What happens to your financial obligations when you go bankrupt in Canada is a complicated problem. It depends upon the type of financial debt, and in some instances on your payment status. There are basically some debts that remain, even in individual bankruptcy. It all depends upon your state of affairs and each person’s scenario is individual to the kind of financial debt they owe.

The concept behind a bankruptcy in Canada is reasonably straightforward. When you file for individual bankruptcy, you surrender your property in return for the discharge of the obligations. Just as there are some individual bankruptcy exemptions from losing all your assets, you’ll find some exceptions towards the discharge of all of your financial obligations. Both are affected when debts are secured by assets, as in a mortgage loan. After you eventually decide to file for individual bankruptcy, you will need to inquire your individual bankruptcy trustee to evaluate your situation and ask about any financial obligations that will not be covered within your individual bankruptcy process. If youre looking for information on syndic de faillite Montreal or bankruptcy, ask your local representative today.

In principle, individual bankruptcy discharges only unsecured debts, simply because the creditor in a secured financial debt has a special right to the security, which is your asset. If your mortgaged asset is worth more than the quantity outstanding on the mortgage loan, the excess (your equity) must be surrendered.

Unsecured financial obligations or payments

In common, and as a rule, personal bankruptcy will discharge all of your unsecured financial obligations. Nevertheless, you can find some exceptions that the law makes for the following obligations. These obligations may possibly stay after you have filed for bankruptcy:

Student loans less than 10 years old.

Child and spousal support.

Fines and most court ordered restitution repayments.

Court awarded damages for sexual assault or intentionally inflicting bodily harm

Obligations that arose as an outcome of fraud or theft.

Specific government overpayments.

Overpayments are a difficult topic, so in case you have received overpayments from the authorities, you ought to discuss this with your individual bankruptcy trustee in Canada. Your bankruptcy trustee could provide you with information in regards to the entire ‘filing for bankruptcy’ process as well as what to expect when the procedure is finally over. Be sure to ask your trustee to provide you with precise and detailed information in regards to your monetary situation. Your trustee will often provide you the very best scenario possible for you to get your life back in order. If you are thinking about the personal bankruptcy procedure or syndic de faillite, ask your local bankruptcy trustee for details.

In a bankruptcy, here are some examples of debts that go away or obligations you’ll be able to get rid of:

Credit card balances

Lines of credit (if unsecured)

Individual loans (if unsecured)

Arrears of income taxes and municipal house taxes

Unpaid utility bills

Retail store accounts

Insurance premiums past due

Medical bills

Payday loans

Secured obligations

There’s an additional category of financial obligations called ‘secured debts’, which, again, is an additional complex area. Secured obligations also contain debts that may stay after you have filed for individual bankruptcy, financial obligations such as your property, mortgage or other secured obligations, such as any loans or payments for your car.

About the Author:
Andre Gabbay & Associs Inc. is a syndic de faillite Montreal or Montreal bankruptcy trustee firm providing services in bankruptcy consultation, consumer proposals, debt consolidation and much more.

If you’re interested in services for syndic de faillite Montreal, or bankruptcy, contact Andre Gabbay and Associes for more information on their services.