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legal costs

I may have to declare bankruptcy if a legal judgement in a upcoming civil case goes against me. Will I still have to pay the other sides costs even though I can’t as they have delayed the case for last 5 years by holding onto documents and made me run out of money?

Posted from: Ontario

One Response to “legal costs”

A licensed trustee said...

Here’s the potential problme you may encounter: any creditor has the right to oppose our discharge from bankruptcy and make an argument in Court that you should be required to repay some portion of your debt. In cases where the primary reason a person has filed for bankruptcy is the result of a civil judgment or award of costs, the Court generally sides with the creditor an orders some form of additional payment.

So, you may not have to repay all of the costs that have been awarded, BUT you will likley have to pay more than most people that file for bankruptcy. If you only have the one debt – the civil judgment – expect it to be a lot more…