What Debts Are Not Discharged In An Ontario Bankruptcy?

Debts Not Included in an Ontario Bankruptcy

The good news about bankruptcy is that, by the time it is done, most of your unsecured debt will be discharged.

Generally, this includes forms of revolving debt like credit cards, loans, credit lines, tax arrears, or any type of payday loan arrangement.

However, this is not the only type of debt you may have, meaning there can be certain types which do not discharge under the bankruptcy proceedings.

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One such type of debt is secured arrangements.

This is any kind of debt which is backed by some form of collateral.

The two most common types of secured loans are represented by car loans and mortgages for homes.

When you take out one of these loans, the item you are purchasing with the loan acts as collateral for the loan itself.

The only way you can see these discharged during the bankruptcy is by surrendering the asset itself.

You can discuss with your Licensed Insolvency Trustee whether this is a good direction to take for your financial future.

They can also guide you through the specifics of other debts which are not eligible for discharge, including:


  • Child support arrears and payments: Child support does not go away with bankruptcy.
  • Court ordered payments: If you owe restitution, you still must pay.
  • Fraudulently gained debts: Dishonest or illegally gained debts are not forgiven.
  • Repayment of overpayment: Tax overpayments still owe to the government.
  • Student loans (seven years old or less): Older payments can sometimes be included in the bankruptcy process.


Each Canadian province has its own bankruptcy regulations, including exemptions and discharge specifics.

The best way to gain a thorough understanding of how these specifics will impact your bankruptcy proceedings is to discuss the process with a Licensed Insolvency Trustee.

They will offer you the benefit of confidentiality, objective advice, and years of experience in the financial field.

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