2024-09-25
What happens if I don’t fulfill my duties during a Bankruptcy?
Bankruptcy
If you’re going through a personal Bankruptcy, one of your main goals is to obtain your discharge — that is, to have your debts cleared so you can start fresh.
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
2024-06-10
Life after Bankruptcy
Bankruptcy
The fresh start you obtain after filing a Consumer Proposal or Bankruptcy offers many new paths for managing your day-to-day needs and planning for your future.
2024-05-30
How Often Can You File For Bankruptcy (MNP 3 Minute Debt Break)
Bankruptcy
Canadians are facing a cost-of-living crisis. With rampant inflation, many have taken on more debt just to make ends meet. With interest rates still high, some households might be considering declaring Bankruptcy for the first, second, or even a third time.
If this sounds like you, don’t worry — many people are in the same situation, and it isn’t anything to be ashamed of. Filing for Bankruptcy or entering a Consumer Proposal might be the solution you need to relieve financial stress and get a fresh start.
