. He is very professional and has spent many years helping people get out of tough debt situation.

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Sara C

The staff at Kevin Thatcher & Associates are incredibly understanding, non-judgmental people who honestly advised me of all my options before I chose to go bankrupt. I was surprised at how easily they broke down the process for me step-by-step so I was able to meet all the requirements.

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John D

I just wanted to thank everyone at Kevin Thatcher and Associates for their help. I was at wit's end and couldn't cover most of my bills. I was afraid to answer the phone ever as it might be another collector calling! I was so depressed.

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Caroline C

I was looking for a bankruptcy firm and was recommended Kevin Thatcher and Associates. I initially spoke with his pleasant and knowledgable staff(Anna) over the phone. I was very impressed by her and her soft approach being in a difficult situation.

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Sean C

Very kind, caring and helpful group at Kevin Thatcher and Associates.

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Alan S

I was in a real bind with a lot of debt from credit cards and payday loans but I met with Kevin and his staff were very understanding of my difficulties paying. I paid for 21 months under these federal income rules, but was way cheaper than if I did nothing.

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Elizabeth E

Staff is extremely kind and knowledgeable! They took a stressful situation and made it more manageable, so thankful for their expertise.

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