Questions & Answers

Questions & AnswersPaying off creditor during bankruptcy?
SELMA RUTH AUSTIN asked 9 months ago

Paying off creditor during bankruptcy?

asked April 14, 2021 by Anonymous

When someone is bankrupt can they pay off what they owe their creditor before the date of discharge?

1 Answers
Joe Torraca Staff answered 9 months ago

No – that would constitute a preference payment which is prohibited under the Canadian Bankruptcy and Insolvency Act. This would be a basis for an opposition to your discharge from bankruptcy by the Trustee, the Office of the Superintendent of Bankruptcy or any other creditor if this payment came to light.

Victor Fong of Fong and Partners Inc. contributed this expert answer.

answered 9 months ago by Joe Torraca