Bankruptcy Services of Collins Barrow Limited - for Calgary and Edmonton, Alberta

Author:		Darren
Date:		January 4, 2001
Question:		I have recently been in a car accident where I had no insurance on my car. I am more than likely going to be sued for damages as well as having to pay a 2500 dollar fine for no insurance, which I cannot afford. If I were to claim bankruptcy does it erase all claims made against me in court as well as any fines incured? Also I work as a carpenter but have not been able to retain a secure job for the past few years. I missed 3 years of filing my taxes but had no income to claim for each of these years. Will this affect my bankruptcy claim? Should I attempt to clear up these past years before any attempt at a claim is made?


From:		Shane Brenneis, Collins Barrow Limited
Date:		January 5, 2001
Answer:		A court fine or penalty is not dischargeable in a bankruptcy and you will have to pay this. Whether damages or another other debt resulting from the accident will be dischargeable will depend on the circumstances and you will have to talk to a Trustee regarding your particular situation. If you have no debt owing to Revenue Canada then they will not enter into your bankruptcy. We do advise that you do file all tax returns due so Revenue Canada knows there is no debt. Shane Brenneis phone: (403) 298-1575 sbrenneis@moneyhelp.ca