Bankruptcy Debts Erased

Bankruptcy Debts Erased

Bankruptcy Debts Erased

Bankruptcy debts erased include almost all debts, including debt to CRA.  However, there are certain debts that are not erased in order to serve the greater good of society.

Bankruptcy Debts Erased Include all Debts except for the Following:

• Fines imposed by a Court;

• Money owing for things stolen;

• Things obtained by misrepresentation;

• Alimony or maintenance payments.

• Award of damages by a court for intentionally inflicting bodily harm or sexual assault.

• Student loans if bankruptcy is filed prior to or within seven years after the finish of studies.


A debt to Employment Insurance (EI) is an example of a debt that is not erased in a bankruptcy because it is considered to have been acquired through misrepresentation.


You will have noted that Student Loan debt cannot be erased unless the student had been out of school for 7 or more years. However, after 5 years an application can be make to the courts under the hardship provision. For the Court to discharge on hardship grounds, it must be satisfied that the debtor has acted in good faith and is expected to continue to experience financial difficulties.


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Bankruptcy Essentials Book.

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