Question: I sued a person for property damage and won, at the time the person was not working so I waited to make a claim for the amount owing. As soon as he got back to work he filed personal bankruptcy. Does the bankruptcy eliminate the court awarded damages that are owing to me? (the award was in small claims court – Ontario and had no restrictions on the claim and even included current and future interest).
Answer: In most cases the answer is yes, the debtor’s bankruptcy will discharge the debt to you, even though you have a court order. There are a few rare exceptions to that rule, so you should consult your lawyer, or the bankruptcy trustee handling the case.