Frequently Asked Questions
- Are There Any Debts Which Are Not Dischargeable?
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<p>Section 178 of the Bankruptcy and Insolvency Act outlines the debts, which are not released by filing for bankruptcy or a proposal to creditors.</p>
<p><strong>Section 178. Debts not released by order of discharge</strong></p>
<p>(1) An order of discharge does not release the bankrupt from</p>
<ol style="list-style-type: lower-alpha;"> <li>any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;<br /><br /> (a.1) any award of damages by a court in civil proceedings in respect of<br /><br />
(i) bodily harm intentionally inflicted, or sexual assault, or<br /><br />
(ii) wrongful death resulting therefrom;</li>
<li>any debt or liability for alimony;</li>
<li>any debt or liability under a support, maintenance or affiliation order or under an agreement for maintenance and support of a spouse or child living apart from the bankrupt;</li>
<li>any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity;</li>
<li>any debt or liability for obtaining property and or services by false pretences or fraudulent misrepresentation;</li>
<li>liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;</li>
<li>any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred<br /><br />
(i) before the date on which the bankrupt ceased to be a full or part-time student, as the case may be, under the applicable Act or enactment, or<br /><br />
(ii) within seven years after the date on which the bankrupt ceased to be a full or part-time student; or </li>
<li>any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (g).</li> </ol>
<p>An application can be made to release student loans after 5 years if hardship and good faith can be shown.</p> <p>E. & O. E.</p>
DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.
To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.