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

What happens to your debts when you go bankrupt in Manitoba is complex. Certain debts are not discharged when you go bankrupt. These debts 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 Manitoba bankruptcy trustee).

Also, in some circumstances you are allowed 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 carry on making payments to the secured creditor while bankrupt.

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