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Wes Cowan: Chartered Insolvency and Restructuring Professional, Trustee in Bankruptcy
In the past 11 years I have met many people who found themselves or their businesses in financial difficulty. Finding solutions to these problems is what I enjoy doing. As a former employee of the Canada Revenue Agency (“Revenue Canada”), I can offer unique insights on tax related debt. Having lived and worked in both rural and urban settings, I understand issues that are particular to each. My family and I call Kitchener home, where I continue to serve our area’s residents as Trustee. If you have concerns about money and need help call me for a FREE CONSULTATION. 519.725.3829
747 comments:
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As you have already filed for bankruptcy, I encourage you to talk to your Trustee about your situation as there are several different answers depending on your specific situation. Your Trustee already knows all of your personal details so can give you a much more accurate response.
Kind regards,
Liz
re: Directors Liability
If you filed a personal consumer proposal in 2003, your directors liabilities would have been covered by your proposal. If you would like some reassurance, contact your Trustee whom you filed with and they can confirm this for you.
Regards,
Liz
re: Ripping off everyone.
This is an unfortunate situation. The purpose of the Bankruptcy and Insolvency Act is to provide the honest but unfortunate debtor with a chance to be relieved of their debt subject to certain conditions.
If you are aware of fraud, I encourage you to provide details to the Trustee of the Office of the Superintendent of Bankruptcy. This can be done anonymously. The Trustee and OSB will investigate further.
As to what can happen... it really depends on the particulars of what, if anything they find the person guilty of. They may receive an order which requires them to turn over the assets, pay an amount to their creditors, receive a suspended discharge for a period of time, be investigated by the RCMP (in very serious cases) or sadly, nothing may happen if nothing can be proven.
Hope this answers your question.
Liz
WHEN YOU FILE BANCKRUPCY WHAT KIND OF QUESTION DO THE TRUSTEE ASK?
When you meet with a Trustee, they will ask you questions about your financial situation including your income, liabilites, assets, your income taxes and about your family situation.
Alll of these questions are designed to help give you the best advise for your particular siutation.
Hope this helps,
Liz
I lost everything about two years ago. I have been trying to pay what I can since then. I have two rental arrears judements against me totalling $20000.00.
I am at my wits end, as the more I try and pay what I can, the more things from the past come up, and I end up going in circles, not being able to keep up. As of now, I also know that it is virtually impossible to pay the rental arrears in my lifetime.
I have lawyers writing letters, threatening enforcement, and I am not sure how much more I can sanely take.
IF A CONSUMER PROPOSAL IS ACCEPTED, HOW MUCH OF EACH 1 DOLLAR PAID GOES TO THE CREDITORS AND HOW MUCH TO THE TRUSTEE?
Hi Cameraware,
I feel for your situation. So often, people struggle for years to get ahead.
Without knowing alot more about your siutation, it is hard for me to give you advise. Based on what you have indicated, you may qualify to file either a proposal or a bankruptcy which will help you eliminate those rental judgements.
Give us a call and we can book a consult to get more info for you. This consult is free and there is no obligation.
Hope this helps.
Liz
Hi Anonymous,
For a consumer proposal, the fees paid to the Administrator are set and regulated by the government and the Courts. Each trustee in Canada is paid the exact same amount.
Under the current Administrator, the Trustee receives $1,600 to prepare and file the proposal and then 20% of the distribution to cover the cost of dealing with your creditors for several years. These are taken from your monthly proposal payment and are NOT an additional cost.
I trust this is what you are looking for.
Liz
Hello
My Father in Law is retired and 76 years old. He has no personal assets,no money,rents a house and with utilities spends about $1000.00 a month. He owes $19000.00 on his Visa,$10,000.00 on a bank loan,and then another bank loaned him money about 6 months ago to buy a car at $21000.00. About 2 months ago the bank reposessed the car and are now demanding he pay them $14000.00. His Canada Pension,Old Age Security,Company Pension and WSIB Pension total about $2600.00 a month. What are his options?
Lou
Hi Lou,
It is hard to advise what a persons options are over the internet as there are so many more details which I would need to know. In general, the options are:
Maintain the status quo (do nothing) - while an option, generally not a good option.
Monthly budgeting and credit counselling - a person may simply need some help restructuring their debt (ie: getting a lower interest rate or getting interest stopped) and help with their budgeting. Once these tools are utilized, a person is able to manage thier debts.
Filing a proposal - this is a process where you offer to pay your creditors back a portion of the debt. Considering your FIL's income, he may qualify for this depending on his health and other family issues.
Bankruptcy - this is a process, where in exchange for the person completing certain duties and conditions, there debt is eliminated. Considering your FIL's age, this may be the more appropriate option.
Get in touch with a Trustee close to you. They will let you know all the pro's and con's of each option once they know more details about your FIL's specific situation. The first consult is free and their is NO obligation. Our offices across Canada can be reached at 1-888-PwC-Debt.
Hope this helps.
Liz
On may 31st it will be 6 years to the date for my discharge. Equifax states they purge bankruptcies after 6 years from the date of discharge, Transunion on the other hand says it 7 years based on it being in Ontario. Is there a law stating for Ontario how long it should be? This is from their website (transunion) it also listed other provinces at being at 6 but Ontario at 7,is the minumum 6 or is it 7? Just trying to find out if their is a law on it or if they use their own policy.
I am considering filing for bankrupt. I have a secured loan on my truck in the amount of 28.000 plus many other side debts. I am currently three truck payments behind and getting pretty desperate. If I filed for bankruptcy what would happen to my co-signer for the truck loan? also would I lose my RRSP's (not sure if they are locked in or not...I could'nt withdraw any when I tried). I rally don't want to go bankrupt. Your advice would be really appreciated. Thank you
Matt
Good morning,
In Ontario, your bankruptcy will be on your credit report for 6 years from your date of discharge.
Regards,
Liz
Good morning Matt,
Thanks for the question. It is virtually impossible for me to let someone know over the internet if they should file for bankruptcy. I would need to know more about you and your situation before I could give that advice. It may be that a proposal or perhaps, credit counselling might be the better option for you once we take a look at your siutation.
If you did file for bankruptcy, you have a few options for your truck- you catch up on those payments to get yourself current or try to negotiate a different payment plan with the secured creditor. If you can't afford the vehicle, it will be repossessed and sold at auction. Once sold, the secured creditor will look to the co-signer for payment of the shortfall (assuming you have filed a proposal or bankruptcy).
For your RRSP's, I can't advise what will happen to them without knowing the type, if they are locked in, what company they are with, if it is pension rollover, if there is a beneficiary and so on. Many RRSP's cannot be touched by creditors based on these factors. Depending on the value of your RRSP's, this might be the solution to your current siutation.
I hope this helps.
Liz
I am waiting for the new bankruptcy laws to come into force because of the 5 years rule for government student loans in the new law. In the meantime one of the student line of credit provider sent me a formal demand letter requesting complete payment of outstanding balance (100,000) or face legal and/or collection action. I was hoping to wait until the new law comes into force so I can also include my government loans as well. What will happen if the bank goes to court for the money I owe? Should I file bankruptcy before they go to court? Or just wait until the new law comes into force? For your information, I am not employed, do not own a vehicle and have no assets. Hope you can help.
Hi Anonymous,
Without knowing more about your specific situation, my gut reaction would still be to wait until the new laws come into effect. If the creditor does decide to pursue their claim in court, make sure you attend the court hearing and explain your situation. If you have no income or assets, you are likely judgement proof - but you have to attend court to explain this.
Hope this helps.
Liz
Hi!! I filed a bankruptcy in November of 2007. I was basically a student in a huge amount of debt. Right now I'm not working or in school and my parents want to travel in June of 2008. They are not aware of the bankruptcy and purchased a flight ticket for me. I couldn't find any info on whether or not I can leave the country and if them buying a flight ticket is a gift and something I have to report and, potentially, not be able to go. What are the rules?
I filed for bankruptsy Oct/05.I was adviced to resign as director of my Corporation,(I had no employee's)and seize operations.I am now being requested by the CRA to file my corprate taxes for 2005.Since I'm no longer the director and the business no longer operating do I need to do this.
Thanks
re: travel plans
Good news! While you are in bankruptcy, you are allowed to leave the country. Just let your Trustee know when you are leaving and returning.
Regards,
Liz
My girlfriend obtained a student loan for $6,930 in Oct 98 and declared bankruptcy in Oct 99. The bankruptcy papers show:
Canada Student Loans Pgm $5,000
Ontario Student Loans $4000
The loans were not discharged thru the bankruptcy and she never made any payments towards them. This year they took her income tax refund of $2,000 but one collection agency is saying she still owes $5,200 and another one is claiming she owes $11,000.
Initially I thought it was one and the same debt but the collection agency asking for $11,000 is saying part of what they want is a bank risk portion.
My question is... the loan was granted in Oct '98. If she declares bankruptcy at the end of this year or beginning of next can the student loans be included?
She has the discharge from the first bankruptcy so that is in the past.
We have been on the verge of bankruptcy for almost a year. We ceased making payments altogether 3 or 4 months ago and have just been ignoring phone calls and messages from the credit card companies. Now a message from one of them offers to settle for 1/10th of the total owed (which is close to $8,000), and they are willing to take it in 3 or 4 increments, then it would be finished. So I called her to talk about it as that might actually be doable for us. I must say that they really have been quite cordial and sound very sincere in their offers to try to help us, while some of the others are much more abrasive in their manner. The credit manager of this particular credit card company suggested that I approach all our other creditors and see if they will settle in a similar matter which would be much better for us than bankruptcy and wouldn't affect us any more than we are already being affected by our long overdue payments at this point = much more easily and quickly repaired. She said that if I do approach them with this suggestion, they either agree to settle - as their company is offering to do - for .10 cents on the dollar, or we should just tell them that we are going bankrupt in which case they get nothing. She said they will quite likely take it.
Is this what amounts to a consumer proposal that we are talking about here? (They approached US with this offer.) How is this viewed by the credit reporting agencies - as a proposal, or what? How official is it likely to get? She said if I want to do it, I should let her know and she will do up a letter. Would it have to be legally set up with a trustee or some such person overseeing it? Would we be able to use a credit card during that time? And what will happen if we cannot pay even these reduced totals and find that we have to do the bankruptcy after all? Would the failed commitments, and then a bankruptcy on top of that affect us the same as 2 bankruptcies?
Thank you.
Good morning,
As the last Director on record for the company, you are indeed responsible to file the tax returns. Technically, CRA could take legal action against you for failure to file. The reality is that if the corporation is without assets and has not operated since your bankruptcy, CRA will not really pursue it other than to bug you periodically. If you want to get rid of CRA once and for all, file the returns, even if they are 'nils'
Hope this helps.
Liz
re: student loans
Thanks for your question. The important date for student loans is when someone ceased to be a full or part time student. The date the loan was granted is not relevant.
Current law states that the debt can be forgiven 10 years after they ceased to be a student so your girlfriend would have to have finished school no later than April 1998 to have them forgiven today(which I doubt is the case as she got the loan in October 1998).
There are amendments to this law being considered which will forgive student loans which are greater than 7 years old but this law is not yet in effect and is still being debated.
Hope this is useful info for you.
Liz
Hi Anonymous,
An informal settlement (as your creditor is offering you) is different from a consumer proposal. A settlement is only an agreeement between you and one creditor. If you do settle, make sure you get it in writing that the remainder of your debt is absolutely forgiven and they will not pursue for payment in the future. You will have negotiate a settlement with each your creditors and some may not be willing to negotiate with you. Informal settlements usually work best when you only have one or two creditors.
A consumer proposal is a process where a Trustee (called the Adminsitrator) helps you to formulate a plan to all of your creditors. Once this plan is accepted by your creditors, it is legally binding on all of your creditors and they cannot come after you for the shortfall once your proposal has been paid in full.
As for your credit rating, the credit rating scale is 1 to 9. 1 is great and 9 is not. As you have already missed many payments and have been ignoring your phone, I can pretty much guarantee that your credit rating is already at a 9.
Filing a consumer proposal in this case may actually help your credit rating as it will show as a 7 on your credit report.
As for your other questions, I encourage you to ask your Administrator this questions during a consult. The first one is always free and their is no obligation to file. It is a great opportunity to get the facts so you can make an informed choice about your finances.
Hope this helps.
Liz
If i don't have any surplus income over the next 9 months and i have no assets then what is the approximate Total cost for backruptcy over the 9 months that i have to pay my trustee and counselling.
Hi Anonymous,
The answer to your question really depends on where you live and your financial situation including your monthly income (even if you have no surplus) GST credits, tax refunds etc.
When you met with a Trustee, they will review the payment schedule with you.
Regards,
Liz
I've decided on filing for bankruptcy. I have been out of university since August 2007. so OSAP loan will not be discharged. I am planning to apply for my masters degree. Will I be able to get more funds from OSAP since I will be still paying them?
Good news!
You should have no problem getting more OSAP. They will probably ask your Trustee for a letter saying that they will not take the funds for creditors... this is pretty standard.
Hope this helps.
Cheers,
Liz
We sold our house and after everything was paid we still owe the real estate agent $9500.00. Can we include this debt for bankruptcy?
When filing for bankruptcy after the 7 years is done. Does the bankruptcy ever show up on your credit report? The reason I ask is that I want to rebuild my credit and get a credit card and on the application it asks if you have ever been bankrupt. Do you I need to say yes? I do not want to lie but I want to get a credit card and technically I am no longer bankrupt.
I have not filed for 6 years for my income tax. I am going to file all 6 years this week but I think I might go bankrupt. If I go bankrupt and I owe income tax. Can I include the income tax with my other debts for bankruptcy???
Do you have to go to court when filing for bakruptcy?
I've looked over quite a few comments...Is it 6 years or 7 years for an Ontario bankruptcy? This would be my first bankruptcy. From my understanding it is technically 6 years 9 months?
re: real estate commission
The good news - the debt owing to your real estate agent can be included in your bankruptcy.
Cheers,
Liz
Good morning,
Any notation regarding a bankruptcy should be purged from your credit report, 6 years from your date of discharge (assuming this is a first bankruptcy). Errors are common so ensure you review your credit report. I take a look at my own once a year. This is also a good way to prevent identity theft. If you find any errors, report them directly to the credit bureau.
If any credit application asks if you have ever been bankrupt before, then I would suggest that you answer truthfully.
Hope this helps.
Liz
re: income tax debt.
Good news - income tax debt can be included in your bankruptcy.
Cheers,
Liz
re: Court
Most people who file for bankruptcy do not have to go to Court. There are many exceptions to this rule though - if it is your second bankruptcy or you do not comply with your bankruptcy duties for example, you will have to attend in Court. It is usually a very short hearing (less than 10 minutes).
The requirement to attend in Court also differs from city to city so this information is only applicable to the City of London and surrounding areas.
Hope this helps.
Liz
I have a partner with a business in another city where he resides all week and lives and pays for lodging at his daughters home. We have filed our taxes together and he has my address on his drivers license. He does not have his name on any of my bank accounts, house or assests nor does he contribute at this end. The same applies from his end as my name is not on any bank cards,car, or his sole proprietor business. Should he declare bankrupcy am I liable in any way as we did file our taxes together? Your answer is greatly appreciated. Thank you.
Good afternoon,
Assuming that your partner is your significant other type of partner and not business partner, and assuming by taxes, you mean your personal tax return and not a business related return... then no, you can not be held responsible for your significant others income tax debt even if you filed your personal tax return as common law or equivalent.
Hope this helps.
Liz
It has been over 11 years since i last atended school and from my understanding i can include my student loans in bankruptcy.Question1)Does the trustee contact my university to get the last day i attended or do i have to contact my school to get something in writing before is see a trustee?I renogotiated my student loans a few years back with the bank but am unable to pay due to unemployment.Question 2)Does this renogotiaton matter since the Bankruptcy act says 10 years from the last day i attended school.
Good morning Anonymous
When you file for bankruptcy, we send a copy of your bankruptcy papers to the Student Loans office. They in turn send us back a claim.
The only date that is relevant is the date you ceased to become a full or part time student. If you renegotiated your loans, this will not be the date they use.
Hope this helps!
Liz
I will most likely be taken to court by a bank that I owe large amount of money. I am unemployed but recently bought a 9 year old vehicle worth $1000. Can the bank take the car away from me?
My mother, who lives in Sudbury, was released last year from bankruptcy. When she applied for bankruptcy she was asked to provide her life insurance policy number and was told if anything happened to her the money would be directed to the trustee. She now has a terminal illness and was told to get her affairs in order. The insurance policy is for only 2,500.00 and was only taken out to cover minimal funeral costs. Will the policy still go to them even if she has been released.
I have had a hard time keeping up with student loans(7yrs as of this aug)/line of credit/visas and my parents bills! i have put myself in debt trying to pay my parents bills for the last 3yrs. I have supplementary visa cards with my father. He is 65yr and not working due to health. Collecting CPP and old age recently. i was thinking my dad could go bankrupt but since we have joint accounts looks like i will need to as well :( i have 2004 convertible still oweing $7000. I need this vehicle to get to work since no public transportation is avaiable at the times i start myshift.i don't have a house I rent and my parents live with me. my mom has health problems too but she works part-time to pay her meds and bills,
Can they take my car away? And should I wait for the new studentloan laws to take effect before claiming bankruptcy? i have been out of university since aug 2001.
Hi Elizabeth,
I wanted to thank you for providing this forum!
I am about to register for bankruptcy and have about $5000 in the bank that would enable our family to exits for a couple months . . . will these funds be transferred to the Trustee?!?
Can I make a withdrawl before the time I declare?
cp
Hi Anonymous,
Thank you for your question about your financial situation. You must be a good son to be paying your parents bills.
It is hard for me to answer the questions you have asked without more information but here is some general information that might help...
For your parents, if they have no assets and limited income they are likely judgement proof. This means a creditor will not be successful if they pursue your parents in Court. You might want to look into this.
For you car, your ability to keep it will depend on several factors including : did you give it as security to a creditor, have you missed any payments, who do you owe the money to? In most situations, arrangements can be made to keep a vehicle.
For your student loans, I can't give you advise as to whether or not you should wait without knowing much more about your situation including the amount of your loans. The latest information I have received indicates that the changes (changing the 10 year limit to 7 years) might come into effect by the end of the year but is not guaranteed.
I hope this info helps. Have a good long weekend.
Liz
Hi CP,
You can make a withdrawal from your account but you must report any assets (including large amounts of cash) which you have disposed of in the 12 months prior to your bankruptcy filing to the Trustee and your creditors. You will be asked to swear this information under Oath when you file your bankruptcy documents.
Hope this helps.
Liz
Hi Liz,
So my question about the funds I currently have being turned over to the Trustee, I'm guessing that this is the case. How does one support their family if this is the case or is there a formula provided that allows for these funds to be alloted for monthly expenses . . . such as the $3600 (approx.) a month for a family of 4.
CP
We are about to sign into bankruptcy as soon as we do our taxes from several years. I do mean several. The trustee told us to just do them up as "0" income years since it is all going to be written off anyway.
My question is: What happens about our CPP and OAP? We have paid in plenty in past years, but the years in question will be zero. We are in the early 60's and I was wondering if we can expect to get any CPP benefits under these circumstances when the time comes and/or how much it will be affected by this? Obviously we will not have any retirement funds as our RRSP's etc. went a long time ago to try to keep ourselves afloat after several serious setbacks. We have always been self employed so we had no other retirement plans either. So we will really be depending on gov't pensions.
Thanks
Hi Anonymous,
Here is some tax info which I believe will answer your question.
CPP benefit amounts in retirement are directly linked to the amount of contributions paid over the years and the number of years that one contributes. OAS, on the other hand, is universally paid to Canadian citizens of qualifying age, but the amount of OAS paid (up to a maximum) is related to the amount of other income the person has (the infamous 'claw back' provisions).
Regarding CPP, if a person is self-employed in a sole proprietorship or partnership, they are required to contribute both the employer and employee portions of CPP. This is normally paid as part of income tax based on the tax return filed for that year. If the return hasn't been filed, then the CPP owing has never been calculated and therefore never paid. Alternatively, if someone is self-employed by having their own corporation and are paid a wage on which the CPP is calculated, then assuming that the T4 Slips and T4 Summary were filed with CRA, the CPP contributions will be recorded as having been paid (even if the corporation failed to make the remittances).
If you were self-employed as a sole-proprietor or partner, then there will be little impact of filing your back tax returns as either $0 or the actual income if you will never pay the CPP balances owing (i.e. because of a bankruptcy). Alternatively, if CRA has T4s on file showing the CPP paid, then you will be given credit for those CPP contributions. CPP occasionally sends out a summary showing your contributions over the years and your eligibility for the CPP pension. Presumably you can request these summaries at any time from HRDC.
Hope this helps.
Liz
Hi Elizabeth
I am currently in a consumer proposal and my last payment will be September/08.
I have asked this question to the Trustee and the accountant who are hadnling my case and got a different answer from each. I am confused and don't know which person to listen to so I am asking you. Am I able to sell me house prior to making all my proposal payments? Any help would be greatly appreciated. I need to move closer to work and my babysitter, I am spending way too much money for gas and it's getting hard to make ends meet and I'm scared of defaulting on my payments. Thank you for your time.
I have had a personal side business that has lost a fair amount of money, I am insolvent, I am 75 years old, and have a pension & Cpp & old age, I own nothing...what will happen to my pension, my wife does not work we live on our pension and trying to pay off debt, and the phone calls and debts keep rising, I can not keep up!! What should I do??
Quick question in Ontario.Where does it say in the Collection agencies act or the Bankruptcy act that a creditor or collection agent has to stop calling the debtor after they are notified of the bankruptcy by the trustee.I am reading online that people are still getting calls from collection agencies weeks after filing bankruptcy.
I live in Toronto and was wondering if after i file bankruptcy can a creditor sell my account to another company to get them to hound me or do they have to hold on to it.
Good morning,
If you have filed a proposal, you will need to look at the wording of your proposal to find out if your can sell your house for certain. If there is a limitation on your ability to sell your house (which I doubt) it will be written into the proposal.
Usually, you are free to do want you want with your house when you have filed a proposal.
Hope this helps.
Liz
Re: selling accounts
Any creditor can sell their account to anyone at anytime but it does not give the new owner the right to pursue you for payment of debt if you have filed for bankruptcy. All they can do is file a claim with the bankruptcy trustee.
Hope this helps.
Liz
re: Collection Agencies
I can't site the section of the BIA off the top of my head but I can assure you that is normal to get calls for several weeks after the bankruptcy. Creditors, or collection agencies call as they are not aware of the bankruptcy. Direct them to your Trustee whom will confirm the bankruptcy over the phone and send them creditor information. This will stop the calls.
Hope this helps.
Liz
Good morning anonymous,
I feel for your situation. I would love to be able to tell you right now what your options are so you can get some relief but unfortunately I cannot tell you what you should do without alot more information.
My best recommendation is that you call a Trustee and set up a consult. There is no charge for the initial consultation and there is no obligation to file. This consult is a great way to get advice that takes your personal facts into consideration. Once you have all the details, you can make an informed choice about your financial future and the options which are available to help you.
Please do not hesitate to call 888-PwC-Debt (792-3328) if you would like one of these free consults.
Hope this helps.
Liz
I'm 23 years old and my sole income has been O.D.S.P. (Ontario Disability) for the past 4 years due to a developmental disability.
I'm in debt about $1200 to Visa and have been getting letters saying that I need to either pay $250 this month or the entire balance owing will have to be paid at once.
Now after rent, I only have about $325 left over for food and necessities to begin with - So needless to say, either option is impossible for me right now.
I've been trying to do some research online, because I know nothing about financial law - and I discovered a term called "judgment proof"
Would I be considered "judgment proof"? and what would my best option be?
Hi Kyle,
Thanks for your question. One of your most powerful weapons against your creditors is explaining to them that you are "judgment proof." Being judgment proof simply means that you do not have any income or assets which can be used to pay your creditors which may be your case (you did not mention if you had any assets). Any property you have such as household furniture and effects and clothes are generally "exempt" from seizure and cannot be taken by your creditors to pay your debts. Even if your creditors have asked a bailiff or Sheriff to take your property to satisfy a court judgment against you, your exempt property cannot be taken. To be judgment proof, you do not need to do anything. The expression "judgment proof" simply describes the condition of a person who has nothing a creditor can take.
I would suggest that you write a letter to your creditor explaining your siutation to see if this would help.
Let me know if you need anything else.
Regards,
Liz
Hello,
My Wife and I are going to have to declare bankruptcy in the next few months we owe over $100,000 in credit card and lines of credit. We are in the process of selling our house to pay off the mortgage and move into a rental. I have two questions..
First if there are any profits from the sale of the house after paying the mortgage and fee's can they be given to another family member to assist them in anyway. Or would that not be allowed?
Also once we have declared bankruptcy we were told we were allowed approximately $2300 a month and anything over that was "surplus" and 50% would go to the creditors. What if our expenses (rent, food, etc) exceeds the $2300? Are we then required to pay out money we don't have each month?
Thanks in advance...
Thanks for the question. When you file for bankuptcy, you must disclose details of any real estate sold in the last five years as well as what happened to the proceeds received from the sale. Creditors might take issue with you giving the money to a family member when you could have used it to pay your debt.
For surplus income, the guideline for a family of 2 is $2,286. 50% of any surplus above this amount must be paid to the Trustee. This will require budgeting on your part is these payments are not solely based on your income, not on your expenses. When you file for bankruptcy, you will have to attend two counselling sessions which will help you establish a family budget so you can learn to live on this income.
Hope this helps.
Liz
Thanks for the prompt reply. The rent for the place we are moving into plus the cost of living, (food, etc.) will exceed the 2,286. I will be closer to $3000. (Living in Toronto is expensive.). My income is around $4300 a month. Does that mean i can't move into the place i already rented? And need to find something cheaper? I would not be possible at all to live within that amount when rent alone, is almost $2000. IS there any options?
Good morning,
You don't necessarily need to find somewhere else to live. As I had indicated previously, the most important thing in your situation is budgeting. Consider whether or not you really need a place that costs $2,000 per month. Often, the line between needs and wants is very blurry. Either way, if your rent is more as you live in Toronto, as a family you will need to work on your budget to reduce other costs such as transportation, cell phone, cable, food, entertainment etc. As long as you make the required payment to the Trustee, they are not going to take issue with how you spend your money unless they can help you to spend it more wisely.
Hope this helps.
Liz
I am in a situation where I am the sole director of a corporation that has no employees. I have to file for personal bankruptcy. I actually I have been putting it off for over a year in hopes that financial matters would turn around. They have gotten worse not better. My question is this: I work and draw an income from my corporation - but if I declare for personal bankruptcy does that mean that I am out of a job?
Concerned and confused.
(Thank-you for this site - it has been extremely informative)
I am in a situation where I am the sole director of a corporation that has no employees. I have to file for personal bankruptcy. I actually I have been putting it off for over a year in hopes that financial matters would turn around. They have gotten worse not better. My question is this: I work and draw an income from my corporation - but if I declare for personal bankruptcy does that mean that I am out of a job?
Concerned and confused.
(Thank-you for this site - it has been extremely informative)
Dear Concerned and Confused,
I'm sorry to hear that things haven't gotten better and that you are facing a personal bankruptcy. In principle, you can continue to earn an income through your corporation as a bankrupt person, with certain conditions. The law indicates that a person in bankruptcy may not be the director of a corporation. Given this, you would be required to resign as director until you receive a discharge from the bankruptcy. A corporation cannot be directorless however, so someone else would have to be appointed in your stead. This could be a spouse, relative or friend. You can continue to be a shareholder, just not a director.
That, however, brings us to another important point. If your shares in the corporation have any value (i.e. the assets of the corporation exceed its liabilities), then they could be considered a realizable asset in your personal bankruptcy. The Trustee would have an obligation to list them as an asset, even though it may be determined that they have no value.
Regarding income from the corporation. A Bankruptcy Trustee is required to monitor your income during your personal bankruptcy. Since you are the only employee of the corporation and effectively control the purse strings of the company, the Trustee will probably require you to provide evidence of the corporate income as well.
Finally, it should be noted that you filing a personal bankruptcy will not absolve the corporation of any liability it has, even though it may absolve you personally of any liability that stems from a personal guarantee or co-signature.
We trust this has addressed your question, however, please feel free to contact us if you have additional concerns. We do offer a free of charge, no obligation, one-on-one consultation - at which time we would review the specifics of your situation and advise you accordingly.
Warmest regards,
Liz
Good Evening
I finished school in 2003, currently I have a debt of $103,000 in OSAP loans plus other credit cards with debts about $7000. I have three children, two under 3 years of age and a husband who is on disability. I am not in a position to pay the debt nor do I think I will be in the future because of supporting a family of five on a $13 hr job. Or when I am displaced ODSP. Could I file bankruptcy at the month after my fifth year, which would be Sept. 2008 and then file undo harship when the new personal bankruptcy law changes? I saw there was a note attached to the 'hardship' provision' that states I would have to file bankruptcy prior to the new provisions that should be introduced in Dec. 2008.
Any assistance in this matter would be greatly appreciated as I get calls daily dispite the fact that they are only suppose to call three times a week.
Thank You for your time
I am contemplating personal bankruptcy. I am an AIR MILES collector (an AIR MILES card is not a credit card, but most of my AIR MILES were collected through credit card use).
Will I lose the AIR MILES I collected if I declare bankruptcy? In other words, are my AIR MILES an 'asset'?
Ok I am really getting confused and frustrated. My partner and I owe $100,000.00 plus and are thinking of going bankrupt. In a previous posting you said that if you make over $2600.00 anything you make over and beyond that you have to pay the Trustee 50% of those earnings. My partner and I make $6400.00 monthly. How long do you have to pay the Trustee this amount? Another question. My partner just got a job in the US for a 3 year term. Do we have provide paperwork for those 3 years that we are there? When you first go for your meeting what paperwork do you need to bring? I am not sure if we should go to meet with a Trustee. Iam very embarassed and frustrated. Could you list what is involved when you go to claim brankruptcy? Please? I need your help!!!
Sorry it said $2300.00 not $2600.00Why do you need to pay the Trustee that when you are trying to get out of debt and you have written off your debt? It seems like highway robbery. I thought you would have to pay a couple hundred a month. Sorry Iam just really upset. As I said before I could really use your help!
In your opinion should you go bankrupt or do a personal consolidation or credit counselling???
We owe around 90,000.00 that I am credit counselling. We pay around $1400.00 a month
We pay for two car payments of $1300.00 a month
We use to owe but now rent for $1350.00 a month
We have done cash advances that we on every two weeks.
We owe on our income tax of 7 years. Haven't filed we just assumed.
Way too much debt and not enough money or patience.
I know we assumed the debt and we are responsible but there were certain circumstances for these loans. We are business professionals and do not want this bankruptcy to ruin our lives but we also want piece of mind!!!
Good morning,
re: Air Miles
Technically, any asset you own vests in the Trustee when you file for bankruptcy. The bankrupt then claims that certains assets are exempt from seizure such as household furniture, clothing etc. Technically, Air Miles are not exempt from seizure but in reality there is little to no real value to Air Miles so it is highly unlikely that the Trustee would look at them.
Hope this helps,
Liz
Hi Confused and Frustrated,
The Superintendent's Standards for a family of two is $2,286 after taxes and certain expenses such as prescriptions. If a family of two earns above this each month, they may be required to make payments for the benefit of their creditors for 9-21 months. The law is currently in the process of changing and will so make 21 months the required timeframe for making payments.
As you are making $6,400 a month, you will likely be able to file a proposal depending on your personal situation.
When you first meet with a Trustee, bring a list of all of your creditors, a copy of your last tax return and if you can, a monthly household budget. This will help us to start to find the solution that is best for you... and it may not be bankruptcy.
Hope this helps.
Liz
Hi Anonymous
re: opinion what option to take
It is next to impossible for me to give an educated opinion on anyone's financial situation online as I simply so not have enough information.
The one caution I have for people is with credit counselling. There are absolutely some very repuatable credit counselling agencies out there but there are also many which are "for profit" which have a very bad reputation. Very often I see people who have been struggling with a "credit counsellor" for months or years and then they end up filing a proposal or bankruptcy as they got bad advise. Credit Counsellors are not currently regulated by the government. Make sure you do your research if you choose the credit counselling option to make sure you are dealing with a reputable agency.
As for your situation, as you are obviously still struggling, it would not hurt to sit down with a Trustee to go over your situation. The first consult is free and you will get some good advice about your situation. If we don't think that a proposal or bankruptcy are right for you, and you should maintain your credit counselling, we will tell you that simply because it is the right thing to do - even if we don't end up working with you.
Please also rest assured that a bankruptcy or proposal will not "ruin your lives". If anything, it will help you get a fresh financial start without the burden of debt.
Hope this helps.
Liz
Good Afternoon,
I wrote to you earlier however, you bypassed my question and went right into the air miles question. So could you please assist with this ?
I finished school in 2003, currently I have a debt of $103,000 in OSAP loans plus other credit cards with debts about $7000. I have three children, two under 3 years of age and a husband who is on disability. I am not in a position to pay the debt nor do I think I will be in the future because of supporting a family of five on a $13 hr job. Or when I am displaced ODSP. Could I file bankruptcy at the month after my fifth year, which would be Sept. 2008 and then file undo harship when the new personal bankruptcy law changes? I saw there was a note attached to the 'hardship' provision' that states I would have to file bankruptcy prior to the new provisions that should be introduced in Dec. 2008.
Any assistance in this matter would be greatly appreciated as I get calls daily dispite the fact that they are only suppose to call three times a week.
Thank You for your time
Dear Anonymous,
I'm sorry to hear how difficult your situation has become. As the law stands presently, a person with student loan debt cannot get out of it in a bankruptcy unless 10 years has passed since thier last date of enrollment. You are correct that new legislation will be coming into force soon (no one is sure exactly when) that will reduce the time to 7 years generally, and to 5 years if there is an element of hardship involved. Since this is new, untested law, we do not know exactly what criteria will be used to identify 'hardship', although I would hope that your situation would qualify. Although the legislation will be retroactive, you will need to be past the 5 year mark before you file a bankruptcy. It is extremely important that you confirm with the student loan bodies what they understand your last date of enrollment to be (that is the date that will be used to determine if the 5 years has elapsed). I'm not sure about the note you referred to suggesting that you have to file before the new law comes into force. That doesn't seem to make sense, since it is the new law that is reducing the time and making allowances for hardship cases. You can file before the new law comes into effect as long as you are past the 5 years, and the new law will apply to you once it comes into effect because of the retroactivity provisions.
We trust this answers your question.
Hi it's me again! Confused and Frustrated. Lol. I guess we can all find some humour in all of this chaos. I am still confused about this payment to your trustee or creditors. I thought when you file for bankruptcy you no longer have to pay your creditors and you pay a small fee based on your income to the trustee. I assumed it for his or hers service. Why would you have to pay for 21 months? When you file for bankruptcy do you have to get approved to go bankrupt? I still have to pay for my cars. I still have to pay for rent and cost of living. Can you please give me more of a detailed response as far as paying after $2300.00. Thanks a million, which I wish I had.
Thank you for your answer to my question about hardship and Student loans. I hope that my situation does qualify because I am in no position to pay it back. I am dating my five years as the last day paid for by OSAP which was August 2X of 2003 so I figured I might be safe to file in Oct. I want to get some things straightened out with my bank before I do so.
Again thank you. Your information was very useful.
Regards
if i am behind about 2 years on my property taxes on my home, and file for bankruptcy, are these included, even if i keep the home?
also, what actions can be taken to stop a "tax sale" by the municipality?
I was wondering if a government repay can be erased by bankruptcy?
Good afternoon,
re: Property taxes
Property taxes are a secured debt. That is, the City can sell your house if you fail to make your required payments. This is not a debt that is forgiven by a bankruptcy.
As for you question... what can I do to stop a tax sale? As municipal tax law is not my speciality (nd I assume you have no other debt), I would recommend that you speak with a lawyer.
Hope this helps.
Liz
Question: I was wondering if a government repay can be erased by bankruptcy?
Can you provide some details on what your government repay is for?
I currently have $50000-60000worth of debt. I helped my sister thru a nasty divorce in which she got nothing from her husband and their home/finances and she is not working so I'm paying for this debt as well as my debt/bills. I have looked into re-mortgaging my house to consolidate my debts but there is not enough equity. I have looked into lines of credit/loans to consolidate but I don't make enough. I have always been an excellent bill payer up until now and my credit it still good but Iam falling behind. My sister her 2kids, my mom and my boyfriend all live in the house and I need my car to get to work an hour away. What are my options and will I lose everything if i declare bankruptcy. And how fast can I re-build my credit quickly?
My fiance just qulified to receive $550 monthly from CPP and I make about $1800 monthly. Because we both have student loan debts as well as credit card debt (from his medications from a permanent disability) we have large monthly payments. We also have car & insurance payments, phone & cable & internet bills and day to day living expenses. We save every penny we can. We were just notified he no longer qualifies for ODSP which they told us one month ago he does qualify. He no longer does because of my monthly income. We can NOT make ends meet on this income with the debt we have. We are getting married in 11 days from now. I was told he should file for bankruptcy before we get married. Will this help? How long does it take? Should I file too?
I would like to know what are the time limits on bankrutcys. If someone filed in 2002 and had not completed there bankrutcy up in till now and their trustee was discharge in 2006 are the any time limits that one could take advantage of? I.E. if ones record would be clear after 7 years because of the time limits, why file now. Thanks for your time.
Good afternoon Anonymous
re: $50-60k in Debt/helped sister
Generally, when someone is experiencing financially difficulty there are several options available. Which option is best for you will depend on your particular situation. To help pay the bills, you can either increase your income, decrease your expenses or a combination of both.
If you are unable to pay your bills in this fashion, there are options such as credit counselling, filing a proposal to your creditors or filing for bankruptcy. With the limited information you have provided me, I can't advise which is best for you.
I can tell you though that it is a myth that you will lose everything in a bankruptcy. Most people have no problem maintaining a mortgage or a car. As for your credit, you can start rebuilding it immediately. All bankruptcies and proposals include two counselling sessions where we can give you advice on how to do this.
Hope this helps.
Liz
Re: time limits for bankruptcy
There is no time limit as to when you have to complete the duties to obtain your discharge from bankruptcy. A bankruptcy will stay on your credit report for 6 years from the time you are discharged from bankruptcy. If you are not discharged, it will stay on your credit report indefinitely.
If you are not discharged, and your Trustee has been, creditors are once again able to pursue you for full payment of their debt. Generally, this is why we see people reappear after several years to obtain their discharge - a creditor has found them again and has started to garnish their wages. We also see people who want to get on with their life, improve their credit, buy a house, their new partner wants them to get discharged, the goverment has seized their bank accounts etc. All great reasons to obtain their absolute discharge from bankruptcy.
Hope this helps.
Liz
re: marriage
There is no reason to file for bankruptcy before you get married. This would have little to no impact on a bankruptcy filing for the most part.
Filing for bankruptcy can happen quite quickly. It all depends on how quickly you can get the required information to the Trustee.
Unfortunately, I cannot tell you if you should file for bankruptcy without knowing much, much more about your situation including your personal debts. Please don't hesitate to give us a call to set up a free consultation where we can over this with you to give you the advice that you need.
Good luck on the big day!
Liz
CHANGES TO BANKRUPTCY LAWS!
Effective July 7, 2008, those with student loans that are more than 7 years old (from the date you finished school), those loans can now be forgiven by a bankruptcy. As well, if your loans are more than 5 years old and you can prove significant hardship to the court, your loans may be forgiven.
There are other exciting changes coming. Please do not hesitate to call us if you would like more information.
Kind regards,
Liz
i have the understanding that if a creditor registers a writ, ppsa or real property lien after the date of my bankruptcy they are not valid claims, is this correct? if yes, can you direct me to what section of the BIA that states so. thanks
Hi Liz. Would you be able to post the website where you found the info on the student loans? I'm looking on the OSB website and can't find anything on it confirming this. I've been wanting to file for bankruptcy for a few months now and have been talking to a trustee but she suggested that since I've already been out of school 8 years that I just wait until this new law comes into effect so I could include it as well. Problem is, I just called her yesterday to see if she's heard anything and she hadn't... If you've got a website I'd love to pass it on so I can get the ball rolling here.
Thanks!
Michelle
Good morning:
re: writs, PPSA etc.
Your comment is partially correct. Very generally, a creditor cannot file a security interest after bankruptcy for a pre-bankruptcy debt. If you enter into a security agreement or have repairs done etc., after the date of bankruptcy or proposal, they are still entitled to file a lien, security interest etc. Please discuss your situation in person with someone if you require particulars about a specific situation to ensure you are receiving the correct advice.
The section of the BIA which prevents these actions is section 69 which relates to the Stay of Proceedings.
Hope this helps.
Liz
Good morning
re: Student Loans
The details are on the OSB website: http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/home
Hope this helps. If your Trustee can't help you, give us a ring at 888-PwC-Debt.
Happy Friday!
Liz
Good morning
re: Student Loans
The details are on the OSB website: http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/home
Hope this helps. If your Trustee can't help you, give us a ring at 888-PwC-Debt.
Happy Friday!
Liz
I have a government student loan that is twenty years old, due to family problem and lack of consistancy in employment, it has been difficult to pay it all back. If I file bankruptcy will I be discharged from the loan as well? Please help me. I want to go finish my education for a better life.
Good news - any student loans that are greater than 7 years old (from your last day of school) can be included and forgiven in a bankruptcy.
Cheers,
Liz
What happens when you claim Bankruptcy for the second time? Is it true that you can not leave the Province?
Good afternoon,
When you file for bankruptcy a second time, you do not qualify for an automatic discharge from your debts. You will need to attend a court hearing to explain the reasons for your first and second filing and the Deputy Registrar will decide your discharge. Generally, second timers receive a suspended discharge for a period of time.
You are allowed to leave the province or country while you are working through a bankruptcy but you should ensure that you are back in town for your discharge hearing.
Hope this helps.
Liz
Good afternoon everyone,
Just a quick note to let you know that I am going to be away from the office until July 29, 2008.
If you have any questions, please feel free to post them. Wesley Cowan, a Trustee in our Waterloo office will respond to any questions while I am away.
Kind regards,
Liz
My trustee is opposing my bankruptcy discharge for not submitting the proper monthly reports. The relationship broke down with the trustee shortly after filing. I also have a creditor that is opposing the discharge.
I am happy to provide the paperwork (which I have done but not submitted). Can you fill me in on what is going to happen at my upcoming hearing.
My trustee is opposing my bankruptcy discharge for not submitting the proper monthly reports. The relationship broke down with the trustee shortly after filing. I also have a creditor that is opposing the discharge.
I am happy to provide the paperwork (which I have done but not submitted). Can you fill me in on what is going to happen at my upcoming hearing.
RE Anonymous wrote:
My trustee is opposing my bankruptcy discharge for not submitting the proper monthly reports. The relationship broke down with the trustee shortly after filing. I also have a creditor that is opposing the discharge.
I am happy to provide the paperwork (which I have done but not submitted). Can you fill me in on what is going to happen at my upcoming hearing.
Dear Anonymous,
Since submitting monthly income reports during bankruptcy is a requirement, your Trustee is obliged to oppose your discharge if you have not complied with that duty. If you get those reports to him/her before your discharge hearing, that's one less issue to contend with. At the discharge hearing, the court will review what outstanding duties remain and the concerns of the objecting creditor. The court may then adjourn the hearing for you to complete any remaining duties or make an order regarding what is required for you to get your discharge. Such an order may take into account the concerns of the objecting creditor. As a final note, Trustees generally prefer to complete a file in a timely fashion and, that said, yours would probably prefer to work through the issues with you. I would recommend talking with him/her before the court date to sort things out if possible.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Can you file bankruptcy if you have done it before?
RE: Anonymous said...
Can you file bankruptcy if you have done it before?
July 25, 2008 3:21 PM
Dear Anonymous:
In short, yes, you can file a bankruptcy if you filed one before - provided you are discharged from the previous bankruptcy.
That said, you are likely to have to spend more time in bankruptcy (more than the minimum 9 months)and your credit record will be negatively affected for a longer period after the bankruptcy. There may also be additional duties required to complete the bankruptcy, such as attending Court for your discharge hearing.
If you would like to know how a subsequent bankruptcy would affect your particular circumstances, or how pending new legislation may impact you, please feel free to contact us directly.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I have already filed bankruptcy, I am still experiencing financial stress due to limited cashflow. My bank has given me a demand letter for mortgage payment. I can use this to access locked in pension funds allowing me to keep my house. Can I use these funds to pay my mortgage or is my trustee entitled to all or part of it?
Good morning,
As you have already filed for bankruptcy, I would highly suggest that you discuss your current situation with your Trustee or the administrator responsible for your file. They might have other solutions including another counselling session to help you with your month to month expenses.
Your Trustee can also give you better advice in respect to your pension as their are different laws from province to province.
Hope this helps,
Liz
Hello,
After graduating from university in 1994, Ihad a very difficult time finding work and defaulted on my OSAP payments. As a last resort, I filled for Bankruptcy in 1996 and was discharged. I now want to return to
return to school for a 1 year program as I am currently experiencing unemployment and want to in order to become more marketable in the workplace. I apply on-line for OSAP funding and
received a message indicating that I do not qualify because I defaulted on my student loan.
Please offer some advise on what I can do. Thank you.
Hello, I am an odsp recipient and have foolishly put myself into $10,500 debt (credit cards - I used them as an income supplement). Two trustees from different companies have given me the same advice: "Do nothing". My only source of income is odsp and I'm told that can't be touched.
I've read the exemptions for personal property but am concerned about the items I purchased with credit cards. Can they be repossessed? The total value of everything in my apartment comes to less than $3,000, the only things of value are my TV, purchased by credit card in 2005, my laptop purchased by credit card the same year, and the mattress I purchased a few months ago for medical reasons (I am bedridden).
I'm terrified of losing these items. Is there a possibility that I will? Many thanks.
Good morning,
re: student loan advice
I have been giving your question some thought. As I am a Trustee, I can certainly answer any questions you have about student loans in a bankruptcy and how they are dealt with. But as I am not a Student Loan advisor, I can't really offer any advice for getting student loans. The only thing I can suggest is to go to Student Loans and apply in person so you can explain your situation. You may also want to talk to the student loan/financial officer at the school you plan on attending. They may be able to offer suggestions as well.
Hope this helps in some form.
Liz
My spouse and I have already filed for bankruptcy several months ago. We have now separated due to the stress of our financial situation.
When doing my monthly budgets I now do not know the income my spouse is making or the expenses incurred. What do I now show on my future budgets.
Jane
Hi Jane,
As you have already filed for bankruptcy, I would suggest that you contact your Trustee to see how they want you to do your budgets as each Trustee does things a little different.
Hope this helps.
Liz
ceres said:
Hello, I am an odsp recipient and have foolishly put myself into $10,500 debt (credit cards - I used them as an income supplement). Two trustees from different companies have given me the same advice: "Do nothing". My only source of income is odsp and I'm told that can't be touched.
I've read the exemptions for personal property but am concerned about the items I purchased with credit cards. Can they be repossessed? The total value of everything in my apartment comes to less than $3,000, the only things of value are my TV, purchased by credit card in 2005, my laptop purchased by credit card the same year, and the mattress I purchased a few months ago for medical reasons (I am bedridden).
Good Afternoon,
The Trustees you contacted were correct in their advice: Even if your unsecured creditors sue you, they cannot either seize your ODSP entitlement or the 'exempt' assets in your home. (household goods up to $11,500 in value in Ontario). It sounds like most of the significant purchases were made some time ago and that you had every intention of paying your debts - they just got away on you over time.
I hope this helps put your mind at ease.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Are there forms that need to be filled out at the end of the bankruptcy or do you just presume that after 7 years you are free and clear?
Are there forms that need to be filled out at the end of the bankruptcy or do you just presume that after 7 years you are free and clear?
I understand that an initial consultation is free, but what kind of charge is there for further meeting or work that may be done on my behalf if seeking to declare bankruptcy or get a consolidation loan?
On August 9, 2008 6:23 PM Anonymous said...
Are there forms that need to be filled out at the end of the bankruptcy or do you just presume that after 7 years you are free and clear?
Hi Anonymous,
Thanks for your question. For a person who has never been bankrupt before, their credit record is generally purged of the pre-bankruptcy debts 6 years after the date they are discharged from bankruptcy. It's important therefore that you send a copy of the Discharge Certificate to the two main credit bureaus in Canada: Equifax and Trans Union. That way the clock will start from that date. Please note that this is generally the bankrupt person's responsibility and is not done by the Trustee.
Hope this helps,
Warmest regards,
Wes Cowan, MA CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On August 10, 2008 12:04 AM
Anonymous said...
I understand that an initial consultation is free, but what kind of charge is there for further meeting or work that may be done on my behalf if seeking to declare bankruptcy or get a consolidation loan?
Hi Anonymous,
As licenced Trustees, we provide formal, legislated bankruptcy and proposal (settlement) services. The fees for these services are spelled out in law and are therefore quite comparable between Trustee firms. During an initial consultation, we will determine if one of these processes is appropriate for your circumstances. If so, any fee you are required to pay will be part of the process. If not, we will refer you elsewhere - for no additional charge.
Since circumstances vary from person to person, we would prefer to meet with you to determine what your options are and therefore be able to advise you what specific costs might be involved.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Hi I have several questions.
My wife and i filed for Proposal (wife) and bankruptcy (me), on June 30 2006.
1. I am awaiting my discharge since Jan 31 2008. The trustee for some reason submitted my documents on April 1 2008. Why he waited 2 months i have no clue. Now he says its with the courts and has no idea of when I will be discharged. His initial promise was Mid June.
2. Once i recieve my discharge i want to sell my Condominium and get my sons basement finished with the funds i have in equity, will there be a problem as my wife and i are both co signed on the Condo.
3. My wifes proposal payments are not yet completed. I was waiting for my discharge at which point my son will clear my wifes payments and file for the discharge. How do i expedite this process the second time round?
thanks
Hi Jani,
Good news - You should have no problem with selling your Condo.
As for your discharge, please be patient. Depending on where you live, the timeframe for the Court issuing your discharge can be several weeks to several months. If you live in Southern Ontario and your file is at the Toronto court, it can take 3-4 months for your discharge to go through the Court. It often takes longer in the summer as various Court employees take their summer vacations.
As for your wife, she does not receive a discharge as she filed a proposal. Instead, she will receive a Certificate of Full Performance once her proposal terms are fulfulled. This is issued by the trustee rather than the court so there should be not too long of a delay.
Hope this helps.
Liz
I just need clarification in regards to student loans & Bankruptcy. If i finished my last studies/exams in august 2001 when would be the best time to file bankruptcy for my student loans? Is the end of august considered to be my last day of studies; hence, sept would be past 7 yrs of my end of studies? I don't want to file then be told its actually the graduation date which was held in october!
My ex-husband filed for bankruptcy and one of his liabilities was a joint home equity loan. I realize that I am now obligated to pay it back. However, I would like to know if I was supposed to make an objection to his discharge because of this and if it would have made any difference. The reason I ask is that he was given credit for this debt in the NFP equalization and, as a result, I am now in the position of paying that debt, not only back to the bank, but also, a second time to him as part of a court ordered NFP equalization payment. Looking forward to your response.
If I declare bankruptcy will I lose my house and my car?
Good morning,
Re: Student Loans
Student Loans greater than 7 years from the time a person "ceases to be a full or part time student" are forgiven in a bankruptcy.
Technically, you do not cease to become a student until convocation when you receive your degree. As well, you have to wait until the month expires. If your convocation was on October 15, you should wait until November 1 seven years later.
Hope this helps.
Liz
Hi Anonymous,
re: ex filing for bankruptcy
It is hard to answer your question without knowing more details. Was the equalization before or after he filed?
To oppose someone's discharge, you must provide evidence of one of the facts under s. 173(1) of the BIA (you can find them online).
I do not specialize in family law but can you seek to have your equalization payment changed? That might be an option for you as well.
Hope this helps,
Liz
Morning!
re: House and Car
In a bankruptcy scenario, it is unlikely that you will lose your house and car. This is providing you have made all of your required mortgage payments and car payments to the secured creditor.
In each province, there are exemptions which lay out what assets you are entitled to keep in a bankruptcy situation.
Hope this helps.
Liz
thanks for the info! I called the university and they did confirm that the end of studies date is the convocation date not the date when courses/exams finished:)
I am a sole proprietor, and have been in business for 11 years. My personal debt, including personal income tax, non-submitted GST returns, credit card, and other pre-authorized payments (Dell) are between $45,000 and $50,000. Hence, I am considering bankruptcy. Since I am a S.P., will the business automatically terminate when I do? Am I still allowed to work at it anyway (I am a tradesman)? My wife is the only name on the mortgage, so I assume that the house will not get touched? We also have no joint debt, so she will not be affected at all, correct? The only way that she is "connected" to me (other than by marriage) is her name is on the local utility account. Are utilities exempt, since everybody pays them anyway (we are current with them)? Will my personal income tax ($10,000) be included in the bankruptcy? Will supplier accounts be included? Will the G.S.T. returns? I have basically no assets, as my service truck is 16 years old, and in rough shape. Are items that were purchased on credit card (a desktop computer that is 18 months old, and a laptop that is 5 months old) usually "taken" back when you file? The Dell laptops are over a year old an obsolete - do they come after those too?
Ooops - I forgot to mention that this will be my second bankruptcy (the first was not when I was in business, and was 13 years ago).
hi i did a proposal a few years ago and it fell threw i couldnt make payments anymore and i was wondering what happened after that......did i automaticaly go bankrupt and if so how do i get discharged
On August 23, 2008 at 9:58 AM Anonymous said...
I am a sole proprietor, and have been in business for 11 years... I am considering bankruptcy...
Dear Sole Proprietor:
I'm sorry to hear of your difficult situation - It's challenging enough to be self-employed without the burden of debt.
I am unable to provide specific answers without looking at your situation in more detail. I can however, offer the following general comments:
-your sole proprietor business debts (including supplier accounts and GST)would be part of your bankruptcy, so yes, in effect your 'old' business would end.
-you are allowed to start a new sole proprietorship in the same profession after a bankruptcy
-personal income tax debts (even from self-employment)are included in a personal bankruptcy
-generally speaking, things purchased by credit card (unsecured debts) cannot be taken back by the creditor after a bankruptcy.
-things purchased through a valid secured loan could be taken back by the secured creditor after the bankruptcy (i.e. Some Dell computer contracts are set up like this)
-one vehicle titled to you which is worth less than $5,650 (Ontario) is exempt from seizure in a bankruptcy.
-as a prior bankrupt, you may have to attend a court hearing to obtain your discharge. There may be conditions attached to your discharge. In addition, a second bankruptcy may stay on your credit record for a longer time.
-generally speaking, as long as an asset is not in your name, it will not be taken in a bankruptcy - however, there are some exceptions - particularly where spouses are concerned. In this respect, I strongly suggest that you consult with us on what effect a bankruptcy will have on your house/wife.
As I have mentioned before, we offer a free-of-charge, no obligation consultation to help you assess your situation and make a choice that's appropriate for your circumstances.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I own a sole-proprietorship franchise that I want to close, but I'm not sure what the best method to follow is. I have about $15000 in business debt all on a business line of credit. Is it possible to claim bankruptcy without affecting my personal credit/assets, or those of my spouse?
On August 25, 2008 at 11:05 AM
Anonymous said...
hi i did a proposal a few years ago and it fell threw i couldnt make payments anymore and i was wondering what happened after that......did i automaticaly go bankrupt and if so how do i get discharged
Hi Anonymous,
If your debts at the time were less than $75,000 (excluding a mortgage), you probably filed a Consumer Proposal. If you stopped making your payments on this type of proposal, your proposal would fail but you would not be automatically bankrupt. Alternatively, if your debts were higher than that, then the type of proposal you would have been required to file would result in a bankruptcy if it failed. In either case, the Trustee administering the proposal would have distributed the money you paid into the proposal to your creditors (after fees), and would have closed the file.
I would recommend contacting the Trustee who administered your proposal to confirm its nature and status.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On August 25, 2008 at 8:26 PM
Anonymous said...
I own a sole-proprietorship franchise that I want to close... Is it possible to claim bankruptcy without affecting my personal credit/assets, or those of my spouse?
Dear Anonymous Sole-Proprietor,
A sole-proprietorship business (unlike an incorporated business)is simply a person in business for themselves. From a creditor perspective, there is effectively no distinction between the person's business assets/debts and their personal assets/debts. As such, one cannot bankrupt a sole proprietorship business without bankrupting the individual operating it, and all the person's assets and liabilities, both business and personal, must be included.
Generally speaking, spousal credit/assets are not affected by a person's bankruptcy unless the spouse co-signed or guaranteed a debt for them.
Without further details, my comments must remain general. Feel free to contact us directly to discuss your situation further.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I am considering filing for bankrupcy, my debts are high, I have a 254.000 mortgage a 2nd mortage of 36,000 house couldnt recently sell for 275,000 so we have taken it off the market, i have 16,000 in credit card debt in my name, my spouse has 10,000 under both our names we are having a difficult time paing the bills, we have 3 kids,, also mortgages are joint,,between us out monthly net income combined is approx 4800 the trustee says our surplus payment would be about 700 to 800 a month does this sond right?
On August 26, 2008 at 6:31 PM,
johnh said...
I am considering filing for bankrupcy, my debts are high, I have a 254,000 mortgage a 2nd mortage of 36,000 house couldnt recently sell for 275,000...we are having a difficult time paying the bills,...we have 3 kids...our monthly net income combined is approx 4800 the trustee says our surplus payment would be about 700 to 800 a month does this sound right?
Hi Johnh,
Trying to raise a family while struggling with payments to creditors can be very difficult and stressful.
It sounds like even if you had managed to sell your house, you would have faced a shortfall on the second mortgage that you would have still had to pay (in addition to ongoing housing costs at a new residence). It should be noted however, that such a shortfall would be included in a bankruptcy.
On the question of 'surplus income' while in bankruptcy. The Canadian government sets income amounts each year, based on family size, which if exceeded, will oblige a bankrupt person to make payments into the bankruptcy for the benefit of their creditors. The 2008 amount for a family of 5 is $3,870. Generally speaking, 50% of any earnings over that amount must be paid to the bankruptcy (assuming both spouses are bankrupt). In your case, assuming a combined net (take home) income of $4,800, the surplus payable would be $465 ($930 x 50%). There may be a reason why the total payment suggested by the Trustee you consulted is higher, and not having reviewed the specific details of your situation, I cannot speculate as to the reason. It should be noted that surplus income payments may be required for more than the current minimum of 9 months, and that new legislation which has not yet come into effect will require bankrupts who have surplus income to pay for a minimum of 21 months.
Trusting this is helpful,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
What if I do not claim bankruptcy and leave the country. How long until I can cash in a creditor protected insurance policy and is it judgement proof?
On August 27, 2008 at 11:00 AM,
Lava Travel 101 said...
What if I do not claim bankruptcy and leave the country. How long until I can cash in a creditor protected insurance policy and is it judgement proof?
Hello Lava Travel 101,
Speaking as a Trustee, and on behalf of creditors, it is never advisable to run away from debt problems. One should deal with them in an up-front and honest manner.
Not knowing the specifics of your situation, I will make the following general comments:
Some types of life insurance policies accrue in value over time, and have a 'cash surrender value' if terminated. If someone who has such a policy files bankruptcy, the Trustee is obliged to bring the value of the policy into the bankruptcy. Fortunately, these same policies often have a borrowing provision, which allows the policy holder to borrow a significant portion of the cash-surrender value of the policy - so most bankrupts elect to retain the policy and simply pay its value into the bankruptcy.
If a life insurance policy is creditor protected, it is by definition judgment proof - as a creditor who obtains a judgment cannot collapse the policy to get at its value. That said, it's possible that a life insurance company could be served with a judgment/garnishment that would require it to pay the creditor if the policy was ever collapsed by the policy holder. That would eliminate any incentive for the policy holder to collapse it and encourage them to deal with the debt.
Regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I filed for bankruptcy in dec 03 and my trustee has missed some debts. What options do I have?
can my wages be garnished if I am making consistent monthly payments towards debt?
On August 29,2008 at 7:01PM
Anonymous said...
I filed for bankruptcy in dec 03 and my trustee has missed some debts. What options do I have?
Hi Anonymous,
With a few exceptions, bankruptcy stops all unsecured debts that preceded it - even debts that may have been overlooked and not included on the person's bankruptcy documents.
That said, it should be noted that it is the bankrupt's (not the Trustee's) responsibility to ensure the list of creditors is complete - the bankrupt person even signs the documents under oath attesting to their completeness and accuracy.
If a creditor that existed prior to the bankruptcy does emerge later demanding payment, simply send a copy of the bankruptcy documents (Statement of Affairs)and a copy of your Discharge Certificate to them - in most cases that should close the matter.
Regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On September 2, 2008 6:24 AM
Anonymous said...
can my wages be garnished if I am making consistent monthly payments towards debt?
Hi Anonymous,
As long as you're making the payments your creditors are asking for, or payments that have been mutually agreed upon, there should be no reason for your creditors to want to garnishee you. However, sometimes creditors and debtors disagree as to the debtor's ability to pay. If you are paying less than the amount your creditors have asked for (even if consistently), they may still try to get a court order against you which would allow them to garnishee your wages. You would get advance notice of the court hearing, giving you an opportunity to explain your situation. As an aside, some government bodies like CRA (Revenue Canada) do not require a court order to garnishee.
Hope this helps,
Regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Hi,
Great service!!
I declared Bankruptcy in March/07 which was Discharged in March/08.
I have just recently had an Accountant do my 2007 taxes which will result in a significant return (apprx. $6k). Is it mandatory that these funds be forwarded to my Bankruptcy Trustee for distribution to my past Creditors? Or can I retain these funds for myself?
On September 5, 2008 at 11:24 AM
Hi,Great service!!
I declared Bankruptcy in March/07 which was Discharged in March/08.
I have just recently had an Accountant do my 2007 taxes which will result in a significant return (apprx. $6k). Is it mandatory that these funds be forwarded to my Bankruptcy Trustee for distribution to my past Creditors? Or can I retain these funds for myself?
Good Afternoon!
For tax filing purposes, the year of a person's bankruptcy is split into two parts - a pre (before) bankruptcy tax return and a post (after) bankruptcy tax return. As an FYI, CRA (Revenue Canada) must receive properly filed returns in this fashion or they will refuse to process them. A bankruptcy Trustee has a statutory obligation to file the pre-bankruptcy tax return only, but usually does the post-bankruptcy tax return as well. Any refund issued as a result of the pre-bankruptcy return always comes to the Trustee. It is general practice (and soon to become law) that the post-bankruptcy refund is sent to the Trustee as well (the bankrupt person generally assigns it to the Trustee at the time the bankruptcy is filed - as additional estate revenue). CRA will send these refunds directly to the Trustee.
I would have expected your Trustee to have requested tax information from you in early 2008 so that he or she could complete the returns by the filing deadline. Given that any refund is likely to go to your Trustee, perhaps you are best to save yourself time and money by letting the Trustee prepare the returns.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Hi There
I have my own accounting practice (it is a sole proprietorship). It is finally operating at a point where we can live, and pay our common bills mortgage and such.
While building the practice we have amassed over $100,000 in credit card and line of credits ($35,000 of which is a line of credit for the business personally guarenteed by me).
I also stressed out a while ago, and some of this debt is related to online gambling (i am seeing people about this addiction and we will get through it).
I guess my question is, is my sole proprietorship business affected by my bankruptcy or can i continue running it as is after the bankruptcy.
My husband of 18 years moved out over a year ago to live with his new girlfriend but 5 months ago stopped all support when he lost his job, I have keep up all bills except for September's mortgage payment..He is now discussing himself filing for bankruptcy, how will this effect myself and our son and the house we live in will I lose the house if he does this, what happens to the debts (credit cards)he concured after he moved out that have my name on them...Thanks
On September 15, 2008 at 1:50 PM, Anonymous wrote:
Hi There
I have my own accounting practice (it is a sole proprietorship)...we have amassed over $100,000 in credit card and line of credit...some of this debt is related to online gambling (i am seeing people about this addiction and we will get through it)
...is my... business affected by my bankruptcy or can i continue running it as is after the bankruptcy.
Dear Anonymous,
Sole proprietorship businesses are effectively the same as the person running them - from a creditor perspective, they share all the same assets and liabilities. If a sole proprietor files bankruptcy, both his business and personal debts and assets at the time of bankruptcy are included in that bankruptcy. Generally speaking, a person can start a 'new' sole proprietorship business after the bankruptcy in the same trade or profession. The only limitation would be where the law or rules of a governing professional body prevent the person from continuing in that trade or profession while bankrupt, or for a period of time after bankruptcy. I would recommend consulting with your professional association to see if this is the case.
With respect to the gambling debt, it is important to note that a Trustee has an obligation to report the causes of debt, and that your creditors may oppose your discharge from bankruptcy - seeking additional compensation for their losses due to the gambling. The fact that you have already sought counselling will be taken into account in any creditor demands the Court is considering.
Best of luck! I have seen people recover from a variety of addictions and emerge from bankruptcy with a truly fresh start.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
a second question with regard to the 100,000 of debt the accounting practice has, am i am to consider a proposal or is the debt to high
thanks again
On September 16, 2008 at 10:21 AM,
Anonymous wrote:
My husband of 18 years moved out over a year ago to live with his new girlfriend but 5 months ago stopped all support when he lost his job, I have keep up all bills except for September's mortgage payment..He is now discussing himself filing for bankruptcy, how will this effect myself and our son and the house we live in will I lose the house if he does this, what happens to the debts (credit cards)he concured after he moved out that have my name on them...Thanks
Dear Anonymous:
I'm sorry to hear of your difficult situation.
Bankruptcy law in Canada says that a person cannot get out of spousal or child support obligations by filing bankruptcy. Further, if there is any money in the bankruptcy for distribution to creditors, spousal or child support amounts owing for the year preceding the bankruptcy will be paid in priority. That said, the fact that your ex will eventually have to pay may not be of much help right now if he really has no money to make the spousal/child support payments. Clearly, if you are unable to pay the mortgage, you may lose the house.
Regarding the house, if he is still a registered owner, then his bankruptcy Trustee will have to see if his half ownership has any value. This may not be an issue if you have already settled the division of assets under matrimonial law.
Regarding the credit card debt. Unfortunately, if one party on a joint credit card files bankruptcy, any and all debt at that time becomes the responsibility of the non-bankrupt party. This is true even if the bulk of the charges on the card were made by the bankrupt and even if they were made after a separation or divorce.
Although perhaps not entirely what you wanted to hear, I hope this information is helpful.
All the best,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On September 16, 2008 at 11:31 AM,
Anonymous said:
a second question with regard to the 100,000 of debt the accounting practice has, am i am to consider a proposal or is the debt to high
thanks again
Hi Anonymous,
Based on curent law in effect, you are eligible to file what is known as a Division 1 (commercial) proposal. You would not be eligible to file what is known as a Consumer Proposal as the current debt limit for this kind of proposl is $75,000. There are legislative changes in the works that will increase this limit to $250,000, but they are not yet in effect.
I trust this is helpful. Again, don't forget that PwC offers an initial no-obligation consultation - free of charge. We would be happy to review your circumstances in more detail and suggest your best course of action.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I have recently had my license revoked due to medical issues and must face the fact that my employment may be next. I currently have 45000 loan payed over next five years, a credit card at 16000, a mortgage of 117000 and a car loan of 21000. I barely squeak through but am concerned that if my medical health continues to deteriorate, i will not be able to do this, when should I be considering bankrupcy
I am also fifty four and have about 2000 in savings.
On October 1, 2008 at 8:48 AM lupus said,
I have recently had my license revoked due to medical issues and must face the fact that my employment may be next. I currently have 45000 loan payed over next five years, a credit card at 16000, a mortgage of 117000 and a car loan of 21000. I barely squeak through but am concerned that if my medical health continues to deteriorate, i will not be able to do this, when should I be considering bankrupcy
...I am also fifty four and have about 2000 in savings.
Dear lupus,
I'm sorry to hear of your medical problems. Health issues which result in job loss or reduction of income are unfortunately a very common but legitimate reason for bankruptcy.
It is never an easy thing to have to contemplate bankruptcy. However, if your debts significantly exceed the value of your assets, and you no longer have the ability to make meaningful payments on those debts, then bankruptcy may be an option to consider. I have noted over the years that for someone stuggling with health problems, additional stress caused by financial problems often hinders their recovery. On assessing your circumstances, both financial and personal, you may decide to look more closely at finding debt relief through either a consumer proposal or bankruptcy. As always, we would be happy to help you in that process, and our first consultation is without obligation or cost to you.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I know a surplus is net income -threshold=surplus.What if i don't have a surplus for 3 months(receiving two paychecks) and then one month i receive three paychecks.Do i pay a surplus for that month or do you look at the average of previous month(s).The reason i am confused is if i receive a paycheck on the first of october this is for two weeks in the previous month(september).Is this cheque income for october or september?
On October 9, 2008 11:12 PM Anonymous said...
I know a surplus is net income -threshold=surplus.What if i don't have a surplus for 3 months(receiving two paychecks) and then one month i receive three paychecks.Do i pay a surplus for that month or do you look at the average of previous month(s).The reason i am confused is if i receive a paycheck on the first of october this is for two weeks in the previous month(september).Is this cheque income for october or september?
Hi Anonymous,
When a person files bankruptcy, their monthly take-home household income is monitored during the bankruptcy, and they may be required to pay some of that income into the bankruptcy if it exceeds certain government-set thresholds (which are based on the size of the family). The excess is called 'surplus income' Sometimes people get an extra pay cheque during a month due to the way the pay dates fall. This may mean that they have surplus income for that month. The government Directive to Trustees on surplus indicates that if irregular income is received, it can be averaged through other months of the bankruptcy - which would be fairer to the bankrupt, particularly if their normal monthly household income is below the surplus threshold. I would recommend you speak with your Trustee about this matter to confirm how s/he would handle it.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I had to file for bankruptcy in March 2008. One of my loans had a cosigner so that loan could not be included in the bankruptcy. The cosigner is no longer living in Canada. I am still getting collection letters regarding this loan. My trustee is telling me that I DO NOT have to pay this loan. Am I still obligated to pay it back or not?
Your assistance is kindly appreciated.
On October 12, 2008 1:58PM Anonymous said...
I had to file for bankruptcy in March 2008. One of my loans had a cosigner so that loan could not be included in the bankruptcy. The cosigner is no longer living in Canada. I am still getting collection letters regarding this loan. My trustee is telling me that I DO NOT have to pay this loan. Am I still obligated to pay it back or not?
Your assistance is kindly appreciated.
Hi Anonymous,
To clarify, an cosigned debt would still be included in your bankruptcy and, generally speaking, you will be cleared of responsibility for it once you are discharged from the bankruptcy. Once you are discharged, the other person who signed for the debt will be solely responsible for it. You may still receive letters regarding the debt, since the debt is technically still collectible (from the other person). Your Trustee is correct however - you should not be making payments on this debt - and your bankruptcy prevents the creditor from taking legal collection action against you if you don't.
I hope this helps,
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
I have court paper that are final and I owe my ex $12,500 can i declaire this on my bankruptcy
I have been thinking of file bankruptcy. My debt has become overwhelming and need some help. I would prefer to get a consolation loan but don not qualify because I owe to much money.
But I have a question or two about it. I purchased a vehicle back in June of this year (my car died) I had no choice to. At the time of purchasing my vehicle I thought I could handle another payment. I was hoping to wait a little while longer before getting a new one, but I need a vehicle to get to work.
The only way I could get the loan was with a co-signer. Is there anyway I can file and not lose my vehicle? I haven't missed a payment in fear that it will fall back on my co-signer. And will they let my co-signer know if I do file and am able to keep it?
Its bad enough I am having problems with my debt, I don't want a loved one to be reasonable for my debt. I am embarrassed enough by the fact I let my debt get so high.
Thank You
October 13, 2008 8:51 AM, Anonymous said...
I have court paper that are final and I owe my ex $12,500 can i declaire this on my bankruptcy
Hi Anonymous,
When someone files bankruptcy, they are obliged to list all their debts. However, some debts survive bankruptcy - like spousal support ('alimony') or child support. This includes both lump sum awards and ongoing payments. It should be noted that a bankruptcy may still provide temporary relief from such debts, as legal actions are stayed for a period of time.
Alternatively, awards for equalization of assets/debts may be dischargeable, depending on the wording of the order.
Hope this helps,
Regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On October 13, 2008 7:17 PM,
Anonymous said...
I have been thinking of file bankruptcy...I purchased a vehicle back in June of this year (my car died) I had no choice to... The only way I could get the loan was with a co-signer. Is there anyway I can file and not lose my vehicle? I haven't missed a payment in fear that it will fall back on my co-signer. Thank You
Dear Anonymous,
Most people who file bankruptcy and are up to date on their vehicle payments are allowed to keep their vehicles. The bank or leasing company is either on title to the vehicle or have a lien against it, so they can take it back if you don't make the payments. That said, some companies have internal rules which indicate that the vehicle will be repossessed (when a bankruptcy occurs)if the loan is less than a certain number of months old. You may want to contact your loan/lease provider in advance to see what their position would be.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
RE: Beneficial Owner of a Property
1) When one files for bankruptcy, does one have to disclose property that is not directly in their name if one is, however, the "beneficial owner" of such property?
2) What are the possible repercussions for not having disclosed such property once the discharged has been issued?
Thanks.
On October 16, 2008 8:30PM, Anonymous said...
RE: Beneficial Owner of a Property
1) When one files for bankruptcy, does one have to disclose property that is not directly in their name if one is, however, the "beneficial owner" of such property?
2) What are the possible repercussions for not having disclosed such property once the discharged has been issued?
Thanks.
Hi Anonymous,
Thanks for the interesting question.
Benefical ownership or beneficial interest in property can arise as a result of a number of circumstances. In some cases it is the result of a deceased person's will which allows an heir to occupy or receive rental income from a property but not actually take ownership of it until some point in the future or as a result of some other event occurring. Alternatively, beneficial ownership may result from the gifting of property from one person to another, with the one giving the gift being allowed continued use and enjoyment of the property. In any case, a bankrupt person has a duty to report all such instances to their Trustee for review. Failure to do so may result in their discharge being withheld or withdrawn. In the last example, if property was gifted to someone within 5 years of the bankruptcy, it could be considered a reversible transaction - which may ultimately result in the recipient of the gift having to pay the fair value of the property into the bankruptcy or giving up the property to the Trustee.
Regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
My estranged husband filed bankruptcy. Over 2 years ago a court order (Superior Court of Justice)stated he was responsible for the remainer of a joint credit line (I paid my obligation when our house sold). In Mar/08 I took him to court and had a little under half of his debt ordered to be paid.He was also found in contempt for not complying with the origninal order (2 yeas ago) It is now in collection and the bank is saying I'm responsible. If a court order is made, is it void when someone claims bankruptcy? Would really appreciate your response. Thanks
This is anonymous again (posted comment Oct.27/08...
I should mention, the order states and I quote "the applicant (my estranged husband) will bre responsible for the balance and liability owing on the joint .....credit line and shall indemnify and save harmless the repondent (me)". I hope this helps answer my question. Thanks
Hi Anonymous,
Thank you for your question. The answer is really dependent on one thing - When did your husband file for bankruptcy?
If you obtained the Court Order before he filed, then you are a creditor in your husband's bankruptcy. As the co-signer, the bank can indeed look to you for payment of the debt as they were not a party to the Court Order you obtained. The only exception I can think of is if the Court classified the payment as alimony or spousal support which is unlikely.
If you obtained the Court Order after your husband filed for bankruptcy, the answer is entirely different.
You may want to talk to a lawyer about the Stay of Proceedings and the possibility of getting the Stay lifted if you wish to pursue your husband.
Probably not the answer you were hoping for but I hope you find the information useful.
Kind regards,
Liz
I filed bankruptcy in April 2006. I incurred a new debt in December 2006. Since then the creditor got judgment against me in the Small Claims Court. They garnished my bank account to repay the debt. What right, if any, do they have under the Bankruptcy and Insolvency Act to do this. What are my rights under the Act to reclaim this money?
Good afternoon Anonymous,
Your bankruptcy will provide you with protection from any debts which you had up to the date which you filed for bankruptcy.
Any debts incurred after the date of bankruptcy are not covered (which is probably not the news you wanted). The creditor is entitled to pursue you for payment of this as it was incurred after the date of bankruptcy. Unfortunately, you do not have any rights under the Bankruptcy and Insolvency Act to reclaim this money.
Hope this information helps.
Liz
I already know that i will be filing bankrupcy. But my question is this My old landlord took me to court over rent and he keeps emailing me asking if i am working yet as i am laid off i told him i would probably be filing and he says he will still get his money can he still sue me after i file or will that ever go away???
i have just lost my job and have alot of pay day loans due that have bounced i was just making ends meet before what sould i due i have three kids to think about
Hi Anonymous,
Re: your old landlord.
Any debts to a landlord which you owe at the time of filing for bankruptcy are included in your bankruptcy.
The only way your old landlord could pursue you after filing for bankruptcy is to go to Court again to ask that the "Stay of Proceedings" be lifted - essentially ask the Court that the bankruptcy is not applicable for him. The Court rarely issues this kind of court order.
Hope this helps,
Liz
Hi Anonymous,
First of all, I am sorry to hear that you have recently lost your job. The good news is - we are here to help.
The first thing I would recommend that you do is to book an appointment for a FREE consulation. At the consult, we will sit down and review your current situation in detail and let you know what the options are and all of the pros and cons of the options. If there is a way to help you without filing for bankruptcy, that is the preferred route.
Once you have all the information, you can make an informed decision about your financial future and what works best for you.
Give us a call at 888-PwC-Debt (888-792-3328) to book an appointment.
Hope this helps.
Liz
P.S. the consultation is free, confidential and you have absolutely no obligation.
I have a sister who is critically ill right now. As a sustitute decision maker, cna I ( or any other the other appointed peopl charged with her care) file for personal Bankruptcy on her behalf? Can you point me in the right direction please.
Hi, I have lost my job and live with my boyfriend, he works but is barely making ends meet.
He is thinking of going bankrupt he owes 13.000$ if he does, our joint credit card will fall on me. I can't afford to pay that. So I may have to go bankrupt as well
I have gone bankrupt several years ago. And I have heard that the second time is different.
it just seems crazy to go bankrupt for this min amount of money. Is there another alternative.
credit counselling doesnt' seem to be an option if we just don't have the funds.
thank you for your time.
On November 12, 2008 2:28 PM, EJM68 said...
I have a sister who is critically ill right now. As a sustitute decision maker, cna I ( or any other the other appointed peopl charged with her care) file for personal Bankruptcy on her behalf? Can you point me in the right direction please.
Hello EMJ68,
I'm sorry to hear about your sister's condition. In short, yes, a person who is appointed as power of attorney (or equivalent) over financial matters can file a bankruptcy on behalf of the person for whom they have been appointed. I would recommend that you make an appointment to see us to discuss your sister's financial situation and talk about the options. If necessary, assuming you have the appropriate authority, we will assist you in filing a bankruptcy on her behalf.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On November 13, 2008 at 9:49 AM Anonymous said...
Hi, I have lost my job and live with my boyfriend, he works but is barely making ends meet.
He is thinking of going bankrupt he owes 13.000$ if he does, our joint credit card will fall on me. I can't afford to pay that. So I may have to go bankrupt as well
I have gone bankrupt several years ago. And I have heard that the second time is different.
it just seems crazy to go bankrupt for this min amount of money. Is there another alternative.
credit counselling doesnt' seem to be an option if we just don't have the funds.
thank you for your time.
Hi Anonymous,
Job loss or reduction of income is a major financial stressor. A debt that is otherwise manageable and not particularly large can seem daunting when the income is no longer there to service it.
As a prior bankrupt, if you were to file bankruptcy again you may have to attend a court hearing to obtain your discharge. There may be conditions attached to your discharge. In addition, a second bankruptcy may stay on your credit record for a longer time.
However, bankruptcy is not the only option for dealing with debt. Another option is a Consumer Proposal ("CP"), which is basically a settlement over time - you offer to pay your creditors a portion of the debt by making equal monthly payments over no more than 5 years. Like a bankruptcy, a CP is a legal proceeding under the law and prevents your creditors from suing you. To find out more about your options, please contact us for a free no-obligation consultation.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Hi. Thanks for this service--reading through the questions and answers has been really informative.
I have a slightly different question for you:
My boyfriend has just declared bankruptcy. It was teh result of a business loan with a partner from many years ago; his partner declared bankruptcy and left him holding the entire debt which, eventually, he could no longer manage to pay. Utilities, rent, etc., have always been fully paid and up-to-date--just one bad loan.
This, I think, is absolutely the right thing for him to do, but I have a few concerns about how this will affect our options in the future. My credit rating is perfect. I have a nice apartment in a good neighbourhood with a good school that my daughter loves, and I'd like to stay here, but in teh eventuality that my boyfriend and I decide that we'd like him to move in here, I'm not sure what my obligations are to my landlord. If I already have an apartment and just want to put a new person on the lease, and have a good history of paying rent on time and in full, are they going to ask me for his credit history? Will it affect his ability to move in? In the future, if we do decide to move, how hard are we likely to find it to get a place to rent?
From my perspective it seems reasonable that even if he is a 'bad credit risk' it's still a higher total household income, and I've always paid the rent before, so why not? But I'd rather ask an objective outsider first rather than approach the landlord with "so what would you think of adding my bankrupt boyfriend to the lease?"
(Any of this would only happen after the discharge.)
Hello:
My husband and I were both directors and each owning 1 share in a company. He has approx $40,000 in personal expenses. I have since purchased his share, he resigned as director, has no signing authority, and has been removed from corporate registry. My question is can his personal bankruptcy hurt my business?
Hi
Can someone request that the court not allow you to be able to file bankruptcy on a small claims matter Rent damages ect> and how do you find out if they have garensheed you? I was not present when this matter went to court so im not sure of the out come.
On November 13, 2008 9:38 PM Anonymous said...
My boyfriend has just declared bankruptcy...but I have a few concerns about how this will affect our options in the future... Will it affect his ability to move in? ... "so what would you think of adding my bankrupt boyfriend to the lease?"...this would only happen after the discharge.)
Hi Anonymous,
Informing your landlord that your boyfriend will be moving in should have little effect. You have a good payment history and good credit. If the landlord does want him added to the lease, that might actually help him (and you) get another place to rent in the future because he can use your current landlord as a reference (assuming your payment history remains good).
Hope this helps,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
On November 14, 2008 1:47 AM
Anonymous said...
Hello:
My husband and I were both directors and each owning 1 share in a company. He has approx $40,000in personal expenses. I have since purchased his share, he resigned as director, has no signing authority, and has been removed from corporate registry. My question is can his personal bankruptcy hurt my business?
Hi Anonymous,
Thanks for the question. Your husband will be asked to indicate under oath when signing his bankruptcy documents whether he operated a business in the last 5 years. He will be required to provide the details of that business. The Trustee will have to confirm whether he either transferred assets to the corporation or used personal credit to fund the corporation and if so whether it was proper to do so. In addition, the Trustee will be obliged to determine whether the amount you paid your husband was 'fair market value' for the other 50% of the corporation. If not, you may be obliged to pay the difference into the bankruptcy. Assuming all transactions were appropriate, then his personal bankruptcy poses little risk to your business.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc
On November 14, 2008 11:19,
Anonymous said...
Hi
Can someone request that the court not allow you to be able to file bankruptcy on a small claims matter Rent damages ect> and how do you find out if they have garensheed you? I was not present when this matter went to court so im not sure of the out come.
Hi Anonymous,
Bankruptcy covers most debts except a few specifically excluded in law. Rent arrears or damages to rental property are debts that would be included in a bankruptcy. That said, every creditor has the right to go to court (after a person files bankruptcy) to argue that their debt should survive bankruptcy - but they have to have a pretty good argument to convince the court. Regarding garnishment, if the couort grants a creditor a jusgment against you, they can then proceed to garnishee you. You and your employer would be served notice of the garnishment.
If you want to know more about the specific rights of a creditor in your particular situation, and the effect of a bankruptcy, please feel free to contact us.
I hope this helps,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
My husband is $88,000 in debt but has always been up to date with his payments. However, with the economic crisis, he is making only 25% of what he used to and soon may not be able to pay his debts. He is considering filing for bankruptcy. My question is, how will it affect our outstanding mortgage of $155, 000 which we both co-signed? The selling price for our house is $180,000. Will we lose it even though it is not in arrears? How about our home furnishings and jewelries? Will the trustee come to the house to do inventory? Please advise as I am totally devasted and very very embarassed.
Hello again,
In connection to my earlier commment, since my husband has over $75,000 in debt, what is an Ordinary or Division 1 proposal? If he sees a Trustee, will I have to go with him? Will I be included in the questioning? I am really very embarassed.
Thank you for your time.
On November 15, 2008 12:52 PM, Anonymous said...
My husband is $88,000 in debt but has always been up to date with his payments. However, with the economic crisis, he is making only 25% of what he used to and soon may not be able to pay his debts. He is considering filing for bankruptcy. My question is, how will it affect our outstanding mortgage of $155, 000 which we both co-signed? The selling price for our house is $180,000. Will we lose it even though it is not in arrears? How about our home furnishings and jewelries? Will the trustee come to the house to do inventory? ...since my husband has over $75,000 in debt, what is an Ordinary or Division 1 proposal? If he sees a Trustee, will I have to go with him? Will I be included in the questioning? I am really very embarassed.
Thank you for your time.
Hi Anonymous,
Thanks for your question. It is a very tough time for many in this economy. I'll try to answer your questions in order:
-it is unlikely you will lose your house if your payments are up to date - banks are generally not concerned about the bankruptcy of one spouse. That said, your husband may have to pay his share (e.g. 50%) of any equity in the house into the bankruptcy (equity is the amount you would get if you were to actually sell it, after selling costs)
-bankruptcy law, which is Federal, looks to provincial law to determine what assets are exempt in bankruptcy and to what dollar value. In Ontario, for example, a bankrupt person is allowed to keep up to $11,300 of household goods and furnishings, and another $5,650 of personal effects such as clothing and jewelry. A bankruptcy Trustee generally relies on a declaration provided by the Bankrupt, but may conduct an inventory if the value of the assets approaches or exceeds the exemption threshold. In my experience however, most people's household goods and personal effects fall well below the exemption thresholds.
-Given the amount of debt your husband has, if he were to file a proposal (settlement offer) to his creditors (instead of filing bankruptcy), it would have to be a 'Division I' proposal, instead of a 'Consumer Proposal'. Although new law has been passed raising the threshold on a Consumer Proposal to $250,000, as of the time of this writing it has not yet been put into force. The Division I proposal is slighly more complicated than the Consumer Proposal, but more for the Trustee than the person filing it.
-generally speaking, you would not be required to attend any meetings your husband has with the Trustee. I would suggest you go along however, so that you understand the process. Most Trustees are empathetic, understanding and non-judgmental. In my experience, most debtors find the process of filing a bankruptcy or proposal much less difficult or stressful than they worried it might be.
Again, please contact us for a free no-obligation consultation so that we can help you determine the best course of action in your (or your husband's) particular situation.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Hi, In the late '90's I purchased a vehicle for roughly $5,000 and borrowed the money from Trans Canada (now Wells Fargo). I fell into financial difficulties and the last payment made to the company was roughly 2000/2001. A collection letter has been sent to me from Skylink Receivables in BC asking for the full account balance of $3462.40 to be paid by December 8th 2008 or action will be taken to collect the money owed. As I am currently on social assistance I am not in a position to make any payments or pay in full.. My question then is .. is there a statute of limitations to sue for this loan and if so what would it be.. and if there is no statute of limitations what are my options?
On November 25, 2008 12:57 PM Nancy said...
Hi, In the late '90's I purchased a vehicle for roughly $5,000 and borrowed the money from Trans Canada (now Wells Fargo). I fell into financial difficulties and the last payment made to the company was roughly 2000/2001. A collection letter has been sent to me from Skylink Receivables in BC asking for the full account balance of $3462.40 to be paid by December 8th 2008 or action will be taken to collect the money owed. As I am currently on social assistance I am not in a position to make any payments or pay in full.. My question then is .. is there a statute of limitations to sue for this loan and if so what would it be.. and if there is no statute of limitations what are my options?
Hi Nancy,
Speaking from an Ontario perspective, there is a 'Limitations Act' that specifies how long a creditor has before they lose the ability to take legal action on a debt. Other provinces have similar legislation. That said, this debt would have presumably been 'secured' against the car (i.e. they put a lien on it). The secured status may have extended the time they had to pursue you on the debt. Without additional detail, it's difficult to say for certain whether they still have a legal right to collect the debt from you - it would also depend on what they did between 2001 and now.
However, what I can say for certain is that even if they sue you, you are effectively 'judgment-proof'. Your income right now (social assistance) cannot be seized or garnisheed by a creditor.
I trust this helps,
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Thank you Wes for your answer. Although I am also uncertain what has happened between 2001 and now.. I dont believe that there was any judgement although I am assuming. The car or my bank account has never been siezed for the monies owed..If the loan was secured what would the extended amount of time be to sue? Also, how would I find out what may have been done between 2001 and now etc.?
As a creditor, I need to know what would give my claim a "right to priority". I have tried to search the internet but was only able to find information for bankrupt people, not for the people they owe. Thanks.
I was getting payday loans from Money Mart of about $820 every paycheck before I declared bankrupcty in Oct. 2008. Since I never have the extra money to give back to them everypayday, I've still been doing this every paycheck. I was reading the information my trustee gave me yesterday and it mentionned having to tell Money Mart about any lo9ans over $500.00. I called Money Mart and they said that you could continue to do the payday loans as long as you don't have a debt with them in your bankrupcty. Which I dont. I want to stop the payday loan cycle but never have enough money to pay them back and the rest of my expenses. Can I add them to my bankruptcy? Will I get in trouble for having done that?
On November 26, 2008 9:04 AM,
Nancy said...
Thank you Wes for your answer. Although I am also uncertain what has happened between 2001 and now.. I dont believe that there was any judgement although I am assuming. The car or my bank account has never been siezed for the monies owed..If the loan was secured what would the extended amount of time be to sue? Also, how would I find out what may have been done between 2001 and now etc.?
Hi Nancy,
These can be complex questions depending on exactly what happened. Assuming the secured creditor continued to renew the lien against the vehicle, they would technically still have a right to seize it or to sue you for non-payment. They may have already sued you without your knowledge if they did not know your current mailing address at which to serve you documents. Unfortunately we don't have the ability to consider or discuss all the possibilities in this forum. If you would like to discuss your situation in more detail and explore your options, please feel free to contact one of our offices for a free consultation
Warmest regards,
Wes Cowan,MA,CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
November 26, 2008 3:37 PM
Anonymous said...
I was getting payday loans from Money Mart of about $820 every paycheck before I declared bankrupcty in Oct. 2008. Since I never have the extra money to give back to them everypayday, I've still been doing this every paycheck. I was reading the information my trustee gave me yesterday and it mentionned having to tell Money Mart about any lo9ans over $500.00. I called Money Mart and they said that you could continue to do the payday loans as long as you don't have a debt with them in your bankrupcty. Which I dont. I want to stop the payday loan cycle but never have enough money to pay them back and the rest of my expenses. Can I add them to my bankruptcy? Will I get in trouble for having done that?
Hi Anonymous,
Unfortunately any debt incurred after your bankruptcy date cannot be included in your bankruptcy - it is a new debt that you have to pay. I'm sure your Trustee will confirm this.
Regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
If I am bankrupt am I still allowed to recieve a Christmas bonus from my employer?
On December 4, 2008 7:24 AM Valerie said...
If I am bankrupt am I still allowed to recieve a Christmas bonus from my employer?
Hi Valerie,
Thanks for your question. Your Christmas bonus would be viewed as income in the month you receive it. As such, you would include it on your monthly income & expense report to your Trustee. If the additional income increases your overall take-home income beyond the government-set threshold for the size of your family, then you may have to pay a portion of it into the bankruptcy.
Income above the threshold is called 'surplus income'. I would recommend discussing the implications of this with your Trustee.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
Hi Elizabeth -
My husbands dad co-signed for our car - will he be affected if we declare bankruptcy?
Also - do we have to surrender any extra money we have left over after mortgage, car payment and bankruptcy payment is made? Do you take all of our left over to distribute to creditors?
December 10, 2008 2:07 PM, Anonymous said...
Hi Elizabeth -
My husbands dad co-signed for our car - will he be affected if we declare bankruptcy?
Also - do we have to surrender any extra money we have left over after mortgage, car payment and bankruptcy payment is made? Do you take all of our left over to distribute to creditors?
Hi Anonymous,
I'll respond on behalf of Elizabeth today.
If you and your husband file bankruptcy and you are able to keep the car and maintain the payments on it, your father-in-law will not be affected. Most lenders/lessors will let you keep a car after bankruptcy provided you have a good payment history.
However, if the car is seized by the lender or you voluntarily give it up, then your father-in-law would be liable for any shortfall owed to the lender/lessor - although you would be cleared of the debt in your bankruptcies.
Regarding income in bankruptcy. The government sets net(take-home)income thresholds above which a bankrupt person is required to pay 'surplus income' into the bankruptcy. For example, for 2008, the threshold for a family of 4 is $3,413. Assuming all wage earners in the household are bankrupt, a minimum of 50% of income over this amount would have to be remitted. Some deductions are allowed for required payments such as child care/support or medical expenses, but discretionary expenses like rent/mortgage or car payments are not deductable - they are assumed to be part of the threshold the government has set.
I hope this helps answer your questions. Please contact us for a free no-obligation meeting if you would like to consider the specifics of your situation in more detail.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
In 2006 I was sued for libel ,I lost. the award and legal fees made it impossible to pay. I filed for bankruptcy in may 06.In Dec. 08 The bankruptcy discharge was opposed. I am retired and live alone and have a modest Pension that barely makes ends meet. Is there a time limit on how long they can oppose the discharge if I can not pay. The trustee recommended a complete discharge because I fulfilled all my obligations .
December 12, 2008 8:33 PM, Anonymous said...
In 2006 I was sued for libel ,I lost. the award and legal fees made it impossible to pay. I filed for bankruptcy in may 06.In Dec. 08 The bankruptcy discharge was opposed. I am retired and live alone and have a modest Pension that barely makes ends meet. Is there a time limit on how long they can oppose the discharge if I can not pay. The trustee recommended a complete discharge because I fulfilled all my obligations .
Hello Anonymous,
Typically when a creditor opposes a discharge, they ask for certain terms to be imposed on the bankrupt - such as paying back a particular sum of money. It is usually a process mediated by the court - and the court makes a determination of what is fair or reasonable as terms of discharge, and will make an order stating same. That said, some debts are not dischargeable in bankruptcy (listed under Section 178 of the Bankruptcy and Insolvency Act). While a person may still receive a discharge from the rest of their debts, the excluded debts remain.
I would recommend speaking to your Trustee further about this to confirm what your next step should be.
Warmest regards,
Wes Cowan, MA, CIRP
Trustee in Bankruptcy
PricewaterhouseCoopers Inc.
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