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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Small Claims Court while in bankruptcy

Hi:
I was just wondering what happens if I incurred debts while in bankruptcy and they took me to small claims court before my discharge?

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One Response to “Small Claims Court while in bankruptcy”

A licensed trustee said...

I’m sorry to be the bearer of bad news, but bankruptcy only protects you from debts incurred BEFORE you file. If you have created a new debt since filing your new creditor has the right to take you to Court and ask to garnishee your wages.

If you’ve been served with Small Claims Court papers, I suggest you attend in Court and explain your current situation – it may be that the judge will defer the repayment of the new debt until after you have been discharged from your bankruptcy (if you ask them to!).