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Can I claim bankruptcy to avoid paying these 2 court orders?

I was involved in 2 court actions against me. One in children’s aid court and another in small claims court. The family court endorsed a court order against me for approx. $10,000. The small claims court ordered me to pay $30,000. Can I declare bankruptcy to avoid paying these two court orders? Or this individual? It’s the same person in both cases.

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One Response to “Can I claim bankruptcy to avoid paying these 2 court orders?”

Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

Pursuant to Section 178 of the Bankruptcy and Insolvency Act there are some debts that do not get discharged upon your discharge from bankruptcy. Any order for alimony, maintenance or child support does not get discharged. Family Court can make many types of orders that do not fall into that category, but there is still a fair chance that the $10,000.00 order is not dischargeable.

Likewise, while most orders in small claims court are dischargeable, Section 178 also allows debts stemming from fraud, embezzlement, and fraudulent misrepresentation to survive bankruptcy. You may wish to talk to your lawyer about whether the wording of the orders brings them under Section 178 of the Bankruptcy and Insolvency Act.