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Debt incurred frauduently

When a debtor admits in writing to a creditor that they have incurred their debt frauduently, what happens to that debt in a bankruptcy?

Posted from: Ontario

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One Response to “Debt incurred frauduently”

A licensed trustee said...

That fact may be relevant, but only if you bring a motion before the Bankruptcy Court to have yuor debt excluded from the bankruptcy because it was incurred as a result of misrepresentation or fraud. The letter by itself doesn’t mean much without the Court Order to legitimize it… You should talk to a lwyer about the motion, this is not something a trustee can do for you.