Debts not Discharged

The Bankruptcy and Insolvency Act states that an order of discharge does not release the bankrupt from "any debt or liability for alimony...or agreement for maintenance and support of a spouse or child living apart from the bankrupt."

Section 178 of The Act further states that any liabilities arising from obtaining property by false pretenses or fraudulent misrepresentations are also not discharged through bankruptcy.

Student loans where you have been out of school for less than 10 years at the date of bankruptcy are not discharged unless you make a separate application to the Court after the 10 year period. The Court must be satisfied that you acted in good faith, and that the financial difficulty remains a problem as at the time of the application.

Debts resulting from a recognizance or bail bond remain, as do debts which the Courts have decided are the result of fraud or theft while acting in a fiduciary capacity.

Although most legal actions and garnishees against your wages stop as at the date of bankruptcy, any fines, penalties or restitution orders imposed by the courts supersede the Bankruptcy and Insolvency Act. Therefore, court fines and parking tickets remain due and payable.

Civil damages for intentional bodily harm or sexual assault and for death therefrom are not released.

If a creditor does not receive a dividend paid on provable claims because they have not been notified of your bankruptcy, then you are responsible for any dividend that the creditor would have been entitled to receive, had a valid proof of claim been filed. It should also be noted that your bankruptcy does not cancel the responsibility of anyone who has guaranteed or co-signed a loan on your behalf.