Beaudin Groupe Conseil - Demystifying debt, credit

The exception is not the rule! This is the exception.


Non-dischargeable debt is debt that cannot be eliminated or "discharged" through bankruptcy or consumer proposal proceedings.

In simple terms, here's what you need to know.

1.    Government Debts: Only certain debts owed to the government, such as, fines, and government-backed student loans, are not dischargeable. Most government debt, including income tax debt, is usually discharged.

2.    Alimony and Child Support: If you owe spousal support or child support, those debts are not discharged either. You'll still be responsible for making the regular payments and for all arrears.

3.    Debts from Fraud: Any debts resulting from fraudulent or illegal activities, like embezzlement or false pretenses, are not dischargeable.

4.    Debts from Bodily harm: If you've injured someone intentionally (including wrongful death and sexual assault), the debts arising from the injury may not be dischargeable.

It's important to understand that these non-dischargeable debts will still be your responsibility after bankruptcy, and you'll need to make arrangements to pay them. Consulting with a professional, such as a licensed insolvency trustee, can provide you with more detailed guidance tailored to your specific situation. 

Keep in mind that if your "normal" debts have been discharged through a proposal or bankruptcy, that will probably make it easier for you to tackle your non-dischargeable debts.


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