asked January 24, 2018 by Anonymous
If I file for bankruptcy, who pays my creditors? Are taxpayers on the hook for the debt that I’m defaulting on?
Tax payers do not pay your debt. In a bankruptcy, people or companies (“debtor”) who can no longer pay their debts give all of their non-exempt property to a Licensed Insolvency Trustee (LIT) who then sells it and distributes the money to creditors. Bankruptcy can be voluntary or forced by a creditor through the Courts. Roughly 90 percent of bankruptcies in Canada are consumer bankruptcies where the business-related debts make up less than 50 percent of the bankrupt’s total debts.
answered 5 hours ago by Debt.ca Staff