What debts are covered in a bankruptcy?

The following are some common types of debts that can be included in a bankruptcy:

• Credit card
• CRA Income tax debt
• Student loans*
• Line of Credit
• Unsecured Loans
• Payday Loans

The following are common examples of debts that are NOT discharged in bankruptcy:

• Court fines (such as parking tickets, speeding tickets, etc.)
• Spousal Support
• Child Support

Spousal support and child support are not a dischargeable debt in a bankruptcy. The support must be payable from a court order or a signed marital separation agreement that occurred before the date of bankruptcy. This would include all arrears and future payments under the support agreement. Student loans are not discharged if you haven’t been out of school for 7 years on the date you filed for bankruptcy. If you have been out of school for 7 year when you file for bankruptcy, the student loans will be included. Any court fines, such as parking tickets, speeding tickets, etc. will not be discharged.

Your debts will be legally cancelled when you obtain your discharge. For more information on the discharge process, please view How does the Discharge Process work?

Your Licensed Insolvency Trustee at Risman Zysman will complete an in-depth review of the debts that you owe and explain what happens which each one!