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Anonymous said...: Hi there

If you charged with fraud or there is a fraud warning, example mortgage fraud how does that affect your bankruptcy?; May 30, 2007 2:06 PM
Jeremy Kroll said...: If the court makes a finding (simply alleging is inadequate) of fraud or misrepresentation this particular debt would survive in a bankruptcy.

However, a bankruptcy may be the best way to deal with your other debts so that your resources are better available to deal with this surviving debt. Please contact us toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; May 30, 2007 2:51 PM
Anonymous said...: I have been unemployed since Jan/07, I am on disablity through EI which runs out in a couple of weeks. One of my PLC has been covered by payment protection, a personal loan is covered, my one visa is covered. I do not receive much from EI, I had no insurance on my mortgage, which is now about two months behind, another PLC would not give me payment protection. I am way over my head in debt between my mortgage and my PLC. Since my disability is soon over and I cannot find a job, I find myself in debt way over my head as these payments must now be made. Due to legal issues, I cannot return to my job and have not been able to obtain one as yet. Can you advise my as to what I should do: Personal bankruptcy?
credit counselling? I do not want to lose my home. What can I do before they foreclose?; May 30, 2007 3:58 PM
Jeremy Kroll said...: Thanks for your question.

Bankruptcy is one of many potential ways to deal with overwhelming debts. Without more details on the value of your house and the outstanding mortgage, it is difficult to advise you on whether or not your house could be protected.

To better assist you in resolving your situation and to advise you on how you may be able to prevent the loss of your house, please call us toll-free any time at 1-866-916-8907 and schedule a no-obligation, free consultation with one of our consultants so that we may gather further details specific to your situation.; May 30, 2007 4:00 PM
Anonymous said...: I am 16,500 dollars in in debt with a line of credit from my banking institution, 1500 dollars with visa and 2000 dollars with the government for income tax. I am currently unemployed, and living in Ontario, I have not yet recieved any calls from creditor and am paying some of the payments with any savings I do have. Can I claim bankruptcy, I am in over my head with debt.; May 31, 2007 11:26 AM
Mark Morgan said...: Thank you for your question today. The requirements for filing for bankruptcy are that you be a resident of Canada, owe more than $1,000.00 and are unable to pay your debts as they come due. In respect to the information you have provided in your question, you are eligible to file for bankruptcy.

However, to better evaluate your situation and provide you with the best solution for your financial difficulties, I recommend that you book a free, no-obligation consultation with one of our managers. You can call 1-866-916-8907 to arrange an appointment at one of our 21 offices at a time and day convenient for you. Good luck with your situation!; May 31, 2007 12:49 PM
Anonymous said...: I have a school loan that my parents co-signed for. Will they be responsible?; June 1, 2007 3:13 AM
Mark Morgan said...: Co-signed loans are the responsibility of all parties to the loan at all times. What this means is that until the loan is paid in full, both you and your parents are individually 100% responsible to repay the loan.

If the school loan is a government backed student loan, and if you have not been out of school for more than 10 years, bankruptcy or a proposal will not remove your responsibility to repay this loan.

If the loan is a normal bank loan that you happened to use for educational purposes, bankruptcy or a proposal will relieve you of this debt, but your parents will still be required to pay the balance of the debt as co-signors. Let's look into this further for you -- please call us at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; June 1, 2007 8:31 AM
Anonymous said...: I need advise on Bankruptcy for my business.
Can you advise about this or just personal bankruptcy?

1.How does declaring bankruptcy personally affect my incorporated businesses?
2.Can I incorporate my business to protect it from my personal bankruptcy?; June 1, 2007 11:07 AM
Mark Morgan said...: We provide insolvency solutions for both personal and business scenarios.

By declaring bankruptcy personally, the shares of your incorporated businesses vest in the Trustee (we become the owners of the shares). We would need to determine what value, if any, the businesses have and then determine the best realization strategy for these businesses.

Again, declaring personal bankruptcy would put the ownership of the business in the Trustee’s hands and we would again need to determine the value of the business and the best realization strategy.

In both cases, if there is a value to the business, it can be sold to the bankrupt, to a related party or to an unrelated third party.; June 4, 2007 1:40 PM
Anonymous said...: I have a question. If my husband files bankruptcy and I do not, do I have to declare my income on his budget sheets as well and do I have to account for everything I spend my money on? Thanks.; June 5, 2007 4:13 AM
Jeremy Kroll said...: Thank you for your question. If you husband files for bankruptcy but you do not, we, as trustees, are still required to notify your creditors and the OSB of your net household income. Your husband would be responsible for tracking what the total net income for the household would be for that month, then break it down on an income and expense form that we would provide him with. This should not be your responsibility.

Often the easiest way to track these types of expenses over a monthly period is to place every receipt each of you obtain, plus your paycheque stubs, into a large manila envelope, which he can then empty at the end of the month, divide up into piles (i.e. food, gas, hydro, etc) and then input the numbers onto the form.; June 5, 2007 9:01 AM
Anonymous said...: Can I have bunkrutcy if i am not workinkg?I am a stay a home mother with tree childrens,my husbent and me have some problems but we stay to live together because of childrens,he owns small buisiness,he had bunruptcy before 6 years.
thank you; June 5, 2007 11:23 AM
Mark Morgan said...: You can file bankruptcy if you are not working.

Contact us at 1-866-916-8907 to set up a free no obligation consultation so we can explain how a bankruptcy would affect you.; June 5, 2007 11:28 AM
Anonymous said...: My mom and dad are now separated and my dad left the house to my mom / he transfered ownership, he is an alchoholic and gambles all the time, this happened 6 months ago, however they are not legally divorced/separated. They just dont live thogether. My dad cant pay his bills and all the credit card debt he has accumilated from gambling. He hardly works, and is thinking of going back home to my grandparents. What are the pros and cons in declairing a bancruptcy, can he do it if so are there any complications in terms of what i have told you.; June 6, 2007 7:04 AM
Jeremy Kroll said...: This is a difficult question to answer easily in this email.

We would need to know when the house ownership was transferred.

Depending on when it was transferred, the transfer may or may not be an issue in your father’s bankruptcy.

If it was transferred less than 1 year ago, a trustee could attack the transfer as a settlement and have the court put the house back into your father’s name to the extent that he owned it prior to the transfer. As an alternative, your mother could make an offer to the Trustee for the equity in the house at the time of transfer so that she effectively buys your father’s interest in the house from the estate.

If the house was transferred more than 1 year ago, but less than 5 years ago, the trustee still may be able to attack the transfer as a settlement if (s)he can prove that your father was insolvent at the time and the equity in the house was needed to pay his debts at the time of transfer. This is a more complicated subject that would require further explanation in person.

Additionally, as your father has an alcohol addiction and a gambling addiction, these issues will affect his discharge from bankruptcy as these issues contributed to his financial situation. The court may require that he enter treatment programs for both issues before they grant a discharge and the discharge would most likely be suspended (delayed) for a specific period of time as determined by the court.

The pros of filing a bankruptcy are that it would relieve your father of his debts upon his discharge, it would stop any and all enforcement actions against your father and it would allow your father to concentrate on treatments for his addictions.

The general cons of filing a bankruptcy are the negative effect on your credit rating, the issues related to the house and the potential impact on your mother.

Should you wish to discuss these issues further, you can contact our office and speak with a trustee at your convenience.; June 7, 2007 11:32 AM
Anonymous said...: What happens with a leased vehicle when you file for bankruptcy?; June 7, 2007 1:12 PM
Jeremy Kroll said...: In most cases the leased vehicle is retained in a bankruptcy so long as the payments are up to date. If it is a "bad lease" the debt can be included in the bankruptcy and the debt erased upon the discharge from bankruptcy.

To be certain how your particular situation would be handled we would have to review the lease documents when you set up your free initial consultation with us.; June 7, 2007 1:29 PM
Anonymous said...: My common law husband has defaulted students loans that are greater than 10 yrs old. I want to have him propose to pay a lump sum to the collection agency to get rid of he debt. I am wondering if 1) due to the length of time it has been in collection is there an amount that he should offer? % of the total debt
2) does he need to go through a trustee or it is something that he can do himself
3)Is there a limit to the time that the debt can be in repayment in the collection agency before it gets written off?; June 8, 2007 9:08 AM
Jeremy Kroll said...: Your question is complex and a full answer could only be provided if the information available was significantly more detailed.

Generally speaking, the longer the debt has been in collections the more willing the creditor is to settle. However, each creditor and collection agency has its own guidelines.

You can definitely attempt to negotiate the arrangement on your own. Be sure that a final agreement is properly documented and signed by the parties. When a Trustee in Bankruptcy is conducting negotiations, their professional reputation will often help to facilitate a deal.

The debt being written off may be due to: (i) internal policy of the creditor or collection agency or (ii) the laws according to which a creditor may eventually lose their legal right to pursue a debt. Please consult a lawyer on this last point.

For a more complete answer please contact us toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; June 8, 2007 4:14 PM
Anonymous said...: i have no choice but file bankruptcy second time.i cant work anymore my shoulder injured.i will have the surgery oct 2007. i cant pay my credit card ,and i dont have any income.i need your guidence.
thanks; June 11, 2007 9:40 AM
Mark Morgan said...: Filing for bankruptcy a second time is something you only want to do after ensuring that all other viable options have been explored.

We would be happy to assist you in explaining what your options are at a free, no-obligation consultation. Give us a call at 1-866-916-8907 to arrange an appointment at one of our 21+ locations around and north of the GTA and Hamilton.; June 11, 2007 10:02 AM
Anonymous said...: Hello,

I am planning on opening a small business. I have some money in saving bonds that I was planning on using, however, this money wont be enough. The business is on sole ownership with no partners involved and it will be solely on my name. My husband recommends that I DO NOT use my own money and borrow money from the bank on the name of a business account. My first question is that if I borrow the money on a business acount on my business' name and God forbid have to declare bankruptcy will that affect my personal money, or my personal credit history? I also own a condominium with my husband, will it affect that? Currently I have no debts and have an excellent credit history, therefore on my personal name the bank has approved me for an unsecured line of credit. If I borrow money on this line of credit it will be on my name not on the name of my business but it would be saving me the fees for a business acount and other bank fees plus there is no guarantee the bank will approve my business for a line of credit. My question here is that if I take this line of credit on my personal name and use the funds for my business, can I write them off in my taxes as business expenses?; June 11, 2007 4:49 PM
Mark Morgan said...: If you operate a sole proprietorship, the assets and liabilities of the business are also personal assets and liabilities. Therefore, should the business fail, and you need to file for bankruptcy as a result, all assets and liabilities of both the business and you personally are affected. This would include your share of the equity, if any, in the condominium that you own jointly with your husband.

Your personal credit history and rating will be affected by the bankruptcy.

With respect to your tax question, you would not be able to write-off the funds invested, but you would get a tax deduction for the interest on the loans taken. This is a topic best discussed with your accountant and tax advisor.

To further discuss the effects of declaring bankruptcy please call 1-866-916-8907 and set up a no-obligation free consultation.; June 12, 2007 2:02 PM
Anonymous said...: Can my husband and I transfer ownership of our house to my dad before we do our bankruptsy? Will that protect the equity in it?; June 13, 2007 10:08 AM
Anonymous said...: My spouse doesn't want anything to do with my declaring bankruptcy. I'm told that the only thing he will have to do is disclose his monthly income.
He doesn't want to even do this.
How will this effect my Bankruptcy if he refuses?; June 13, 2007 10:35 AM
Jeremy Kroll said...: Any transfer of assets for less than full value (particularly when you are in financial difficulty) can and should be attacked by the creditors or the trustee (if there is a bankruptcy). The BIA is there to protect the honest debtor from his / her creditors.

We suggest that you attend an initial, no-charge, no-obligation meeting with us to fully evaluate your options so that you can find the best way to both keep your house and deal fairly with your creditors.; June 13, 2007 4:04 PM
Mark Morgan said...: The only direct involvement of your spouse in a bankruptcy proceeding is to provide proof of his monthly income to the Trustee. (He may also be involved indirectly if he is co-signor or guarantor of any of your debts or you are a co-signor of any of his debts. There may also be indirect involvement if your spouse co-owns property with you.)

If your spouse refuses to disclose his income to the Trustee, he is not included as a dependant in your bankruptcy and if anyone opposes your discharge, the court can order your spouse to provide his income information and make appropriate orders based on this information.

Should you wish to discuss these issues further, we would be happy to meet with you for a no-obligation, free consultation. Call us at 1-866-916-8907 to set up an appointment at an office conveniently located in your area.; June 13, 2007 4:06 PM
Anonymous said...: If you have a business in a partnership (2 people) and the business does not work out and you have to declare bankruptcy does it affect both people's personal credit, personal assets, ratings etc? What are the things it will affect?; June 14, 2007 11:18 AM
Mark Morgan said...: There are 2 possible scenarios here:

1. The partnership declares bankruptcy.

2. An individual partner declares bankruptcy

Therefore, if the partnership itself files for bankruptcy, the credit ratings and personal assets of all partners are at risk. If one individual in the partnership files for bankruptcy personally, the credit ratings and assets of the other partners may or may not be affected depending on the joint debts of the partnership and the remaining individual partners’ ability to settle all outstanding debts of the partnership once dissolved.

Please contact us toll-free at 1-866-916-8907 anytime if you would like further assistance.; June 14, 2007 4:25 PM
Anonymous said...: My husband and I are separating and are each filing for bankrupsy. Our debt is about $40 00. We own a home that we have a $205 000 mortgage on. It was recently assessed at $240 000. Is the equity $35 000 and what happens to that? What happens if we decide to sell the house during or after the bankrupsy?; June 15, 2007 8:05 AM
Mark Morgan said...: Determining the equity in a home is very important in a bankruptcy scenario. To make this determination, you need to know the current balance of any mortgages outstanding, any property tax arrears and the current market value of the Property. Unfortunately, the property tax assessment value is not a reliable value for this purpose and you will need to get either an opinion of value from a real estate agent or an appraisal from a real estate appraiser.

The equity in the home becomes an asset of the bankruptcy estate and must be dealt with by the Trustee. Therefore, only the Trustee would have control over any sales process after filing.

It is possible to purchase your interest in the property back from the Trustee. However, this is too detailed a topic to explain in this forum. Please contact us toll-free at 1-866-916-8907 to set up a no obligation free initial consultation where we would be happy to meet with you and discuss all the implications of filing for bankruptcy and specifically how this relates to your house.; June 15, 2007 1:37 PM
Anonymous said...: if i have a consumer proposel already but I have pasted the 3years since owning a home can I just go bankrupt now? I still have over 5 years to go on the proposel and don't own anything now??; June 18, 2007 11:40 AM
Mark Morgan said...: Consumer proposals have a maximum term of 5 years so perhaps you have a Division I proposal?

In any case you can file for bankruptcy. Please discuss this with your trustee.; June 18, 2007 11:46 AM
Anonymous said...: Hello Jeremy,

Your website says that first time bankruptcies are removed from credit bureau records after 6 years. Transunion tells me that is incorrect and that by Ontario law they leave the record for 7 years.

Your help with this would be greatly appreciated.; June 22, 2007 4:33 PM
Jeremy Kroll said...: This is a very interesting question. The latest information we have is, as posted on our web site, 6 years after the discharge from a first bankruptcy. We shall immediately investigate if there have been any changes and update if required. It is always important to remember that it is the lenders’ bureau of consumers’ credit records – subject to the statutory regulations they may keep records for as long as they deem it necessary.

If you believe you are being unfairly treated by a credit bureau and cannot correct the issue directly with them you should contact the Ontario Ministry of Consumer Affairs (or the equivalent for the province in which you reside).; June 25, 2007 1:22 PM
Anonymous said...: I co-signed a car loan for a friend last march. he cancelled his insurance and crashed the car. it is now worthless. In january he lost his job and i've been making the monthly payments. there is still $15000 left on it. He also owes $10000 on his credit card and is planning on filing bankruptcy. Can he add the car loan to the bankruptcy? how will this affect me? will the car company come after me?; June 25, 2007 6:05 PM
Mark Morgan said...: If your friend files for bankruptcy, he can and MUST include the car loan.

Upon filing, the car loan will become solely your responsibility and yes they will enforce payment by you in full.

Please call our office toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; June 26, 2007 9:06 AM
Anonymous said...: Hello
I filed bankruptcy in 2006 and received my discharge in 9 months(in 2007)My income tax for 2006 went to the trustee and they kept the refund as I expected. Could you tell me who will receive my 2007 tax refund, if any for 2007? Also after discharge can I have RRSPs, savings account, transfer money from a previous employee pension plan to a locked in Lif etc. at my bank if I want?or do I have to leave it as not to generate a surplus? Thankyou; June 26, 2007 2:36 PM
Mark Morgan said...: Your 2007 income tax refund, if any, would be yours as we are only entitled to the tax refunds in the year of filing.

Assuming your comment regarding surplus was with respect to surplus income, the requirement to pay surplus income stops once you are discharged.

Once you are discharged from bankruptcy, you can start to accumulate new assets such as RRSPs and savings accounts. Your ability to transfer funds from a pension plan to a LIF may be restricted as your trustee may have put the pension administrator on notice of the bankruptcy. This notice would prevent the administrator from executing any transaction without the prior consent of the Trustee. Please contact your Trustee in this regard.; June 27, 2007 3:10 PM
Anonymous said...: I was in an undergrad program at a Toronto university and graduated from this 4-year program 5 years ago. I owe OSAP $20k and they are driving me crazy. What can I do about this debt? Can I declare bankruptcy? Please help as they are calling me daily.; June 29, 2007 9:42 AM
Mark Morgan said...: Under the current legislation, student loans are protected from discharge in an insolvency proceeding if you have been out of school for less than 10 years. As your loans are only 5 years old, you can not get relief from this debt at this time.

You could request interest relief if you are currently unable to make payments on your student loans but this will only stop the interest from accumulating for a short period of time.

As we do not know your full financial situation, we are unable to fully answer your question and provide you with realistic options. We recommend that you give us a call at 1-866-916-8907 to set up a no-obligation free consultation with one of our managers to discuss your situation fully.; June 29, 2007 10:04 AM
Todd said...: I am 21 years old and have been out of work for 2 months and have fallen behind in my loans to the point where i cant fix it on my own.. however 1 or 2 of the loans are co-signed by my father.. if i declare bankrupsy.. or something will it affect him? .. what options do i have? please email me; July 5, 2007 2:48 AM
Todd said...: I am 21 years old and have been out of work for 2 months and have fallen behind in my loans to the point where i cant fix it on my own.. however 1 or 2 of the loans are co-signed by my father.. if i declare bankrupsy.. or something will it affect him? .. what options do i have? please email me; July 5, 2007 2:49 AM
Mark Morgan said...: There a number of options available to assist you in dealing with your creditors including bankruptcy, formal proposals and informal proposals to name a few.

With respect to your father as co-signor of your loans, once you are formally discharged from your debts under bankruptcy or formal proposal, the debt becomes the full responsibility of the co-signor. What this means is that your father may be asked to continue to make the regular monthly payments or to pay the loan in full. Without the full details of the terms and conditions of these loans, it is hard to say which may happen.

To get a full understanding of your financial situation and to explore your options and choose the one that is best for you , please call 1-866-916-8907 to set up a no obligation, free consultation with one of our managers.; July 5, 2007 8:59 AM
Anonymous said...: We claimed bankruptcy in Aug/06 and was discharged in May/07,after 9 months meeting all of our obligations with nothing further owing to our trustee. We did sign to have the trustee prepare and keep 2006 tax refunds. Am I correct in thinking that we are entitled to our post bankruptcy(2007) tax refunds? Also I checked my E-pass account at CRA and found out that the trustee is authorized until Aug/2009. We thought we had authorized them to represent us in the 2006 bankruptcy year,(as they requested). Were we misled and if so is that legal? Can we have them removed as our authorized representative now that we have an absolute discharge? Thankyou; July 6, 2007 9:13 PM
Jeremy Kroll said...: It is always great to see people who have successfully obtained their discharge from their debts remaining on top of their financial affairs.

You may cancel the representative for the 2007 and future tax years by simply completing the Form available on the CRA web site. A copy should go to your trustee. For ease of maintenance of your CRA account, it may be best to leave the Trustee as the authorized representative for 2006.

The 2007 income tax year refund (if any) will belong to you.; July 9, 2007 11:23 AM
Anonymous said...: Hi,We went bankrupt about 10 years ago and i am wondering what the reprocusions of going bankrupt again would be.? We owe about 50,000 in total which includes some personal debt as well.Also can one spouse go bankrupt with out having an effect on the other? thanks; July 13, 2007 11:14 AM
Mark Morgan said...: As a second time bankrupt, your credit rating will be affected for 14 years.

You are not entitled to an automatic discharge in 9 months. You will need to attend at court for your discharge hearing and may be asked questions by the judge as to why you filed each bankruptcy. The judge will then issue a discharge order which can require additional months in bankruptcy, additional payments or both.

If one spouse files for bankruptcy, it has no direct effect on the other spouse. However, if there are any debts that were co-signed by or for the bankrupt, the spouse will be solely and fully responsible for payment.; July 13, 2007 11:24 AM
Anonymous said...: My husband and myself went bankrupt quite a few years ago. We were too depressed or overwelmed to fill out the financial papers our household costs that is required and it ended up that we couldn't come up with the money to pay the trustee, My question is we were told by letter that my husband was going to be discharged but we never got papers and nothing was said about me. Can we apply for credit if were are not discharged? By the way if it becomes possible we want to pay the trustee well ours died but his new owner.; July 24, 2007 3:06 PM
Anonymous said...: hi I have student lines of credit from two banks, td canada trust and BMO. Can I claim bankruptcy on them because they are not government money for school? also can i claim bankruptcy on personal lines of credit that i have. thank you; July 24, 2007 10:41 PM
Anonymous said...: i owe $30,000 to my lines of credit because i needed the money for various reasons. i had to pay back people who loaned me money my mom, sister and friend. I fixed my cars etc. my question is what happens to the people i paid back my loans to. will they have to fill out any forms or anything like that? also i am currently a full time student in university. my school is already paid for as it is my last year of studies. do i have to drop out? thank you. oh how often do the creditors take you to court if you owe them money, I have never claimed bankruptcy before. thank you; July 25, 2007 3:17 AM
Mark Morgan said...: It is possible to get credit while an undischarged bankrupt. However, you must notify the credit company that you are undischarged if the total credit applied for from any and all new sources post filing for bankruptcy exceeds $500.00.

To determine what the status of your bankruptcy discharge is, I suggest that you contact the Trustee that took over your original Trustees files. He would be best able to provide you with accurate details of your status and could assist you in setting up a payment plan that you can afford to complete the financial obligations of your file.; July 25, 2007 8:19 AM
Mark Morgan said...: In general you can file for bankruptcy and get protection from all debts. However, certain debts are not discharged by your bankruptcy and will have to paid once the bankruptcy process is completed.

Student lines of credit, if not backed by the government student loans program, would be fully dischargeable as would your regular lines of credit.

Please contact us toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; July 25, 2007 8:39 AM
Mark Morgan said...: You do not need to drop out of school because you file for bankruptcy protection.

Creditors do take clients to court to get garnishment orders to allow them to collect debts directly from the clients pay. We do not have any statistics on the frequency of these actions.

Regarding your question about payments to friends and family and what they may have to do in a bankruptcy, the quick answer is that it depends. There are certain situations where these payments may be considered as fraudulent conveyances. If a transaction is considered to be a fraudulent conveyance, the parties involved may be asked to answer some questions to assist the Trustee.

This is a complicated topic with many possibilities depending on the circumstances of the payments. We would be happy to meet with you to more fully explore the transactions and provide you with more detailed explanations. You can call 1-866-916-8907 and book a no obligation, free consultation with one of our managers in one of our many offices around the GTA, Hamilton and GTA North.; July 25, 2007 9:00 AM
Anonymous said...: i owe about $75000 in total. 30,000 of it was from gambling debts and paying back people i owe money to. the rest is credit card debt. i have never gone bankrupt before. will i be able to erase my gambling debts. the money for the gambling debts came from lines of credit from a bank; July 25, 2007 11:11 PM
Mark Morgan said...: Gambling debts are dischargeable in bankruptcy or proposal proceedings. However, it can be an issue at your discharge hearing as gambling is considered to be rash and hazardous speculation. Recent court decisions are resulting in a requirement to repay a portion of the gambling debt at the courts discretion.

To discuss your situation further and to hear all of your options in how to deal with your debt, please call 1-866-916-8907 to schedule a no-obligation free initial consultation with one of our managers.; July 26, 2007 8:37 AM
Anonymous said...: I live with my wife in my fathers basement of his house. I pay for all of the maintenance for the house and some of the bills, hydro etc. my father is disabled on a pension, he also pays child support payments. I have 40,000 in debt and want to go bankrupt but i don't want to get my father in trouble because he does not claim my assistance for the bills on his taxes although i am not sure that he has to because I am paying the bills not giving him money. can you tell me what is involved in proving that i pay some of his bills.; July 27, 2007 2:51 AM
Anonymous said...: can you tell me what is considered reasonable debts. I realize that buying plasma tv's etc. a month before going bankrupt is unreasonable but what is considered reasonable. Also most of my debt is from lines of credit $30,000 worth. because it was credit I do not have hard proof where the money went. what process is involved when the money i owe is from a open line of credit and i have little proof where the money went other than my word on where it went; July 27, 2007 2:55 AM
Jeremy Kroll said...: This is a very good question.

Your father does not "get involved" in any filing you make with us for protection from your creditors. This assumes that your father is not owed any money by you.

If you know what your father's income is, then you would be required to report same on your filing documents (as he is part of the same household).

If you do not know your father's income then obviously you cannot report it. All that then happens is that you cannot have a further deduction from the income for the additional member of the household (your father).

Sounds complicated but it is very simple. We suggest you sit with one of our managers (no charge and no obligation) and you will see exactly how it works before you are committed to anything.; July 27, 2007 9:44 AM
Mark Morgan said...: Reasonable debts are those that are incurred in the course of a "normal" lifestyle. A more detailed definition is difficult as it varies for each and every individual based on such variables as income, life stage, where they live etc.....

You are correct in your conclusion that purchasing large screen plasma tvs a month before you file is not a "reasonable debt".

To discuss this issue further as it specifically relates to you and your debt, you can schedule a no-obligation, free initial consultation with one of our managers by calling 1-866-916-8907.; July 27, 2007 9:46 AM
Anonymous said...: I have been attending american teachers college for 3 months to teach in ontario. i used my lines of credit to pay for my tution. the total cost was $30,000. i also owe another $35,000 in credit card bills. because i am in school i live off my wifes income. we cannot afford to pay the minimum payments anymore for all of the debt. do i have to drop out of school to pay the creditors back with the tution refund or can my wife and I claim bankruptcy. we have never been bankrupt before.; August 1, 2007 2:39 AM
Mark Morgan said...: There is no requirement to drop out of school as a result or condition of bankruptcy. It appears that all the debt is yours and your wife currently is the only one in the family working. If this is accurate, then your wife may not have to file for bankruptcy at all.

There options other than bankruptcy to assist you during your current financial struggle. Please contact our offices at
1-866-916-8907 to schedule a no-obligation free consultation to discuss your options.; August 1, 2007 8:16 AM
Anonymous said...: My boyfriend recently started living in the home I own with my father (my father owning most of the property and put down much of the downpayment.)
my boyfriend just told me he may need to file for bankcuptcy. Has he any entitlement to my house? ( he has yet to give me any monies for living there but soon will)
thank you for your help.; August 7, 2007 8:23 AM
Mark Morgan said...: In bankruptcy, only the assets of the bankrupt vests in the Trustee. Based on the information provided, your boyfriend does not have any legal ownership of this house. If he is considered a common-law spouse, then, if there is a separation, he MAY be entitled to ½ of your interest in the house. However, as long as you remain together, there appears to be no legal entitlement to the house by a Trustee in Bankruptcy for your boyfriends bankruptcy.

To discuss this issue further and to learn more about the potential options available to your boyfriend, you can call 1-866-916-8907 and schedule a no-obligation free consultation with one of our managers.; August 7, 2007 9:38 AM
Anonymous said...: thank you very much for your speedy response to my question. The answer leads me to another question....in Ontario how long doe's one have to live with you to be considered common law and what would be the proof that you are considered common law?

Thanks again for your assistance Mark.; August 7, 2007 10:23 AM
Mark Morgan said...: You are considered as common-law if you have co-habitated with someone (either sex) for a period of 12 months. Defining co-habitated means sharing a home as a married couple or sharing a matrimonial bed…or immediately if you co-habitate and have a baby together or immediately, the minute you move in, if you have had a child together.….

It is not proving that you are a couple, it is more proving that you aren’t…..; August 8, 2007 9:27 AM
Anonymous said...: A Canadian citizen, who is now a New Zealand resident, owes money on a Canadian Personal Line of Credit.
Can they file for bankruptcy , or submit a personal or consumer credit proposal in Canada ? Can they have someone represent them here by giving them power of attorney ?
If the debt has already been turned over to a debt collector, what are their options ? Thank you for your help.; August 11, 2007 7:26 PM
Mark Morgan said...: To be eligible to file for bankruptcy under the Canadian Bankruptcy and Insolvency Act, a person must meet the definition of an "insolvent person".

TO meet this definition, the person must:
a) not be a bankrupt
b) reside in or carry on business in Canada within the year preceding the bankruptcy.
c) have liabilities exceeding $1,000.00.

You have not provided sufficient information regarding the timing of your move to New Zealand to provide our opinion as to whether or not you meet the above requirements.

Whether the debt is with the creditor or assigned to a collection agency would not affect the ability to file a bankruptcy or proposal under the Bankruptcy and Insolvency Act. However, if the LOC is the only Canadian debt, you may be able to negotiate a settlement with the collection agency wherein you pay either a reduced amount or monthly payments.

Another option you may have is to contact a debt counseling company who may be able to negotiate a payment plan on your behalf to settle this debt.

A Power of Attorney may in fact enable you to have a representative here in Canada sign your documents. It is important, however, that you understand that when you file for bankruptcy in Canada, all of your assets, wherever they may be located (read anywhere in the world), vest in and are subject to seizure by the Trustee. As we are not lawyers, we suggest that you speak with a lawyer before giving Power of Attorney over your assets for the purpose of filing for bankruptcy as there may be risks associated with so doing that only a lawyer is qualified to explain to you.; August 13, 2007 11:52 AM
Anonymous said...: Hi my husband was earning 70000 and the company closed. He now has a new job however its for 40000 not 70. My question is if we were to file bankruptcy could we keep our house and vehicles. We need our vehicles for transportation to and from work.; August 24, 2007 9:40 AM
Jeremy Kroll said...: We are pleased to answer your questions but it is not possible or professional to do so without understanding at least the following:

1. Value of house and cars?
2. In whose name each item is registered?
3. What loans are secured against these items?
4. What can the household cashflow manage to pay for?

We would be pleased to meet, at no-charge & no-obligation with you and/or your husband to review all your options including bankruptcy. Please call us toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.

We want to help you make the best informed decision.; August 24, 2007 10:33 AM
Anonymous said...: I have a credit card through TD Canada Trust, which I have not been able to make payments on. Since my checking account is with TD, when I get OSAP this fall, will Visa automatically take the money I owe from my bank account?; August 26, 2007 1:31 PM
Mark Morgan said...: It is very possible that this may happen. The bank has the right of offset against any and all accounts held by them. Therefore, if you owe on the credit card and have a bank account with money in it, they can take the money to pay the debt.

The best solution is to open a new account at another financial institution and deposit the OSAP there. The bank will not be able to take this money.; August 27, 2007 10:09 AM
Anonymous said...: My hisband and I are finding our bills really hard, leaving us with about $50 for food a week, (we also have 2 kids), so this is just not enough. We have already considolated about 1.5 years ago and we just get right back in debt again. we have a trailer, like a mortgage over 20 years, the pymt is low only 220.mnt. we have a house and 2 cars, on lease and we own the other. lots of credit cards and loans. its getting to the point where we just cant do it!! We make about 95000 a year between the 2 of us. we claimed bankruptsy about 10 years ago. is that our best solution?; August 29, 2007 7:20 PM
Jeremy Kroll said...: The scenario you describe is, unfortunately for many Ontarians who are raising a family, not unique.
we think you very likely do have other options and would be very pleased to review them with you.

Please contact us to see how you can protect your assets and deal properly with your creditors.

Please contact us toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; September 4, 2007 12:57 PM
Robert said...: Hello,
I have debt in the amount of $40,000 in Ontario Canada.I am a Canadian citizen, but a permanent resident of the U.S.A.Due to circumstances beyond my control in the USA I am unable to repay my debt in Canada.Can I file bankruptcy in Ontario?( I am 5 - 6 months behind in my payments. I receive a min. of 3 calls a day from collection people.)Most of them not very nice.Please advise.
Thanks; September 12, 2007 11:35 AM
Anonymous said...: I am currently live in ontario and am unemployed due to an injury and my bills have gotten out of control with me having no real imcome. I have tried to keep up to date on them but i find im paying credit cards and bank loans with other credit cards. Now im at my limit on my credit cards and my line of credit has been frozen from withdrawls. I know i cannot make the up coming payments that are on there way at the end of this month I have had good credit thus far and no calls yet. I have very little money that ive made here and there with odd jobs. I am considering filing bankruptcy would this be the right step? I have been offered a job which can pay my current expenses ie: rent, phone, hydro, ect but it wont cover my debt. Also this upcoming job requires that i apply for a business liscense. Can i own a small business during a personal bankruptcy? can i keep my business liscense? This small business is going to be my only source of income. I'm not sure who to ask questions like this to. If you can help with any information I would appreciate it.; September 15, 2007 5:34 PM
Mark Morgan said...: To be eligible to file for bankruptcy under the Canadian Bankruptcy and Insolvency Act, a person must meet the definition of an "insolvent person".

To meet this definition, the person must:
a) not be a bankrupt
b) reside in or carry on business in Canada within the year preceding the bankruptcy.
c) have liabilities exceeding $1,000.00.

You have not provided sufficient information regarding the timing of your move to the USA to provide our opinion as to whether or not you meet the above requirements.

An option you may have is to contact a debt counseling company who may be able to negotiate a payment plan on your behalf to settle this debt.

If you like, please contact us toll-free at 1-866-916-8907 anytime to arrange a free brief telephone discussion so we can further determine if you qualify for our services based on the information provided above.; September 18, 2007 10:07 AM
Jeremy Kroll said...: Your situation (to the extent we can see from the facts shared) is quite common: debts grew in a period of low income and now cannot be repaid.

A bankruptcy or proposal to your creditors are two likely answers in order to treat your creditors fairly and allow you to restart your financial future. Other options do exist. We would be pleased to provide a free initial consultation at the end of which you would understand all your options and be informed enough to make the best decision for you.; September 18, 2007 10:10 AM
Anonymous said...: My husband left me last March, and has since filed for personal bankruptcy.

I have been receiving calls from creditors, because one of his credit cards had been a joint account, and he has filed it under his bankruptcy. They are harassing me though over money owed.

What can I do about this? I have zero intention of filing bankruptcy, as I have no reason to do so.; September 24, 2007 7:59 PM
Anonymous said...: www.gr8danes@hotmail.com
If one files bankrupsy, why is it that there is a division, court and estate number, but recently applied for leased vechicle and nothing was on file at equifax or transunion credit agencies, indicating in bankrupsy. Discharge date is december 2007, told by trustee office that we send paper work to these agencies with proper two pieces of id and they will note the files. Never heard of this before, do these agencies not pick up every month updated sheets from the court house? Is this correct to you? Everything seems listed but not the collection companies, should they be listed on the creditors list of debt owing seperately as to forward paperwork to them by the trustee? Please answer if you can and thanks.; September 24, 2007 9:48 PM
Mark Morgan said...: As a joint holder of a credit card, both people are responsible for the full balance until it is paid.

You ex-spouse's bankruptcy only released his obligation for this debt. You are still responsible for the full balance until it is paid or a settlement is reached with the bank.

If this is your only debt, then you should make arrangements to pay the balance to avoid any further negative impact on your credit rating and potential legal action by the bank. If you have other debts, I would suggest that you come in and speak with one of our representatives to discuss your full financial situation and the options that are available to you.; September 25, 2007 9:41 AM
Anonymous said...: Can a commercial/residential business that is not operating but still has bills for residential portion and electrical and upkeep for the commercial part declare bankruptcy; September 25, 2007 1:43 PM
Anonymous said...: A follow up concerning the husband leaving etc.

My understanding is that because he has filed, and we are still leagally married without any legal separation, that because he has filed, I would be included in this bankruptcy as well.

Basically, what I am saying is that because he filed, his trustee would have noticed that my name is included wouldn't they?; September 25, 2007 7:55 PM
Mark Morgan said...: Bankruptcy documents are not sent to credit reporting agencies. The creditors are responsible for providing information to the credit reporting agencies. For further information on how the credit reporting system works, you should call 1 800 465 7166 and speak with a representative of Equifax.

Collection companies are not creditors of a bankrupt estate. They are simply a collection effort by a creditor. While some trustees will send notice to the collection agencies, it is not a requirement. If a collection agency continues to call you, you can refer them to your trustee who will advise the collection agency of the bankruptcy and provide proof through the Estate Number.; September 26, 2007 8:45 AM
Mark Morgan said...: As long as a business or person has debts exceeding $1000 and is insolvent (has liabilities that exceed assets, can not pay debts as they come due, is not paying debts as they become due) they can file for bankruptcy or file a proposal.

It is important to distinguish whether or not the business is incorporated. If not incorporated, it is the individual who has to file for bankruptcy and not the business.; September 26, 2007 8:47 AM
Mark Morgan said...: A Bankruptcy filing for an individual only affects debts related to that individual. Any other parties who may also owe the same debt are not protected by the bankruptcy and will still owe these debts in full.

While a Trustee is generally made aware of joint debt held by the bankrupt, there is no inclusion of the other parties in the Bankruptcy.; September 26, 2007 8:48 AM
Anonymous said...: I just filed for bancruptcy in the United States I am immigrating to Canada next month how will this affect my credit in Canada and what can I do to correct it. I want to buy a house when I get to Canada and am scared that I will not be able to. Please advise; September 26, 2007 9:41 AM
Mark Morgan said...: You have a separate US and Canadian credit rating. A Bankruptcy in the US has no effect on your Canadian credit history.

However, if you are new to Canada, you will have no credit history and therefore may find it very difficult to get loans in Canada starting out. You should consult with a mortgage broker in Canada to determine if you are eligible for a mortgage.; September 26, 2007 11:27 AM
Anonymous said...: hi,

i'm a business owner in a ltd company who is currently wnating to file for bankruptcy because we cannot manage the debt. Is it possible that we can file for bankruptcy on both a business and personal level without having to involve spousal assets. Further more, what are the implications of filing for bakruptcy if we owe back taxes of $23,000. Is it possible to file for bankruptcy in business and personal assets at the same time?; September 27, 2007 1:22 PM
Mark Morgan said...: Based on your question, you are involved in a limited business which we will assume means an incorporated business. Business and personal bankruptcies are separate events that can occur at the same time. To answer whether or not any spousal assets would be affected would depend on a number of issues such as whether or not these assets were pledged as security for debts incurred personally or through the business, whether or not the spouse co-signed for any of the debts of the business or personally for you and whether or not the spouse is a director of the company.

When you file bankruptcy, any taxes that you may owe up to the date of bankruptcy will be discharged. If the business owes for source deductions, GST or PST and they are not paid in full, a director of the corporation may be liable.; September 27, 2007 2:37 PM
Anonymous said...: I filed a personal bankruptcy in 2003. The corporation I was a director of shut down the end of December, 2002. When I filed my personal bankruptcy I notified revenue canada in writing that the business had shut down. Revenue Canada was also sent paperwork by my trustee but never responded. All GST filing paperwork was provided to Revenue Canada at their request, after I filed my bankruptcy so all of that info is up to date.

I was then discharged later that year by my trustee. Since that time I have received GST bills with both the corporation name and my name on them. I was no longer a director once I filed my personal bankruptcy - my question is: Can they still come after me? The bills continue to grow due to interest and penalties.

I have spoken with CRA collectors, written countless letters to them, have received confirmation from them by phone that they know I can no longer help them yet my name is still on all the statements that come in. There is one surviving director but he lives overseas. He has never been contacted by Revenue Canada despite information I've provided to them countless times about his address and the fact that he is the only director of the corporation around - he has also informed me that Revenue Canada has never contacted him.

How can I resolve this once and for all and get Revenue Canada off my back? And why is Revenue Canada not pursuing the non-Canadian director? It's driving me insane.; September 27, 2007 2:44 PM
Mark Morgan said...: You indicated that the letters were being sent to you in the corporations name with your name on it as well. This would appear to indicate that CRA is still attempting to collect these funds from the corporation, but sending the notice to your address as the only known address of a former Director.

CRA only has 2 years from the date of resignation of a director to raise a claim against a director. You indicated that you were no longer a director as a result of your bankruptcy. Did you in fact officially resign as a director? If yes, then we are way past the 2 year deadline for CRA to raise an assessment against you for the GST debts of the corporation as a director. If you did not formerly resign, you should consider doing so as soon as possible to start the limitation period.

As far as having CRA stop sending you the statements, you can write them and advise them that you have no further affiliation with this corporation (assuming you have formally resigned as director) and that you do not want any further mail for the corporation sent to your address.

If the letters continue to arrive, write return to sender on them and put them back in the mail.; September 28, 2007 9:06 AM
Anonymous said...: can you still find a consolidation debt solution even though you are paying child support through the Family Responsibility Office and are already in the arrears?; October 4, 2007 4:08 AM
Anonymous said...: im 22 years old. im suffering under tremendous debt. I have outstanding debts owning for credit cards, unpaid cellphone bill and unpaid schooling course. I have a job, but my main priorities are paying off my important bills. I'm already being harrassed by creditors for a couple of years now. I would like to know if its best if I should file for bankruptcy, since I am afriad the creditors won't settle for a proposal, since they are harassing me for almost 2 years now.; October 4, 2007 2:47 PM
Mark Morgan said...: With child support obligations, in arrears or not, you still have available to you all options to resolve your debts.

However, it is important to understand that any proceeding under the Bankruptcy and Insolvency Act will not relieve you of your responsibility for child support going forward nor for any arrears.; October 5, 2007 9:50 AM
Mark Morgan said...: The creditors are “harassing” you because you are not paying them. Offering a proposal or assigning yourself into bankruptcy are both options.

However, to best assist you in your decision, please call us toll-free at 1-866-916-8907 to book a no-obligation, free consultation with one of our managers so we can review your financial situation and explain all of your options to you.; October 5, 2007 9:51 AM
Anonymous said...: Hello – I would like to ask about what’s involved in filing personal bankruptcy while living abroad. My wife and I both lost our jobs due to downsizing about 6 months ago and were encouraged by a friend to invest in a business with him in Europe. What looked to be a good opportunity we agreed and invest both our personal savings and money from our personal credit into this business. I came with my family about 3 months ago to Europe to see how the business was going. Unfortunately the business was not going well at all – there were some serious legal complications that have basically stalled everything and major financial losses have been incurred. I’ve been told that it could be at least 12-24 months to clear up the legal issues due to backlog – and I’m afraid that my investment will never be recovered. I have major debt from Canadian creditors that I cannot pay because we have lost all our assets - and I need to stay here in Europe for the next year or even longer until the legal proceedings conclude. Can I work with a Canadian trustee in filing personal bankruptcy while I am abroad? If I cannot file from abroad what will happen regarding my creditors in the meantime and when I come back to Canada? I would appreciate your feedback as I need to understand my options.
Thanks; October 8, 2007 4:31 PM
Jeremy Kroll said...: It appears you would qualify to make an assignment in bankruptcy - subject to a full review of your facts. You would need to complete our standard checklist and provide, at a minimum, the following regarding the investment:
- business plan
- agreements between investors
- recent financial statements

We will also need some more insght into the legal complications you refer to. Any investment you may have in the business would, after bankruptcy is filed, belong to the estate for the benefit of your creditors.; October 9, 2007 4:11 PM
Anonymous said...: I'm thinking of declaring bankruptcy because I'm too overwhelmed with the debts I owe to creditors. I was wondering if the bankruptcy will be shown in my income taxes since I have one of my relatives file it. Will they see that I've filed for bankruptcy? I'm ashamed of what I put myself through, and I do not want others to know about my hardship.; October 10, 2007 11:03 PM
Mark Morgan said...: In the year of your bankruptcy, the Trustee will file your tax returns as part of the process.

There are 2 tax returns that need to filed in the year of bankruptcy, being the pre-bankruptcy period and the post bankruptcy period.

IF your relative were to file your taxes for you, they would be aware of the bankruptcy.; October 11, 2007 1:56 PM
Anonymous said...: I am a Canadian Citizen who is also a Greencard holder in the US. I've been working in the U.S. for 4 years and its been a constant struggle to keep up on my debts. I've recently become unemployed and am thinking of declaring bankruptcy in Canada. Will this affect my U.S. credit?; October 15, 2007 6:26 PM
Anonymous said...: I was a sole proprieter of a company which I closed 7 years ago. At the time I was not well and had outstanding PST and GST owing. I paid off the GST people because the Fairness Committe reduced the amount owed but now the PST people have sent me a letter demanding $27,000 with the interest. I can't afford to pay this. I barely make ends meet every month. Is bankruptcy my only option with the PST people?; October 16, 2007 1:00 AM
Mark Morgan said...: Declaring bankruptcy in Canada will not affect your US credit history.

However, keep in mind that the requirements under the Bankruptcy and Insolvency Act to file in Canada are that you have resided in Canada in the past year, worked in Canada in the past year or the greater portion of your property is in Canada.; October 16, 2007 10:04 AM
Mark Morgan said...: You have all options available to you that any debtor has available to them when they can not meet their obligations as they come due.

To discuss all of your options, please call us toll-free at 1-866-916-8907 anytime to arrange a free consultation so we can assist you with this process.; October 16, 2007 10:05 AM
Anonymous said...: I work outside the Canada. I was a sole proprieter of company in Canada which I closed in 2006 tax year beacuse it was not generating a sufficient income to keep it running. Would this be enough of a requirement to file bankruptcy in Canada?; October 16, 2007 1:27 PM
Anonymous said...: A year ago I moved to the USA and got a fresh start on my credit situation in which I destroyed through my own negligence back in Canada. I filed for bankruptcy and was discharged in 2003. Now nearly 13-months later, I have carefully established a good credit rating here in California and have learned from past mistakes. Thank god the US system is not tied in with Canada's or else I would have been in trouble. My question is; I intend to move back to Canada at some point and recently ordered a copy of my credit report through Trans Union. Like I imagined, my "discharge" notification was on my file and I am wondering how long will this continue to appear on my file in Ontario? I would eventually like to establish my Canadian credit as I may find it difficult to use my US-issued credit cards once i am back in Canada? Help please!; October 17, 2007 5:44 AM
Mark Morgan said...: To be eligible to file for bankruptcy in Canada you need to be insolvent, which means you have to owe at least $1,000.00.

In addition you must:

* Be unable to pay your debts as they come due, or,
* Have ceased paying your debts as they come due, or,
* Have debts that exceed the value of your assets.

In addition, you must either:

* Live in Canada during the year immediately before your bankruptcy

* Work in Canada during the year immediately before your bankruptcy

* Have the greater portion of your assets in Canada; October 17, 2007 10:25 AM
Mark Morgan said...: Congratulations on turning your financial life around!

Bankruptcy stays on your credit history for 6 years after your discharge or for a total of 7 years from the date of filing.

To start rebuilding your Canadian credit history, you will need to start getting credit in Canada and complying with the payment terms.

A secured credit card is usually the best starting point to rebuilding your credit.; October 17, 2007 10:26 AM
Anonymous said...: Will my son's RESP be affected if I file for bankruptcy?; October 17, 2007 12:05 PM
Mark Morgan said...: Trust accounts are not assets of a Bankrupt Estate and therefore can not be seized. However, if the RESP was set up as a general RESP account, it is likely not a true Trust account. Therefore, whatever percentage of ownership you have of the RESP will be an asset of the estate.

The net value of the RESP when it is cashed out will be less than the current value of the RESP due to administration costs and the requirement for the RESP administrator to return any payments made by the Government back to the Government. Should you wish to keep the RESP for the benefit of your son, you can make arrangements to have the cash-out value confirmed in writing and may be able to pay the Estate this net value in lieu of cashing out the RESP.; October 17, 2007 1:50 PM
Anonymous said...: I had a good job 2 years ago and I was able to make regular payments on my debts I lost my job and all of my debts are out of control, now I have a new full time job and I am a partner in a seasonal business, the seasonal business is off to a rocky start and my full time job is only allowing me to pay some of my debts, my mortgage payment is the most important to me and my seasonal partnership job is operated from my property, what are my options to asure that I will not lose my home?; October 18, 2007 8:35 PM
Anonymous said...: Is there a time limit where PST debts are Statute barred in Ontario? The debt goes back 6 years.
Thanks; October 19, 2007 1:19 PM
Mark Morgan said...: A proposal may allow you to safeguard your property if you can offer enough money over time to compensate for the value of the equity in the Property that would be acquired in a bankruptcy scenario.

In Bankruptcy, there is still a possibility that your property could be saved depending on the equity that is available.

To better address your concerns based on your specific set of facts, I suggest that you call our offices toll-free at 1-866-916-8907 and set up a no obligation free consultation with one of our managers.; October 20, 2007 9:19 AM
Anonymous said...: I am suing someone for 250,000 that he owes on a personal guarantee for a failed buisness - his wife is on title for the matrimonial home which is worth about 1 million - he says he has no assets - if he goes into bankruptcy will the trustee be able to access the equity he has in his home; October 22, 2007 4:51 PM
Mark Morgan said...: PST debts could be covered under the Statute of Limitations Act, however, you should contact a lawyer as this is a legal issue requiring a legal opinion.; October 23, 2007 9:22 AM
Mark Morgan said...: A Trustee is entitled to realize on the equity in a house proportionate to the bankrupt's ownership percentage.

Whether or not there is equity depends on the mortgages and other encumbrances that may or may not exist against the house.; October 23, 2007 9:23 AM
Anonymous said...: Me and My wife are looking to declare bankruptcy, we have more bills than money and the creditors are calling daily. My question is that we have a motorcycle valued at $5000 that my brother in law lent me the money to buy and there is a signed agreement between us that i have to give the motorcycle back upon any problems, i have not been making the arranged payments to him and he wants it back. if i give it back to him now prior to declaring bankruptcy is that ok or can i declare bankruptcy on him and he can then reposess the motorcycle or how does that work??

Thanks; October 25, 2007 11:24 AM
Mark Morgan said...: Firstly, is the motorcycle the only vehicle you own? As a resident of Ontario, you are entitled to a $5,650.00 exemption on one vehicle. If the motorcycle is your only vehicle it would be exempt from seizure by the Trustee. If not exempt, the Trustee would be expected to realize on the motorcycle for the benefit of all unsecured creditors.

If the agreement between you and your brother is a security agreement then it must be determined if it is valid and enforceable as against the Trustee. To avoid any complications after the filing of your bankruptcy, your brother needs to confirm with a lawyer whether or not he has a perfected security agreement. Only if he has a perfected security agreement will there be no issues in the Bankruptcy.; October 25, 2007 2:29 PM
Anonymous said...: Hi

If I start the Bankruptcy process would I be able to get an OSAP student loan for about $5000.00 while I am going through the Bankruptcy process? and if not would I be able to get OSAP after my Bankruptcy is over?; October 28, 2007 6:21 PM
Anonymous said...: I am the sole proprieter of a federally and provincially incorporated business. The business has been in operation since January 2006. I have not yet filed any taxes (GST, Income) or submitted any payroll witholdings (EI, CPP). My company is suffering now and I do not think I will ba able to afford to pay any of the above, leaving me wiht the only option of declaring the business bankrupt. I have a few questions. Will doing this eliminate the tax and payroll debts and will this have any inpact on me personally?

Thank you for your help!; October 30, 2007 8:45 PM
Anonymous said...: I am going to school and working part time but I do not have student loans.I pay monthly for my specialty school. I pay monthly over 600 for school, rent and vehicle expences and such. But I only make just over 700. I owe about 3500 to Visa, 1200 Telus, and 500 to a membership. The two larger sums are both in collections and have been there for atleast a year or so and refuse any payments even through credit couselling programs. Can i declare bankruptcy but still be allowed to pay for school every month?; November 1, 2007 10:57 PM
Mark Morgan said...: Thank you for your question about OSAP loans. OSAP has different rules for students who file an insolvency after they acquire their loans and for those who file before they apply for their loans. It would be best for you to check directly with them (http://www.hrsdc.gc.ca/en/gateways/topics/cxp-gxr.shtml) or go to www.canadastudentdebt.ca and read through the posts from fellow students for advice there. You should find the answers you are looking for at those two site.

Good luck with your research!; November 2, 2007 8:59 AM
Mark Morgan said...: Based on the information provided, it appears that you have an incorporated business of which you are the sole owner and operator. Source deductions (EI, CPP), GST are debts that if the company does not pay, you as the director will be liable for personally. Income tax will not become a personally liability. To further discuss the process of bankrupting a company and the impact this may have on you personally, please contact us at 1-866-916-8907 to schedule a no-obligation, free initial consultation.; November 2, 2007 9:00 AM
Anonymous said...: im considering in filing for bankruptcy. my debts are $3,000+ and i recently just got hired as a permanent full-time worker (before I was only contract). I was not getting paid enough to pay my bills, and now creditors are calling constantly. Im in arrears with my situation. I would like to know if I live with my parents and I do not own any assets (just clothing) will I get subjected to turn over the assets? Also, I want to know if the person filing my taxes for 2008 will they be able to see my bankruptcy file?; November 2, 2007 11:08 PM
Anonymous said...: I have reached a point where I am not having much luck paying my bills on time. My debt ratio is maxed and it seems I am in debt more that I earn. If I declare bankruptcy and all my debts are paid off, how much money am I given a month to live. I earn approx 63000 a year. Am I able to keep my car as well as household items?; November 16, 2007 7:38 PM
Anonymous said...: My father is going to have to declare bankruptcy at the age of 74 he is still working full time as they have garnished his pension and wages to pay 100k he owes in back taxes (he made a few bad decisions in business and had a few hard knocks). Will this burden lift if he declares? Will he still have to pay the taxes and have nothing to live on? He doesnt even own his home. He will be dead soon if this continues.; November 19, 2007 7:28 AM
tony said...: hello
i have a temporary social insurance number wich start with number (9) and i bin in debt for alomost six years now i do my taxes and my credit report with that number (temporary one) i just got the new social insurance number few months ago is any way to claim bankrupt with that number i did want to give the new number a few months ago but i was afraid because i stoped paying my creditors so what do you suggest to do sir
thank you
tony; November 20, 2007 8:59 PM
P said...: I was discharged from my consumer proposal in November 2006. I have since been contacted by Revenue Canada stating that I owe $6000 in student loans. It has now been ten years since my graduation. My trustee NEVER explained the situation with student loans. Do I have any legal recourse against my trustee?
Livid in London; November 21, 2007 9:45 AM
Mark Morgan said...: When you file for bankruptcy, you are allowed certain exemptions in Ontario. These include:
- household furniture and effects ($11,300.00)
- personal clothing ($5,650.00)
- one automobile ($5,650.00)
- tools of trade ($11,300.00).

With respect to what you are allowed to live on each month, it really depends on the size of your family (single, married, kids etc...) You are allowed enough money to live a basic lifestyle based on the Government of Canada's standards. To get more detailed information and to discuss the options that are available to you, please contact our office to speak with one of our managers.

Our number is 310-1100 or call us toll-free at 1-866-916-8907. We will be happy to assist you through your financial situation.; November 21, 2007 11:31 AM
Mark Morgan said...: There are certain debts that are not discharged in a bankruptcy. They are as follows:
- Alimony (i.e. Spousal Support)
- Child Support
- Debts resulting from fraud that was proven in court
- Fines and penalties of the court
- Student Loans where you finished school less than 10 years ago

All other debts are discharged.

Therefore, based on the information you have provided, it would appear that the income tax debt that your father owes would be discharged.

If your father wishes to get the full details and options available to him, we would be pleased to meet with him for a free initial consultation. TO set up a meeting with one of our managers, please call 310-1100 anytime.; November 21, 2007 11:33 AM
HELEN said...: i used to have a house in 2001 under my name and my husband name. I sold it in 2005 and bought another house under myname only. My husband and i paid more money as down payment from my own money. My husband now wants to go through Bunkrubsty, my question is is that affect my house we still live together.; November 26, 2007 12:08 AM
Mark Morgan said...: When you file for bankruptcy, you file based on your name, age, address and SIN.

Your new SIN would be used to file as this is your current SIN.

Please call our offices to schedule a no-obligation consultation to discuss your financial situation. This will enable us to find the right solution to your unique situation. We can be reached at 310-1100 anytime.; November 26, 2007 12:35 PM
Mark Morgan said...: The rules with Student Loans are as follows:

- Student loans will survive a bankruptcy or proposal if the debtor ceased to be a student less than 10 years PRIOR TO FILING the bankruptcy or proposal.

- Although you graduated more than 10 years ago now, had you been out of school for 10 years when you filed your proposal?

- If you still feel you are unable to pay the student loan, you can apply to bankruptcy court to argue your case to have the student loan debt forgiven.

With respect to your Trustee, if you are not satisfied with the assistance your Trustee is giving you regarding this issue, you can contact the Office of the Superintendent of Bankruptcy which regulates the Trustee community. They will be able to assist you with respect to any issues with your Trustee. The website is located at the following URL: http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/Home; November 26, 2007 12:36 PM
Mark Morgan said...: To be able to answer this question accurately, we would need to gather more information from you and your husband first to properly evaluate the facts of your family’s financial situation.

To better enable us to answer your question and assist your family in making a decision as to whether or not filing for bankruptcy would affect your house, please call 310-1100 and schedule a free no-obligation consultation with one of our managers. To better assist us in this process, please bring the documents from the sale of the old house and the purchase of the new house to the meeting.; November 26, 2007 12:37 PM
fegue2 said...: Hi,how are you,i would like to know if after my discharge i will be able to re-establish my canadian credit and re-built it or not ,i am currently going to my third month bankrupt and i feel very worried about the fact that i won't have credit anymore.Thank you.; November 26, 2007 1:27 PM
Anonymous said...: My husband and I are in debt, we want to claim bankruptcy but we do not want to loose our home and vehicle as these are a nessacity of life, my husband is the only one working,we have a line of credit of $10000.00 to pay and 2 visas ($5000.00/$3500.00),plus a second mortgage and the 1st mortgage on the house,I have collectors calling me around the clock I have called for consolidating my loans but they can not help me this would be my last result as my husband is the only one bringing income of $3900.00 a month and our debts add up to at least $4500.00 a month please advise me on what to do thank you; November 27, 2007 11:11 AM
Mark Morgan said...: Your situation is not an uncommon one. Many families have a single income and monthly debt and living expenses in excess of this income. There are many options that may be available to you.

It is possible to resolve your problem without the loss of your home or vehicle, however, with the amount of information you have provided, it is difficult to properly assess your specific and unique situation.

To better enable us to assist you, please call 310-1100 to schedule a no-obligation free initial consultation. At this meeting, one of our qualified managers can review your financial situation and assist you in determining the solution that best addresses your concerns regarding the potential loss of your home and car.; November 27, 2007 11:52 AM
Anonymous said...: Hi,how are you,i would like to know if after my discharge i will be able to re-establish my canadian credit and re-built it or not ,i am currently going to my third month bankrupt and i feel very worried about the fact that i won't have credit anymore.Thank you.; November 27, 2007 11:55 AM
Sasha said...: Please help me since I am in a really confusing situation and don't know what to do.

I fillled bankruptcy and got discharged about 2 years ago. However, One of the creditors who I owed about 20,000 dollars have an objection and wants money. This creditor send an appraiser to the house and insisits that if we sell the house there would be enough money left for me to pay him. If we don't want to sell the house then we should pay him the amount owed.
So my trustee has put my house, which has very little equity under his own name till we can come to a settlement with this creditor. My trustee's name is appearing on my property tax papers.
My trustee also wants me to provide my home insurance information to him. He has not been able to come to an agreement with this one creditor as of yet.
Now that my mortgage is up for renewal in few months my turstee wants me to write a letter saying that I won't be making any more mortgage payments and are giving the power of sale to the bank. The trustee says that he needs this letter in order to be able to negotiate with this creditor and come to a better settlement agreement. I don't want to provide this letter since I really want to save the house, which is where my family lives.
Should I worry that the trustee has my house under his name or not.
Please help me since this is driving my whole family life crazy.
I really appreciate your help.
Thank You,
Regards,; December 4, 2007 7:58 AM
Anonymous said...: If you file for bankruptcy, do they do an investigation on your employment history with regards to how you attained any loans such as mortgages or high/no-limit credit cards?; December 4, 2007 10:35 AM
Mark Morgan said...: Hello Sacha. My name is Diane Hessel and I am one of the senior trustees at the firm and your email has been forwarded to me for reply.

It is difficult for us to give you a definitive answer b/c there are many details that can change any answer – but I will do my best based on the info provided.

You mentioned that you were discharged 2 years ago and a creditor has “an objection and wants money”. If you are discharged you have no obligations to pay any money to that creditor. The creditor, by allowing you to get discharged, has not put any monetary pressure on you, but he is now looking to the Trustee to complete the file and get money based on the information from the assets listed on your Statement of Affairs when you filed your bankruptcy.

On the filing of an Assignment in Bankruptcy you give up or abandon all of your assets for the benefit of your unsecured creditors (that is almost an actual quote from the documents you signed). At the time of filing your Trustee basically stepped into your shoes and takes possession of all assets that are not exempt from seizure. The law allows you to keep certain things (furniture, personal effects, a car up to $5650 in value, etc.) but not a house.

The fact your trustee put the house in his name is the correct step for the trustee to take – to simplify this – you don’t own that house any more – you gave up your rights when you filed. Now not ALL people who file a bankruptcy loose their house – it does depend on the equity. You can make arrangements with your trustee, with creditor approval, to keep the house and pay the trustee the equity. I think this might be the situation in your case. There is equity, when the trustee discussed this with your creditors to try and reach an amount that the creditors will agree with – seems like a creditor thinks that $20,000 is the reasonable amount. The money would not go to this creditor directly but would go into your bankruptcy estate and be distributed to all your creditors who filed a claim with the trustee.

Now the trustee, who is appointed by the Office of the Superintendent of Bankruptcy, must follow the directions of the creditors. They are the ones who are losing a lot by not being paid the money owed to them. So sounds like your trustee is in a tough situation.

I can understand your concern about the request by the trustee for a letter saying you will no longer be making the mortgage payments. This could put you in a difficult situation if this letter gets back to the mortgage company or if you say you will not be paying the mortgage but then you do. The creditor can say you aren’t acting in good faith and lied just to get him to agree to a lesser amount if he finds out the house did not go power of sale.

I would advise you to seek legal help from a lawyer who specializes in bankruptcy law – they will know the ins/outs of bankruptcy law and may know of some way (or defense) to negotiate a more reasonable settlement. (A bankruptcy lawyer is important – think about it, if you needed heart surgery would you go see an ear, nose and throat specialist? No, you would go to a cardiac surgeon). The money paid to a lawyer for his advice could save you a lot of money when settling the equity issue. Because of the trustee’s duty to your creditors, he is not in a position to act for you and possibly give you the best advice.

If you are questioning what are your rights, or if you want to discuss this matter further, you may contact the Office of the Superintendent of Bankruptcy directly, which is part of Industry Canada. They can review your file (have the facts in front of them) and may be able to explain the trustee’s position/situation more clearly.

If you live in the Toronto area, or east of GTA, you would contact the office in Toronto (25 St Clair Ave. East) and if you live in Mississauga, Brampton or west then the office in Hamilton (55 Bay Street). I believe, if calling Hamilton you can call collect and they will accept the charges.

Good luck and we hope this has helped clarify your trustee’s position.; December 5, 2007 1:28 PM
Anonymous said...: I resently transferd assests from my divorce to my daugter as a gift for her new house,(rougly 1-2 years ago) Will creditors be able to seize this money should i file for bankruptcy?; December 6, 2007 8:16 PM
Mark Morgan said...: The transaction that you are enquiring about MAY be considered a settlement under the Bankruptcy and Insolvency Act (BIA). To determine if this transaction would be considered a settlement, we would need more details as to the nature of the gift, the amount and your financial status at the time of the transfer. If you would not have been considered insolvent as a result of this gift then it would not be attackable under the BIA.

To more fully explore the nature and potential consequences of this gift upon filing for bankruptcy, you can call us at 310-1100 to schedule a no-obligation, free initial consultation with one of our managers in a location around the GTA, Hamilton and North of the GTA.; December 7, 2007 9:07 AM
Anonymous said...: I am in major debt and making no money as a single unemployed mother. I have had to temporarily come stay with friends in the US after living my whole life in Canada (but I needed a place to live with my son as I lived with my father and when he saw my biracial son born he kicked me out and I had no place to go but here). I had to quit my job due to this unexpected living situation and now I have major debt and no income. I have no money to come back and forth to canada to file for bankruptcy but I need to file. Can I do this from here in the US by phone/email, etc?; December 11, 2007 9:25 AM
Anonymous said...: Hi.....my wife and I are seriously thinking about filing for personal bankruptcy.

We have a first and second mortgage with very little if any equity in our home. We owe over $100,000 in credit card, line of credit and failed business venture debt.

We have a leased vehicle and a loan on another.

My question is, will we lose our home and vehicles if we proceed with the bankruptcy process?; December 11, 2007 11:16 AM
Jeremy Kroll said...: You appear eligible to file a bankruptcy in Canada. Given your circumstances the following needs to be achieved:

1. Trustee requires permission from the OSB to do a remote assessment.

2. You need to retain services of a notary in USA who can swear and forward the documents to the trustee.

3. You need to make arrangements to pay the trustee.

You may also need to consider if you ought to wait until you are back in Canada to file for protection from your creditors. Perhaps your circumstances will improve sufficiently so that you can make a settlement proposal with the creditors at that future time.; December 11, 2007 12:18 PM
Reign said...: This post has been removed by the author.; December 19, 2007 12:07 AM
Anonymous said...: I recently posted a question but did not receive an answer.

I need to know whether they do investigations on your past employment history with regards to loans that you received. I am a co-signer on a mortgage and some other loans and I think that the primary applicant was a bit shady in the application process. I don't want to get caught up in a fraud case if we file for bankruptcy so I need to know whether they do look into those sorts of things (since it's been only a year that we've owned this house).; December 19, 2007 12:08 AM
Mark Morgan said...: Thank you for reposting your question - we apologize for not replying sooner - the original response was prepared but never ended up on the site. Here it is now:

The Trustee has the right, power and duty to investigate the financial affairs of the bankrupt. A Trustee will perform an assessment before filing a bankruptcy. During this assessment, questions will be asked about the debts, assets and recent transactions. Support will be required for these items and anything that appears out of the ordinary to the Trustee will be investigated further to the Trustee’s satisfaction.

If there appears to be a large amount of debt with little or no past employment history to support this debt, the Trustee may require further investigation and support as to when and how you obtained the credit. Ultimately, if any loans were obtained through false pretenses, these debts may survive the bankruptcy if the creditor pursues and obtains fraud charges in court.

Evidence of fraud and obtaining credit through false pretenses can also delay your discharge from bankruptcy as these are offences under the BIA.

We hope this response answers all of your questions. If you need a free consultation we would be pleased to assist. Just contact us toll-free any time at 1-866-916-8907 and schedule a no-obligation, free consultation with one of our consultants so that we may gather further details specific to your situation.; December 19, 2007 8:54 AM
Anonymous said...: Hi....I have a couple of quick questions for you. If we have 2 vehicles....1 leased and 1 with a loan (with no equity) and we both need them to get to work, will we be able to keep both vehicles if we go into bankruptcy?

Also......when we purchased our house, we purchased a fridge, stove and dishwasher from an electronics store on credit with them. Will we be required to turn those or can we keep paying them off?

Any help would be appreciated.
Thanks; December 20, 2007 9:17 AM
Mark Morgan said...: In bankruptcy, you are allowed an Ontario Exemption of $5,650.00 for one vehicle.

To determine the equity in a financed vehicle, you need to know two things; the value of the vehicle today and the total outstanding loan balance. If the outstanding loan balance is greater than the value of the vehicle, there is no equity. If there is some equity, you are entitled to claim your exemption against this equity to a maximum of $5,650.00.

To determine equity in a leased vehicle, we would again need to know the value of the vehicle today and the total outstanding lease payments AND the buyout of the vehicle at the end of the lease. If the value of the vehicle exceeds the total remaining payments and buyout, there would be equity which again you could choose to apply your exemption. It is rare that there is equity in a lease unless there is a large down payment at the beginning of the lease.

Without getting too technical, the appliances that you bought may or may not be subject to a security interest by the electronics store or the credit agency backing the deal. If in fact the store has the right to repossess the appliances, you SHOULD have the option of continuing payments to keep the appliances, but this is something that would have to be negotiated between you and the store. To be sure whether or not the appliances are subject to any security interest, and to get further information and to potentially start the process of filing for bankruptcy, you can call 310-1100 to arrange a free, no-obligation initial consultation with one of our managers at one of our 21 offices around the GTA, Hamilton and north of Toronto.; December 20, 2007 9:52 AM
Anonymous said...: In all my preliminary research on what assets one is allowed to keep during bankruptcy, I have not been able to find the answer to this situation:
My child was killed in a motor vehicle accident and the expenses from that plus other previous issues to do with health, etc. have wiped me out so that I must now declare bankruptcy. I could launch a civil suit against the person who was at fault and receive a bereavement settlement. That would then be a court-ordered settlement, right? (If I was a person who was ordered to pay a settlement or alimony or child support, then bankruptcy would not erase that.) So if it is the other way around, and I am the receiver of such a settlement, would it come off my bankruptcy estate? If this were to come while I am in bankruptcy, is it considered income or an asset like an inheritance would be and can it be taken away from me? What if the suit is launched before we are in bankruptcy and is settled before we are discharged? What if we launch it while in bankruptcy and it is settled before we are discharged? Or if it is settled after? I really would like to know this before I start with a Trustee. It will naturally affect our decision as to when/whether we will do this and I don't want anyone involved before I know the answer. Thank you!; January 2, 2008 5:03 PM
Anonymous said...: What happens if we have a family event that requires us to travel during the bankruptcy? We have done the figuring and it seems we will barely have enough to live on with what is allowed. If we earn extra or we are given the amount needed for the trip by a family member, how is that reported and dealt with?; January 2, 2008 5:07 PM
Anonymous said...: I don't work but my partner is self employed. I would like to START a new home business while we are in bankruptcy so the start-up expenses would bring our net income down. What are the rules concerning this?; January 3, 2008 12:08 AM
Anonymous said...: Hi,

We are about to claim bankruptcy for the first time, and we want to know if money borrowed from a prior co-worker can be included in the bankruptcy. I have no formal signed agreement with this person. He cash advanced the money from his credit card for me. He has a letter that he and I came up with that I signed agreeing to re pay him, but I do not have a copy of it. This person took my paycheque on two seperate occasions and refused to return it to me until I finally had to call the police on him and threaten to have him charged.

He is being incredibly pushy with this, and I do not have the money to pay him. This money was borrowed back in April 2007, and I have, between May - December 2007 paid back 900 of what I borrowed, but there is still 1900 owing.

We have recently moved in with my inlaws and I am out of work looking for new employment.

Any help you can give would be appreciated.; January 4, 2008 10:16 PM
Anonymous said...: my husband hurt himself on a job had to go on workers comp. he was on it for 3 yrs meanwhile he became depressed went on Paxil and got addicted to gambling as he would use the credit cards for money to gamble with we are trying so hard to keep up with the payments but meanwhile my regular home bills are being neglected...so my Question is ..Is it going to be hard to claim bankruptcy with credit card debt even though we used it for gambling purposes?; January 7, 2008 10:23 AM
Anonymous said...: After I filed for bankruptcy, am I allowed to reside in another country?; January 7, 2008 11:46 AM
Anonymous said...: I have about $12,000 worth of personal debt and it is my name only. Can I file for bankruptcy without my spouse knowing? and does his income have to be included when calculating how much I pay for my bankruptcy?; January 7, 2008 1:32 PM
Jeremy Kroll said...: If a family member (whose income is not part of your household) pays for the travel there is nothing inappropriate - so you may proceed. You should advise the Trustee in writing of the dates you are absent in case your presence would be needed for e.g. Creditors meeting, examination or discharge hearing. If your absence is relatively brief then the Trustee can usually schedule around it.

If you earn additional monies then these need to be reported to the Trustee. Some of this money may ("may" because there is a formula) be required to be contributed to your estate - the amount is fair to you and your creditors. The money earned less any amount required to be contributed may be spent by you at your sole discretion.

Please discuss exact facts and numbers with a Trustee.; January 7, 2008 3:39 PM
Jeremy Kroll said...: The agreement you have with your previous co-worker is an unsecured debt and can be included in your bankruptcy. The debt has the same status as your credit card - no more, no less.

Since this individual has been particularly difficult, you may want to discuss this issue further with your trustee so they can explain what rights this creditor has and any issues that may affect you.; January 7, 2008 3:41 PM
Mark Morgan said...: Technically you can obtain bankruptcy protection on any debt. There are however certain debts that will not be discharged through the bankruptcy process.

Debts as a result of gambling are not specifically covered as non-dischargeable debts therefore, it is possible to have these debts discharged. However, currently the Courts are treating gambling debts very seriously and making conditional orders requiring the debtor to repay a significant portion of the debt before being granted a discharge.; January 7, 2008 3:44 PM
Mark Morgan said...: While it is technically possible to move during your bankruptcy, it is important to understand that you have certain duties that must be completed.

Specifically:
- you must attend 2 counseling sessions
- you may have to attend bankruptcy court for your discharge hearing
- and you may be examined by the Official Receiver.

Your Trustee can apply to have remote counseling done, but there is no guarantee that this request will be granted. If you are required to attend Bankruptcy Court or you are requested to attend an examination, you would be required to attend in the Province where you filed.; January 7, 2008 3:46 PM
Mark Morgan said...: You can file without your spouse knowing, however, bankruptcy is a legal court proceeding and is therefore part of the public record.

With respect to your spouse’s income, when calculating surplus income, the Trustee is required to get the income of the whole family which would include the spouse.

If your spouse is unwilling to give this information or you are unable or unwilling to get this information, then the calculation can be adjusted to show a smaller family unit.

If you should be required to go to bankruptcy court to obtain your discharge, the Court can order your spouse to disclose his income and can make a conditional discharge order based on the full family income.; January 7, 2008 3:49 PM
Anonymous said...: hi,
I have a problem with keeping up with payments with my husband and my credit cards because, of the high interest rates now I've been bouncing back and forth with doing the balance transfers to bank offers with 0% offers but still i see no difference in lowering the amount I owe plus I thought thought about everytime i do a balance transfer theres a fee too so I think thats what hurts me the amount i started off with was $25,000 NOW its about $35,000 should I just declare bankruptcy ...i don't wanna lose my car that i'm still payin on; January 8, 2008 12:08 AM
Mark Morgan said...: The details you have provided indicate that you are having trouble keeping up with the full payment requirements of your debt, but that you are making payments to the best of your financial abilities.

There are a number of alternatives (including bankruptcy) that are available to help relieve your financial stress. If you would like to schedule a no-obligation, free consultation with one of our managers to discuss your options, please call 310-1100 and we would be happy to meet with you.; January 8, 2008 9:30 AM
Anonymous said...: Hi, I have been contributing into my daughters RESP's for the past 8 years. I am unfortunately looking at bankruptcy as a last option after a marital separation. I pay into a Canadian Scholarship Trust Fund. Is this kind of fund protected from bankruptcy?
thanks; January 8, 2008 11:02 AM
tommy said...: I cashed a cheque at the bank for 14,800. That cheque came back to the bank as being fraudulent. Now I am resposible to pay the bank the amount owing and I cant. can I file for bankrupcy and get away from this. I couldnt pay that money back in a million years.; January 8, 2008 9:04 PM
Anonymous said...: If spouses file jointly, do each one of them have to pay the $1800 fee to the Trustee?; January 10, 2008 7:11 PM
Anonymous said...: My ex-wife of two years has filed for bankruptcy. We have been separated for almost a year now. The home being in her name which is the only thing she got to keep from bankruptcy, how do I get the equity out of that home. Can I do this on my own or do I need a lawyer.; January 11, 2008 9:53 AM
Anonymous said...: I have just declared bankruptcy in December and a creditor sent people to reposes my truck today. It is a 1994 truck that is valued at 3,500. Are they able to do this and what steps can I take to get my truck back.

Also, the reason I was told to declare bankruptcy, is because my ex declared. Therefore, is her vechicle going to be reposesed? As she drives our children around in that van.; January 26, 2008 11:31 AM
Mark Morgan said...: Upon filing for bankruptcy, all creditors including secured creditors are notified.

The Secured Creditor has the option of continuing with the loan or calling the loan and repossessing the auto for non-payment.

Whether or not a vehicle is repossessed is dependent on a lot of factors and is at the creditors discretion upon negotiation directly with the debtor and not the Trustee.

Unfortunately the Trustee generally is not involved in these negotiations as we usually have no right to the specific secured asset.

To try to get your vehicle back, you will need to speak with the creditor to negotiate a financial arrangement that you are both happy with to enable them to get paid and for you to keep your vehicle.

As far as the position of your ex-spouse and her vehicle, it is again dependent on the secured creditor and whether or not they are willing to accept continued payment on the loan.; January 28, 2008 2:17 PM
Anonymous said...: Hi, I owe around 10,000 that I know of however I havn't filed my income tax in ten years. During that time I was paid as a sub trade, meaning no taxes were ever taken of. I have no idea what to do and I want to take care of this. I also started a small business that I want to keep. Any insight would be appreciated; February 3, 2008 1:18 PM
Anonymous said...: Hello I am currently living abroad and I have a large amount of credit card debt. I am not able to come back to Canada to claim bankruptcy - what will happen if I cannot claim while abroad? Will the credit card companies come after me here in Italy? Will I have problems when I am able to return to Canada?; February 4, 2008 2:52 PM
Anonymous said...: I am currently in financial difficulty with various creditors continuously calling me. I have considered filing a consumer proposal to my creditors. I filed for bankruptcy about 20 years ago that I just found out was not discharged. What can I do to relieve this financial pressure?; February 5, 2008 5:10 AM
Anonymous said...: Can I sell my house before declaring bankruptcy and pay off some bill?; February 5, 2008 9:06 PM
Mark Morgan said...: "Hi, I owe around 10,000 that I know of however I havn't filed my income tax in ten years..."

The first step is to file all of your tax returns to determine the extent of your tax debt. Once this is done, you should consult with us to discuss your options on how to deal with your debts and protect your new business. We would be happy to arrange a free no-obligation initial consultation at a location convenient to where you live or work.

Once your taxes have been filed, please give us a call at 310-1100.; February 6, 2008 9:09 AM
Mark Morgan said...: "Hello I am currently living abroad and I have a large amount of credit card debt. I am not able to come back to Canada to claim bankruptcy..."

The credit card companies COULD attempt to have the Italian Court system recognize a collection order from the Canadian Courts. However, this is unlikely unless you owe large sums of money to an individual creditor.

The credit card companies that obtain judgments against you will have the right to enforce these judgments for 25 years. Therefore, upon your return to Canada, you will need to seek creditor protection under the Bankruptcy and Insolvency Act at that time to clear up your debts.

It is possible to file a Canadian bankruptcy while abroad, but it is more difficult and can require that you travel back to Canada for any Court hearings or Examinations.; February 6, 2008 9:10 AM
Mark Morgan said...: "I am currently in financial difficulty with various creditors continuously calling me. I have considered filing a consumer proposal to my creditors..."

You will need to contact the trustee who handled your bankruptcy to find out what needs to be done to obtain your discharge. If the trustee is no longer in business, you will need to contact the Office of the Superintendent of Bankruptcy at 416-973-6486 and ask for their assistance in obtaining the information and requirements you will need to get your discharge.

Once you have obtained a discharge from your bankruptcy, please give us a call so we can help you determine your options in respect to dealing with your current debts. WE can be reached at 310-1100.; February 6, 2008 9:13 AM
Mark Morgan said...: "Can I sell my house before declaring bankruptcy and pay off some bills?..."

Upon filing for bankruptcy, the equity in your home would be available pro rata to all of your creditors.

If you sell the house and use this equity before bankruptcy, it is very important to understand that what you do with these funds will be looked at closely by the Trustee to ensure that all of your creditors were treated fairly and that certain of your creditors did not receive special consideration.

If it is found that only certain creditors received payments while others did not, then the Trustee may notify all the creditors who did get paid that they need to return these funds to the Trustee for the general benefit of all unsecured creditors.

If these funds are not returned, the Trustee may look to you to repay these funds to the Estate so that the other creditors are not at a disadvantage.

To avoid any such issues, you can sell your house prior to bankruptcy and turn over the full proceeds to the Trustee upon filing and the Trustee will ensure a proper distribution of these funds.; February 6, 2008 9:37 AM
Anonymous said...: I owe the bank $ 25000 and they send a letter saying they will seize my house what does that mean
thanks; February 7, 2008 4:05 PM
Anonymous said...: I have lost the bankruptcy discharge paper. I need a copy for tuesday morning for an application for a gaming licence to work in a casino. The paper must accompany the application. Where do i get a copy?; February 10, 2008 9:54 AM
Anonymous said...: Hello: I have a couple of questions, I'd appreciate your advise about.
1) I owe tax arrears, and some of it is for tax years 1996 and 1997. I understand there is a statue of limitations on Tax Monies owed that are over 6 years old. Is this true? Any data would be appreciated.

2) I am an independent Financial Advisor. I am considering banckruptcy due to a devastating illness over a long period of time.
However, being in Finance, the thought of having to inform third parties about being a bankrupt during the non-discharged period is very concerning. Basically, I worry that nobody will deal with me if they know I am bankrupt. Question: what exactly is a third party, and who must absolutely be advised of my bankruptcy status?

3) Has the limit for proposals increaded yet? It was 75,000.00 has that increased?

Thank you.; February 10, 2008 3:05 PM
amnoz said...: Hi: My questions refer to the new bankruptcy laws.

Specifically: If we file bankrutcy in -say April 2008-will the new laws apply as we may not be discharged yet?

In other words, the present laws say for first time bankrupts we are dischared after 9 Months and have to pay surplus income for that period. In the new laws, there is indication that there will be an additional 12 month period where surplus payments are required.

Does this apply if you filed in April 2008?
Does the -discharge-still come after 9 months or does the additional 12 months mean the discharge continues for another 12 months?

Thank you, it's apprecited.; February 10, 2008 3:43 PM
Anonymous said...: The last information I have is that a family of two, is allowed $2,141.00 before surplus income computation is utilized. Is this figure still the same?

Also, am I understanding that anything above this, figure, is surplus income, and 50% of this is payable by the persons deemed bankrupt? Am I correct?; February 10, 2008 8:39 PM
Anonymous said...: Hi. I was browsing the internet trying to find a solution to my problem and came here. My probelm is simple. I have a huge government debt which they are starting to close in on. (65000) gst, source deductions etc. It started as around $20,000 but got out of control. I figured, get a good job and build up some credit and pay it off. Didnt happen, I got the good job but 2 years later was diagnosed with Pancreatic cancer, lost my job and was in recuperation for 4 years, Things are fine now, I had a herd time finding new work with my health history so I started my own company. I sold our house last year to help take care of other debt that built up. If I go bankrupt will my tax debt be relieved? Please advise...I have 6 kids and a great wife but we are now renting and things are relativly stable but I have to do something.; February 13, 2008 3:53 PM
Mark Morgan said...: "I owe the bank $ 25000 and they send a letter saying they will seize my house what does that mean?"

You have not provided enough detail to properly answer your question. But I will try anyhow!

Based on the information provided, it is my assumption that you owe the bank $25,000 on a line of credit secured against your house or on a mortgage secured against your house.

If this assumption is accurate, then the bank has the right under their security agreement to take possession of your house and sell it. After paying the costs associated with the sale, the bank will pay out all secured creditors, including themselves. Any amounts remaining would then be forwarded to you.

I suggest that you talk with the bank or your financial adviser to determine if the bank has security over your house and to discuss the options available to you to prevent the sale of your house.

If you find that with your other debts, if any, you can not afford to make the required payments to prevent the sale of your home, you could contact our offices at 310-1100 to schedule a no-obligation, free initial consultation wherein we can discuss the options available to you to deal with your debts and assist you in solving your financial problems.; February 13, 2008 4:15 PM
Mark Morgan said...: "I have lost the bankruptcy discharge paper. I need a copy..."

The fastest way to get a copy would be to contact the Trustee who handled your bankruptcy. If they are not available, you can contact the Office of the Superintendent of Bankruptcy at 416-973-6486 and request a copy from them. This will take longer though, so try your trustee first.; February 13, 2008 4:26 PM
Mark Morgan said...: "My questions refer to the new bankruptcy laws..."

The new laws have not come into force yet. Therefore, if you file before the new laws come into force, you will be subject to the current laws.

The current laws provide for a minimum time frame of 9 months for a first time bankrupt, but there is no maximum limit to how long before a bankrupt is discharged.; February 13, 2008 4:27 PM
Mark Morgan said...: "The last information I have is that a family of two is allowed $2,141 before surplus income computation is utilized. Is this figure still the same?"

The current standard for a family of 2 is $2,237. The standard is generally increased annually for the cost of living. We have not received the increase for 2008 as yet.

If the income is earned 100% by the bankrupt, the excess over $2,237 is surplus income.

If the income is only earned 70% by the bankrupt, 70% of the excess is surplus income.

The surplus income is at a minimum 50% for the creditors. When the surplus income exceeds $1000, then up to 75% can be taken for the benefit of the creditors. The percentage of the surplus income that is taken when the surplus exceeds $1,000 is at the Trustee’s discretion.

Example #1:

Bankrupt earns $2100 per month = 70% of the family income

Bankrupt’s spouse earns $900 per month = 30% of the family income

Total family income $3000 per month = 100% of the family income

Total income: $3000.00 Standard $2237.00

Surplus income 763.00

Bankrupt’s portion ($763 x 70%) 534.10

Paid to creditors:
minimum ($534.10 x 50%) 267.05

Example #2:

Bankrupt earns $2800 per month = 70% of the family income

Bankrupt’s spouse earns $1200 per month = 30% of the family income

Total family income $4000 per month = 100% of the family income

Total income $4000

Standard $2237.00
Surplus income 1763.00

Bankrupt’s portion ($1763 x 70%)1234.10

Paid to creditors:

minimum ($1234.10 x 50%) 617.05

maximum ($1234.10 x 75%) 925.58; February 13, 2008 4:31 PM
Mark Morgan said...: "I have a huge government debt which they are starting to close in on. (65000) gst, source deductions etc..."

If your government debt arose as a result of a sole proprietorship, or are as a result of a failed corporation for which you were a director and are being assessed these debts as director’s liability, then filing for bankruptcy or a proposal will relieve you from these debts.

To further discuss your options and assist you in solving your debt problems, please give us a call at 310-1100 to arrange a no-obligation, free initial consultation with one of our managers.; February 13, 2008 4:35 PM
Mark Morgan said...: "I have a couple of questions, I'd appreciate your advice about..."

In response to your questions:

NO - For the Federal Income Tax Act and for Ontario Provincial Income Tax, the limitation period is ten years from March 4, 2004, or for debts arising after March 4, 2004, 10 years after it was assessed. For debts where there is no notice of assessment, it is ten years after the debt became collectible. If there is a re-assessment then the limitation period re-starts.

You have not indicated what governing body you belong to, if any. Depending on what governing body, if any, you belong to, there may be specific reporting and notification requirements that you must follow upon filing for bankruptcy.

TO define who a third party is, I direct you to section 199 (a) of the Bankruptcy and Insolvency Act which states; “an undischarged bankrupt who engages in any trade or business without disclosing to all persons with whom the undischarged bankrupt enters into any business transaction the undischarged bankrupt is an undischarged bankrupt is guilty of an offence punishable on summary conviction and is liable to a fine not exceeding $5,000.00 or to imprisonment for a term not exceeding 1 year or to both.”

The limit on Consumer Proposals has not been increased yet and remains at $75,000.00.
The proposed new legislation, which has yet to come into force, will increase this limit to $250,000.00.; February 13, 2008 4:38 PM
Anonymous said...: My husband and I have a combined monthly income of $2600. We have recently retired and cannot afford our $60000 of debts. We would like to keep our home wich has $40000 equity. We are considering bankruptcy and wondered with our monthly income if we could afford the monthly payment.; February 14, 2008 1:14 AM
Anonymous said...: We have a lien on our property by Ministry of Finance with relation to a business my husband owned years ago. He does not want to declare bankruptcy and has triple A credit. Can we file an
"Intention to file a proposal" to the ministry. All our efforts to settle this have been ignored.
Apparently they only accept "Bankruptcy Proposals"
HELP, PLEASE !; February 14, 2008 11:40 AM
Anonymous said...: Hello,

I received my discharge from Bankruptcy in June 1998 in Ontario. Since that time I have had clean credit and am about to graduate from law school in Alberta. I have 2 questions:
1/ When joining the Bar - i am required to state my credit history - given that 10 years has past, if I do not disclose my 1998 discharge - is there anyway that my records will show a bankruptcy when the ABA does a background check?
2/ Does my past bankruptcy prevent me from sitting on the Board of a public or private corp - and does it have to be disclosed?

regards,

b; February 18, 2008 5:25 PM
Anonymous said...: Hi,
If I have my mortgage, VISA's, savings account and line of credit all at one bank and file either a proposal or a bankruptcy - will that bank take all the money out of my savings account (minimal funds) to pay the VISA's and line of credit??? Even if these outstanding bills are covered under the proposal or bankruptcy??; March 5, 2008 7:50 PM
Mark Morgan said...: At the date of bankruptcy, all assets of the bankrupt are to be turned over to the Trustee which would include funds held in a bank account. Therefore, as a technicality, you would not be entitled to keep these funds.

Immediately upon filing there is a stay of proceedings against your creditors. This may prevent the bank from seizing the bank account after filing.

However, the bank may exercise its right to offset which allows them to claim that money held in their institution can be offset against money owed to the institution as at the date of bankruptcy.

The Trustee can review the details of the offset and challenge the bank’s position, however, this may not prevent the bank from taking the money first pending the resolution of the challenge.; March 7, 2008 5:21 PM
Anonymous said...: I have been investing since 2003, in hopes to make money to have down payment for a house. I used my personal savings and ongoing deposits from my income for my investment account. Then my investments went south I received a margin call .. Unable to cover and hold my current investments I looked to borrowing from credit cards and other banks in hopes the money would save my portfolio and I could repay them. My portfolio was sold out causing me to lose everything I had both of personal contribution PLUS all the money I borrowed… I am now out of work and am unable to pay my creditors back and have lost all my savings. I had a perfect credit score prior to this and had never missed a creditors payment in my life. Would this type of debit be seen as gambling by the courts and a bankrupt trustee and would result in opposing my unconditional discharge after 9 months if/ when I file for bankruptcy. I was not using all the money to speculate I was using ¾ of it to salvage what I already had.; March 10, 2008 12:35 PM
Mark Morgan said...: It is not possible to fully answer this question based on the information provided. However, I will do my best...

To determine if investing in the stock market would be considered rash and hazardous speculation one would consider what type of investments were made, whether or not professional investment advice was acquired and the frequency of trading that occurred.

As an example, if you invested in blue chip stocks and held these investments at the advice of your investment advisor, this would likely not constitute rash and hazardous speculation. Day Trading Penny Stocks, however, might not be viewed in the same fashion.; March 10, 2008 2:19 PM
Anonymous said...: If a parent loaned you money to help you pay off a credit card debt and you had to repay them, what are the repercussions, if any, if I put that loan back on the credit card prior to going bankrupt?; March 18, 2008 9:17 AM

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