Does a Court judgment survive bankruptcy discharge?

September 16th, 2013 by Questions

Is the debt owed by virtue of a Court judgment (civil/commercial case) discharged by the bankruptcy, even if the creditor did not receive notice of the bankruptcy and was not listed as a creditor in any of the bankruptcy documents?

Posted from: Ontario


One Response to “Does a Court judgment survive bankruptcy discharge?”

, A licensed trustee said:

Under normal circumstance, a judgment is discharged just like any other debt. The fact that a debt is not listed on the bankrupt’s Statement of Affairs (the document that sets out the bankrupt’s financial situation when they file) doesn’t necessarily mean it won’t be dealt with by the bankruptcy. If the creditor knows about the bankruptcy then they can take steps to be included. If the creditor is not made aware of the bankruptcy until after the bankrupt has been discharged then the creditor may have to apply to the Court to seek an Order excluding them from the proceeding. The whole thing becomes much more complicated and expensive when a debt isn’t listed, but the bankrupt tries to include it much later…

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