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QUESTIONS? ASK A TRUSTEE.
If you cannot find the answers to your questions on our FAQ page or elsewhere on our site you can click on the map at this link and ask any of the trustees your question.
If you would prefer, you can ask me your question by clicking on “Comments”, below and filling in the comments box. This service is confidential as your email address will NOT be displayed anywhere on your post.
Your question will be answered the same day.
Bookmark this page so you can check back for your answer!
IMPORTANT:
We can answer general bankruptcy questions. Specific questions probably cannot be answered because bankruptcy is complex and many questions cannot be answered without having full financial information. This is the purpose of the initial consultation with a trustee which takes approximately one hour.
A number of people have asked detailed questions on how to get around the fact that they lied on a credit applications or some other form of misrepresentation in order to get credit. We cannot answer these questions as it would not be proper. Trustees are officers of the court and cannot give advice on getting around the law.
Please don’t ask us questions if you already have a trustee. Your trustee knows all your financial information and can give you better answers than I can.
Please keep your questions down to one or two, at the most. If you have more questions than that you probably need an initial consultation with a trustee which takes approximately one hour.
June 24th, 2007 at 3:22 pm
I filed bankruptcy and was discharged in nine months. Everything I had was disclosed and lost during bankrupt except for an employee pension plan(locked in) I had through work, and I had to quit due to illness/health. I moved a few months ago and received a “options package” letting me know I could transfer this pension to another locked in LIRA etc. This is fine as the trustee was aware of pension. But my worry/question is if this generates a surplus over the gov.allowable(as the letter states there may be a surplus) transfer. What happens after discharge? I dont want to change anything that will hurt my discharge. I want to follow the rules as best I can. Thankyou
June 24th, 2007 at 11:56 pm
Sandy: Since you are discharged from bankruptcy and any surplus will be triggered after the discharge no former creditors or the trustee can claim the surplus.
June 28th, 2007 at 6:25 am
I am a Canadian studying overseas. I have loans from both Canadian and US banks. The Canadian loans are not Federal/Provincial student loans. I am going to be on a relatively low salary for the next several years since my field values experience more than education. I used the calculator to estimate my monthly payments and they were ridiculously high based on my likely salary vs debt. I have 2 questions
#1) can you go bankrupt on student loans from the US? I heard that a recent law was passed that made this not possible. Can someone confirm this or provide some advice?
#2) If I was a student overseas for 3 years would I have lost Canadian resident status in the first place? My understanding is that since student visas are of a temporary nature and since I never filed a tax return in that country I should still be considered a Canadian resident. So would the following apply to me? (ie. would I have to re-establish the fact that I am a Canadian resident if I had resided overseas temporarily as a student?)
————-(from your webpage)————
Canadians living abroad can go into bankruptcy or file a proposal for their Canadian debt in the following ways:
They can go bankrupt in their country of residence. This will free them of the Canadian debt so long as they live in that foreign country. If they return to Canada that debt will have survived and they will still owe that money.
* They can re-establish residency in Canada and then go bankrupt or file a proposal in Canada.
* They can go bankrupt or file a proposal under Canadian law while still living in that foreign country if:
o They have property in Canada (re: definition of “insolvent person”) “Property” includes money, goods, things in action, land and every description of property, whether real or personal, legal or equitable;
o or if they have carried on business in Canada in the preceding year (re: definition of “insolvent person” and definition of “locality of a debtor”).
June 28th, 2007 at 8:15 am
Robert: US student loans are not erased in a bankruptcy. Please refer to:
http://www.bankruptcyaction.com/questions.htm#o
As a Canadian citizen you would simply have to move back to Canada in order to establish residency. You would then qualify to file bankruptcy in Canada.
June 28th, 2007 at 10:45 am
I claimed bankruptcy and got my disclosure after nine months, in 2005. Me nad my fiancee have moved into a house a year ago and I would like my name on the mortgage. Is this possible this soon, I’ve heard even after a bankruptcy you can still have your name on the house?? ANd also I want to know, if there is osmething on my credit since before my bankrutcy that was missed is it possible to get rid of it. I think some things were missed in my bankruptcy??
June 28th, 2007 at 11:17 am
Vanessa: There is nothing to prevent you from having your name on the mortgage, so long as the mortgage holder agrees.
Even if you forgot to list a creditor in your bankruptcy that debt will still be erased. However, you are obligated to pay to the creditor, the equivalent of the dividend the trustee would have paid him in the bankruptcy. Section 178 of the BIA states:
178. (1) An order of discharge does not release the bankrupt from ………….
(f) liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;
June 29th, 2007 at 1:26 am
I may have to move back to the country I studied in, in order to get a job. How long would I have to move back to Canada to establish residency first? (There must be other people in this situation) Just wondering because my first priority is finding work despite it not being able to support a proper payment level for my debt. Secondly I would want to have bankruptcy discharge that debt so that I could return back to Canada at a later date without any issue.
June 29th, 2007 at 4:21 am
Robert: As a Canadian citizen you would simply have to move back to Canada in order to establish residency. This would entail you having a residence and a job. You would then qualify to file bankruptcy in Canada.
June 29th, 2007 at 7:19 pm
The job was the issue. I can move back to Canada but I need to further qualify myself in order to get a job in my field. Would you suggest simply getting a job anywhere? How long would I need to be employed and living at home?
July 1st, 2007 at 12:34 am
I am single and recently lost my job due to health reasons. I am now on welfare. I receive 600.00 a month. I am in debt 7500.00 and have no assets. Can I declare bankruptcy, and what will it cost in terms of fees etc. to do so?
July 1st, 2007 at 1:45 am
David: You can file for bankruptcy. It will cost you about $1,700.00, which can be paid over 9 months.
I don’t think you should file because you are judgement proof which means the creditors cannot seize any of your assets.
Judgement Proof:
A term to describe assets protected from being seized by a creditor. i.e. assets a creditor cannot seize by going to court and getting a judgement.
July 1st, 2007 at 5:11 pm
HI, I am 21 years old. I filed bankruptcy february of 2005. I am still not discharged. I was making 356.00 a month and going to upgrading school. I want to get a student loan in about a year and I will have been discharged then for about 9 months. I never had a student loan before. Will I get one? I have no other means of paying for school.
July 2nd, 2007 at 1:17 am
Stephanie: Sorry, but I can’t answer this as it’s a Student Loan policy question not a bankruptcy question.
July 2nd, 2007 at 12:21 pm
My bankruptcy was discharged about four years ago. I have been told by my different present creditors/bankers that TD (who I do not use, but had a line of credit and visa account with which were listed on my discharge) has been making periodic credit checks or inquiries of some kind on the amounts owed?
I may owe them some small amount from a bank account, which I should take care of… some 45 or 145 dollars… I cannot remember. I did not have the time to pay it at the time.
A further question: I guess that amount would be included in the bankruptcy according to your notes. What right do they have to continue to check my credit or submit some claim for the amounts that were due to them but discharged in the bankruptcy?
Should I just avoid this or should I find out why it’s happening? Can it hurt me?
Thanks,
Jeff Bishop
July 2nd, 2007 at 12:37 pm
Jeff: Even if you forgot to list a creditor in your bankruptcy that debt will still be erased. However, you are obligated to pay to the creditor, the equivalent of the dividend the trustee would have paid him in the bankruptcy. Section 178 of the BIA states:
178. (1) An order of discharge does not release the bankrupt from ………….
(f) liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;
People can only do a credit check on you for the purpose of collecting a debt or if you give them permission. Please refer to:
http://www.bankruptcycanada.com/creditbureau1.htm#consumerrights
July 2nd, 2007 at 5:45 pm
Can you declare bankruptcy if you’ve already entered into a proposal about 6 months ago but now can’t afford the payments due to a change in income?
July 2nd, 2007 at 9:32 pm
Violet: Yes, you can file bankruptcy out of a proposal. Please tell your trustee that you want to do this.
July 3rd, 2007 at 3:30 pm
Hi,
I filed a proposal two years ago with 2 and 1/2 years left on it. Our house has appreciated quite a bit in value and I would like to sell it and downsize and use the excess to pay off my wife’s credit and put my sons though college. Can we do this legally?
July 3rd, 2007 at 5:59 pm
Bradley: What you can do will be included in the terms of the proposal. I suggest you discuss this with your trustee.
An alternative that I am sure would be acceptable to your trustee would be that you use these monies to pay off your proposal. (Most proposals have a clause allowing for early payment of the proposal.
July 4th, 2007 at 7:02 am
If someone is currently in bankruptcy and not yet discharged are they able to have a credit card? I was mailed a credit card and have not used it, I did not apply for it , but it just arrived in the mail. Am I able to use it and what if anything can happen to me?
July 4th, 2007 at 9:03 am
Susan: It would be best to wait until you are discharged to get a credit card. According to the BIA, you cannot borrow more that $500 without telling the lender that you are in bankruptcy.
July 4th, 2007 at 9:47 am
Hello we have had some major problems over the last year and have gotten calls from a lawyer saying they are taking us to court for the mon ey. What happens then? Will they take our house that we have been trying to keep? What do I do?
July 4th, 2007 at 11:05 am
I owe ICBC $2205.10 according to my last statement and I have about $9000 in other debt such as credit cards etc. My question is my fines from ICBC are for Driving without insurence, Display plate from another motor vehicle, fail to produce drivers license or insurence, drive contrary to restriction (driving after 12pm with learners) will the ICBC debts be erased if I file for bankruptcy. I’m going to have to because of my other debts anyways but I’m sick of ICBC phoning me and I want to be able to drive again. I barely make enough money to cover living expenses for me and my son.
July 4th, 2007 at 12:08 pm
Audra: A bankruptcy or a proposal is available to help people in financial difficulty. Please read the FAQs to get more information:
http://www.bankruptcycanada.com/question1.htm
July 4th, 2007 at 12:10 pm
Laura: ICBC debt is erased in a bankruptcy. Fines imposed by a court are not.
July 5th, 2007 at 5:34 am
I currently have my home for sale and I have been called by Revenue Canada. The amount owed to them is greater than the home selling price. At present I do not have a job. I also owe about $11,000 to two credit card companies that so far aren’t pestering me because I have been relatively good about making payments up until the last 2 months. Question: will RevCanada put a lien against the house? Will this be an obstacle in the sale.
As yet I have not been served, nor have I returned the latest call. I need advice before I call.
July 5th, 2007 at 5:36 am
Can Revenue Canada negotiate. I owe them personally and am not in a position to pay the amount which is considerable for me without work. So the question is can they negotiate a settlement or will I have to proceed to bankruptcy to remove the debt whch I clearly cannot pay at this time?
July 5th, 2007 at 7:20 am
Ian: CRA have no ability to negotiate unless it is via the “Fairness Package”. For more information on this please refer to:
http://www.bankruptcycanada.com/rcandeal1.htm
The following are the procedures that CRA has to follow in order to file a secured claim or lien against a home:
http://www.bankruptcycanada.com/question1.htm#q
July 5th, 2007 at 10:04 am
I am currently drowning in student loan debts. I was reading up on the 10 year rule and it seems this spring will mark the 10th year of finishing my studies. If I file for bankruptcy this fall, can the loans be discharged in 9 months (assuming I qualify) or should I hang on until the spring and file then. I don’t see things improving - my rate of pay will not change and the interest charges keep going up.
July 5th, 2007 at 12:12 pm
You must file AFTER the 10 years is up in order to have the student loans eligible to be erased in a bankruptcy.
July 5th, 2007 at 2:41 pm
How does a leased car get dealt with in a personal bankruptcy? Just over 15 months ago I leased a brand new (modest) car for a 48 month lease. It’s nice, clean, fuel efficient and reliable. I got approved for the lease on my own - no cosigners. Would I have to surrender the car if I go bankrupt? Or how would this be dealt with? With no other debts to pay if I go bankrupt, other than living expenses, I’m sure I could continue with the monthly lease and insurance payments and continue driving a reliable and economical car for work and personal use. Where I live, public transit is not a viable option and taxi cabs would cost a fortune.
I am about $30,000 in debt. $8000 is student loans from about 10 years ago and the remaining $22,000 is consumer debt. I’m in Ontario. As I have a low paying job (it’s under $1000 per month, but when I get recalled, it will likely be about $1300 a month) I’m currently on a seasonal layoff. There does not seem to be any reasonable hope of paying this off and I’m seriously considering filing for bankruptcy. I hate the thought of giving up a reliable car that I can afford and going without a vehicle or buying an old clunker that will always need repairs.
July 5th, 2007 at 3:50 pm
Pete: In most cases the leased vehicle is retained, so long as the payments are up to date. Check with the trustee you meet with, for your initial consultation, as he will be familiar with the policies of the lessors in your area.
July 6th, 2007 at 5:14 am
I am a single mother of five children and I currently have a debt of about $55,000. That included student loan and other consumers debt. the majority however is student loan. I currently have a net income of $1800 per month. My last loan was in 1999. would i be able to file for bankrupcy and have my debt be discharged? i currently am attending school part-time for something completely different from what i had study before, will going to school now affect me in regards to filing for bankrupcy
July 6th, 2007 at 6:37 am
Marci: Student loan debt will not be erased in a bankruptcy unless you have been out of school for 10 or more years.
July 6th, 2007 at 12:24 pm
I was just wondering if i go bankrupt, will that completely erase my chances of becoming a mortgage broker right away? Or does it not affect it at all? I heard that there are some jobs you cannot get if you are bankrupt and i was just wondering if Mortgage broker was one of them. Thanx
July 6th, 2007 at 12:40 pm
Lindsay: I don’t know the professional requirements and standards for all the different professions in Canada. Please contact the Mortgage Brokers Association for your province to find out their professional rules and standards.
July 6th, 2007 at 4:32 pm
I am separating from my husband, who has just finished school again and won’t be employed for about 3 months due to a recent injury. I would like to retain the house and expect he will be able to pay $1000 per month for support, and my own take home is about $3200/mo. We are in need of perhaps a “proposal” of sorts as I’ve supported him for over 4 years without working and we now have approx 150K in consumer debt (equally divided on own credit cards and joint line of credit). What can I do to buy me 3-4 months until I can afford the mortgage and the payments on my share (75K) of the debt? We have about 150K in home equity as well.
July 6th, 2007 at 6:10 pm
We claimed bankruptcy in Aug/06 and was discharged in May/07,after 9 months meeting all of our obligations with nothing further owing to our trustee. We did sign to have the trustee prepare and keep 2006 tax refunds. Am I correct in thinking that we are entitled to our post bankruptcy(2007) tax refunds? Also I checked my E-pass account at CRA and found out that the trustee is authorized until Aug/2009. We thought we had authorized them to represent us in the 2006 bankruptcy year,(as they requested). Were we misled and if so is that legal? Can we have them removed as our authorized representative now that we have an absolute discharge? Thankyou
July 6th, 2007 at 8:00 pm
Hello, I am in financial difficulties right now and I was just wondering if you think That I would be eligible to file for bankruptcy. I currently owe about $11,000 for my visa cards; $7,000 for my mstercards; 5,000 for my departments store cards and about $19,000 for my student loan oh and not to forget I had consolidated my debts back about 4years ago; they offered me $6,000. Basically CIBC offered to pay my debts which back at that time was under $7,000. My credit is not ruined yet because I manage to make all my monthly paymts on time (minimum). I am still considered a good client with my debtors howveer it hurts to go on the internet every two weeks to pay all my minimum paymts and hardly have any money for myself. I’m scared to file for banckruptcy because my mom has filed for one herself and also because I am only 25. I still want to buy a house and a car someday. Would you suggest this or should I settle for a proposal? Thank you
July 6th, 2007 at 10:04 pm
In 2002 when my ex husband and I separated I was left with a lot of bills in my name. These have still not been paid and I have no idea even what I really owe. How do I start over? Where do I start? Please help.
July 7th, 2007 at 3:23 am
Hi! My husband filed bankruptcy about 10-12 yrs ago. He has had it wiped off his credit bureau. Due to a failed business venture we are swimming in 70,000 worth of personal debt and are thinking of filing bankruptcy. On the site it states that if it is a 2nd bankruptcy then it remains on your bureau for 14 yr. Does he have to mention the 1st one seeing as it is long past or will the trustee know about it?
July 7th, 2007 at 7:00 am
Megan: This is something you should discuss with your matrimonial lawyer, who will be able to give you good advice since he will be familiar with your financial situation.
July 7th, 2007 at 7:07 am
Steve: It is common that a person assigns the post bankruptcy tax refund to the bankruptcy estate. If this is the case, the refund belongs to the bankruptcy estate.
The trustee is required to inform CRA of the fact of a bankruptcy. CRA then forwards the applicable tax refunds to the attention of the trustee. The trustee will not receive any tax refunds subsequent to the 2006 tax year.
July 7th, 2007 at 7:11 am
Cynthia: Whether you are eligible to file a bankruptcy or a proposal will depend on your family situation, cash flow and debt. You can get an idea of what you qualify for by completing the confidential self-evaluation at the following link:
http://www.bankruptcycanada.com/bankpred2.htm
July 7th, 2007 at 7:16 am
Sandi: Your husband has to be open, honest and forthright with the trustee. Lying or withholding information is a serious offense and can result in putting his discharge in jeopardy as well as more serious consequences.
July 7th, 2007 at 8:33 am
My wife has regretfully received a note from her bank stating that they are contacting an external collections agency. Long story.
Though I will certainly try to assist in helping her repay her debts, can the collections agency repossess any items even though we do not have any collateral (vehicle, mortgage, etc.). The only thing shared is our names on our apartment lease and the joint bank account we use for our living expenses.
Could they attempt to repossess items belonging to me (i.e. furniture, electronics, etc.)? I would assume they can attempt to force her into bankruptcy instead.
July 7th, 2007 at 11:46 am
Hi, due to unforseen circumstances my wife and I are contemplating bankruptcy. We currently have RESP’s for 3 of our children that others contribute to monthly. Would these have to be dissolved and the money put towards our debts?
July 7th, 2007 at 2:49 pm
Mario: They cannot seize your assets; only hers are vulnerable.
July 7th, 2007 at 2:51 pm
Chris: RESP’s are not exempt from liquidation in a bankruptcy. The trustee is required to cash in the RESP’s for the benefit of the creditors.
July 7th, 2007 at 5:39 pm
Do I still have to pay child support arrears if I file for bankruptcy?
July 7th, 2007 at 10:24 pm
Bob: Yes, you do. Please refer to the following:
http://www.bankruptcycanada.com/question1.htm#debts
July 8th, 2007 at 4:03 am
Hello
I used a well advertised trustee to file bankruptcy. I am having problems with this company and would like to know who I can contact if issues are not resolved.
Thank you
July 8th, 2007 at 4:18 am
Alan: I would suggest you first discuss the problems with the top trustee at the firm. If that fails you can contact the Office of the Superintendent of Bankruptcy, the government agency that regulates trustees. You can contact them at the following link:
http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01003e.html
July 8th, 2007 at 4:47 am
hello! I filled for bankruptcy at the end of may and the papers didn’t come in t’ill june, I’m just starting my first month and i want to know what happens if a person decides to stop the bankruptcy process, because me and my common law parthner are moving to another province and he’ll be making enough money to pay my bills and i’ll be joining him in the work force also. I don’t want to get in trouble with my situation and i haven’t started my first month of process, i only signed the papers and gaved 150$. what’s happens when you cancel the process? thanks
July 8th, 2007 at 6:25 am
Angel: You cannot stop or cancel a bankruptcy.
You can make a proposal out of bankruptcy. For example, your common law partner could put up a lump sum with the trustee to pay, say 30% of your debt upon acceptance by your creditors. This lump sum would ONLY be used if your creditors accepted the proposal. If they did not the trustee would return the money to your common law partner.
If this is an option for you please discuss with your trustee.
July 8th, 2007 at 7:04 am
Hello,
I have a corporation thats insolvent. Do I have to fill out the form for personal bankruptcy before I call a trustee?
July 8th, 2007 at 7:22 am
Lee: No, you don’t have to fill out the form. Just gather your information together: list of creditors and amounts, assets etc., and then call a trustee to set up the free consultation.
July 8th, 2007 at 4:09 pm
Hello my husband had a car accident yrs ago and he is on a pention for life now we have loans for citi financial we also got furniture from leons ,the brick and we own them money all togehter about 10,000 and its really hard to pay now we just cant keep doing this its hard we have a child and worrying about having monye for emergency all my money goes to that are we able to go bankruptcy even if my husband has a pention for life??? will they stop that on him??? what should we do ? we are good at paying our bills on time but we just can do it anymore its way to hard my husband has good credit also but what should we do????
July 9th, 2007 at 1:56 am
I also wanted to know if we do clame bankruptcy are we able to just on citifinancial? or would that have to be everything???
July 9th, 2007 at 5:51 am
Andrea: You should be able to file bankruptcy and have your husband keep his pension. When a person goes into bankruptcy all debt must be included.
A trustee, at the initial consultation, will be able to give you more specific information after reviewing your financial information. The trustees at the following link will give you a free initial consultation:
http://www.bankruptcycanada.com/trustees1.htm
July 9th, 2007 at 8:54 am
I was wondering how bankruptcy affects pets? We are thinking about claiming, but I own a horse, cats and dogs. I am worried my animals would be considered assets
Also wanted to know if we can keep our existing mortgage. We also have a second mortgage in the form of a loan from Citifinancial. We desperately need to get out of this loan and this is the main reason we want to file for bankruptcy, we owe $16,000 to them, $54,000 for the house. We also have two small credit cards ($500 and $2500-currently both maxed out)and a car worth $800. My spouse is also on disability.(Ontario) The main reason we have all these debts is because our house that we bought in 2006 is in shambles and we had to rush out to get credit to fix it up.
What do you think we’d lose? Other than the house, the car, appliances, basic necessities, we don’t have any other assets.
July 9th, 2007 at 8:55 am
Thank you
July 9th, 2007 at 8:59 am
I also wanted to know if we do go bankruptcy will they come and take all our stuff from my app??? furniture tv bed ect…..
July 9th, 2007 at 9:47 am
Jen: Your pets will not be given up in a bankruptcy. Your horse is an asset that is not exempt from seizure in a bankruptcy.
Your other questions cannot be answered without full financial information. A trustee at an initial consultation will be able to answer all your questions after he reviews your financial information.
July 9th, 2007 at 10:02 am
So, I went to see a trustee. First thing he wanted was a $5000.00 retainer because my company has no real assets.
If my company had $5000.00 it would not be bankrupt. I have personally put over $30,000.00 into this company and am now personally tapped out (I have reached the limit of my credit lines and credit cards).
Who do I see now or where do I go?
July 9th, 2007 at 11:19 am
Lee: We can only answer general bankruptcy questions not specific ones. Please refer to the message at the top of this blog:
“We can answer general bankruptcy questions. Specific questions probably cannot be answered because bankruptcy is complex and many questions cannot be answered without having full financial information. This is the purpose of the initial consultation with a trustee which takes approximately one hour.”
July 9th, 2007 at 12:25 pm
Would consultation obligate me into filing? Where would I find info on the horse being an asset?
July 9th, 2007 at 12:41 pm
Who do I see now or where do I go?
Please, this is a general question from someone who has never been through this kind of thing before. Because I did not have $5000 to give him, he would not tell me anything or even give a hint.
Do I just go into hiding?
July 9th, 2007 at 12:49 pm
Jen: There is no obligation to file if you get a free initial consultation. You can see the assets that are exempt from seizure in a bankruptcy, in your province, at the following link:
http://www.bankruptcycanada.com/bankruptcyexemptions.htm
July 9th, 2007 at 12:51 pm
My friend \’s wife borrowed money on the house (increased the mortgage) and put the money into her business, which lost money. He also lent her money on credit cards and lines of credit which she used for her business. He also pays for her car loan, as he works for a car company and gets special rates. They split up a year ago and she declared personal bankruptcy (not business) in March 2006. As her name is on the house, the Trustee wants to sell the house. My friend wants to deduct all that she borrowed on the house as her equity as it amounts to more than one half of the present mortgage. He filed a claim for the amount borrowed on the credit cards, LOC and mortgage, but the Trustee is not allowing it. He wants case law that my friend is entitled to \
July 9th, 2007 at 1:02 pm
Lee: There is no requirement to bankrupt your company once it is shut down. You can just walk away. One of the advantages of a business bankruptcy is that the trustee writes a report available to the creditors, telling them of the investigation into the causes of the bankruptcy. This puts an end to creditors calling you and also addresses their possible suspicions that some of the assets were diverted.
If you have to go personally bankrupt, you would include any business debt that follows you personally because of personal guarantees or statutory obligations.
July 9th, 2007 at 1:08 pm
Clemy: Unless you friend has a mortgage on the house he is out of luck. The time to protect loans is at the time they are made not after the fact. Please refer to:
http://www.bankruptcycanada.com/trusteeadvice.htm
July 9th, 2007 at 2:28 pm
Thanks, just wondering as I found this info on another link..just wondered if a horse falls under a farm animal or pet. I noted that most other provinces actually have an exclusion for farm animals or pets, including two or less horses.I guess I will have to research more.
When you declare bankruptcy in Ontario, you can keep: (according to the link)
*
You and your family’s necessary and ordinary clothing, up to a value of $5,650
*
The household furniture, utensils, equipment, food, and fuel that form part of your permanent home, up to a value of $11,300
*
The tools and instruments you use for your business, profession, or job, up to a value of $11,300
*
A motor vehicle, up to a value of $5,650
*
Most pension plans, life insurance policies, and certain RRSPs
*
If you are a farmer of land, livestock, fowl, or bees, you can keep the books, tools, and equipment you use in your business, up to a value of $28,300, as well as sufficient seed, feed, and bedding
July 9th, 2007 at 6:08 pm
Hello…….. i am just wondering what the average budget is for a family of 4 during bankruptcy. And how much you can make over the budget before they deduct more money? Thanks
July 9th, 2007 at 9:41 pm
u never answered me?
July 10th, 2007 at 1:42 am
Sandi: Sorry. There were two questions from Sandi that I thought were from the same person. One posted on the 6th (yours?) and one on the 7th, that I answered on the 7th.
“Your question:
# Sandi Says:
July 6th, 2007 at 10:04 pm e
In 2002 when my ex husband and I separated I was left with a lot of bills in my name. These have still not been paid and I have no idea even what I really owe. How do I start over? Where do I start? Please help.”
You can find out what you owe by doing a credit check for free. Please see:
http://www.bankruptcycanada.com/creditreport.htm
Our FAQ page should be able to answer most of your questions:
http://www.bankruptcycanada.com/creditreport.htm
July 10th, 2007 at 1:46 am
Scot: You can find out what you will have to pay in a bankruptcy by completing the self evaluation at:
http://www.bankruptcycanada.com/bankpred2.htm
July 10th, 2007 at 4:43 am
I am currently in thailand I have be gone from Canada 6 months. I have a small business at home that did not go well after 3 years and I need to file for Bankruptcy. I am able to fly home for 2 months on the next 2 weeks to take care of this. I hoping someone can tell me if it is possible to do this in 2 months and then fly back to thailand? As I am pregnant and am planning to have my baby here.
I can come back the following year to complete my counselling session no problem. Is it possible for me to do this now? if so who can help me?
thanks:)
July 10th, 2007 at 4:46 am
When i go to my appointment with the trustee and i don\’t like what he has to say……………..can i get up and walk away or am i obligated to sign the papers?
July 10th, 2007 at 4:49 am
Megan: You may be able to file Canadian bankruptcy while in Thailand. Please refer to:
http://www.bankruptcycanada.com/abroad.htm
July 10th, 2007 at 4:52 am
Jeff: You are under no obligation to file bankruptcy with a trustee just because you had an initial consultation with him. Please refer to the following for information on dealing with a trustee:
http://www.bankruptcycanada.com/MeetingtheTrustee.html
July 10th, 2007 at 6:10 am
Can you have your student loans wiped out after 10 years without going through bankruptcy?? Thanks Brye
July 10th, 2007 at 6:50 am
Hello! I recently completed my Discharge from Bankruptcy in December 2006. Since then I have opened a chequing and a savings account with a major bank, and have worked hard with a budget to have savings in both.
I also applied for and received a Secured MasterCard which I have paid off each month since I received it in January.
To continue rebuilding my credit, I was considering applying for a gas card to use and also pay off each month. Would this be considered moving to fast after my Bankruptcy, or the right next step?
It is a brave new world…
Thank you,
Rob
July 10th, 2007 at 7:00 am
Brye: No, you can’t.
July 10th, 2007 at 7:02 am
Rob: You’re doing this the right way. I think getting a gas card is a good idea.
July 10th, 2007 at 8:02 am
If I get married, is my new spouse affected in any way if I decide to claim bankruptcy? (after the marriage)
July 10th, 2007 at 10:11 am
Nicole: Your future spouse will not be affected if you file bankruptcy. Please refer to the following:
http://www.bankruptcycanada.com/question1.htm#d
July 10th, 2007 at 6:30 pm
I see that the surplus income for a 4 member family this year is $3339. There are 4 people in my family. Does that mean that all the money I make under that amount is mine for food and bills or whatever I need for my family besides the trustees monthly fee if i file?? Is that standard the same for everyone across canada with a 4 member family?? Thanks Ted
July 10th, 2007 at 6:47 pm
I just received a “statement of claim” from a lawyers office. It seems that when I lived with a aquaintance a couple years ago & was asked if I wanted a supplementary card & said yes that I’m now being looked for by lawyers & trace companies?
All I can remeber is that RBC sent in a form to have me sign so that they could issue an extra card on the acct. I was under the assumption that it was HER account & that I was getting a secondary card. Is it possible I signed to be jointly responsible?
My concern about this is as a secondary cardholder I was not allowed to request the limits of the card be raised. I only used the card like 10 times & RBC would know that as there were different card #’s.
If SHE signed for all these charges & requested credit increases can they really be expecting me to pay this?
I remeber the card had a limit of around $7000. When they dropped off the “statement of claim” they are saying the amount owing is over $20,000!!!
I requested a copy of my credit bureau the other day & notice a lawyers firm has been in my file & also a trace company.
All my credit cards are listed as in good standing. The RBC card is NOT listed though.
If I was responsible for this card why would they not put it on my file?
Sorry for the long story. Very eager to hear your comments on this one.
Than you very much.
WILL
July 10th, 2007 at 9:15 pm
Ted: the standard is the same across Canada. You can get a personalized view of how the standard applies to you by completing the self evaluation at the following link:
http://www.bankruptcycanada.com/bankpred2.htm
July 10th, 2007 at 9:18 pm
Will: If you have a supplemental card then you are responsible for the debt as well as her. You will have to look to the terms of the agreement you signed for the specifics.
July 11th, 2007 at 7:12 am
i wanted to know if you claimed bankruptcy 10 years ago and the person still has not been discharged because of his previous lawyer who represented him , now he is obstructing his discharge, now he is going against him, and will not allow him to be discharged . where can i go and what can i do for this person. lawyer after lawyer after lawyer, and they all say the same thing, he can keep after the person, because he is a lawyer and does not have to pay a lawyer to do all the work
can you direct me to someone that can help? even the upper law society did nothing.
Lucy
July 11th, 2007 at 7:36 am
hello, I have recently closed my doors of my business. Due to financial and emotional problems. It was a corporation. I also am in personal debt with my creditcards. I was trying to sell my house. Is it possible to put it in my daughtr\’s name? There are no leans against it yet
July 11th, 2007 at 7:44 am
if i claim bankropty when do i have to leave my home
July 11th, 2007 at 9:43 am
Lucy: The lawyer can oppose the discharge but the Registrar or the Judge can still grant a discharge. I think that all you can do is to proceed to court to request a discharge.
July 11th, 2007 at 9:46 am
Karin: Trying to hide assets from your creditors will only get you in trouble and put your discharge in jeopardy. Please see:
http://www.bankruptcycanada.com/blog/may-8-2007-%e2%80%93-two-people-charged-under-bankruptcy-and-insolvency-act/
July 11th, 2007 at 9:50 am
Cecil: This question cannot be answered without knowing your financial information. This is the purpose of the free initial consultation with a trustee.
You can set up a FREE consultation with one of the trustees at the following link:
http://www.bankruptcycanada.com/trustees1.htm
July 11th, 2007 at 10:48 am
I have been discharged for many years, but i forgot to include a creditor in my backruptcy. This was an honest mistake, if i had remembered it would have been easy for me to include it. Although i have been discharged a collection agency is after me for the money. Someone suggest that i go to my lawyer and have this creditor added to my backruptcy. Can this be done?
July 11th, 2007 at 12:16 pm
Hi,
I had a question concerning section 178 and students loans. Situation is that I had filed a consumer proposal exactly 11 days before the 10 year mark of completing fulltime school. My trustee at the time and the law firm he partners with, assured me repeatedly that my students loan would be included and discharged at the completion of the proposal due to the fact that 10 years had gone by. I have now been paying my proposal dutifully for more than 3 of the 5 years and am nearing completion of the proposal….problem is that now Revenue Canada is saying that I filed 11 days before the 10 year mark and therefore I am still liable for an additional $10,000+ upon completion of my proposal. So I am still in not great financial situation…only owe another $3000 on proposal but need to know whether this ‘10 year’ term is dated from when the proposal was signed..or when it was agreed to my creditors, which was in fact 70 days or so after the 10 year mark. I am considering filing bankruptcy now instead of completing my proposal, if i will in fact be required to pay an additional 10k after the remaining 3k of my proposal.
Your advice would be tremedously appreciated.
Victor
ps..i have tried repeatedly to contact my original trustee to no avail and thats why i seek advice here
July 11th, 2007 at 2:49 pm
Steve: Even if you forgot to list a creditor in your bankruptcy that debt will still be erased. However, you are obligated to pay to the creditor, the equivalent of the dividend the trustee would have paid him in the bankruptcy. Section 178 of the BIA states:
178. (1) An order of discharge does not release the bankrupt from ………….
(f) liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;
July 11th, 2007 at 3:00 pm
Victor: CRA is correct. You should have waited to file the proposal until after the 10 years was up. This is the wording of the BIA:
“Section 178- Debt not discharged:
(g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
(i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or
(ii) within ten years after the date on which the bankrupt ceased to be a full- or part-time student; or….”
I suggest you contact the trustee to see what he will do to correct this problem.
If the trustee doesn’t contact you call the Office of the Superintendent of Bankruptcy:
http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01003e.html
July 11th, 2007 at 3:30 pm
thank you very much for your help/advice.
Quite frustrated as I am, do you think I should expect some more help/service from my trustee to remedy this free of change as part of their obligation? I am not fully knowledgeable of what service in this case my trustee is responsible for.
thanks,
Victor
July 11th, 2007 at 3:37 pm
Is there a statute of limitations on debt collection in Ontario? Does this include loans from the Ontario government like a New Ventures loan? It was taken out in the late 80’s, not fully paid. Then for more than 8 years nothing happened. Then a collection agency came looking for the money. I thought that there was a limitation of 6 years that if nothing happened they cannot try to collect anymore.
July 11th, 2007 at 4:13 pm
HI
MY DIVISION 1 PROPOSAL HAS BEEN ACCEPTED. MY TRUSTEE SAID I COULD INCLUDE MY LEASED VAN. I TOOK IT BACK TO THE DEALER.
CHRYSLER FINANCIAL SAID I HAVE TO CLAIM BANKRUPTCY IF I DO NOT WANT TO GET SUED. THE LADY THERE SAID MY TRUSTEE DID NOT KNOW WHAT HE IS TALKING ABOUT. IS THIS TRUE
CAN I STILL BE SUED FOR THE COST OF THE VAN WITH THE DIVISION 1 PROPOSAL???
July 11th, 2007 at 9:59 pm
Steve: You will have to seek the advice of an insolvency lawyer on this. We have the following information about the Limitations Acts in Canada:
http://www.canadianlawsite.ca/debt-collection.htm#u
July 11th, 2007 at 10:01 pm
Janine: The trustee is right and Chrysler Finance is wrong.
July 12th, 2007 at 5:55 am
Hi there, We have been discharged from Bankruptcy for 5 months. My wife,before bankruptcy was on maternity leave and was provided a Top up of her pay as a benefit from her employer. We did not put this thru and now she will not be returning, will this be covered in the bankruptcy?
July 12th, 2007 at 8:59 am
Hi,
I am separated without a signed agreement yet. My ex is self employed and he says that he can only pay 800/month but stopped 6 weeks ago waiting until a court order. I don’t have any money for a lawyer and this is a vicious cycle.
As a result of him not paying I am considering bankruptcy.
My questions are; If I qualify and my ex starts paying whatever he can afford what will happen to that money?
and If I qualify can the trustee or court superintendent pressure, enforce payment of some sort of child support for it’s purpose of paying my creditors?
July 12th, 2007 at 9:25 am
Are court-ordered payments on a debt stopped once an application for bankruptcy is filed? Or do they continue even afterward because of their special status as court-ordered?
Thanks
July 12th, 2007 at 11:53 am
I am a stay at home mother of 3 little ones. I was given some under the table type of advise, from a credit councellor and want to verify what I was told.
Basically, I was advised if I kept paying on my personal dept of approx. $17,000 with me having no income, I would put the family in bankruptcy. But if I didn’t pay on it anymore, we’d be comfortable and no one could touch me. It’s not a student loan, I am aware that that can not be put into the bankruptcy anyways, but it’s just from creditors, like credit cards.
Is this correct? And also they told me, that there is a 7 year thing, where they can not collect that dept after 7 years?! Is that correct also?
Another thing, is the law changing, or has it changed so that creditors can go into a joint account if you owe them something and you are signed onto it? The only thing my name is on, is an account that our mortage comes out of. This is all.
Any advise will be greatly appreciated.
Thanks
July 12th, 2007 at 1:39 pm
Hi I have a question I am hoping you can answer for me.I was taken off of work about 5 years ago due to medical problems and I had a visa I was unable to keep up with the payments and the visa company wrote it off.I am now receiving calls from the collection company.They asked me to send in a financial statement which I did and now they are threatening to put a lien on our home.Can they do this?We already have a tax lien on it and we have tried to get an equity loan and nothing seems to be working.Can you please give me some advise as to what I can do.
Thank you.
July 12th, 2007 at 3:05 pm
Hello again i wrote you a few days ago asking if my husband would still get his pention if we go bankrupt . Well today all the papers are filed and we talked to a Trustee and she said everything will be fine he will still get his pention but im just a little worried i know she said they cannot come to our house and take our stuff but just wanted to hear from you also? This is our first time doing this and hopfully our last time im happy in a way but also a little nervous.I wouldnt know what to do if someone came to my door. Thanks again
July 12th, 2007 at 6:06 pm
Jason: She should ask her trustee this question since the trustee knows all the details of her finances.
July 12th, 2007 at 6:10 pm
Separated: Your questions cannot be answered with knowing your full financial information. Please see a trustee for a free initial consultation, where the trustee will be able to review your financial information and then answer your questions.
July 12th, 2007 at 6:12 pm
Michael: Court ordered payments will cease in a bankruptcy so long as they do not pertain to a separation of divorce matter or to any of the items that are not discharged in a bankruptcy.
July 12th, 2007 at 6:17 pm
Krista: Sorry. Too many questions and not enough information from you on which to base an answer. I suggest you seek legal advice.
July 12th, 2007 at 6:20 pm
Tammy: You will have to seek legal advice on this.
July 13th, 2007 at 11:39 am
Is the amount awarded in a Civil court case be erased by filing a bankruptcy?
July 13th, 2007 at 12:29 pm
May Flower: Please see the answer I gave on July 12th to Michael.
July 13th, 2007 at 1:48 pm
Hello, I have been considering bankruptcy, but i have also looked into re-mortgaging my home as an alternative. However, the bank that the investment company found, wants me to sign a affidavit swearing that i make sixty two thousand dollars a year. However i am currently unemployed.
Is this a common way of avoiding bankruptcy? should i avoid signing the affidavit if i am not making sixty two thouasnd per year?
Your opinion is much apreciated. Thank you.
July 13th, 2007 at 1:53 pm
I am in a great deal of debt, all of which was accrued before I started living with my girlfriend, I am wanting to make a proposal to end this problem, but if this is not accepted and I am forced into bankruptcy would this have any repercussions to her, as she has just bought a house?
July 13th, 2007 at 3:17 pm
Maria: You shouldn’t lie. It seems to me that you need someone to give you some options. This is beyond the scope of this forum but one of the trustees listed on this site will give you a free consultation.
Don’t use anyone but a trustee or an insolvency lawyer for this advice. Both are highly trained experts. For example, please refer to the following which gives the reasons why it is in your best interest to use a trustee:
http://www.bankruptcycanada.com/onttrustees.htm#t
July 13th, 2007 at 3:19 pm
Darren: If you go into bankruptcy your girlfriend will not be affected. For more information please refer to:
http://www.bankruptcycanada.com/question1.htm#d
July 13th, 2007 at 6:35 pm
My husband and I filed bankruptcy in ‘96. We were discharged after 9 months and then began working on re-building. Last year we were forced to leave our residence (we were on-site caretakers in a building that went condo) so we bought a house. Our credit was still not the best and we had no down-payment so, through HSBC and Exceed we got a higher rate mortgage. We both were working and we were able to keep up with everything until my job ended. I have since been trying to find other employment but we keep getting further and further in debt. We have been reduced to using credit cards for living expenses. We have two consolidation loans and 3 credit cards…one loan is secured with our sole vehicle (1997 minivan).
Can we declare again? Can we declare but still hold onto the house (only a year here so there is no equity) and the van? When our mortgage renewal comes up next year…if we by chance can hold onto the house, would they renew our mortgage?
I read that as well, 2nd time declarers have to appear before a judge for discharge…what are the repercussions? I assume that once we declare…it is done…is it the judge that decides when we are discharged? Do they often extend it longer for 2nd time declarers and if so, how much longer? I intend to make an appointment with a trustee but, these are some of the concerns we have…if there is no way to maintain our residence and vehicle we may have to dismiss the idea altogether.
Thank you for any insight you can shed on this for us….
July 13th, 2007 at 7:16 pm
Hi,
I’ve recently lost my job and I find myself close to having to start paying up my huge student loans(roughly 50K: bank + government loans). Unfortunately the job market is not so bright and I doubt I’ll be able to find the salaries the university advertised to hook me in. I’m not a canadian citizen(only permanent resident),and I have the following questions :
1. I know that government student loans cannot be included in the bankruptcy, what about bank loans for studies?
2. Is there any restriction about leaving the country after filing for bankruptcy and being discharged?(moving permanently to another country)
3. Does the bankruptcy influence the citizenship process ?(if I apply for canadian citizenship, will it be rejected because of the bankruptcy).
I’m still trying to find a moral way out of this(finding a job that pays the amounts I was counting on when I first decided to join that school and get in this amount of debt), but I would appreciate your answer so I can consider my worse-case scenario.
Thanks.
July 14th, 2007 at 5:07 am
Lisa: Sorry, but this forum can only answer basic bankruptcy questions. All your questions will be answered at the initial consultation, which will take about an hour and for which you will provide full financial information to the trustee.
July 14th, 2007 at 5:14 am
Eugene: Non government student loans can be erased in a bankruptcy. There are no restrictions on leaving the country if a person files bankruptcy. I’m sorry but I can’t answer your 3rd question as it is not a bankruptcy question but rather a citizenship one.
July 14th, 2007 at 2:03 pm
Respected Sir
My wife and I had filed a proposal in 2002 and paid out in full in Dec 2005. Now after passing of 18 months, my internet banking statement still shows unpaid amount of my visa card as $11,000 (total limit was $15,000), one of my creditors included in the proposal. During this time, I have contacted my Trustee and the bank officials back and forth repeatedly but the issue is yet not resolved. The trustee says it’s none of my business and the bank says we are waiting for certain info. from the trustee. What do you suggest?
July 14th, 2007 at 2:45 pm
Javed: Your Proposal Certificate of Completion is confirmation that your eligible debt has been erased. I suggest you send that to the bank and request they update their records.
If they do not you have the right to report them to the Banking Ombudsman. Please refer to:
http://www.bankruptcycanada.com/bankacct_access1.htm#complaint
July 14th, 2007 at 3:11 pm
hi I was wondering My husband and i work in the summer and draw ei in the winter will that affect the backruptcy if i fill in the fall and will it affect my husband
July 14th, 2007 at 3:13 pm
Certificates of completion of my wife and mine have been faxed and mailed to the bank just after their receipt. The bank has confirmed about that but in 18 months they have not been able to receive desired info about dividends from the trustee. After getting a final answer from both of them, I intend to submit a complaint to the Banking Ombudsman against the bank……….
July 14th, 2007 at 4:42 pm
Maggie: You can get an idea of what your required payments will be if you complete the confidential self evaluation at:
http://www.bankruptcycanada.com/bankpred2.htm
Your bankruptcy will not affect your husband. Please refer to:
http://www.bankruptcycanada.com/question1.htm#d
July 14th, 2007 at 4:44 pm
Javed: The bank blaming the trustee has no relevance. Fact: the debt is erased. The bank wanting information from the trustee is another issue entirely.
July 15th, 2007 at 11:28 am
Hi my name is Tijana, and I was wondering how do you know if your company is going bankrupt? Is there any websites that list the companies who have filed banruptcy recently.
Thank you
Tijana
July 15th, 2007 at 12:57 pm
Tijana: Try our Business Bankruptcy Predictor:
http://www.bankruptcycanada.com/bankpred1.htm
There is no website that lists companies that have gone into bankruptcy.
July 16th, 2007 at 8:48 am
I am an Ontario resident and I work in the US. I claimed personal bankruptcy in March and included CRA as a creditor based on an estimate of my 2006 taxes. As it turns out, I am getting a refund. I assume that I must give over the refund to my trustee this year. What about my US tax return? I am getting a significant tax refund due to the outcome of my divorce. Do I have to give my US tax refund to the trustee as well? or can I defer some of my tax savings until next year if allowed in the US?
How many years must I give my tax refunds to the trustee? My trustee is on vacation for 2 weeks and I am unable to get an answer; we had not discussed the matter as it was estimated that I would owe in stead of getting a refund.
Please advise.
July 16th, 2007 at 10:35 am
Just in addition to my question; I was looking through your q/a page and it talks about a pre-bankruptcy tax return and post-bankruptcy tax return.
My bankruptcy is March 2007. Does the trustee/creditors get my 2006 return at all? I dont recall being asked for these. I had hired someone to do a preliminary tax return for my 2006 taxes to estimate the debt but have not done anything that relates to 2007 (ie a pre-bankruptcy return from January 2007 to March when I filed). Can you elaborate?
July 16th, 2007 at 12:25 pm
Lucy: Please refer to our blog on this topic:
http://www.bankruptcycanada.com/blog/tax-returns-in-a-bankruptcy/
July 16th, 2007 at 1:36 pm
Hello,
My former husband is in excess of 150,000.00 dollars in debt between credit cards and credit lines, I used to have extensions of some of those credit cards, however at the time when we decided to split I destroyed the cards and requested each bank to remove my name from his contracts, we sold the house about a year and a half ago and I kept most of the money we got to help me stabilize. Although we live separate lives, we are living under the same roof, I am paying the rent and expenses and I am giving him a room to stay since he is still unemployed.
My question is, In the event my former husband decide to claim bankruptcy which looks imminent, am I in any risk of his creditors asking me to pay part of his credit cards debt or them going after the money I got from the selling of the house?
Thank you very much,
Beta
July 16th, 2007 at 2:59 pm
Hello, my father in law is considering filing for bankruptcy, he owns some property (his only real asset) and we do not want to lose it. my question is can he sell this property to me and my wife now cheap and not affect his future bankruptcy?
July 17th, 2007 at 6:01 am
Beta: Much more information is needed before this can be answered. I suggest you consult with an insolvency lawyer.
July 17th, 2007 at 6:08 am
Stuart: This would not be right. Your father trying to protect assets from his creditors will only get him in trouble and put his discharge in jeopardy. Please see:
http://www.bankruptcycanada.com/blog/may-8-2007-%e2%80%93-two-people-charged-under-bankruptcy-and-insolvency-act/
July 17th, 2007 at 11:45 am
Hello, i have a court date next week, in which i will probably have my home seized for a buisness debt that i am personaly responcible for.
I would like to know if there is any possible way that i could use bankruptcy to save my home. It is my only asset.
July 17th, 2007 at 12:15 pm
My father passed away a few years ago and left my mom with a commitment of a Loan that there is absolutely no way she will ever pay down. At this time she is has been retired for approximately 10 years and living off of the interest of a small RRIF and a couple of annuities and GOVT old age pension. The bank should never have approved this loan. I want her to claim Bankruptcy and have them take the Motor Home vehicle away …. but I don’t want her to be left with nothing and not be able to even pay her own rent. She lives in Ontario (not listed in the Exemption communication piece)
July 17th, 2007 at 3:00 pm
Maria: Sorry but this question cannot be answered without full financial information from you. I suggest you set up an appointment with a trustee ASAP. Tell the trustee it’s an emergency and you have to see them right away.
In the mean time you can get your financial information together and fill out the form at the following link:
http://www.bankruptcycanada.com/applicat1.htm
July 17th, 2007 at 3:03 pm
Kathy: Your mother should be able to file bankruptcy and keep her pension. She should set up a free consultation with a trustee and find out the details of how a bankruptcy would affect her.
July 17th, 2007 at 6:46 pm
Me and my wife are shareholders in our incorporated business. I hold 60% and she holds 40% of shares. In addition the corporation owes her X dollars as payment for intellectual property (a revenue generating website) acquired from her in 2000 at the height of the internet boom. The company had also loaned me Y dollars in 2003 which I repaid in late 2005/early 2006. The corporation repaid the X dollars to my wife in early 2006.
Question 1: If I declare bankruptcy today will the Y dollars payment in 2005/2006 be considered fraudulent preference.
Question 2: Will both the transactions together be considered fraudulent conveyance?
July 17th, 2007 at 7:14 pm
I have recently left a well paying job due to political differences with the direction of the company. I have $50,000 dollars of debt with personal lines of credit and credit cards, I have a leased car co-signed with my wife with maybe $4000 in equity into it, and no other assets at all. I have lived from paycheque to paycheque all of my life, no savings. I have about $500 in a RRSP (way behind on this to).
Q1. Will this effect my wife’s credit?
Q2. Will she lose her car?
Q3. Will this effect the RRSP?
July 18th, 2007 at 2:39 am
Sean: If they were repaid in the ordinary course of business there may not be a fraudulent preference. To be more certain you will have to get an opinion from an insolvency lawyer, who will have to be provided full information.
July 18th, 2007 at 2:44 am
Lane: A bankruptcy will not affect your wife. For more information on this please refer to:
http://www.bankruptcycanada.com/question1.htm#d
Your second and third questions cannot be answered without full financial information. Please see a trustee for a free consultation where these, and other questions, will be answered.
July 19th, 2007 at 10:45 am
I owe a lot of money to government if i declare bankruptcy will this all go awayÉ total is maybe $30000 to Ei TAX ÉÉÉ
July 19th, 2007 at 12:58 pm
In the Predictor it has an area for money required to earn income can I include costs for transportation, more specifically gas, to get me to and from work?
What other costs can go in here? Can losses from hobby/small business offset income from my full time job?
Thanks for your help
July 19th, 2007 at 1:07 pm
Hi,
I have questions about my parents likely bankruptcy.
I have been living with them all my life and didn’t move out of our house due to their financial situation. I have given them loans over the years totalling over $50,000 dollars. I have bought furniture in the house Tv’s etc. I even paid for their car which is in their name. Now that they are going to go bankrupt how do I ensure that my investments remain with me and do not get lumped in with the rest of the bankruptcy. There are a lot of things in the house that I didn’t keep the reciept for or were bought second hand with cash…how do I ensure they stay mine?
Also, will I be able to recover any of the debt my parents owe me through the company that I have given them money for as well as personal loans?
Your response would be greatly appreciated,
Tim
July 19th, 2007 at 1:08 pm
I have about $15,000 in debts from different credit cards. My husband didn’t cosign for any of it, it is all my debts. I do not work and have no source of income on my own. We barely have enough with my husband’s income to get by, and he has paid things off for me in the past but refuses to do so anymore because we simply can’t make it with more payments.
He wants nothing to do with my debts in anyway anymore. I guess I have a few questions here.
If I file for bankruptcy, does my husband have to disclose his income? (he doesn’t want to so if he has to I guess I can’t file).
I have collection agencies on my back for payments I cannot make. They don’t understand and they want my husband to fork over the money (which we don’t have). If they take me to court (don’t know if they would when they know I do not work… maybe it is just threats), can they make my husband pay?
What will happen if they do because I have nothing to give them myself? What can they do with me really? Should I believe their threats?
Should I file for bankruptcy even though I myself have no income and my husband refuses any part in it even disclosing his personal income?
I am at the end of my rope here… I’ve been paying on these debts for years, the money goes nowhere and I keep getting threats I don’t know what to do anymore . Please help me with your guided advice. Thank you so much in advance.
July 19th, 2007 at 1:10 pm
Hi There,
My husband is a sole proprietor and work has not been good for some time. He has accumulated credit card debt to run the business (gas, leased car, etc) and owes Rev Canada approx. 13,000 - he pays his bills on time, however they are growing. We have a joint house account, which I manage and we have our own home. We also have some joint power line debt, which is manageable. My own credit is excellent. If he decides to claim bankruptsy is our house in jeopardy? What about the contents? Liz
July 19th, 2007 at 3:23 pm
Hi, I just got notification from my bank that im aprox $14,000 in dept.
I recently got discharged from the Canadain Armed Forces (I was making just enough to make payments on my loan) I dont have any assests, I live with a family friend… I’m making under $400 per month and my room and board costs $350, Im unable to make payments on my credit card or line of credit… What options do I have?
July 19th, 2007 at 9:57 pm
Gunay: IE over payments are not erased in a bankruptcy as they are considered to be debt acquired by misrepresentation. Please see:
http://www.bankruptcycanada.com/question1.htm#debts
July 19th, 2007 at 10:00 pm
Separated: You can only claim costs that are required in order for you to earn income. i.e. expenses that are tax deductible..
July 19th, 2007 at 10:04 pm
Tim: You will be able to keep any assets of a personal nature that are not in your parents name. You will be treated the same as any other creditor in the bankruptcy. In other words you cannot get any preference over any other creditor.
July 19th, 2007 at 10:08 pm
Intoodeep: If you file bankruptcy the trustee will want to know your husband’s income, however he has the right to refuse to divulge this. If you go bankrupt he will not be affected by your bankruptcy. Please refer to the following:
http://www.bankruptcycanada.com/question1.htm#d
July 19th, 2007 at 10:12 pm
Liz: Your husband, in a bankruptcy, will be entitled to the exemptions provided by the laws of your province. Please refer to:
http://www.bankruptcycanada.com/bankruptcyexemptions.htm
July 19th, 2007 at 10:16 pm
Robert: It sounds as though you are judgement proof, in which case do nothing.
Judgement Proof:
A term to describe assets protected from being seized by a creditor. i.e. assets a creditor cannot seize by going to court and getting a judgement.
When you start working you can file bankruptcy.
July 20th, 2007 at 7:14 am
Please advise: How does the filing of bankruptcy affect future employment? Do I have to declare to a potential new employer that I have filed for bankruptcy?
July 20th, 2007 at 9:20 am
Thank you for your responce. But what will happen if he does refuse, will that hinder me in any way while going bankrupt? Because how would I fill in expense forms each month when my hubby doesn’t want to be involved with his income, since I have none?
Also with my other question I aked…. will collectors likely bring me to court, knowing that I have no income? Will they really try and make my husband pay my debts? Thanks! Am I judgement proof? Considering I have no income and cannot make minimums, even with my husbands help? Thanks.
July 20th, 2007 at 9:26 am
IM IN MAGER DEBT I NEED TO GO BANKRUPT
HOW DOES IN EFFECTS MY HUSBANDS INCOME HE HAS NO DEBT JOINED WITH ME ITS ALL MINE
July 20th, 2007 at 10:14 am
Carmelita: I don’t know how it would affect your future employment. Not all potential employers ask if a person filed bankruptcy. You are under no obligation to volunteer that you were bankrupt, but of course, if you are asked you would have to tell the truth.
July 20th, 2007 at 10:40 am
Hello. I am a Canadian citizen with $90, 000 credit card debt. I live in the US and Canada. I have 2 quick questions.
1) If I claim bankruptcy in Canada, will this affect my US assets. I have a home in the US and good credit.
2) What makes someone a resident of Canada?…I have Alberta Health care, a mailing address in Alberta (po Box), 2 bank accounts with 2 different Alberta banks. Is this enough to claim residency and become bankrupt in Canada?
What is my best course of action…I would like to clear my credit in Canada without “ruining” my credit in the US…Is that possible?
July 20th, 2007 at 12:20 pm
Intoodeep: Your husband will not be involved in your bankruptcy if he refuses to divulge his income. Your husband is not responsible for your debt unless he signed for them. You may be judgement proof:
Judgement Proof:
A term to describe assets protected from being seized by a creditor. i.e. assets a creditor cannot seize by going to court and getting a judgement.
July 20th, 2007 at 12:22 pm
Nancy: He will not be affected by your bankruptcy. For more information please refer to:
http://www.bankruptcycanada.com/question1.htm#d
July 20th, 2007 at 12:27 pm
Willy: If you file bankruptcy in Canada you must divulge all your assets, including the assets in the US. The issue of residency is simple to decide; since you do not reside in Canada you are not a resident. For more information please refer to:
http://www.bankruptcycanada.com/abroad.htm
July 20th, 2007 at 12:45 pm
Hello…If I am a Canadian Citizen and will soon become an American citizen…can I still file bankruptcy in Canada for any Canadian debt?? Even though I will not live in Canada?
If so, how will this affect my home in the US…will they be able to take my home from me? Will my credit in the US be affected?
July 20th, 2007 at 1:37 pm
Hello…I have been considering bankruptcy..most my debts are student loans that were approved in the past ten years…do these still get erased? I read somewhere that any student loans were not eligible for being erased during bankruptcy…is this true? is there any chance they would?
July 20th, 2007 at 2:40 pm
Martha: If you file bankruptcy in Canada you must divulge all you assets including those in the US. Here are the rules for filing Canadian bankruptcy while living abroad:
http://www.bankruptcycanada.com/abroad.htm
July 20th, 2007 at 2:42 pm
Stacey: Student loans are not eligible to be written off in a bankruptcy unless the person has been out of school for 10 or more years.
July 20th, 2007 at 2:58 pm
Basically, I need to know what they will do with my US assets when I file bankruptcy in Canada. Will the US assets be treated the same way as if they were Canadian assets? Or will they be exempt? Thank you.
July 20th, 2007 at 4:14 pm
I have a question regarding surplus income in excess of $1000./ month but less than 2000/month. I understand I have to pay at least 50% - what criteria are used to determine if I should pay a higher percentage ?
July 20th, 2007 at 4:44 pm
Martha: Your US assets will be treated the same way Canadian assets are.
But, before getting into all of that you first have to decide if you think you are eligible to file a Canadian bankruptcy.
July 20th, 2007 at 4:47 pm
Sam: It is at the discretion of the trustee. You can get an idea of how much you will be required to pay by using the predictor at the following link:
http://www.bankruptcycanada.com/bankpred2.htm
July 21st, 2007 at 2:49 pm
I have no assets as I am a student. I work full time, take public transit, and generally have nothing of value that could be sold to pay off debts. I am currently on a contract for my cellular phone and have more than 2 years remaining. I do use this phone as a safety precaution as I work late hours. Would a bankruptcy require me to give up the phone, would it cancel the contract?
July 21st, 2007 at 2:54 pm
Chris: You will be able to keep the phone or give it up and have the debt erased. Your choice.
July 21st, 2007 at 3:34 pm
i declared bankruptcy 2 years ago. i paid the trustee $800 out of $1700 so i still owe $900. during this time i moved from quebec to bc. i had a problem with my health and wasn’t able to work enough to pay back the remaining balance. i lost contact with the trustee. at some point i received a letter saying i was supposed to appear in court because the trustee was rejecting by bankruptcy discharge. i was accross the country and didn’t go.
is there a point when i am automatically discharged? obviously i would like to be discharged however i am still unable to work. how can i remedy this situation?
July 21st, 2007 at 4:12 pm
Will everything on my credit report that says included in bankruptcy be taken off my report and even my bankrutcy note be taken off my credit report after the six years from my discharge. Is there anything I have to do at that time or will it all come off automaticly?
July 21st, 2007 at 4:40 pm
Martin: You will not be automatically discharged since the trustee opposed your discharge and you neglected to attend the court hearing. Further more, once the trustee is discharged the stay of proceeding is lifted and you will no longer be protected from creditors seeking to collect the money you still owe them.
You can remedy the situation by getting the $900 in hand and contacting the trustee to see if he will accept the funds and proceed to court to have you discharged. If the trustee refuses you will have to retain an insolvency lawyer to attempt to get you discharge.
July 21st, 2007 at 4:42 pm
Mark: The record of your bankruptcy will be removed six years from the date of your discharge. You will not have to take any action to have this done.
July 21st, 2007 at 8:20 pm
Hi,
My husband and I filed bankruptcy Last April ,2007. My problem is I got a
timeshare in U.S. for 12,000 and still paying for it, But I forgot to mention it to my Trustee . Now, the question is the company where I got my time share send me a T4 slip, with which I could use the amt. for tax purposes but that should be done in U.S tax revenue agency. Will this affect my discharge? What should I do with that timeshare remittance slip? Should I just keep it and not file because it’s not under Canadian Govt.
July 21st, 2007 at 8:33 pm
please keep this confidential and take off my email address in your site.
Thank You