Bankruptcy in Canada: Debts that Can/Can't be Included

The exact debts that can and can't be included in Bankruptcy vary from province to province.

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What Debts are not Covered Under Bankruptcy in Canada?

When you declare Bankruptcy you will be freeof most, but not all, debts. Secured debts which are tied to a specific asset as collateral (i.e. car loan, mortgage) are not covered under bankruptcy declarations. The law also sets out several unsecured debts that are not covered in bankruptcy claims:

Student Loans less than 10 years old

Awards for assault or sexual assault damages

Alimony claims

Spousal Support

Child Support

Court Fines

Debts resulting from committing fraud or theft

What Debts are Covered Under Bankruptcies?

Canada Personal Bankruptcies free debtors from most unsecured debts, which include:

Credit card balances

Department store accounts

Unsecured lines of credit

Back payment of income taxes and municipal house taxes

Unsecured personal loans

Medical, utility, and insurance bills

Cell phone payments

Payday loans

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