What debt goes away?

December 24th, 2012 by Questions

Due to a company wide audit, I have aquired quite a large amount of tax debt. That included with my current credit card debt is too much for me to pay. If I file for bankruptcy does all the debt get eliminated?

Posted from: Ontario


One Response to “What debt goes away?”

, A licensed trustee said:

Yes, tax and other government debts are eliminated when you file and complete a bankruptcy.

It is easier to tell you which debts are NOT dealt with under bankruptcy law (than it is to tell you which debts are dealt with):

1) Bankruptcy will not eliminate any kind fo support Order, either for a spouse or children, nor will it clear up any support arrears.

2) It will not clear up any debt incurred as a result of misrepresentation or fraud.

3) It does not deal with Restitition Orders or Court imposed fines.

4) It does not deal with stuident loan sunless you have been out of school for a minimum of 7 years.

For a complete list of non-dischargeable debts, have a look at Section 178 of the Bankruptcy and Insolvency Act.

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