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Jeremy Kroll
I have been helping people solve their money problems for over 11 years. I joined A. Farber & Partners Inc. in 1996 and became a licensed Trustee in Bankruptcy in 2001. Prior to joining the firm, I practiced as a Chartered Accountant with a major accounting firm both in South Africa and Canada.
573 comments:
«Oldest ‹Older 201 – 400 of 573 Newer› Newest»Hello I am married and am contemplating bankruptcy. Both my husband's and my credit is very poor and my question is will my going bankrupt affect my husband. And if he decides to do the same will we loose our home? I will be looking forward to your reply...Thank You so much
Filing for bankruptcy will not directly affect your husband’s credit. However, if your husband has co-signed or guaranteed your debts, filing for bankruptcy will cause the creditor to attempt collection from your husband. If your husband is unable to make the monthly or lump sum payment to the creditor, his credit history may be affected.
With respect to losing your house, it depends on whether or not there is any equity in the property. If your house is worth more than the outstanding mortgage balance and there are no other charges against your house, then there is equity.
The Trustee can negotiate with you to buy-back this equity from the estate. Whether or not you lose your house will depend on whether or not you can afford to pay the estate for your equity, if any.
If you would like to discuss your situation further, you can call us at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
After 6 years your records of bankrupcy are earased, does this mean i will not be able to get a house before the 6 yars are over. I heard that if you file for bankrupcy that you are pretty much stuck for the 6 years until your records are desmised. Your cant get a care, house, etc. We owe about $10,000 and are in way over our heads. I am considering bankrupsy but i dont want to do somehting im going to regrert.
Can you tell me if child tax credits or education credits are exempt from bankruptcy in minnesota?
Your credit history will reflect your bankruptcy filing for 6 years after you discharge.
While it is more difficult to get new credit during this period, it is not impossible. You can qualify for a mortgage if you have a stable income source. The effect of your bankruptcy filing may result in slightly higher mortgage rates, but it is still possible to get a mortgage.
Please contact us at 310-1100 for a free, no-obligation initial consultation to discuss the options available to you to deal with your debts without filing for bankruptcy.
Sorry. This forum is for Canadian based bankruptcy issues. The laws in Canada and the United States are similar, however, they are not so similar as to enable a Canadian Trustee to be able to answer fairly specific questions such as that you have posed.
Hi I need to know, If I file bankruptcy for the second time will that be ok?
hello there....
we opened a business and it lasted only for 1 year and 5 months. We have to close as we are putting more money and owing creditors more: My questions are:
1. It was under the small business guaranteed loan by the government. After a year, i still owe around 80,000.
2. The landlord is also suing for breach of contract. When we left the premises though it was after 2 months that a new tenant came. We paid our rent till we left.
3. I have a house without any equity in it.
4. I have credit cards up to 100,000 owing.
If i file for bankcuptcy, can the bank and the landlord run after us? We really don't have anything except our house and my husband will just start a new job soon. I have a bit of RRSP which i believe the trustee will give to creditors. We are a family of 5 , how much are we allowed to have as monthly expenses? So far we don't owe the gov't any taxes personal or business. We have been able to manage and have a good credit standing until such time we had the business. Please share your thoughts on this.
Hello,
I filed a consumer proposal 3years ago, but was unable to fulfill the commitments of the payments at that time due to financial hardship. I am now looking at bankruptcy, however, I have a student loan that is 9 1/2 years old and I'm trying to hold off until December when it becomes 10 years old. However, I have some of them phoning my work everyday now for payment. My financial situtation has not yet changed, but I have to do something. What would you suggest? If I start a bankruptcy and the 10 years on my student loan is up part way through it, can I apply to have it included? Please advise. Thanks,
You can file for bankruptcy a second time.
It is important to understand that as a second time bankrupt you will not be discharged from your debts until you attend a discharge hearing at the court.
The result of this discharge hearing can be an extension to the term of your bankruptcy and/or conditions of a financial nature being required to be met before you are discharged from your debts.
There is the ability to go before a bankruptcy judge after your discharge to have the debt discharged if you meet the conditions of a continued inability to pay the debt and that you made an honest effort to make the payments. To guarantee no issues with the discharge of your student loan debt, you should wait until it is clearly outside the current 10 year requirement. There are changes coming that will shorten the time period, but the timing of these changes is unknown.
I'm the person who emailed yesterday with the student loan @ 9 1/2 years.
What do you think would happen to my van during bankruptcy? It is a high risk loan and they secured a lien against the van. The loan is for $14000, the van is worth $7000, and I've had the loan for approx. a year (in good standing). Please advise. Thanks
can i still work while in bankruptcy? if so, how much can i earn?
Any personal debts that you have, including personal guarantees of business debts, can be discharged upon completion of a bankruptcy, except student loans less than 10 years old from the date of graduation, alimony or child support, fines or penalties of the court, and any debt as a result of fraud that has been proven in court.
Upon filing a bankruptcy, there is an immediate Stay of Proceedings which restricts creditors from pursuing any collection activities against the individual bankrupt.
Therefore, the landlord and the bank, unless they have proven fraud in court can not continue to pursue you for these debts personally.
The RRSP would likely be seized and cashed by the Trustee as you have indicated.
As a family of 5, you are entitled to a maximum of $3,870.00 per month in income before you have to pay any portion of your income to your creditors.
To further explore your options and what impact filing bankruptcy may have on you family, please contact us at 310-1100 to schedule a no-obligation, free initial consultation with one of our managers
Yes you can work while in bankruptcy. You are allowed to make as much money as you can earn.
You are required to pay to your creditors, as part of your bankruptcy, a portion of your income based on a formula that the government has developed: The amount that you pay is 50% of any take-home pay that exceeds a certain threshold. This threshold is based on the number of people in your family that depend on your income (i.e. dependents).
In any case, you do not have to turn over all of your income to the Trustee, just a portion for the period of time that you are bankrupt.
To further explore this issue and all the options available to you to deal with your debts, please call us at 310-1100 to schedule a free no-obligation initial consultation with one of our managers.
Is the primary loan holder's credit affected when a cosigner declares bankruptcy? The cosigner is only on the loan to build credit and because it's their car. The primary loan holder does not want his credit affected by the cosigner's bankruptcy. Will it be affected?
hi
i was wondering if we would be eligable to file for bankruptcy?
both me and my husband have credit cards.
them are:4500.00,1000.00,5000.00,500.00,400
i also have student loans, i have not been in college since 1998.they exceed over 12000.00
i do not work but my husband does.
declaring banrupt will not affect my rent payment will it?
and me not working will that affect us declaring banrupt?
hi
iwas wondering if i we were eligable to file banruptcy
between teh both of us in credit cards its about 10000.00 and i owe student loan which exceeds 12,000.00, i have been out of school since 1998. i do not work but my husband do will this affect the outcome.
one mor ething filing bankruptcy will it affect my rental agreement.
I see you've emailed us two similar questions today so I am going to try and respond to them both with one answer:
To be eligible to file for bankruptcy you need to owe $1000 and be unable to repay. Based on the details you provided, I would say that you qualify.
With respect to student loans, if you finished your studies less than 10 years ago (from the end of the month you finished college) then this debt will not be discharged by the bankruptcy.
Bankruptcy should not affect rent payments, however, it can impact on your ability to rent a new apartment as most landlords do credit checks and your bankruptcy will seriously impact your credit rating.
It is not necessary to be working to go bankrupt. If you are working, your income, along with the incomes of all those living with you are used to calculate how much you have to pay each month that you are bankrupt.
To discuss these issues further, and to explore all your options, please call 310-1100 to arrange a free, no-obligation consultation with one of our trained managers.
My ex-husband filed for bankruptcy a couple of weeks after we separated and has already been discharged. Since separation I have lived in the marital home with the kids and our case is still in family court. I received legal advice that my ex does not have claim to the marital home because he gave up rights to equalization when filing for bankruptcy. (The title had been transferred to my name only 10 years prior to the separation). I am currently without a lawyer. My ex’s lawyer argues that he is now not required to do equalization but is still entitled to the marital home. My ex did not list the marital home in his bankruptcy. His lawyer states that this was not required because it was in my name only.
Do you know of the laws/bankruptcy rules in this situation?
Is it required to list assets that you expect to receive when going bankrupt?
My ex made false statements in his bankruptcy. He entered into a proposal agreement years earlier and answered no to this question about a previous bankruptcy/proposal. He owned franchise rights valued at 60,000 when filing for bankruptcy but did not reveal this. My ex no longer has these franchise rights.
Should I contact his trustee in bankruptcy with this information or is it in my best interest to leave this in family court?
My ex-husband filed for bankruptcy a couple of weeks after we separated and has already been discharged. Since separation I have lived in the marital home with the kids and our case is still in family court. I received legal advice that my ex does not have claim to the marital home because he gave up rights to equalization when filing for bankruptcy. (The title had been transferred to my name only 10 years prior to the separation). I am currently without a lawyer. My ex’s lawyer argues that he is now not required to do equalization but is still entitled to the marital home. My ex did not list the marital home in his bankruptcy. His lawyer states that this was not required because it was in my name only.
Do you know of the laws/bankruptcy rules in this situation?
Is it required to list assets that you expect to receive when going bankrupt?
My ex made false statements in his bankruptcy. He entered into a proposal agreement years earlier and answered no to this question about a previous bankruptcy/proposal. He owned franchise rights valued at 60,000 when filing for bankruptcy but did not reveal this. My ex no longer has these franchise rights.
Should I contact his trustee in bankruptcy with this information or is it in my best interest to leave this in family court?
My ex-husband filed for bankruptcy a couple of weeks after we separated and has already been discharged. Since separation I have lived in the marital home with the kids and our case is still in family court. I received legal advice that my ex does not have claim to the marital home because he gave up rights to equalization when filing for bankruptcy. (The title had been transferred to my name only 10 years prior to the separation). I am currently without a lawyer. My ex’s lawyer argues that he is now not required to do equalization but is still entitled to the marital home. My ex did not list the marital home in his bankruptcy. His lawyer states that this was not required because it was in my name only.
Do you know of the laws/bankruptcy rules in this situation?
Is it required to list assets that you expect to receive when going bankrupt?
My ex made false statements in his bankruptcy. He entered into a proposal agreement years earlier and answered no to this question about a previous bankruptcy/proposal. He owned franchise rights valued at 60,000 when filing for bankruptcy but did not reveal this. My ex no longer has these franchise rights.
Should I contact his trustee in bankruptcy with this information or is it in my best interest to leave this in family court?
Sorry, please excuse my duplicate posts. I was prompted to re-enter the word verification and believed my post to be not accepted.
I am seeking clarifcation on the vehicle exemption in a bankruptcy. If your vehicle is your only mode of transportation, and it's value falls under $5000.00, is it exempt?
I am seeking clarifcation on the vehicle exemption in a bankruptcy. If your vehicle is a motorcycle and it's your only mode of transportation, and it's value falls under $5000.00, is it exempt?
Sorry for the double post. Forgot to mention the vehicle was a motorcycle.
Yes. You are allowed one motor vehicle exemption of $5,650.00
I currently have large OSAP debt, which I am unable to pay at this time. (I am currently in interest relief). As well, I currently have an undischarged bankruptcy. My health isn`t that good, and I don`t see this situation changing in the near future. I have recently moved in with my boyfriend, and we are planning on getting married.
Will he be reuqired to pay any of my student debt, and how will my credit rating affect him if we are spouses?
Thank you.
Your boyfriend has no legal requirement to repay your debts unless he cosigned or guaranteed them.
However, as an undischarged bankrupt, when you get married, you will be required to report his income in addition to yours for purposes of determining surplus income payment requirements.
Your credit rating has no direct impact on your spouse. Indirectly, it could affect future major purchases where your spouse does not qualify on his own and needs a co-signor as you will likely not qualify (at least until you are discharged from bankruptcy).
Hi there....
I have a question that I hope you can help me with. A friend of ours owes us $10,000 and we recently just received paperwork in the mail from a trustee to say that he has filed for bankruptcy. We are not listed on the paperwork. This is his first time for bankruptcy so he will be discharged in 9 months. Can we wait the 9 months for his discharge and then sue him for the money he owes us?
If you can let me know I would greatly appreciate it.
Thank you.
hi, my husband declared bankruptcy before we got married which I did not know about couple of months ago. I currently opened my own small business. How does this effect me or him??
Based on the information you have provided, you would not be able to sue your friend after he is discharged.
All debts of a bankrupt are discharged upon completion of the bankruptcy unless they are for alimony, child support, fines or penalties of the court, student loans less than 10 years old or for fraud that has been proven in court.
Additionally if the debtor intentionally failed to disclose a debt that would normally be discharged, he would be held liable for any dividends that you would have received had you been included in the bankruptcy (unless you - the creditor - were aware of the bankruptcy and failed to take reasonable action to prove the claim).
The fact that you have received the paperwork from the Trustee would indicate to me that the Trustee is aware of your debt even though it was not disclosed on the Statement of Affairs. This would also indicate that you have the opportunity to prove your claim and participate in the bankruptcy.
In the paper work that you received, there should be a proof of claim form with instructions for you to complete and send back as soon as possible to the Trustee.
My recommendation to you is to complete and submit the Proof of Claim form so that you can participate in the bankruptcy.
If your spouse has been discharged from his bankruptcy, there is no impact on you (or him) from the opening of your business.
If your spouse is not yet discharged from bankruptcy, the impact on your spouse is that the net income that you earn from your business MUST be added to the income your spouse earns for the purposes of calculating his surplus income obligation within his bankruptcy estate.
The amount that the family earns over and above the guidelines set by the government is surplus income. Each month your spouse would be required to pay his creditors an amount equal to 50% of the surplus, times the percentage his income is of the total family income.
As an example, for a family of two, the goernment's guideline is $2,286. If the total family income is $4,000 and your spouse earns $1,500 and you earn $2,500 the monthly calculation would be as follows:
$4,000 - $2,286 = $1,714 (surplus income)
$1,500 / $4,000 = 37.5% (spouse proportion of surplus income)
50% x $1,714 x 37.5% = $321.38 (monthly surplus income obligation)
Hi. I am sure ours is not a unique case but it has come to the point where we can no longer stay ahead of all the bills. I will be the 1st to admit that we are irresonsible in our financial dealings. My wife & I have always had fairly good jobs, both have worked for our respective companies for more than 30 years. We just finished putting our 2 kids through college & they have graduated & have both recently moved out of the house. We own a townhouse valued at approx. $170,000 & owe about $55,000 on the mortgage. We have debts of credit cards etc of about $100,000. We finally stopped and looked at these totals recently because of the pressure of gas prices for commuting & the realization that we are having a hard time in paying all the bills on time. We have not missed any payments or do not have any creditors lining up for payment but know that with the interest rates on credit cards etc, we will never be able to get ahead of the game & retirement is not that far off. (5 or 6 years) Bankruptcy has never been a word I have ever entertained but would like to know if there is a solution to my problem or as I made my own bed do I have any solution to easing the pain other than just hope we can survive to the end. Thank you.
If I had falsely declared my income on credit card applications (which I am filing for bankruptcy to have erased) could this cause a problem?
If so, what is the extent of this problem? Could it bring fraud charges against me? If so, what happens if I am found guilty of fraud?
I am only 21 and I have a child so I am trying for a fresh start but am terrified of filing for bankruptcy because of these reasons. I am scared that I will be charged with fraud, which will ruin all of my life plans.
If you could just answer those questions, I will know what to do to get a new start. Thank you :)
I have met with a trustee and he has advised me to file for bankruptcy due to my debt load. Problem is, I'm not working at the moment (fighting with WSIB over a claim for an injury) and I cannot come up with the money needed to file. Is there a way to go bankrupt myself? What do I do if I cannot afford to go bankrupt?
Your situation is not unique. You are however in a good position to deal with your debt issues in a positive and effective manner that does not require any insolvency proceedings.
The equity in you condo can be used to pay-off your credit card debts allowing you to significantly reduce your monthly payments and provide a better way to reduce your debts over time.
As the equity is greater than your debts, any insolvency proceeding would require substantially all to full payment of your debts.
My suggestion would be to contact a mortgage broker to discuss potential mortgage products and payment terms to facilitate your financial restructuring.
Because you falsely declared your income, there is a risk that the credit card issuer MAY pursue fraud charges against you.
IF this occurs, and IF the credit card issuer is successful in obtaining a court judgment that you did in fact commit a fraud, the specific debts related to the judgment will survive the bankruptcy process and you will be required to pay in full whatever charges you incurred on this(these) credit cards.
There may also be criminal or civil penalties, however, you would need to consult a lawyer for any specifics on the legal consequences of your actions.
If the trustee you are dealing with is not able to take your file due to fee issues, you can either try another trustee or you could contact the OSB (416 973 6486) to request the Bankruptcy Assistance Program which has been set up to assist those who otherwise would not have access to the Bankruptcy system.
If you have been discharged for several years, do you have to answer yes on a form that asks if you have ever been bankrupt?
Yes. No matter how long ago you were discharged from your bankruptcy, you will always have to answer "yes" if asked "have you ever been bankrupt?"
Our bankruptcy was discharged over a year ago. 2 weeks ago the vacant premises was burned. We received noticed today that we have to demolish the building or have it back up to code within 30 days or face fines and other consequences. They said that because the dead has not transferred we still are responsible for the upkeep and damages. I don't understand this. I thought when the bankruptcy went through that we no longer owned the house or assume responsibility of it.
Our bankruptcy was discharged over a year ago and 2 weeks ago the house burned. We received notice today that we must demolish or get the house back up to code within 30days. They said we are still responsible for the house until the deed is transferred to someone else. This was a vacant house that would probably have never sold. I don't understand how we can still be responsible for insurance and upkeep on house that we no longer own. Please help, I have no idea on what to do or who to contact. The lawyer said it is now out of their hands.
Our bankruptcy was discharged over a year ago and 2 weeks ago the house burned. We received notice today that we must demolish or get the house back up to code within 30days. They said we are still responsible for the house until the deed is transferred to someone else. This was a vacant house that would probably have never sold. I don't understand how we can still be responsible for insurance and upkeep on house that we no longer own. Please help, I have no idea on what to do or who to contact. The lawyer said it is now out of their hands.
I have 20k in various debts. I want to go to college, get a degree and start fresh. I will be applying for osap. Will creditors be able to take osap money from my bank account? I will be taking a 3 year program. I think i want to go bankrupt before or after i start classes. So which is better? Before, or after? I don't want to graduate with a osap debt and my current debt which is why i am choosing this route. I figure school will knock 3 years off my waiting time to establish credit again. Does this sound like a reasonable path to take?
if i am living with my mother and not paying rent, will it affect my surplus income limit? Also, do i need to include her income?--I don't want her involved, it's not her business.
My son was in my car and had an accident and was charged with im paird driving , now im pretty sure my insurance will not cover that and i was on the brink of bankruptcy anyhow, I still owe 10,000 on the car can i still filling bankruptcy even though they cant take the car back because it is a right off ?
There are three ways in which a creditor may be able to take money from your bank account.
1. If you owe money to a bank where your bank account is held, they have the right of set-off to take funds held in your bank account to pay debts owing to them.
2. You have given the creditor pre-authorized withdrawal rights to take monthly payments from your account
3. The creditor obtained a court order allowing them to garnish your bank account.
It does not matter under what circumstances the money was deposited to the account. If the money is there, it is accessible under the three options above.
The question of filing bankruptcy before or after getting your OSAP loan is not something I can not answer as this is a decision that OSAP would make. You should speak with someone at OSAP to determine if an ongoing bankruptcy would affect your ability to obtain an OSAP loan (or not). Once you have filed, it is too late to go back if they will not give you the loan. Filing after you obtain your first OSAP loan may also affect any future years and as you plan to do a three year degree, you will likely need OSAP for three years.
You should sit down and figure out what you can afford to pay a month while in school to see if you can make the minimum payments on your current debt and once done school, use your higher income earning potential to pay the student loans and your current debts.
Bankruptcy is a last resort and should only be used when absolutely necessary.
The surplus income calculation is based on your income and non-discretionary expenses only. (non-discretionary expenses include child support, spousal support, medical conditions, child care and fines or penalties of the court). As a result, where you live and what you pay for rent do not factor into the surplus income calculation.
With respect to the inclusion of your mother's income, the Bankruptcy and Insolvency Act(through Directive 11R) requires that the income of the "family unit" be used to calculate the surplus income requirement of the bankrupt individual. Directive 11R defines the "family unit" as 'the bankrupt and any persons who reside in the same household and who benefit from either the expenses incurred or income earned by the bankrupt.'
Accordingly, your mother would be included as a member of the "family unit".
This would require her to disclose her income, and is simply for the purposes of determining surplus income and for no other purpose. She is not part of your bankruptcy and there would be no negative impact on her credit rating or her assets.
If your mother still does not wish to be involved in any manner with your bankruptcy, there is a provision in Directive 11R that should your mother refuse to divulge her income, she is not included in the "family unit" and her income and her portion of the expenses are not included in the financial details of the bankruptcy.
We do however caution you and her that should your mother refuse to disclose her income, the creditors or the Trustee may oppose your discharge and request that the Court compel your mother to disclose her income. With this information, the Court may require you, the bankrupt, to contribute additional funds to the bankrupt estate in accordance with the surplus income guidelines and may also require that additional funds in excess of the guidelines be paid before your discharge is granted.
If you are employed and have sufficient cash flow, you may be able to avoid bankruptcy and file a proposal. To discuss this and other options that may be available to you, please contact our offices at 310-1100 for a free initial consultation at one of our over 20 offices.
As long as you owe more than $1,000.00 and are unable to make payments as they become due, you are eligible to file for bankruptcy in Canada.
If insurance does not cover the loss of the vehicle and you remain liable for the $10,000 remaining on your car loan, this debt can be included in your bankruptcy and will be discharged similarly to other debts that you may have.
To discuss all your options, please call us at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
Hi Again i was the person who asked about my son and the loan on the car with the impaird charge.My new question is this the insurance is not going to cover the car and i will need a car to get to work as i work out of town and moving to where I work is not a option nor is a new job where i live. I am going to have to file because i have a pending court this week on another matter and its over 10,00 and my ex husband is on wsib so they have us both listed on the siute but im sure they will come after me as i work and i also still owe a student loan of 9000. but its over 10 yrs old now. If i file now am i able to still get a loan for a car from places that will get them for people like me, or do i get it first and keep it out of the bankruptcy. and why is it allowed to garinshee a 1 person one a debt that 2 people are named on ? how come it isnt split between them?
There are places that will give car loans and leases after you file for bankruptcy. There are also places that will give you a car loan or lease just prior to filing for bankruptcy. To replace your car, you will need to contact a few of these places and work out an arrangement with them.
If you do get the vehicle before filing for bankruptcy, you cannot keep it out of the bankruptcy. However, as a secured loan, if the company providing you the financing is aware of your intention to file and has advised you that they will let you keep the car (provided you make the payments) then you will not lose the vehicle once you file.
Your question regarding garnisheeing one person when there are two people responsible for the debt relates to a type of debt called joint debt. With joint debt, two people sign the agreement for the loan. Each person is jointly and severally liable for the full balance. This means that until the debt is paid in full, both people can be held responsible for paying the full balance owing individually. This provides extra protection for the lender when there is a higher risk in giving out money.
Ok from what i have read on different site is that if i file bankrupt im only allowed to keep my car if it is under 5500. so does this mean i can only get a car for that amount and under? and how soon after i file can i get a car. Also this court this week is for a landlord thing going to trial do you think that the court will allow him to garenshee me before he has even atempted colletions? thank you for your help this far its is setting me a little more at ease.
Our blog is designed to be used for short, quick Q&A-style responses. Many of the people who post a question initially end up seeing one of our staff in person once we've answered their first question.
Based on our past exchanges, it seems like you have many questions that go beyond the scope of this blog. We respectfully recommend that you attend a no-charge, no obligation interview where we promise you will be treated with dignity and respect.
This will enable you to get all of the answers you seek, and a full explanation face-to-face with a trained staff person to what appear to be pressing issues you are burdened under at this time.
Please call us at 1-800-267-7733 or 416 496 3740 at any time to book an appointment at an office close to where you live or work.
We look forward to helping you.
Can the same person garnishing my wages freeze my bank accounts for the same debt and I have not missed a payment?
Once a creditor has obtained a court judgement for an unpaid debt, they can obtain a garnishment order which may allow them to garnish wages, freeze or seize bank accounts and/or register liens on property. The creditor is entitled to exercise any combination of these rights until the debt is paid in full.
I have assumed that your comment that you have not missed a payment was meant to indicate that once the garnishment was in place, they have received funds every time you have been paid.
If you meant that you never missed a payment at all, then unless you did not comply with some other term of the contract, you never defaulted and the court would not have granted the creditor a judgement allowing them to garnish your wages.
I was considering filing bankruptcy but before I got to meet with a trustee, I found out one of my creditors has warned me that they will be filing a small claims lawsuit against me within a few days (if they haven't already done so). If I am ordered by the court to repay this amount, will it be erased if I then file for bankruptcy?
Why does the bank freeze your accounts? I had a $250 overdraft on my chequing and they froze both the chequing and the savings. (about $100 in each). Will they "unfreeze" them?
I read to open an account at a totally different bank but I happen to like the name that I deal with. Does my new account have to be at a "different" name of bank?
Thanks so much..this hasn't been easy.
Also, I make approximatly $1400 every 2 weeks and have 2 children. I was told that my payments would be $342! which I find a bit much! What is the percentage or the $ amount when you start making "too much" or start having to pay.
Thanks,
Tracy
Hello,
I am a Canadian citizen living in another country, currently in the second stage of my PhD studies where I do not have to attend any classes but have to do the research that should eventually result in my doctoral thesis. In exchange for the research work I am being paid a fellowship that is just enough for a student life. My legal status here does not allow me to obtain any work outside the research field within my university.
I have been living here for three years and all this time I have been filling exclusively Canadian taxes with CCRA. Before leaving Canada, I was advised by CCRA that as long as I keep my financial ties (e.g., credit cards, RRSP, Bank account) with Canada, as a student I am formally considered a resident of Canada and as such have to fill my tax returns every year in Canada.
During the years I have accumulated a significant amount of debt and during the last three years I have been paying it regularly by withdrawals from my RRSP. The problem is that my RRSP saving is just about to disappear. I assume that I could pay my bills for another three no more than four months. My fellowship is my only source of income and I do not have any other savings. Personal possessions are minimal – no real estate, cars or anything similar.
As I still have at least two years, more likely three years, to go in my studies, at this moment I see two options – keep paying the debt by moving money from one credit card to the other cards or considering another more sever options that might include bankruptcy. I am not sure how much time would the first option buy me but it would result in much more serious situation than the current one.
Most of the debt is on credit cards and one loan that was given as a professional student loan by a bank in Canada 5 years ago but is not being considered a student loan by CCRA.
As I do not have any debts or assets (only a banking account used to pay my fellowship) I believe that I do not have any grounds to declare bankruptcy in this country.
I am writing to get more information about my options and to obtain professional advice. As I will be in Toronto in the second half of August for the conference I wanted to start this process from here so that I can collect any required documents before meeting with you.
Your help would be greatly appreciated.
Best regards
There is an automatic stay of proceedings when you file for bankruptcy which would stop the court proceedings and most judgments against you. Bankruptcy can not stop a judgment for fraud (for example).
If you would like to discuss your situation further, you can call us at 310-1100 to schedule a no-obligation free initial consultation with one of our managers. We would like to help you.
The bank may "freeze" your accounts if they feel you have not been living up to the agreement you made with them to pay your overdraft or loans on a timely basis. If you bring your accounts current, the bank may "unfreeze" your accounts.
The recommendation to open a new account is to avoid any issues like the "freezing" of your accounts if and when you file for bankruptcy. The new account should be at a different bank than you deal with now (an institution you do not have any debt or holdings with) as any accounts you hold at existing bank can be frozen at the discretion of the bank.
Want to discuss this further? Please call us immediately at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
Surplus income is a requirement to pay your creditors from your income. The calculation is based on a set standard that the government determines based on the number of people in your family. Any income that you earn up to this amount is yours to keep. Any income earned over this amount is to be split 50% with your creditors. If this "extra" income exceeds $1,000.00, there a provision that the Trustee can require you to pay between 50% and 75% of the excess to your creditors.
Should you have any further questions on how surplus income works or you would like to discuss your options in respect to your financial situation, please call us at 310-1100 for a free, no-obligation initial consultation with one of our managers.
hello , please advise me of my options for the following scenario. Filed first time in Month "a" a parent died in month "b" .. unexpected, and left a large sum of money to the un-dischaged. How would a trustee know if that money was received or not received. Apart from the undischarged telling them. Thx
First and foremost, a bankrupt has a duty to disclose and deliver all property to the Trustee. The definition of property includes property acquired after the bankruptcy date but before the Bankrupt's discharge. Examples of after-acquired property include:
- income tax refunds
- settlement proceeds of legal actions commenced before or after bankruptcy inheritances
- Lottery winnings
Therefore, the Bankrupt has a duty to disclose the inheritance to the Trustee
There are many possible ways that a Trustee may become aware of after-acquired property. If this happens and the Bankrupt did not disclose this asset to the Trustee, the bankrupt risks:
- a potential opposition to his/her discharge from bankruptcy
- a potential conditional discharge order requiring him/her to pay an amount equal to the amount received into the bankruptcy estate, and/or,
- being charged with an offence under the Bankruptcy and Insolvency Act for failure to comply with the required duties resulting in potential fines of up to $5,000 and/or
- imprisonment not exceeding one year
I have debts with VISAs and also debts with CRA both personal and business, totalling $25,000 and I need to claim bunkrupcy because I can't pay them. What is your best advice for me and what should I do, my only asset is my beat up van worth +/- $3,000.
Hi
I would like to know if my boyfriend declares bankruptcy he has unsecured debt of over $150.000 dollars. His income is just over 100.000 a year with one son at home of school age. Is he intitled to his whole paycheck every month? Can he rent a house that would cost almost $2,000 a month or is there a limit on what he can pay for rent? Also if I were to live with him what would happen to my income of about $3,000 a month is that considered surplus and would go to the trustee ????
I am self employed I look for jobs and advertise I also have to purchase materials ect in order to make a living. My business was effected by a series of bad debt and late payments last year it has also slowed this year.
As a sole Prop with personal debts of $80,000 and income of aprox $5-6000 a month from the business This varies month to month.
If I declare Bankruptcy what happens
1 to the business it has no value without me. the equipment is all mine most is older so a purchaser would get use of the Name and any advertising that I have pending
2. this being my source of income would I have to give up the business and look for a job?
We understand the frustration that accompanies the inability to pay your debts. While Bankruptcy is one method of dealing with your debts, there are many options to consider other than bankruptcy.
To fully explore your options and find the best solution to your financial situation, please call us at 310-1100 to arrange a free, no-obligation consultation with one of our managers at one of our more than 21 convenient locations.
When in Bankruptcy, the Government requires that the bankrupt contribute from his/her income to the bankruptcy for the benefit of the unsecured creditors. There is a set guideline of how much a family can earn on a monthly basis, based on the size of the family, before they have to pay anything into their bankruptcy. One half of any excess over this amount is to be paid to the estate in proportion to the bankrupt’s percentage of the family income. Your income would be included in the family income if you were living with your boyfriend.
As an example, let’s assume you, your boyfriend and his son all live together, making the family three people in size. The standard for a family of 3 is $2,811. Let’s assume your boyfriend earns $6,000 after taxes are deducted at source each month and you earn $3,000 after tax each month. The family income is $9,000 per month. $9,000 - $2,811 = 6,189. 50% = $3,095. Your boyfriend is $6,000 of $9,000 = 66.66%. 66.66% x $3,095 = a total of $1,547.50 per month required payment in a bankruptcy.
The amount that your boyfriend pays for rent should be reasonable which would be determined in conjunction with all his expenses, income and family situation.
With this much income, you may want to consider other options than bankruptcy to deal with these debts. There are many other options that we can discuss with him. Give us a call at 310-1100 to arrange a no-obligation, free initial consultation with one of our managers. We have more than 21 offices across the GTA to serve you.
There are certain exemptions that individuals can claim. One of these is for what is known as "tools of the trade". As a sole proprietorship is not a separate legal entity, the assets of the “business” are your personal assets. Therefore, the tools that are required for you to do your job are tools of the trade and you are allowed an exemption, and thereby get to keep, $11,300.00 worth of tools. Any amount of tools that you have in excess of the $11,300.00 would either be seized or you would have to pay into your estate an amount equal to the difference to keep the tools.
The Trustee would look at the business and determine what (if any) value it may have. If there is a value, the Trustee can sell you the rights to the business and you can continue to operate. If there is no value, the business would be returned to you.
As long as the business has no value, or you purchase it back from the estate, you can continue to operate the business as per usual.
Hi. My taxes for the 2005 year were filed before I declare bankruptcy in August 2007. I have yet to receive anything from Revenue Canada, but was expecting a refund (about 1200 dollars). Now that my bankruptcy period is over, if/when I get my return -do I get to keep it? My trustee has now left on maternity leave and her replacement leaves something to be desired when it comes to returning my phone calls.
THanks.
j.
If you owed CRA money when you filed your 2005 taxes, CRA may have taken your refund and applied it against what you owed. This is a common practice with CRA as you are not entitled to a refund if you owe them money.
Any tax refund that you may have been entitled to but had not yet received prior to your bankruptcy is an asset of your estate and would go to the benefit of your unsecured creditors.
Tax refunds in the year you filed bankruptcy would also go to your unsecured creditors.
If you were to receive a cheque from CRA for the 2005 taxes, it is your duty to deliver to the Trustee as the refund is an asset that existed prior to your bankruptcy.
Hi, I was just wondering how long it would take to gain your credit back after going bankrupt? And how you'd go about fixing it? After it's discharged can start to build your credit right away?
Thanks
In a situation where the the husband and wife have title to their home.
If all the equity in the house has been used, and their credit cards are nearly maxed. If the wife only goes bankrupt what happens to the home and is the husband still liable for mortgages etc. ANON.
Once you are discharged from your debts in a bankruptcy, the history of your debts and the bankruptcy continue to be shown for 6 more years on Equifax and 7 more years on Trans Union. Equifax and Trans Union are the 2 largest credit reporting agencies in Canada.
During the period of time that you are bankrupt and the 6 or 7 year period following bankruptcy, you do have the ability to access credit, however, this credit may be at higher interest rates and/or you may need a co-signor.
To start repairing your credit, you will need to obtain some form of credit that you can afford and make the payments as agreed.
A simple and safe option for this is a secured credit card. You deposit a set amount of money with the credit card company, they give you a credit card with an equal or greater value. If you are unable to make your monthly payment, the deposit is used to pay the balance and either the card is cancelled or the limit is reduced.
Thank you for your question. If all of the equity in your home has been utilized, and you are both title holders and mortgage holders on the property (50% ownership for each of you) then your spouse would not have any equity available to provide to her unsecured creditors if she files a bankruptcy.
It is important to keep in mind that you would both still be responsible for all of your secured debts, such as on-going mortgage payments, in the event that your spouse files a bankruptcy. Secured debts are outside the bankruptcy and it would be advisable to continue those payments on time and in full so that you can both retain ownership of the matrimonial home.
If your spouse requires a free consultation at one of our 21 offices located across the GTA we would be happy to meet with her. Please have her call us at 1 800 267 7733 at her convenience to arrange such a meeting.
Hi. I Google d your site which indicated a blog for the amount of time the CRA has to claim against directors no longer with the business but I can't find your posting. Can you advise whether it is true that the CRA has only 2 years to claim? what about PST? Is there a limited time for all agencies in which they can claim against directors who have resigned? If the business has been closed since December 2005, is that also a statutory limit against claims?
My second inquiry concerns something called the "Tax Relief Fund" What is it and can it reduce the interest if one wishes to pay off the debt? Or, can one actually get GST & PST written off if combined they are less than $15,000?
Thank you for your assistance.
can a person file more than once
I live overseas, in India, married, with 3 unsecured debts (2 visa, 1 loc) with 2 canadian banks, total $24K. Am unemployed, receive monthly help from mom in Toronto. Wish to declare 2nd bankruptcy (1st was 10 yrs ago, business-related, tho personal taxes were owed to RevCan for +$50K). What may be the likely number of trips required back to Canada to complete the process? And can the filing be initiated without my physical presence? Thank you kindly.
We are contemplating bankruptcy. My husband is a contractor, is he able to keep a bobcat that we owe approx. $7000 in payments as part of his tools of the trade amount?
We are looking into claiming bankruptsy. They will take all of our vehicle as they are all fairly new. We have been looking into a new vehicle for around $2000, should we wait until we claim or should we do this before we claim? Are there any reprecussions to selling off an item that we have an outstanding loan for before claiming bankruptsy as long as the amounts that we get will clear the loan amount?
Hi,
Just wondering if all outstanding personal and gst amounts owing to the government are included in a bankruptcy?
i have made all my payments as at January 31 2008. My Trustee for some reason submitted my documents on april 1. When we spoke he said i would receive the discharge by mid june. It is now August and all he can say is that its with the courts. My question is how do i pursue this matter further and perhaps pursuade a judge to issue the discharge. Can i go to the courts myself and ask them to bring up my file.
thanks!
Hello,
If you filed for bankruptcy in Canada, but are now in the states with good credit standing will your credit rating still be affected if you are trying to rent an apartment in Canada?
hello
Myhusband & i arent currently in way over our heads he lost his job about 1 1/2 yrs ago making $50,000 a yr and now is only making $11.85 a/hr we have a mortage that is at $146,000 and other personal debt totaling about $21,000 there is enough equaty in the house to pay it off however due to our now bad credit & the repo of our leased vehicle no one will lend us the money can you offer our best solution to ending all the calls & threats we have 3 kids & dont want to loose the house how can we solve this & keep our house?
Hi!
I am thinking of applying for OSAP, but I had to file a proposal this past summer. Do I still have a chance at recieving OSAP???
My wife and I are separated and she filed for bankruptcy which seems to indicate all the marital debt will fall on my shoulders. However, on her bankruptcy statement I noticed she left off several creditors, amounting to about $80,000. To me her sworn statement about full disclosure is fraudulant. Can her bankruptcy be disallowed for failing to fully disclose things?
Or, are only the debts listed being wiped out, and others can come after her later?
thank you
Yes. A person may file bankruptcy more than once. It is important to understand that the consequences of filing multiple bankruptcies become more severe with each filing.
If you are/were resident in Canada during the past 12 months, do/did work in Canada in the past 12 months or have the majority of your assets in Canada, you are eligible to file for bankruptcy in Canada.
If you do not meet one of the above requirements, you are not eligible to file bankruptcy in Canada.
If you do meet one of the above requirements, you would need to be present to sign the bankruptcy documents or have a lawyer in India present with you when you file the documents.
Additionally, as this would be your second bankruptcy, you would be required to come to Canada for at least one court appearance at your discharge hearing.
You may also be required to come to Canada to attend an examination by the Superintendent of Bankruptcy and/or your creditors.
To be eligible to file for bankruptcy in Canada you need to meet one of the following requirements.
- reside in Canada during the past 12 months
- work in Canada during the past 12 months
- have the majority of your assets in Canada
From the information that you have provided, it would appear that you are likely not eligible to file for bankruptcy in Canada at this time.
If you do meet the above requirements, the required/ potential trips to Canada are as follows:
You either need to attend in person to file for bankruptcy or have a lawyer available to assist you in signing the documents in India.
Attendance at your discharge hearing as a second time bankrupt.
There may be a requirement to attend an examination at the request of the Trustee, the Superintendent of Bankruptcy or your creditors.
Permission will have to be sought to have your mandatory counsellings done in India. If this permission is not given you would need to attend 2 counsellings in Canada.
Bankruptcy does not directly affect your ability to buy a home. A bankrupt is allowed to purchase a new home, however, filing for bankruptcy may indirectly have a negative affect on your ability to purchase a home as it will be very difficult to qualify for a mortgage until you have been discharged.
When you file for bankruptcy, all of your assets, wherever they are located in the world, become the property of the Estate and the Trustee is to realize on these assets for the benefit of your creditors. In addition, any assets that you acquire during your bankruptcy can be seized by the Trustee for the benefit of your creditors.
If your husband were to purchase the house with his own money it would be his house. If he were to put you on title, he would in effect be gifting you with half the equity in the home.
The gift of the equity in the home from your husband to you, if it occurred while you were undischarged, would be an after-acquired asset and the house would be at risk as the Trustee would be required to realize on this equity for the benefit of the creditors.
The tools of trade exemption is for any tools of trade (items required to enable you to do your job) up to a total maximum of $11,300.00.
The bobcat could be included as a tool of trade. The amount that would be included in tools of trade would be the difference between what the bobcat is worth today if you sold it (should be supported by an appraisal if possible) and how much you owe.
For example, if the bobcat is worth $10,000.00 today, and the loan is $7,000.00, you would include as a tool of trade for $3,000.00.
It is always better to acquire your vehicle prior to filing to avoid any risks of not being able to get a vehicle after filing. It is important if you plan to finance the new vehicle that you advise them that you are planning to file for bankruptcy to avoid any issues.
There can be repercussions of selling off items prior to bankruptcy even if they are secured by loans as not all security agreements are enforceable as against the trustee. This can create potential fraudulent conveyance scenarios that require the Trustee to investigate and recover funds from either the creditor or the bankrupt.
The best course of action in these circumstances is to turn over the asset to the Trustee and the Trustee will review the documents and either release this asset to the secured creditor or realize on this asset for the benefit of all your creditors. The net effect for you is the same with reduced risk of committing a fraudulent conveyance.
A bankruptcy will discharge a debtor from all unsecured debts other than those specifically excluded in section 178 of the Bankruptcy and Insolvency Act.
Those debts included in section 178 are:
-Fines or penalties of the court
-Alimony or child support
-Any debt as a result of fraud proven in court
-Student loan debt where you ceased to be a student less than 7 years ago.
Therefore, a bankruptcy would discharge your personal income tax and GST debts owing to the government.
It is difficult to determine the reasons for the delay as we do not know if your discharge has been opposed and the reasons therefore.
We can tell you that at this time, the court has not scheduled April files for discharge hearings nor have they issued suspended orders for second time bankrupts.
You can try going to 330 University, 7th floor and speak to someone there about your file.
Your Canadian credit rating is based only on your Canadian credit history. Therefore, if you have a bankruptcy on your Canadian credit history, the status of your American credit history is irrelevant.
Unfortunately, we are not made aware of the lending requirements and restrictions of creditors.
Until your proposal is complete, your credit report still shows all of your debt as outstanding. Therefore, OSAP will see that you are in the process of clearing up your credit history, but are not yet finished.
This may have an impact on your ability to get OSAP, however, we strongly recommend that you contact OSAP directly to discuss this issue.
I would suggest that you contact a mortgage broker to see if there is any chance of getting a mortgage to help you work through your financial troubles. A mortgage broker has many more options available than a single mortgage company or bank.
If you have in fact gone through a mortgage broker and still can not find a mortgage, you can give us a call at 310-1100 to arrange a no-obligation, free consultation with one of our managers to discuss the following options:
Credit counseling
Formal Proposal
Bankruptcy
With our professional assistance, we can help you find the right solution to your financial issues.
It is imprtant to note that your ex-spouse is only required to list creditors that are in her name. If the creditors that you feel she left off are in fact in her name legally, then they should have been included in the Statement of Affairs.
Leaving crditors off the list would mean that your ex-spouse swore a false statement, however, this would not in itself void her bankruptcy. THe ramifications of this ommission may be consequences at her discharge hearing resulting in a suspended discharge, a conditional discharge or both.
In any case, any debts that your ex-spouse was responsible for at the date of her bankruptcy will be extinguished once she receives her discharge from her bankruptcy.
I would suggest that you contact the trustee that is handling your ex-spouses bankruptcy and make them aware of this issue with the specific account names, numbers and details available to support your claim. The Trustee whould then take this information into consideration and deal with the situation appropriately.
IF I CLAIM PERSONAL BANKRUPTCY CAN THE goverment or any one else come after my spouces buisness that is solely in her name
I was discharged from my bankruptcy in January 2008. Included in my list of creditors was the 407 ETR. I am currently in plate denial with them and had to pay over $400 to them when I renewed my license plates in April of this year. I have spoken to the 407 and the Ombudsman and both times I was told that they don't get "involved in bankruptcies"; in other words they stated that they were exempt. Is this true? My trustee has advised me to just pay the bill, but it's over $2000. I don't have that kind of money and am working very hard to re-establish myself. I can't have this hanging over my head as I need my vehicle to get to work. Do you have any advice on how to handle the 407? Short of hiring a lawyer (which of course I can't afford) I'm at my wit's end. Thank you.
There is no direct impact on your spouse's business if you file for bankruptcy. However, if the spouse co-signed or guaranteed any of your debts, your spouse would be responsible in full for the payment.
Also, if you are a director of the business, you would have to resign as you can not be a director when you are bankrupt.
On November 7, 2005 The ETR 407 Corporation won its case against the Ontario provincial government, allowing the 407 to effectively deny a vehicle permit ("plate denial") to any person who has not paid up in full his ETR 407 bill.
How does this impact you as a bankrupt? Under bankruptcy protection legislation your debt will be discharged but you will still face plate denial as the court's ruling currently overrules the BIA's legislation on this issue.
We cannot issue a legal opinion on this issue as we are not lawyers. However, we're aware that it must be very frustrating and upsetting for you.
The worst case scenario is that you will need to pay your bill in full for your usage of the 407. If you refuse to do so, MTO can deny you a renewal of your license plate.
From an insolvency view, it is our opinion that the debt is discharged but that this will not necessarily translate into any protection from 407's plate denial rights.
I went bankrupt over five year's ago and I paid my trustee off and he said he will send me my discharge . I never heard a think about it and its been 5 years now.
Plus I can't find him anymore, he moved out out of his office. I been trying to find him since . Don't know what to do now .
You should contact the Office of the Superintendent of Bankruptcy at 416-973-6486.
They will assist you in finding your trustee or the person who has taken over the administration of his files.
They can also advise you of whether or not you have received your discharge and assist you with the process of obtaining your discharge if needed.
I am a single mom of 2. Is it possible to avoid lossing my house and car durning the bankruptcy process?
I have run up charge card bills of about $120,000 to support my incoporated business (I'm the only director and shareholder).
The software development ran into some problems meaning I couldn't generate any revenue from it as I had expected. The company has about of $500,000 of losses carried forward and about $400,000 in shareholder advances (loans). And there is a R&D tax claim that should eventually provide $50,000 that I could get back (but may take a year to get).
Obviously it seems best (to me) to somehow keep the company going. So if I did some consulting work - the company could just pay my company and I wouldn't have to pay taxes etc. (to repay my shareholder debt)
It appears that I can convince my family to lend me (against future will etc.) $35,000 for a consumer proposal. This will not be avialble for two months. I have stopped paying most of my credit cards a year ago. I have essentially no value of personal assets.
The company can be really considered to have no value although I might get approval for the R&D tax rebate.
I have a long time friend who is prepared to become a director of my company in case I have to go bankrupt and can't be a director any longer.
What are the benefits of a consumer proposal over going bankrupt in this case? And if I go bankrupt can the business run with my friend as its directory.
Thank you for your email, Carla.
Your situation sounds like a difficult one but certainly a home and a vehicle are two of the issues that most people considering a filing (either a proposal or a personal bankruptcy) are concerned about.
You have not provided any information in your question regarding any equity that might be in the home or details of the vehicle's history (leased? financed? older and owned outright?). I would strongly recommend a free consultation at one of our 21 locations so that we can review all of your details and give you personalized advice on your assets and how to protect yourself from your creditors.
Please call us at your convenience at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
The benefits of a consumer proposal over bankruptcy are as follows:
- Your assets remain in your control and do not vest in the Trustee
- The period of time that your credit rating is affected after completion is 3 years versus 6 years in a bankruptcy
- Whatever income you earn over the course of a proposal is your to keep as long as you are complying with the terms of the proposal
It is important to note that when the creditors are considering whether or not they will accept a proposal, they will compare the terms of the proposal to what they would otherwise get in a bankruptcy. With the $400,000 shareholder loan receivable by you from the corporation, and the anticipated $50,000 SRED claim coupled with the stated intention to do consulting work resulting in these loans having a potential to be repaid, these are all amounts that would be recoverable as assets in a bankruptcy and would need to be factored into the proposal offer.
If you would like to have a more detailed discussion of your options and the bankruptcy and insolvency process, please give us a call at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
We declared bankruptcy about 3 years ago but had some problems. The trustee changed the title of the house to their own name without advising us and gave us such a hard time. We were even willing to pay the equity on the house but they kept postponing the matter. Finally we got a good solvency lawyer who resolved our case. Now, the trustee's lawyer is preparing the transfer document to have the house back in our name. The trustee's lawyer further said that the transfer should be a disclaimer from the Trustee to our name because it avoids the need for land transfer tax to be paid.
Is this kind of disclaimer ok. Is it the same thing as full ownership of the house. Would we have problems down the road.
Is there a need to pay land transfer fee if the house was ours to begin with and we already paid for the land transfer fee at the time we bought it.
Please advise. I really appreciate it.
We declared bankruptcy about 3 years ago but had some problems. The trustee changed the title of the house to their own name without advising us and gave us such a hard time. We were even willing to pay the equity on the house but they kept postponing the matter. Finally we got a good solvency lawyer who resolved our case. Now, the trustee's lawyer is preparing the transfer document to have the house back in our name. The trustee's lawyer further said that the transfer should be a disclaimer from the Trustee to our name because it avoids the need for land transfer tax to be paid.
Is this kind of disclaimer ok. Is it the same thing as full ownership of the house. Would we have problems down the road.
Is there a need to pay land transfer fee if the house was ours to begin with and we already paid for the land transfer fee at the time we bought it. It has just been transferred to the trustee's name so we can pay the equity on the house and was advised that it will be transferred back once we pay the equity, which we did.
I should mention that we have been legally married and only my husband has declared bankruptcy.
I really appreciate and need your help and advice. I always thought that to transfer back from the trustee's name back to the owner's name (after paying the equity) does not require any land transfer tax.
Thank You,
Regards,
I already posted a comment but forgot to ask if you could recomend a real estate lawyer in the Toronto area. Thank you,
Hi:
How does bankruptcy of a husband affects wife assets. for example my wife works and the house that we are living in is under her name. she pays the mortgage for it too. Can my creditors seize my wife house in case I am declaring bankruptcy.
Thanks
Hello,
I did a consumer proposal 10 years ago because of a failed business attempt. I am recently separated from my husband and need to get my financial life straightened out. Can I do a second proposal? I have paid off the proposal at least five years ago.
Hello,
I am about to file a consumer proposal without my husband. All of the debt is mine and it is very important to me he not be affected. My problem is that we have one joint bank account (CIBC) and one joint credit card CIBC (no balance on it so it is fine) but what I am worried about is will CIBC try to close my joint bank account or anything because my personal MC with them is a part of the consumer proposal?
Thanks
Hello, my question is , how can I repair my credit after a second bankruptcy. The first was filed in 1994 due to a failed business partnership. The second was filed in 2001, after a serious bout with depression. At this point I have a secured credit card, started with a 200$ limit, then it was increased to 600$ after a good record with the credit issuer.I have had this card for 3.5 years. Is there anything else I should be doing? Another secured credit card perhaps?
I am 60 yrs old and have no income or savings. If I declare bankruptcy to wipe out my $300,000 debt, can I keep my house and sell it later so I have money to live on?
mIf i claim bankruptcy can they take my pick up truck that i owe money on and once i claim can i leave the country for two weeks
Thank you for your three questions/emails regarding the Trustee's handling of your home.
As we cannot comment on your estate, on how a Trustee may have handled your situation or on whether or not an action was proper or not, I would strongly recommend you contact the OSB at 416 973 6486 in Toronto - they can answer some of your questions and try to intervene in this situation between you and your Trustee.
If the matrimonial home is in your spouse's name, and has been for a lengthy period of time, and she pays all of the mortgage and property tax payments, there should be no issues related to your filing of an insolvency.
However, we do strongly recommend you book a free consultation with us to discuss this further prior to deciding what you need to do. Please call us anytime at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
If you are eligible to file a consumer proposal, the fact that you have completed a consumer proposal in the past, does not prevent you from filing another consumer proposal.
It is always prudent to close any bank accounts with financial institutions to whom you owe money before filing for bankruptcy or a proposal. This safeguards you against the bank seizing the funds in the bank account as an offset to the debt you owe them.
The one secured credit card will rebuild your credit over time. The second bankruptcy will stay on your credit history for 14 years. This will make it harder to rebuild your credit, but NOT impossible as evidenced by the increase on your current credit card.
Basically, any credit that you obtain and use properly will assist in rebuilding your credit. Just remember not to keep large balances outstanding for extended periods of time and risk a third insolvency.
Unfortunately, you have not provided sufficient details to properly answer your question.
We would need to know:
1. What is the value of the house
2. What is the amount of any mortgages registered against the house
With this information, we would be able to tell if there is any equity in your house.
In general, any equity in a house is subject to seizure by the Trustee for the benefit of creditors.
If part of the $300,000 of debt you have includes a mortgage on the property, you would still be required to pay this mortgage unless you turn over possession of the property to the mortgage company.
If you would like to talk further about your options and your ability to retain equity in your house, please give us a call at 310-1100 to schedule a no-obligation, free initial consultation with one of our managers.
Whether or not a Trustee takes a vehicle in bankruptcy depends on a number of factors. These include what the value of the vehicle is, and to what extent, if any, there is a secured loan against the vehicle.
If a vehicle has a secured loan against it (which must be properly registered to be valid) and when you subtract the balance owing from the value of the vehicle the remaining value is less than $5,650.00, then the Trustee would have no interest in the vehicle and would not seize it.
However... if the resulting value is greater than $5,650.00, the Trustee would negotiate with the debtor for the amount in excess of $5,650.00 or seize the vehicle and sell it, returning the first $5,650.00 of equity (balance received after paying out the secured loan) to the bankrupt.
It is important to note that a secured creditor may repossess the vehicle, especially if there are arrears owing or there is a history of missed or late payments.
It is always a good idea for you to contact the lender prior to filing to advise of your insolvency and to ensure that the lender will not repossess the vehicle upon filing.
Hello,
Under Ontario bankruptcy law, I understand there is an exemption for household furnishings of $11,300. Does this also include appliances and electronics, example; fridge, stove, televisions, stereos, etc.? What is the definition of "household furnishings"? Thank-you.
If you claim bankruptcy in Ontario and owe money to numerous institutions, can you claim bankrupt on most,but, keep payments-up on other[s]? What are the resrictions?
Hi,
I have a good job, with 20 years service - but have been off sick for 5 months..
I'm out of money and have maxed my credit cards and line of credit(and family loans) .. Within 2 weeks I will start defaulting on mortgage/loan payments.. I will not be able to pay my car insurance nor bills.
What can i do? Every asset I own is tied to refinancing on my home... My home is mortaged to MORE than its worth.. If I lose my vehicle I cannot get to work, and i expect to return there in a month!
Right now I'm desperate!
I have crushing debt load and am about to have a breakdown because of it. I owe approx. 50,000 between credit cards personal laon and credit card as well as a carloan through Chrysler Financial. The car is worth approx.10,000 . I can afford the car payments and normal living expenses however my question is . Is there anyway possible way for me to continue to pay for the vehicle and exclude it from a bankruptcy an what if any affect is there as I filed for bankruptcy 10 years ago. Thanks
The following chattels are exempt from seizure under any writ issued out of any court:
1. Necessary and ordinary wearing apparel of the debtor and his or her family not exceeding the prescribed amount or, if no amount is prescribed, $5,000 in value.
2. The household furniture, utensils, equipment, food and fuel that are contained in and form part of the permanent home of the debtor not exceeding the prescribed amount or, if no amount is prescribed, $10,000 in value.
3. In the case of a debtor other than a person engaged solely in the tillage of the soil or farming, tools and instruments and other chattels ordinarily used by the debtor in the debtor’s business, profession or calling not exceeding the prescribed amount or, if no amount is prescribed, $10,000 in value.
4. In the case of a person engaged solely in the tillage of the soil or farming, the livestock, fowl, bees, books, tools and implements and other chattels ordinarily used by the debtor in the debtor’s business or calling not exceeding the prescribed amount or, if no amount is prescribed, $25,000 in value.
5. In the case of a person engaged solely in the tillage of the soil or farming, sufficient seed to seed all the person’s land under cultivation, not exceeding 100 acres, as selected by the debtor, and fourteen bushels of potatoes, and, where seizure is made between the 1st day of October and the 30th day of April, such food and bedding as are necessary to feed and bed the livestock and fowl that are exempt under this section until the 30th day of April next following.
6. A motor vehicle not exceeding the prescribed amount or, if no amount is prescribed, $5,000 in value. R.S.O. 1990, c. E.24, s. 2; 2000, c. 26, Sched. A, s. 8 (2).
If you choose to file for bankruptcy, you must include all of your debts. You can not keep any unsecured debts even if you keep up with the payments. In fact, you can not even keep a credit card account that has a $0 balance.
You are allowed to continue with secured debts subject to the creditor agreeing.
You are in a very difficult situation, however, not an uncommon one.
To give yourself the best shot at keeping your house and car, you will need to do your best to keep these debts current and if unable to do so, start working out plans for making up the missed payments as fast as possible once you restart working.
The most important consideration at this time is whether or not when you return to work in a month, will you have sufficient income to be able to catch up on your late mortgage and car loan payments and also remain current?
If "yes", I would suggest that you make due as best you can until you return to work and at that time, you consider filing a proposal to your unsecured creditors to settle your debts to the best of your financial abilities.
If "no", unfortunately, you may need to file for bankruptcy protection and consider the potential that you may have to give up your house.
Should you have further questions, or if you want to learn more about these options, please give us a call at 310-1100 to arrange a no-obligation, free initial consultation with one of our managers.
You can not exclude any debts that you owe from disclosure in a bankruptcy.
Secured debts do not participate in dividends. Therefore, if you speak to the secured creditor prior to filing, they may allow you to keep the vehicle if you continue to make payments. If the loan is current and you do not have a history of missing payments, there is a good chance they will let you continue to make the payments and keep the vehicle. There are some banks that have internal policies that if you file for bankruptcy, they will repossess the vehicle, so it is always a good idea to call them before filing to determine what may happen.
The effect of filing 10 years ago is that you will be required to attend a court hearing to obtain your discharge and will be subject to potential suspended and/or conditional discharge orders.
Should you have further questions or wish to explore all your options, please call 310-1100 to arrange a no-obligation, free initial consultation with one of our managers who would be happy to assist you.
my husband and i are thinking bankruptcy for him, recently in the last 6 months we have had to transfer our house into my name for interest purposes and refusal of renewal with his name on it. now we are so far behind in most of our credit debts that we are considering this option. my question is there is literally no equity left in our home we are about 95% mortgaged with chmc can we still keep our home if he claims bankruptcy the majority of his debts are in his name soley?
I invested in my son's incorporated business, and secured a line of credit for him. The business has many debts including GST, Payroll deductions (CPP, EI) and PST totalling about $100,000. I own about 20% of the company, he owns the rest. He is the sole Director.
The stress of financial pressures both business and personally have caused him a lot of stress. He would like me to assist him in filing for busineess and personal bankruptcy.
What legal authority does he have to provide to me so I can act on his behalf with a Trustee?
He jointly owns his mortgaged home with his common law wife.
Thank you for your question. With respect to your home, your creditors may be interested in the transfer of the property into your name only in the year prior to your husband's filing of any type of insolvency protection.
If there is no net equity in the home then there may be no concerns in respect to ramifications of the transfer but we would want to sit down with you both and review this transaction before giving you any sort of opinion on it.
If you would like to discuss your situation further, you can call us at 310-1100 to schedule a no-obligation free initial consultation with one of our managers.
You could obtain a Power of Attorney to deal with these issues on your sons behalf, but I think a better solution is to attend with your son when he meets with a Trustee to assist in the processing and potentially with the fees (if needed).
Should you wish to set up a meeting with one of our representatives, you can call us at 310-1100 to arrange a no obligation, free initial consultation at one of our more than 20 locations in and around the GTA.
I declared declared bankruptcy about 7 or 8 years ago and was fully discharged but I never filed my discharge with a credit bureau. Now I realize that the bankruptcy still appears on my credit rating. Could you let me know how I go about registering my discharge so that the bankruptcy does not appear on my credit rating? Thanks
Thank you for your question today. If you were discharged more than 6 years ago, you can fax a copy of your discharge certificate directly to the credit reporting agencies (equifax and transunion are the main 2 agencies in Canada). They will then update your credit report to reflect your discharge. This should correct any problems you have been encountering.
Thank you for your quick response to my question. I assume I can find the fax numbers on the internet. Thanks again!
Robyn
Greetings,
If the creditors charge you with fraud, either through misrepresentation or they objected to the way you spent your money, is this a criminal charge? Is there a chance you could go to prison? Is the worse thing that could happen is that the debt survives the bankruptcy? Please advise. Thank you!
My common law husband is thinking of either declaring bankruptcy or filing for a consumer proposal. He has about $50K debt which he has not been able to pay off. He also has about $50K equity on his house. With proposal, does it mean the creditors most likely would not reduce his debt (or not by that much) and use the equity on his house towards paying off his debt? Is there any difference between the two options when it comes to what happens to the house? In case of bankruptcy, would he be obligated to sell the house?
With porposal, do you also loose all your credit cards? Does the financial institution which you owe money to, close your bank account(s)? If so, would it be easier to apply for credits after debt is paid in full vs. in bankruptcy situation?
Hello if i personely claim bankruptcy in Canada Am i allowed to own shares in a company in another country
If a creditor alleges fraud and is able to prove fraud in a civil court (before or after a bankruptcy is filed), then the debt would survive a bankruptcy and would have to be paid.
An allegation of fraud may also be considered by the bankruptcy court if it is raised at the discharge hearing and may result in a person having to pay money and/or wait for a suspension period to expire before they are discharged.
These are not the only things that can happen. If the allegation of fraud is also brought to the police and the police bring charges, then the person so charged may be convicted and subject to criminal sanctions (e.g. prison or restitution) if the fraud is proven in criminal court.
Given the seriousness of the above issues, we recommend that any person who is faced with an allegation of fraud consult with a lawyer immediately.
The first step is to determine exactly how much equity there is in the property. This is done by obtaining an appraisal or "opinion of value" report on the property from a recognized real estate professional. Deduct the value of the mortgage(s) from this opinion of value and you end up with the gross equity of the property.
Upon the sale of the property, there is likely going to be costs incurred such as real estate fees and legal fees to name a couple.
The equity remaining in the property after deducting these costs is what a Trustee would call the estimated realizable value of the property.
If this amount is equal to (or greater) than the total debts owing, it is unlikely that the creditors would be willing to settle their debts for less, as in a bankruptcy, they would receive payment in full before Trustee fees.
If this equity is less than the total debts, then the creditors may accept an amount greater than the equity but less than the total debt.
The difference between a bankruptcy and a proposal? In a proposal you keep the house by making payments over a period of time in lieu of selling the house to pay the creditors. In a bankruptcy, the Trustee may either sell the property or make a settlement with you or someone else to buy the equity in the property subject to creditor and/or court approval.
The Bankruptcy and Insolvency Act requires, as a duty of a Bankrupt, or a proponent of a proposal, to turn over all credit cards upon filing. The only exception is credit cards which are in someone else's name and that person has, in writing, agreed to allow the bankrupt or proponent to keep the card.
The financial institution to whom you owe money may offset any funds held in a bank account against any debts owing to the bank. If the account is in overdraft, the bank will cancel your access to this account so that you can not continue to use the credit.
It is always prudent to cease using a bank account held at a financial institution to whom you owe money to avoid any future issues with your money after filing.
It is easier to apply for and receive credit after your discharge from your debts as it is not until your discharge that your obligation to pay the debt ends.
You may own shares in another country, however, these shares would comprise part of your assets and the value of these shares would be a consideration in your bankruptcy.
Thereofre, you may have to pay the Trustee the value of the shares to be able to hold on to them.
Good morning
I filed Bankruptcy in 2006 and was told I had to still pay $400.00 a month due to my "surplus" income. Apparently because I was a single person at the time I could afford that amount. I struggled and paid that amount for many months and then started getting behind on car payments etc. I tried to work with the Trustee to make a lower amount but they wouldn't even discuss it. I received a letter that my file has been closed and I will remain "Undischarged". Needless to say this isn't a good solution either. I am now a single mom and really need to get back on track for mine and my daughters sake. Can you please advise how I can fix this mess I've made of my credit?
Many thanks
Liz
In my post bacnkruptcy tax return for 2008 I see a return. This goes to the trustee from my understandin. Question I have is, am I allowed to make a contibution to the Ontario Oppotunities Fund?
Hi there
Im 21 years old and owe abour 33,000 in debt. being so young i am trying to start my life and want to get a place and am finding with having a loan for a car and a personal loan as well as a few credit cards i find that i have no money and dont see any future of moving out and was thinking of Bankruptcy to clear up the debt so I can get a fresh start at life and stay away from credit cards...i just want to know if this is the best solution for me (im thinking it is as i just want to start fresh) Please let me kno
I was a first time bankruptcy 3 1/2 years ago with $77 K in unsecured debt. I got pregnant shortly thereafter & lost a source of income so I have not paid any surplus at all. I had a creditor (BMO) oppose my bankruptcy. The court has put a restriction to pay $10 K back with no time limit as well as a few other requests. I got a letter from my trustee very recently stating my case will be closed shortly & I won't be protected any longer by the Bankruptcy Act if I don't start paying. What am I suppose to do now? At the rate I can pay this back right now with my low income right now, I will be Bankrupt for another 10 years!! Any suggestions? I feel like I was really poorly represented as I kept being told everything would be OK at 9 months & then also in the court a year later that I would almost certainly get a discharge after answering a few simple questions but I think I put my foot in my mouth by being honest about my gambling as they seemed to have gotten quite angry with me after admitting to a few instances & everything went down hill from there, any help would be greatly appreciated, Thank you.
I owe the following
2500.00 Credit Card
27,000.00 Personal Loan
700.00 Cell Phone
700.00 CRA
I have a part time job 6 hrs a week $8.75 hr. and no assets. Should I declare bankruptcy?
I am from Hong Kong and immigranted to Canada for few years. I still have some outstanding credit card and loans payment has not been settled in HK. Can I not declare bankruptcy in HK and also can you arrange someone to negoiate with my debtors in HK (to mininize the debts), so that I can repay them by monthly or yearly?
Morning,
I have 2 children 7 and 5. My husband and I are seperating and I know I can not afford to pay what we owe. My question to you is this...If I claim bankruptcy will I end up with $0 in my bank accounts and canada savings bonds, or do I get to keep something to keep my family going? I run a home business that the pay changes on weekly? Thanks for any info you can give me.
My ex husband has several garnishments on his pay including CRA for unpaid GST in a failed business venture. I have not had FRO collect my child support in an attempt to help my husbands cash flow. We are wondering now though if we would be better to have the pay garnished. What is the ruling on the order and is there a max % that can be garnished when some is child support and some is debt garnishment. Do I get paid first and can his other creditors still take another 50% of his net.
Thanks
melanie
If your income was higher than the government standard, you would have been required to pay surplus income as it appears was the case.
To resolve your situation, you will need to contact your trustee and make arrangements to pay the outstanding amount owing as per the surplus income guidelines, as well as any other outstanding duties you may be required to do.
If the Trustee will not cooperate, you can contact the Office of the Superintendent of Bankruptcy for further assistance or you can contact the bankruptcy court to enquire into how you can get you bankruptcy file to make arrangements with the court to resolve your outstanding issues.
As the post bankruptcy tax refund is property of the estate, you should not be allocating any of these funds away from your creditors.
As such, I would say you should not make a contribution to the Ontario Opportunities Fund at this time.
Bankruptcy protection is a decision that one should not make without careful consideration.
While filing for bankruptcy may clear up your current financial situation and allow you to move forward in your life with no debts, at such a young age, the impact on your future options (should you experience financial difficulties again) can be major.
Without knowing all your financial details, such as your income and living expenses, it is difficult to provide you with viable options to resolve your debts.
To more fully explore your options, and to get professional advice on how best to move forward, please contact one of our managers at 310-1100 for a free, initial consultation.
Our recommendation is to speak with your Trustee about your overdue payments and arrange to settle all of your outstanding amounts with them. If the Trustee is discharged without you making an effort to settle the responsibilities you agreed to at the time you filed your bankruptcy you will be at the mercy of your Creditors and will also be unable to file a second bankruptcy to protect yourself from any legal actions they might try to impose upon you.
Based on the information you have provided, it would appear that you MAY have a case for filing for bankruptcy.
However, we would need to know what your living expenses are to complete the financial picture. This information would better enable us to help you explore your financial options.
If you would like, you can contact our offices at 310-1100 to arrange a no-obligation, free initial consultation with one of our managers to review your financial situation and assist you in finding the appropriate relief option to allow you to rebuild your financial future.
If you were to file for bankruptcy, all of your assets vest with the Trustee. In the case of your bank account, it is not uncommon for a trustee to allow the debtor to retain sufficient funds for the current month's living expenses.
With respect to the Canada Savings Bonds, you could arrange with the Trustee to pay into the estate the value of the CSBs to enable you to keep them, however, if this is not done, the trustee will be required to cash these out for the benefit of your creditors.
Another option that you may wish to explore is a proposal wherein the trustee does not have the right to seize your assets as you are making a payment arrangement with your creditors, through a trustee, that pays the creditors more than they would recover in a bankruptcy scenario.
To further discuss this (and other options), please give us a call at 310-1100 to arrange a no-obligation, free initial consultation with one of our managers.
We are not clear as to your current living situation. If you are currently living in Hong Kong, and have been living there for more than one year, you would not be eligible for insolvency proceedings in Canada under the "locality of debtor" restrictions of the Bankruptcy and Insolvency Act.
If you are currently living in Canada, then you would be eligible.
If your question relates to your ability to file a bankruptcy in Hong Kong, you would have to contact a trustee in Hong Kong to discuss this issue as a Canadian Trustee has no ability to file Outside of Canada.
Recently the court system has become very strict on gambling debts. Because the Bankruptcy and Insolvency Act is intended to provide the honest but unfortunate debtor a second chance free from the debts they have accumulated.
Gambling is considered to be a rash and hazardous speculation and as such is not treated the same as gradually accumulated debts for living expenses, emergencies etc....
Where the court has ordered a requirement to pay your estate a certain amount before discharge, you need to comply to the best of your abilities. If you feel that you have no legitimate ability to pay what is being requested, you should either:
a) contact your trustee and talk with them about the options that they may be able to offer you to assist in obtaining your discharge; or:
b) you may need to see an insolvency lawyer to help you try to get your discharge order adjusted to your financial circumstances.
Generally speaking, 20% of wages (net after withholding for taxes) can be garnished. If there is outstanding support, up to 50% can be garnished.
These amounts can be increased or decreased with a court order. Without a court order, the maximum that could be garnished is 50% of your net wages.
The amount garnished is generally distributed equally not pro rata. However, we suggest you contact a family law lawyer or the FRO to confirm whether this is the case with support orders.
If an individual declares bankruptcy but has filed joint tax returns with a spouse, will the spouse become part of the bankruptcy proceedings as well?
I unfortunately had to file bankruptcy eff. 04 Feb 2009. Two weeks later my father suddenly passed away leaving me as executor and beneficiary of his Group Pension Insurance, stating this was to be used to settle his debts and funeral costs. Is there any legislation that states a deceased persons affairs should be settle first, before any insurance money can be siezed by my bankruptcy. I have no financial resources, and experiencing a great deal of financial hardships to provide my fathers final wishes with some dignity. My bankruptcy total exceeds the value of insurance quite a bit, and a few thousand dollars to settle my fathers affairs isn't going to make much of a difference with my creditors and would prevent me from spending my day to day living expenses on a funeral my father thought was paid for.
Can you tell me the status of CAM Tool & Die of Newmarket ON
Hello, my mother took out a $47,000 consolidation loan in 2006 which does not have any insurance coverage. The loan covered her visa, line of credit and a 2005 van. Shortly after taking out the loan she suffered a stroke and was diagnosed as not being lucid - her driver's license was revoked. She came to live with me in early 2007, her health continued to deteriorate and she was later diagnosed with Alzheimer's disease. She is now in a nursing home and is incoherent but the payments for the loan are still coming out of her account, the van has not been driven since 2006, and there is only enough money left to pay for the nursing home for the next 2 months. I don't know what to do - I've tried calling CCAC but they refer me to another agency, and so on. I was finally told I should speak with someone concerning bankruptcy but I don't know how that would work - my mother can't write or understand anything. Can you please let me know if I declare bankruptcy for her or is there something else I can do. If you are able to help I am willing to come in and speak with you.
Thank you.
now in a nursing home.
I file for bankruptcy in 2007, attenting both meetings required and submitting monthly financial statements of expenses and a court hearing was last November in which I was told previously that I did not have to attend that my trustee would on my behalf. I recevied notice that I would not be discharged and need to pay another $1500.00 for representation from previous trustee to represent me again. What about income tax do they have to file my returns this year too or can I go else where?
How is child support or spousal support figured in when calculating how much I would be able to recive monthly while in bankruptcy.
Is the formula applied as follows?
Income minus child/spousal support and then the calculations are done from there?
if i hold a mutual fund liscence in ontario ..can i still be liscened if i claim bankruptcy or consumer proposal
HI
I am on the way for file bankruptcy
Its house utilities like gas and electricity erase in debt
I have Enwin utilities for water and electricity and Union gas.
Whats if i don't pay them, and file bankruptcy
I stooped pay mortgage,car payment
and credit cards.
THANKS
i did a bankruptcy in 1994 but never went or took the time to get a release. Is there such a thing as a automatic release after so many years
Hello
I applied for a bankruptcy nine years ago. The trustee and I attended court and I was discharged. The trustee continues a lean on my tax returns. What can I do since I've meant all the terms and have been discharged. Who would I register a complaint againest this trustee.
Carol
Hi
What if I go Bankrupt and there is Court Action against me (waiting on trial date)? Would I list the amount that they "Claim" I owe, even though there is no Judgment yet?
I have MS and have been on disability income (for which I paid through my employer)for 10 years. A bad family business investment has left me in terrible financial trouble. So, I have two questions. First, is my disability income subject to garnishee or law suits?
Secondly, I have a home with a 90% mortgage that is up to date but extremely expensive. My other debts are extremely high. I have lived in this house for three years. There is some equity but I do not know if I declare whether I will lose my house? In this economy, I would guess I have about $25,000 in home equity. Thus far, I have been paying all of my bills but am considering moving to a much cheaper house to see if that can help. Can I move and if not able to get relief by paying down my deb, then declare? Will I lose that house?
Thank you so much for your help.
If a person declares bankruptcy, no one else becomes bankrupt as a direct result.
There may be some indirect impact on others, especially if they have co-signed or guaranteed any of the bankrupt's debts or if they jointly own property with the bankrupt.
The appropriate excerpts from Section 67(1) (c) of the Bankruptcy and Insolvency Act state that "The Property of a bankrupt divisible among his creditors......shall comprise...all property wherever situated of the bankrupt at the date of bankruptcy or that may be acquired by or devolve on the bankrupt before their discharge..."
Based on the information you have provided, it is not clear if you are the executor of the insurance policy or of your father's estate.
As the beneficiary of the life insurance policy, these funds would meet the definition above of property that devolved on you before your discharge.
To determine what, if any, rights and obligations you may have regarding your father's requests, you should contact a lawyer knowledgeable in both insolvency and estate law for a legal opinion.
If you give us a call at 310-1100 we can discuss where you are located and try to provide you with referrals for lawyers who can help you.
This site has been set up to provide general information regarding insolvency issues.
If you need specific information on a company or individual, you should contact the Office of the Superintendent of Bankruptcy.
They can be reached in the Toronto area at 416-973-6486.
Their website address is: http://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home
Thank you
Is the consolidation loan secured over the van? If yes, you should consider returning the van to the finance company so they can sell and pay down the loan.
Now to deal with the issue of your mother's potential bankruptcy: To be able to have your mother file for bankruptcy, either she would have to sign the paperwork or someone who has power of attorney over her estate would have to sign.
I am not sure what legal arrangements have been made to deal with your mother's interests, but if she has been declared not lucid and incoherent, someone should be appointed as guardian of her estate and financial affairs. This person could assign your mother into bankruptcy.
To discuss the issue of guardianship or power of attorney, you should contact a lawyer for legal advice.
If you are already legal guardian with power of attorney, you can contact our offices at 310-1100 to arrange an initial consultation to start the process.
It is unfortunate that you did not attend your discharge hearing. It sounds as if there may have been some confusion.
With respect to the taxes, the Trustee is entitled to tax refunds for the year of filing. You can prepare your own taxes for any year after the year of filing. The refund may be directed to your trustee as you have not been discharged yet.
You can have a discharge hearing scheduled without using the Trustee. However, if you do not have knowledge of court proceedings, you will likely need the services of a lawyer which may cost you more than the trustee.
The formula you have provided is accurate.
You are allowed to earn whatever you can. The catch is that you will have to pay surplus income based on the excess earnings over and above the governments guidelines.
As an example, if you earn $3000 a month, pay $500 in child support and are single, you would take the $3000 less the $500 to get $2500. As a single person, you can earn up to $1870 before paying any surplus income. This leaves $630. The surplus income guidelines require you to pay 50%, so $315 a month.
Thank you for your question
This is a legal issue.
As we are not lawyers, I suggest that you either contact your licensing board or a lawyer for the answer to your question.
Utilities such as hydro and gas can be discharged in a bankruptcy proceeding, however, it is important to understand that if you need to open a new account at a new residence, you may have to pay a large deposit due to having this debt included in your bankruptcy. If you are behind in payments, then the balances MUST be included in your bankruptcy.
If you were required to attend court for a discharge hearing, you are no longer eligible for an automatic discharge. You MAY still be eligible for an absolute discharge, but it would depend on what the reasons were for the original court discharge hearing.
If you were not required to attend a court discharge hearing, you may have received an automatic discharge already. You should contact your Trustee or the Office of the Superintendent of Bankruptcy to enquire into the status of your discharge so that you can get the issue resolved.
You should contact your Trustee and the Office of the Superintendent of Bankruptcy to find out why your tax refunds are not being paid to you. There may be an issue with CRA or some other government agency that has the right to seize your tax refunds for debts that may have survived the bankruptcy proceeding.
If the court claim is for an amount that you know you owe, you should list it. If the court action is for something that you feel you do not owe, you can list the amount claimed as a contingent debt.
If a spouse dies and leaves credit card debt that is only in their name and the estate has no money or other assets, how does this affect the widow? Is the widow liable for the debt? What is the process to tell the credit card companies that there is no money to pay off the debt?
Thank You!
How do I make a claim against someone who has or is thinking of claiming bankruptcy? Is there anyway of finding out if they already have claimed bankruptcy? this person owes me quite a large amount
JKB
I have a Power of Attorney for my 78-year-old mother whose only income is OAS and CPP. She now lives in a long-term care facility in Ontario and I live in Saskatchewan. Because the monthly fee for the long-term care bed is more than her combined pension income, she is allowed to keep $150 for personal care. She owes $8,000 on a credit card and can't make any payments. Is it possible for me to file for bankruptcy on her behalf?
I filed for bankrupcy 5 years ago my debts were discharged in 2005 to my shock i received a letter from a collection agency trying to collect money from a debt that was discharged in bakrupcy 4 years ago have you heard of this? I have heard of creditors selling discharged debts and trying to collect the money but wouldnt that be against the law? How would they get away with it?
My father in laws will stipulates that the house we live in be held in trust until my husband is 70. Should he die before he reaches 70 the proceeds from the sale of the house go to his nieces and nephews. How would this affect us if we should declare bankruptcy? There is no mortgage attached to the house and we are responsible for property taxes and upkeep.
How long is the bankruptcy on record after the discharge date.
For example it is 7 years in total in BC.
Then the accounts have to be taken off as bad debt by the credit B.
I am asking for my sister who seems to have the impression that it will always follow her..and I live in BC so cannot be sure what the law is in Ontario.
If I go bankrupt in Ontario, and I have no assetts there, but I own a small property in the Dominican Republic, as well as some cash -about $10,000 - can the creditors in Ontario go after the foreign property? Also, do I have to declare this foreign property? My debt on Canada is around $40,000.
If the debt is solely in the name of the deceased, the executor(ress) of the estate should notify the credit card company of the death and the lack of funds in the estate to pay the debt. They should be prepared to send a copy of the death certificate as well as proof of no funds in the estate.
There should be no financial impact on the widow as long as he or she was not liable for the debt at any time prior to the spouse's passing.
The disability income may or may not be garnisheed or seized by a creditor. It depends exactly on what type of disability payments you are receiving. This is a legal question and unfortunately this site can not provide legal opinions. We suggest that you contact a lawyer with insolvency experience to get a legal opinion.
With respect to the house, a trustee looks at the equity available to the creditors. If there is equity available, the trustee is required to realize this equity for the benefit of the creditors. In the realization process, the trustee can sell the equity in the home back to the debtor or a related party which would enable you to keep the house. This would require that you have some ability to pay the trustee for the equity in either a lump sum from a third party or through a mortgage type arrangement with the trustee over time.
Outside of bankruptcy, you could file a court action against the person for your claim.
You cannot file a claim in bankruptcy until a bankruptcy has been filed. If they are only thinking about filing for bankruptcy, you would not yet be eligible to file a claim.
Once a bankruptcy has been filed, and if the debtor includes you on their list of creditors, you will be sent a package from the Trustee advising you on the procedure for filing a claim which involves completing a proof of claim form and attaching proof of the funds owing with copies of the agreement, contract or other proof that a debtor/creditor relationship was established.
If you think the person may have filed for bankruptcy, but are not sure, you can contact the Office of the Superintendent of Bankruptcy to see if they have filed or not. If they have, and they did not include you as a creditor, you can contact the Trustee and request a creditors package and submit your proof of claim as described above to participate in the bankruptcy process.
With the power of attorney, you should be able to sign for your Mother to enable her to acquire the protection of the Bankruptcy and Insolvency Act.
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