HELPING YOU SOLVE YOUR DEBT PUZZLE
Filing Personal Bankruptcy & Other Debts
There are many different types of debts. Discover how student loans, credit cards, and other assets may be treated when you file for Personal Bankruptcy.
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Can I file for bankruptcy and include my Student Loan Debt?
Filing for bankruptcy will automatically include all debts. However, Student Loan Debts will only be eliminated when the bankruptcy is finished if you have been out of school for at least 7 years. If you are suffering undo financial hardship, you may also be able to be discharged from student loan debts 5 years after being out of school – “hardship rules”.
Can I get a credit card after I file for bankruptcy?
When you file for bankruptcy, you must turn over all credit cards. And you cannot apply for other sources of credit during the bankruptcy unless you disclose that you are bankrupt. During your bankruptcy process our debt elimination specialists will discuss credit rebuilding strategies included applying for secured credit cards or prepaid cards.
The responsible use of credit is the key first step to rebuilding your credit score.
Do I still pay my child support during a bankruptcy? What about Alimony or my Student Loans?
Child support, alimony, and Student Loan debts are all types of debts that are not eliminated with the filing of a bankruptcy. For child support and alimony payments, these are obligations that cannot be Stayed during the bankruptcy and should form part of your monthly budget plan and you should continue to make these current payments.
Child support or alimony arrears take priority in any distributions from your LIT when the bankruptcy is complete.
Student Loans may also be a type of debt that does not get eliminated with a bankruptcy unless you have been out of school for at least 7 years. If the student loans are not going to be discharged, you will continue to charged interest against the outstanding balance of your student loans during the bankruptcy period. During the bankruptcy period you don’t have to make payments to your Student Loans, but you may do so if you first seek the consent of your LIT.
Are there any debts that cannot be included in the Personal Bankruptcy?
Certain kinds of debts (including interest) are not erased by the bankruptcy. These include:
- Fines imposed by The Court;
- Debts incurred by misrepresentation or fraud;
- Alimony or maintenance payments;
- Debt for damages imposed by Civil Court for intentional bodily harm, sexual assault or wrongful death;
- Student loans (if bankruptcy occurs within 7 years of ceasing full or part-time studies);
Also, bankruptcy usually does not interfere with secured debts if there is no equity in the secured asset.
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Personal Bankruptcy Resources & Information
Read the latest guides, insights, and resources prepared by our team to help you have peace of mind with your consumer proposal.
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- Consumer Proposal
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- Financial Literacy
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- Personal Bankruptcy
How Do Insolvency Trustees Get Paid in Canada?
By Colleen Craig, CPA, CA, FCIRP • March 25, 2026If you’re considering a bankruptcy or consumer proposal, one of the most common and important questions is: How do Licensed Insolvency Trustees get paid? Many people worry about hidden fees -
- Financial Literacy
Does Debt Consolidation Affect Buying a Home in Canada?
By Colleen Craig, CPA, CA, FCIRP • March 18, 2026Buying a home is one of the most significant financial decisions most Canadians will make. If you are carrying debt, you may be considering debt consolidation as a way to -
- Financial Literacy
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- Personal Bankruptcy
Banking After Bankruptcy: What You Need to Know
By Colleen Craig, CPA, CA, FCIRP • February 18, 2026Filing for bankruptcy can feel like a financial reset, but many people are surprised to learn that banking does not stop after bankruptcy. In fact, having the right bank account
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There can be many solutions to debt problems and every person’s story is unique. At C.E. Craig & Associates Inc. we take the time to listen to you – to help find the best option for you. Every journey begins with one single step.