FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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*Unsecured debt includes credit cards, lines of credit, bank overdrafts, payday loans, and unsecured personal loans (excluding student loans). It does not include mortgages and car loans.

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Is a bankrupt’s debt validated?

Can a bankrupt inflate the value of his debt to friends and family? Who validates the claim that he owes 20,000 dollars to his father-in-law as compensation for breaking his favourite chair?

I suspect that a person who owes me money is doing this. He has filed bankruptcy stating that his total debt is over 100,000 dollars which I don’t believe is true. How do I contest this?

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One Response to “Is a bankrupt’s debt validated?”

A licensed trustee said...

If you haven’t already done so, start by completing and submitting a Proof of Claim to the trustee. This gives you the right to attend at the trustee’s office and review the file, including all of the other Proofs of Claim. If you have a specific concern regarding any claim you may certainly question the trustee about it. The trustee will appreciate any new information you may bring to the table as long as it is substantiated and not simply your opinion.

The Bankruptcy and Insolvency Act sets out very specific criteria for accepting and admitting Proofs of Claim. Trustees are required to apply these criteria and make a decision regarding the validity and value of every claim received.

If you disagree with the trustee’s decision regarding the value of a claim you have the right to apply to the Court to request the decision be reviewed. The Court will then render it’s own decision regarding the claim.