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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 Free Confidential Evaluation.
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 should request a Free Confidential Evaluation.
Please do not ask for a legal opinion. If you want a legal opinion you will have to consult a lawyer.
If I file bankruptcy in Ontario will I be able to keep my car that is worth $5,000?
Sam: You will be able to keep the car in a bankruptcy.
If I have a cosigner on my credit card, and I want to go bankrupt, would my cosigner be penalized for the debt?
Cathy: If you file bankruptcy your cosigner will be responsible for paying the debts he cosigned.
My parents have RIF’s, LIF’s and receive Old Age Security and CPP as income. Are these protected in a bankruptcy?
Judy: RIF’s and LIF’s, are exempt from seizure, except in some provinces the last year’s contribution. All income from these and other sources including OAP and CPP must be reported to the trustee and will determine the payments required to be made to the trustee.
Please refer to:
http://www.bankruptcycanada.ca/BankruptcyTermPredictor.php and
http://www.bankruptcycanada.ca/Bankruptcy-Exemptions.htm
Hello,
I am the guarantor on a SBA loan for my business. I am really struggling financially mostly due to my recent divorce. I am trying to pay bills with one income that we barely paid when there was two incomes. I am planning on filing personally bankruptcy. My business however will still be able to pay the loan. Will this be a problem for the SBA? Is the sba loan dischargeable in a personal bankruptcy? Any advice?
Tamika: “SBA Loan” is an American term not a Canadian one. This is a Canadian website. We can answer Canadian bankruptcy questions only.
My ex-husband just declared bankruptcy. In our divorce papers it states that he was responsibile for making payments for a truck and a fifth-wheel that we co-signed for when we were married. He has just advised me that he has declared bankruptcy. The payments are $1,170.00 a month for another 14 years. The bank will not renegotiate the loan with me. I can’t afford these payments. Is there any way I can sue him or take him to court for putting me in the situation of having to declare bankruptcy.
Dianne: Sorry, but there is nothing you can do as under Canadian law he has the right to file bankruptcy
Is a person in bankruptcy allowed to buy anything on credit?
Jim: While in bankruptcy you are allowed to get up to $1,000.00 in loans or credit purchases. If you want more than this you must first tell the lender you are an undischarged bankrupt.
Once in bankrupcy will my spouses ICBC claim count toward my total income allowed for discharge?
Dave: Her ICBC claim will not count towards your income.
I’m considering filing for personal bankruptcy in Ontario. My mother, sister and myself are three equal title holders on a family vacation lot in Ontario that we purchased jointly in 2007 via a privately financed sale (no banks were involved in the sale, as the previous owner is accepting monthly payments directly from us). My mother is worried that if I file for bankrupcty, that property may be seized, or she and my sister could be forced to sell the property. This is her dream property, and she’s frantic about losing it over my financial difficulties.
Stephan: If you file bankruptcy the equity in your portion of the vacation lot will be available to the trustee for payment to your creditors. Your mother and sister would be allowed to purchase your share from the trustee.
To see the assets exempt from seizure in a bankruptcy please refer to:
http://www.bankruptcycanada.ca/ontario-bankruptcy-exemptions.htm
My home has just gone back to the bank to be sold, now I dont expext they will get whats owing on it . Am I responsible for this? I owe nothing on my credit cards ,and other than this house , my credit is excellent. If I have to go bankrupt to pay for what left owing on my house after the sale what happens to my credit cards and my credit score?
Gwen: You will be responsible for any shortfall on the sale of the house. If you have to file bankruptcy you will have to turn in all your credit cards to the trustee and the credit bureaus will record the fact of your bankruptcy.
After you are discharged from bankruptcy you will have to rebuild your credit. Please refer to the following:
http://www.bankruptcycanada.ca/Credit-Repair-Canada.htm
If I file bankruptcy in british columbia will I be able to keep my work truck who worth less than 2000$ and i have another vehicle still under financing with scotiabank, the fair value of this vehicle is around 20000$ but i still owe 13000$ on the loan.
thanks
Jason: The BC exemptions allow you to keep up to $10,000 of equity in work tools. That would include your truck so you can keep that.
The BC exemptions also allow you to keep equity in a vehicle of up to $5,000. Therefore you can keep the other vehicle if you pay the trustee $2,000. ($20,000 – $13,000 – $5,000). Please refer to:
http://www.bankruptcycanada.ca/bc-bankruptcy-exemptions.htm
I’m a creditor in a Consumer Proposal. It looks to me like the person making the proposal was coached by the trustee, or cleverly stagesd a lot of things perfectly prior to filing her proposal. For instance, her hubby’s credit cards and LOC was cleared to zero balance, her cards floated to $70,000. She leased a new car in hubby’s name just before filing, the new $1000/mo car expense payments took the family ‘excess income’ from 1250/mo to $250/mo. She sold $10,000 worht of leased property so the replacement cost woubd be included in the proposal at a diluted rate. She overstated property tax, cable and phone bills by $150/mo in her budget. She ‘forgot’ to mention that she paid $10,000 off her hubby’s debts, the trustee later recorded this payment as a ‘gift’ from her parents to he hubby. Finally, rather than selling he business as a going concern she closed the doors stating she was so close to solvency that selling the business would have prohibited making a proposal!
The major creditors are banks with credit cards who according to the trustee will write off 60% automatically without reviewing the case.
The trustee won’t return calls, won’t explain a thing! Do Creditors have any rights? Can we hire a trustee to defend our rights?
Mike: The Office of the Superintend of Bankruptcy oversees trustees. You can report this at the following link:
http://strategis.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01003.html
I am a BC resident, on a Persons with Disability disignation. I have always worked in addition to this designation, and have lived within my means. I have worked hard to establish a good credit rating, paying all my bills on time for years and years. I have maintained a bank loan with no cosigner, a Visa used wisely, a line of credit and a %$500 overdraft protection I have never had to tap into. 2 years ago, the non profit establishment I worked with, was closed down, and I lost my position there. Although I immediately started seeking new employment, and did find some part time. I was also beginning to get very sick, from an ailment that no medical person could figure out. I had moved into what I thought was a very nice rental unit, approx 1 year earlier. Long story short, it turned out to be a house that poisoned me. In the end, I was pulled out with respiratory failure, I literally almost choked to death in there. As well as my dog. The nightmare continued. My landlord refused to hire an inspector declaring everything was fine, and I just had a wild imagination. I been had bringing these newfound ailments to my new doctor for over a year, however he just thought it was an acceleration of my original illness, and basically told me there was nothing could be done. I could not accept this, as not only my body but my brain was acting in all kind of painful, and unrelieble ways. I hired my own inspector, and came to find out it was one of the worst cases of cross contamination he had ever seen. There was over a dozen types of mold, including black. The dryer had not been vented outside, and we had been breathing in another dozen toxins from that, over a 2 1/2 year period. The foundation was cracked, and there was water damage inside the walls. The landlords had knowingly put a new roof, on an old wet rotten one, which caused more toxins to leak in through my kitchen, causing me great headaches, nausea, and bodily imbalance. I had no choice but to leave my home immediately. I had to use my credit to stay in a hotel and a bed and breakfast in the beginning. I also had to pay out ove $2000 for all the inspectors. Further, because I had not gathered enough evidence by the time my Residential Hearing came up, I lost the first round to the landlords, ending up owing them almost $20000. I also had a $4000 van, that was not working at the time, the source of my bank loan. That I literally had to give away as a gift, as the landlord demanded I remove it from the property. Also, I had to leave behind all of my best furniture and electronics, as the mold was highly contagious, and had found its way into these items. I was forced to pile what I had left into a couple of storage units, which I am still paying dearly for. I have spent the bulk of the time since, trying to get a proper physical diagnosis, of all that I have been exposed to, and the treatment for it. But no medical person has ever experienced this particular combination of events, in one person’s body. They know nothing about toxic poison, nor has anyone taken one step out of their comfort zone, to research with me the possible diagnosis of being exposed to all of these toxins, on top of my already serious illnesses. I was sent to two specialists and told by one I now have Osteo. And the other agrees I need a neurology examination, but cannot refer me because he is a specialist himself. In the meantime, I am homeless, having lost my office, home, furniture and vehicle, all in one fell swoop. I have been so traumatizied by all of these events, that Ihave blackouts and seizures and other symptoms of PSTD. No one knows what to do with me, and so they shrug and send me on my way, with no answers. As a result, Not only am I still not functioning properly in my mind and body. It was the first time in my life that I was forced to max out my credit, something I swore I would never do. I did speak with my bank manager of 20 years to possibly get an extension of credit til I was back on my feet, but the answer was no. I am still not well enough to work, am paying almost half the income I have on storage units. Am staying with family members, as I now have no home of my own. And I am desperate to find a way through this situation, so I can move forward with a fresh start. I honestly don’t think I should have to pay debts I was forced to occur because of someone else’s dishonesty and misrepresentation. I could prove that too, if I wanted to take them through yet another legal hearing, but I am broken down. I cannot tolerate any more conflict. And like you say, I just want to get a new start. I absolutely do not agree with paying out this money because someone poisoned me for over 2 years. Had they been debts I incurred through irresponsibility, it would be a different story. My question is, is there any different rules for a person with a low income, on a Disability pension, in terms of applying for Bankruptcy. $200 is a lot from my pension, which would mean I would not even be able to entertain the idea of getting my own home again, until that was paid off. And I can’t create a new office to make money again, until I have a home of my own again. And am able to bring my work tools out of storage. Can you please advise me if there is any different rules or regulations regarding a Person With Disabilities. Such as lower payments per month. My monthly income without working is only $940 per month. How can someone like me be helped by your service?
Thank you for your reply.
Marnie: Since you are on a Disability Pension you are probably judgement proof and therefore do not have to file bankruptcy to get protection from your creditors.
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.
Also see:
http://www.bankruptcycanada.ca/bc-bankruptcy-exemptions.htm
Someone owes money to me. They claimed bankrupty over 6 years ago however, never included the debt to me in their bankrupty filing and had signed a legal document acknowledging their debt to me along with a payment schedule. They have been making payments all this time, however, have now stopped. Can they go back after 6 years and now add my debt to their bankruptcy protection? Can I pursue them under small claims court?
Julia: The debt to you is included in the bankruptcy even if the bankrupt did not list you as one of his debts. The responsibility, since the bankrupt did not list the debt, is that the bankrupt has to pay you the amount of the dividend you would have received had your debt been listed.
Section 178 (1) (f):
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;
Hi I claimed personal bankruptcy approx 7 yrs ago and didnt fullfill any of the requirements I needed to do . Mainly didnt pay for it . What happens now and how do i pay for it ?
If I file for bankrupcy on a $25,000 credit card debt and I have a little bit of money (around $5,000) in my bank account, will my bank account be wiped or will I go on a payment system?
Chris: Since you didn’t complete your bankruptcy all your debt is still owed and the creditors can pursue you for collection. You can contact your trustee to see what can be done or retain an insolvency lawyer to get your discharge from bankruptcy.
Angela: If you file bankruptcy and if the funds are with the same bank you owe credit cards debt to then the bank has the right of set off and can take the funds to pay down their debt.
I am filing my 2011 income tax return, my husband filed bankruptcy in 2011, I am filing alone but have to state my marital status and my spouse’s income, what do I enter as his income for 2011???? My tax program is allowing me his personal tax credits and I a worried that it is making my refund too high.
Lisa: I suggest you contact your husband’s trustee to ensure you are each handling this correctly. The simple answer to the question: “What do I enter as his income?” is to enter the income on his T4 and/or other documents. His bankruptcy will not affect how his income is reported.
We had an incorporated company which claimed bankruptcy and he claimed personal bankruptcy..there are no T4′s or income to report.
Lisa: The company should have issued T4s or other confirmation of income. Contact the trustee who handled the company bankruptcy.
Good morning – thank you for offering to help.
my husband loaned someone $22,000 in 2008/9 – we have been requestesting repayment since nov 2009, and were told last year that the person has filied for bankruptcy – we werent aware of it. – and he continues to promise every month, but then disappears – because he has family ties with my husband’s family, we wanted to sort this out amicably – his brother got involved, and is asking for more time – a few more months- however, i dont trust them. i do understand that we can sue in small claims court in ontario for amounts upto $25,000 – now, the question is, that since he has filed for bankruptcy, do we have any hope for repayment, should we choose to sue in small claims court – from the very little research that i did, my second question is, that at the time of filing for bankruptcy, should he have not disclosed that he owes us money too….if he hasnt, would that equal to perjury or not….based on that, can we do something…
also, since my husband knows their family for years, we are fully aware that he owns substantial property in his native country, which it seems has not been disclosed, or the liquidaiton of that property would have eased all loans….can that help our case in anyway?
I eagerly and anxiously await your reply please…i truly appreciate your help!
Tabu: The fact he did not disclose the debt to your husband when he filed bankruptcy does not change the fact that the debt to your husband has been erased in the bankruptcy. BIA 178.1(f).
His property in his home country should have been included in the bankruptcy, sold and distributed to his creditors.
You can report this to his trustee and the Office of the Superintendent of Bankruptcy:
http://strategis.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01003.html
thank you so much for your reply. I am sorry, but i dont grasp what you mean by saying that the debt he owed to my husband has been erased in the bankruptcy? is it included in his liabilities, or not. Is there any recourse, any hope of us retrieving our funds?
thanks for your help.
We filed for Personal Bankruptcy in July, 2011. The reason being that our small retail store failed due to many factors. We used my personal credit cards to cover business expenses which we could not cover the payments from the business revenues. Initially I was going to go bankrupt as it was my credit cards that covered the expenses, my wife’s name was not on the credit card responsibility. Our Trustee knew what our individual incomes were: my CPP and OAS pensions and her WSIB pension, which was a little over $3000 per month, well over the stated standard of $2398 for 2 people, with my wife’s being more than 1/2 of mine. The Trustee then told us that it would be better for both of us to go bankrupt to keep the creditors from claiming her pension as part of our total income. We took his advice at face value and both declared bankruptcy. We were then told that it would be a 9 month bankcuptcy at $175 per month. As you can see we were below the standard from the beginning. In the 8th month, now we were told that we make too much income and now it is a 21 month bankruptcy at $376. per month. This information addresses the question of Are my Spouses Assets & Liabilities affected by the Bankruptcy, she only had 1 credit card with less than $2000 on it. Also I do not understand the question What about my Wages during the Bankrupcy. I did not get a job as it would have cost us half of the wages which was not a benefit to us. Even if I did get a job the answer is the Trustee does not normally after the start of the bankruptcy interfere with thw wages, but there are standards supplied to the Trustee to collect funds. My question is what applies if I get a job according to my instructions I have to give back 1/2 of my wages.
Peter: Our calculator will tell you how much has to be paid as excess income:
http://www.bankruptcycanada.ca/BankruptcyTermPredictor.php
My husband was bankrupt and had a lawsuit against him for non-payment of a debt that he didn’t know was going on. During his bankruptcy, there was a judgment made. I thought they couldn’t put a judgment on a bankrupt person. How do we go about getting this judgment removed? Is there something in the bankruptcy laws we should point out to the court? Or will he have to pay?
Jenny: So long as that was a debt outstanding as at the date of bankruptcy the judgement debt is included in the bankruptcy even if your husband did not list that debt. Further, there was a stay of proceeding in effect which prohibited the creditor from taking any action such as getting a judgement. If your husband did not list the debt, his responsibility is to pay the creditor the amount of the dividend he would have received had the debt been listed.
Section 178 (1) (f):
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;
You husband should give the creditor proof of his discharge from bankruptcy and ask him to remove the lien. Failing that, he will have to go to court to have the court remove the lien.
I was awarded a settlement of a debt against a party. The party wished to be placed on a payment plan and notified the small claims court while we were there. He wished to pay me within 60 days a lump sum, then a payment plan every month, if I didn’t garnish his wages. After 60 days he never paid, and I found out he’d quit his job after our court date where he told the court he wanted to make a payment plan. He then instructed me that he would make arrangements to pay me. He filed for bankruptcy, and had the papers sent to my lawyer.
Will I get paid everything he owes me?
Can I take him to court further because he has now lied to the courts about his intentions of paying me?
His mother is worth millions, but won’t help him, n’or will his father.
He’s also working cash jobs which I can prove, yet claims he has nothing. Pays his rent and a cell phone…
Any help or advice is greatly appreciated.
Denis: His debt to you will be erased in the bankruptcy. If you feel he is doing something that violates the Bankruptcy and Insolvency Act you can report that to the Office of the Superintendent of Bankruptcy:
http://strategis.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01003.html
I live in NS and have credit card debt amounting to $21000. My husband and I have a mortgage of $99000 and a shared credit card debt through the same bank as the mortgage of $62000. If we both declared bankruptcy could we be forced to move with our 2 children?
Elaina: You did not say how much the house is worth. However, assuming it is worth more than the mortgage by a factor of 20% would puts its value at about $120,000. That means you have $58,0000 in equity in the home and are not a candidate for bankruptcy.
I live in Ontario and am considering filing a consumer proposal. I have a student LOC with TD that is currently in repayment (I graduated 8 yrs ago). This particular LOC was co-signed by my grandfather as an unsecured debt. My grandfather passed away 6 years ago.
If I file a consumer proposal will they go after my grandfather’s estate or my grandmother for the LOC? My grandmother lives in poverty and cannot afford to be responsible for this debt.
Amber: If you file a consumer proposal the bank can go after your grandfather’s estate. The bank cannot pursue collection from your grandmother if she didn’t guarantee the loan.
My husband and I have been separated for just under a year. He has been paying me money during this time for child support and for our joint debt. The amount that he’s been giving me each month has been enough to cover the the child support but was not enough to cover the outstanding debt load. He has said that he will be declaring bankruptcy in the next few weeks and I was wondering if it would be worthwhile to sue him in small claims to make up his short comings in paying the debt. If he claims bankruptcy will I still be left paying for the outstanding depts we incurred while he walks away?
My elderly, unwell mother is contemplating bankruptcy, as her failing health and rising costs are making it impossible for her to meet all her obligations. Her main concern is that she has been paying into pre-paid funeral plan for a few years and doesn’t want that removed/wiped out by filing for bankruptcy, as she doesn’t want us to be burdoned with the cost of her funeral. Will she be able to continue with the pre-paid funeral plan?
Thanks
Alliston: If he goes bankrupt he will still be obligated to pay spousal and child support but will have his other debt erased. Once he files no one can pursue him for this debt. Even if you get a small claims judgement a bankruptcy will erase it.
Elsie: If the prepaid funeral plan is something she can collapse then it would probably belong to the bankruptcy estate for the benefit of the creditors. One would have to know the terms of the agreement to be certain.
I have just had a judgement against me personally that will survive bankruptcy do to a company I co owned’s civil lawsuit. I do not have any assets in my name and my wife owns our house 100% from when it was bought 5 years ago she works and can support the mortgage. The mortgage is in her name and I am a guarantor. Is the house safe from the creditor?
I would like to know as an ex military if my disability pension from veteran affair canada should be include on my monthly income and expense statement. The reason I ask is because this is not considered an income it is a disability benefits
intended to compensate CF members for impairments to their quality of life and limitations on their activities of daily living.?
Robert: Your military disability pension is considered income for the purpose of calculating payments required to be made to the bankruptcy estate.
I had a separation agreement drafted and a few months later declared bankruptcy. In the agreement, I was supposed to be responsible for a joint debt amounting to about 15K. In the agreement, it states, \one party’s indemnification of the other with respect to a debt will be enforceable as a consent to judgement…..\ Will this clause be void and unenforceable due to my bankruptcy? Does she have any recourse? Thanks so much!
i’m just recently separated and was left with all the debt. About $16000 worth. I also own a home that is worth probably 115000 with 95000 owing. The problem is that i have a cosigner on the mortgage. What would happen to the house?
Jason: You bankruptcy will erase the terms of the Agreement and your ex will have no recourse.