Can this debt be included in bankruptcy?

January 25th, 2010 by Questions

I owe a lot of money to a personal friend that had me sign a demand letter. Unfortunately I did not win my law suit and I need to claim bankruptcy, will personal debt be included?

Posted from: Ontario

Questions

One Response to “Can this debt be included in bankruptcy?”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

While there is a category of debts that are not released by bankruptcy, from the sounds of it this does not qualify.

This is partially dependant on the nature of the debt, but if it is simply a personal loan that this friend is trying to collect on, then it should very easily be inculded in any bankruptcy proceeding.

At this point I think the best thing for you to do is to contact a local trustee, review the nature of the debt, and they should be able to confirm how this debt will be handled.

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