April 23rd, 2014 by Questions
What happens to a judgement if you file for bankruptcy
Posted from: Ontario
April 23, 2014 at 12:04 pm, Doug Stuive, CA | Trustee | CIRP said:
A judgement is basically a court order that indicates you have an outstanding debt you are required to pay.
Judgements that resulted from regular debts, like old loans, credit cards, civil lawsuits, can be included in a bankruptcy or consumer proposal filing. This would release you from your obligation to pay the judgement.
If you have judgement from a criminal act (restitution order) or from child or spousal support this can not be included in a bankruptcy or consumer proposal.
A bankruptcy filing stays on your record for six years from your date of discharge. After that time period, the bankruptcy and the debt that was part of the bankruptcy are removed from your credit history.
The judgement should also be removed at this time.
If you have a judgement against you that you know you will not be able to pay, consult one of our trusted advisors in Ontario to find out if filing a consumer proposal or a bankruptcy makes sense for your situation. We are here to help.
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