Claims by SGI in a Bankruptcy or Proposal

Understanding Bankruptcy Claims by Saskatchewan Government Insurance (SGI)

Bankruptcy is a complex process and understanding the implications of different debts can be challenging. One of the frequently asked questions is about the treatment of claims by Saskatchewan Government Insurance (SGI) in a bankruptcy or proposal. This topic can be confusing, but it’s crucial to understand for anyone embroiled in a bankruptcy or proposal process.

SGI’s Role in Accident Damages Assessment

SGI takes the responsibility of assessing individuals who, for whatever reason, lack insurance and end up causing damages in an accident. This assessment isn’t a court-ordered restitution but a simple determination by SGI about the damages’ cost.

Assuming the individual accepts this assessment, SGI then necessitates payments towards it. Failure to do so results in the refusal to issue a driver’s license to the person under question.

Bankruptcy and SGI Debt Discharge

When a person files for bankruptcy, the debt owed to SGI is eventually discharged at the end of the bankruptcy process. However, SGI maintains that until such discharge occurs, they will still demand payments if the individual wishes to obtain a driver’s license.


“SGI’s stance is that the debt discharge only happens after the completion of the bankruptcy process, and until then, payments should continue if the person wants a driver’s license.”


SGI’s Debt Survival Agreement in case of Bankruptcy or Proposal

Recently, SGI has started getting individuals to sign agreements acknowledging their debt and agreeing that such debt will survive a bankruptcy or proposal. The agreement aims to categorize their debt to SGI as those specified in Section 178 of the Bankruptcy and Insolvency Act (like alimony, child support, student loans, etc.), which survive bankruptcy.

If an individual has signed such an agreement, SGI’s argument that the debt would survive becomes significantly stronger. In such situations, we recommend seeking legal advice before proceeding further.

Seeking Legal Advice

As always, it is crucial to seek professional guidance when dealing with complex legal matters like bankruptcy or proposals. If you require more information or wish to discuss the above, do not hesitate to reach out to us.


Understanding the intricacies of bankruptcy and the role of claims by SGI in this process is essential for anyone dealing with such situations. While SGI claims can be discharged at the end of the bankruptcy process, the path can be complicated, especially if an agreement acknowledging the debt’s survival has been signed. Therefore, it is always recommended to seek legal advice when dealing with such matters.

The more you understand about the process, the better equipped you are to navigate it.

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