WHICH DEBTS ARE DISCHARGED IN BANKRUPTCY?
The most common debts that you may
get rid of are: back rent utility bills some
court judgements credit and charge card bills
loans from family and friends newspaper and
magazine subscriptions legal, medical and
accounting bills most unsecured loans (e.g.
debts for which there is no collateral)
Parliament has determined that the following
types of debts are not dischargeable for public
policy reasons (e.g., the nature of the debt
or the fact that the debts were incurred due
to the debtor’s improper behaviour.)
Criminal government fines, penalties Family
maintenance payments Child support Secured
debts Gambling debts for last-minute purchases
of luxury goods or services are also nondischargeable.
Another class of debts or claims (called charges)
that are backed by property also survive.
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