2025-09-04
Will Bankruptcy Erase All Of My Debt?
Bankruptcy
The intention of Canadian bankruptcy law is to provide honest and overextended debtors the opportunity for a financial fresh start.
Paying A Family Member Before Bankruptcy
No, that can actually cause you problems in a bankruptcy.
One of the basic elements of bankruptcy is that you have to treat all of your creditors the same. If you choose one creditor and pay them but leave the others to be dealt with in the bankruptcy, that's considered to be unfair. If you do this (especially if it's with a related party), it's pretty likely that you'll have trouble getting your Discharge (which is the final step in a bankruptcy - it's the step that extinguishes your debts and 'sets you free.') In most cases, the court will require you to pay into the bankruptcy an amount equal to what you paid to the family member before they will give you your discharge.
Linda Paul
CIRP, LIT
Senior Vice-President
Servicing: Abbotsford, Chilliwack, Maple Ridge, Surrey, Langley
Latest Blog Posts
2025-08-01
Transferring Assets Before Bankruptcy: Why You Should Consult a Trustee
Bankruptcy
If you’re struggling with your finances and heading toward bankruptcy, you may think it makes sense to sell or transfer some of your assets.
2025-06-30
Who Can File For Bankruptcy
Bankruptcy
There are several common scenarios which may cause you to wonder whether personal bankruptcy is an appropriate option to get out of debt.
