What happens to my debts when I go bankrupt in Alberta?

What happens to your debts when you go bankrupt in Alberta is complicated. Certain debts are not discharged when you go bankrupt. These include:

• Student loans less than 10 years old (click here for updated rules on student loans);

• Alimony and child support;

• Fines and most court ordered restitution payments;

• Debts that occurred as a result of fraud;

• Certain government overpayments (this is a complex area, so if you have received overpayments from the government, you should discuss this with your Alberta bankruptcy trustee).

Also, in some instances you are permitted to keep assets, such as a car or house, when you go bankrupt. If these assets have a loan secured by the asset (such as a mortgage or car loan), you will be required to continue making payments to the secured creditor while bankrupt.

Please consult an Alberta bankruptcy trustee for more information on what happens to your debts when you go bankrupt in Alberta.