May 26th, 2009 by Questions
after I was discharged ei sent me a paper saying that the bankruptcy was not covering the debt I owed them,is this right
Posted from: Ontario
May 27, 2009 at 9:17 am, A licensed trustee said:
The legal answer is no, the practical answer is yes. For any debt to survive a bankruptcy discharge it must fall into a selected list of specifically excluded items. The government in trying to collect the EI overpayment is relying on the fcat that debts incurred as a result of fraud or misrepresentation survive bankruptcy. The step they skip is that the fraud or misrepresentation has to be PROVEN (ie a Court can make that determination or as the debtor you can admit to it). So from a legal standpoint, until (unless) they prove your EI overpayment was a result of fraud or misrepresentation they don’t have a right to collect it….
BUT if they do take you to Court and prove that you did incur the debt by fraud or misrepresentation then you will alos be held responsible for the costs of the hearing and that might be significant….
So, you can either repay the debt or force them to take you to Court and run the risk of having to pay the costs of that too.
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