A collection agent told me that their debt was protected and that if I filed for bankruptcy their debt would survive. Is this the accurate?
Quite often I have people calling to ask this very question, and in most instances this is not the case. There are relatively few circumstances under which debts are “protected” or survive a bankruptcy or a proposal. The most common ones are as follows:
1. Secured Creditors;
2. Any act of fraud, misrepresentation or misappropriation of funds;
3. Court fines, penalties or restitution orders for criminal behavior (can be
as simple as a speeding ticket);
4. Theft of Trust monies;
5. Civil lawsuits relating to intentional bodily harm, sexual assault or wrongful death;
6. Maintenance / Alimony
If you have been told this by a collection agent, or anyone else who is not trained on the specifics of the Bankruptcy & Insolvency Act, you should immediately confirm this with a licensed trustee. Otherwise you may be dealing with incorret infomraiton and not find the alternative that will best help you financially recover as quickly as possible.
posted by Barton Goth, Trustee in Bankruptcy @ 
