Answer: No, certain debts survive bankruptcy proceedings. For a full list, click here. Debt as a result of a court imposed fine will survive a bankruptcy.

If you have other debts on top of the fines, you may want to consider various options such as credit counselling, consumer proposal or bankruptcy as a way to bring the other debts you have under control and to a manageable re-payment. Once the proposal or bankruptcy is complete and you no longer have other debts to service, you will probably have more disposable cash available which you could use towards repayments on the fines.

If the court has ordered you to make payments on the fine during the bankruptcy proceedings, it may reduce the payments you’ll be required to make to the trustee during the bankruptcy. When surplus income is calculated during a bankruptcy, if you’re able to prove to the trustee that you’ve made payments on your fines, the trustee will take this into consideration before calculating your payment required under the surplus income rules in the bankruptcy.

Talk to the court or city too. You may be able to negotiate a payment plan with them that will allow you to make regular repayments back to them. This is often a good way of being proactive if you’re unable to repay them in full immediately so that they don’t look at suspending your licence for non payment.

If you have fines, penalties to pay, it’s important to ensure your budget allows for the repayment of the obligations. If you need help with discussing ways to make a plan to deal with fines and other debts you may have, give our office a call right now at 519 622 3773 or send us an email and lets get started.