Will Bankruptcy Take Care of Judgments?

There are two types of judgments.

The most common type of judgment occurs when a creditor sues you and the Court grants the creditor a judgment to enforce an outstanding debt. The judgment can be registered against any property that you own, and you cannot sell or re-mortgage your property until the judgment is paid in full.

The creditor also has the option to apply to the Sheriff to have your property seized and sold to satisfy the judgment.

The creditor can also request that the Sheriff garnish your wages.

Once you file personal bankruptcy or a consumer proposal is accepted, this type of judgment becomes an unsecured debt, and it will get discharged with your other debts once the terms of the bankruptcy or consumer proposal are completed.

The second type, which can also be registered against your property, is referred to as a memorial judgment. These are used by the Canada Revenue Agency (“CRA“) for outstanding income tax, HST or source deduction debts. Filing for personal bankruptcy or a consumer proposal will not automatically discharge a memorial judgment. You or your Trustee will need to negotiate with CRA so they can come to an acceptable solution.

If you have unresolved income tax or business tax issues, contact a Licensed Insolvency Trustee to review your options.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress;

• You won’t be stuck in an assembly line process.

• You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

• We will review your debt solution options, including filing a consumer proposal or personal bankruptcy.

• We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.

We offer free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John,  Moncton,  Fredericton, Charlottetown, Dartmouth, or Miramichi.