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Ever felt the stress of unexpected financial setbacks? How to stop CRA garnishment is a question many Canadians face when dealing with debt issues and a RTP (Requirement To Pay) from the Government of Canada. Understanding the steps to halt this process can alleviate a significant amount of stress and help you regain control over […]

How Many Times Can You Do A Consumer Proposal

Ever felt like you’re stuck in a financial maze with no exit in sight? Debt can weigh you down, making every day feel like an uphill battle. But what if there’s a way to reset and start fresh? How many times can you do a consumer proposal? The straightforward answer is that you can file […]

Who Can Put a Lien on Your House in Canada?

Liens can significantly impact property ownership in Canada, often catching homeowners off guard. Understanding liens—what they are, the types that exist, and who can place them on your property—is crucial for any homeowner. This article unpacks the complexities of liens, explores potential lien holders, and discusses the consequences they can have on property sales. It […]

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Being Sued

I have been thinking about claiming for a long time now. I have recently been put in an unexpected situation and know I am going to be sued by an insurance company for around 12000 dollar. If I wait until after the judgement (again I know this is my fault and I will lose) will bankruptcy eliminate this debt or should I just file now and deal with this as it comes?

Posted from: Ontario

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One Response to “Being Sued”

A licensed trustee said...

Whether or not bankruptcy will deal with the lawsuit literally depends on why you are being sued. If it is a simple civil judgment then bankruptcy will deal with the debt. If the insurance company is alleging malfeasance or misrepresentation then bankruptcy may not. You’ll need to speak with a lawyer once you receive the suit to get an opinion on whether or not bankruptcy will effectively deal with the problem.