Judgement`s get discharged by filing bankruptcy in Canada

May 11th, 2009 by Questions

I have a personal guarentee on a business loan. The business has now failed and the banks are most likely going to get a judgement against me for the amount owing. If I declare bankrupcy, does this judgement get cleared? The amount of the judgement would be approx. $700,000.

Posted from: British Columbia

Questions

One Response to “Judgement`s get discharged by filing bankruptcy in Canada”


May 12, 2009 at 9:03 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

When you file for bankruptcy any of the normal collection abilities your creditors typically have are not longer permissible. There is a Stay of Proceedings, which is essential court permission that requires these collection efforts cease. It is also the Stay of Proceedings that ultimately renders any judgment obtained by your creditors unenforceable. So yes, the filing of a bankruptcy will deal with this judgment as well as any outstanding unsecured debt you may have.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)