Q. Please could you let me know whether a debt (either personal or company) incurred before declaring chapter 11 is still in force after the CRA approves the proposal?

A. Horav Shlomo Miller’s Shlit’a opinion is that personal debts remain and have to be honored even after declaring insolvency. However, debts incurred by a company, are normally subject to the conditions and laws by which they were established and accepted. The debt acquired will follow the court decisions, unless it was attained by also giving ones personal guaranties.

Rabbi A. Bartfeld as revised by Horav Shlomo Miller Shlit”a