Judgement forcing bankruptcy
October 22nd, 2008 by Questions
A judgment was issued against me for failing to appear in court. The judgment was extremely high, and because of it I was forced to go bankrupt. Now there seems to be questions about the legitimacy of the judgment, and a possibility that this judgment could be reversed. Because it was strictly the judgment that forced me into bankruptcy, can I reverse the bankruptcy if this judgment is cancelled. I was not in arrears on any payments whatsoever, but had to include other creditors besides the one with the judgment in my bankruptcy.
Posted from: Ontario
One Response to “Judgement forcing bankruptcy”
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October 23, 2008 at 7:18 am, A licensed trustee said:
If the judgment was your only debt then you could easily apply to the Court to have the bankruptcy annulled if the judgment is reversed. If you have other debts the Court may require you to prove they will be repaid in full or they may suggest you file a proposal to deal with the debts (and thereby annul the bankruptcy).
Speak to your trustee first and likely they will refer you to a lawyer so that you can bring a motion before the Court to correct your situation. (Obviously you don’t want to try and bring this motion until the judgment has been reversed).