Why Bankruptcy Won’t Wipe Out Child Support Debt in Ontario
Many separating or divorced parents in Ontario face serious financial strain—sometimes to the point of declaring bankruptcy. But if you owe child support, don’t expect a bankruptcy discharge to wipe the slate clean.
In Canada, child support obligations survive bankruptcy, and creditors—including your former spouse or the Family Responsibility Office (FRO)—can continue enforcement.
Here’s what you need to know if child support and bankruptcy intersect in your case.
🔍 Bankruptcy and Child Support: What the Law Says
Under section 178(1)(c) of the Bankruptcy and Insolvency Act (BIA), a discharge from bankruptcy does not release a bankrupt from any debt for alimony, maintenance, or support. This means:
📌 Child support arrears are not eliminated when a person declares bankruptcy.
The law is clear: support debts are treated differently from other unsecured debts like credit cards or personal loans.
🧾 What Counts as a “Support Order”?
Section 1(1)(g) of Ontario’s Family Responsibility and Support Arrears Enforcement Act, 1996 defines a “support order” broadly. It includes:
- Child support or spousal support,
- Interest on overdue support payments,
- Legal fees and other expenses related to support enforcement.
This broad definition gives creditors—especially support recipients—powerful tools to enforce payments even after the payor has filed for bankruptcy.
⚖️ What Did the Courts Say?
In Wildman v. Wildman, 2006 CanLII 33540 (ON CA), the Ontario Court of Appeal confirmed that costs awarded in relation to support enforcement are also not discharged in bankruptcy.
At paragraph 55, the Court emphasized that:
“The costs award is enforceable by the Family Responsibility Office and the order is not discharged in a bankruptcy by virtue of s. 178(1)(c) of the BIA.”
This ruling makes clear that not only support arrears but associated legal expenses can survive bankruptcy—giving support recipients extra financial protection.
👨👩👧 The Role of the Family Responsibility Office (FRO)
If a child or spousal support is owed under a valid Ontario order or agreement filed with the court, the Family Responsibility Office (FRO) can:
- Garnish wages or bank accounts,
- Suspend driver’s licenses or passports,
- Report to credit bureaus,
- Seize federal and provincial benefits,
- Continue enforcement even after bankruptcy.
This makes FRO a powerful ally for support recipients—and a serious concern for payors hoping to escape debts through bankruptcy.
📌 Key Takeaways
- Child support obligations survive bankruptcy under s. 178(1)(c) of the Bankruptcy and Insolvency Act.
- “Support orders” include interest and legal fees related to child or spousal support enforcement.
- Court costs tied to enforcing support are also not discharged in bankruptcy.
- The Family Responsibility Office can continue enforcement action even after bankruptcy discharge.
- Payors considering bankruptcy should seek legal advice before filing.
⚖️ Facing Bankruptcy and Support Obligations? Talk to an Ontario Family Lawyer
Navigating family law and bankruptcy law together is complex. Whether you’re a support payor considering bankruptcy or a support recipient worried about collecting arrears, you need legal advice to protect your rights.
📞 Contact IQBAL LAW today for a consultation (289-652-0529). We’ll help you understand how child support and bankruptcy intersect—and what steps you should take next.
DISCLAIMER:
The information provided in this blog is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is established through this writing. You should consult with a qualified attorney for advice tailored to your specific situation. The lawyer and their firm disclaim any liability arising from reliance on this blog or any other content on this website.