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584 comments:
1 – 200 of 584 Newer› Newest»I have a leased vehicle for which the payments are up to date. There is no equity in the vehicle.
Will I be able to keep it in a bankruptcy?
Anon.: You probably can keep the vehicle in a bankruptcy, although some lessors have a policy of taking back vehicles where a bankruptcy is involved.
If you come to see me for a free consultation bring the vehicle documents with you and I will be able to give you a definite answer after reviewing the documents.
I have mechanics tools worth about $8,000 that I need for my work. If I file for bankruptcy will I be able to keep them?
Anon.: Anon.: Yes, you will be able to keep the tools. Tools of the trade up to a value of $10,000 are exempt from seizure in a bankruptcy. You can see the complete bankruptcy exemptions for Alberta at the link on our home page:
http://alberta.bankruptcycanada.com/
Hi: My name is Atavar. I am an Bankruptcy Estate administrator working out of our Lethbridge Office. I will be answering your bankruptcy and proposals questions for the next few weeks.
Feel free to ask any questions. It's confidential.
I am moving to the United States to get married and will be living there. I've been through bankruptcy here in Canada (am a Canadian citizen) about 5 years ago. Will my bankruptcy history in Canada follow me to the United States?
Anon: I have been told that it will not follow you. You can confirm this by doing a credit check using your US address. You can use the form at the following link to apply for your credit report:
http://www.equifax.com/
I am discharged from my bankruptcy, but I still have 2 large student loan portions that did not get discharged through the bankrutpcy as they were not older than 10 years. Am I able to appeal to the courts to ask them to discharge this debt?
Thanks,
John
John: You must wait until the 10 years is up before you can apply to court. Please see S. 178 of the BIA:
1.1) At any time after ten years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that
(a) the bankrupt has acted in good faith in connection with the bankrupt’s liabilities under the loan; and
(b) the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the liabilities under the loan.
My husband has a mastercard that only he applied for the credit on.
After he got the card, sometime later, he got me a supplementary card.
I have hardly used the card, maybe 3 times. I want to be removed from this card and not be responsible for any of the debt, but the credit card company told my husband that only if he pays off the card and requests
in writing and returns my card can i be removed.
My husband can't pay off the card, and i don't want any part of this
debt. I never applied for credit and never submitted authorization for a credit check.
Am i responsible for all of this debt or only part or any at all? If I am, how can i be if i never applied for the credit? Do I have any legal standing to be removed from this debt?
Please advise my options here as I don't have any other credit in my
name and I don't really want to file bankruptcy for this $5,000 credit card.
Thank-you!
Anonymous: I suggest you contact the credit card company and ask them to prove to you that you are responsible for the debt.
I have filed for bankruptcy and have made two payments to my trustee so far. However I live overseas and have been making monthly the payments by transfering the money into the trustees bank account. How do I ensure the trustee is legitimate and dividing the payments up as it is suppose to? I have emailed and phoned the trustee on three seperate occasions since I started making my payments and I have not had a response. Before I was makig the payments my emails were always responded to in a timely manner. How can I be sure that my trustee is doing everything correctly. I was also informed that I would have my first credit councelling session by phone within the first two months of my bankrupcty being filed but again my trustee has not contacted me regarding this. I am very concerned. Your help would be muchly appreciated. Thank you.
Anonymous:
It is not your responsibility to monitor how the trustee handles funds you are paying into the bankruptcy estate. I suggest you not interfere.
The first-stage counselling is to be completed within 60 days of the filing of the bankruptcy. I suggest you email the trustee noting your desire to comply with your duty by completing the first-stage counselling within the prescribed time and your availability to complete the counselling.
I am receiving a small incentive bonus from work, which I am only eligible for twice a year - am I able to keep this money or do I have to pay it to my trustee?
Anonymous: This is part of your income and as such has to be reported to the trustee. If the amount is significant the trustee will spread it out over the term of the bankruptcy to lessen its impact on the monies you will have to contribute to the bankruptcy estate.
I signed off on a withdrawl to claim any equity in my home. I have finished my 9 months and have a court date for discharge next month. My question is can I resind this withdrawl and still try to recieve those monies?
anonymous: I am assuming this was done with the trustee for the benefit of the bankruptcy estate. This being the case, the trustee would not allow you to to rescind the Agreement.
i have to declare bankruptsy
husband has nothing to do with my debt do i have to declare his income also
Nancy: Your husband can chose not to divulge his income to the trustee, in which case it is not reported.
I have filed chapter 13 and I am paying the five year plan. I have recently got married and my new wife has nothing to do with bankruptcy. We were recently in a car accident with a drunk driver and my wife has no sick leave or annual leave. So no pay for 3 weeks and two extra weeks three hours only. We got very behind on her debts and house. Can we apply for a equity loan since she is part owner now of the house. Community property state. She has qualified for it but will my trustee allows this?
Anon: We are a Canadian bankruptcy site; not American, so cannot answer your question.
If you filed a Chapter 13 bankruptcy, you should have a bankruptcy lawyer. Please ask him or her this question.
hi i cant afford my car payments anymore and i have recently missed one and the company its finaced through has a lien on it and i owe 20,000.00. i was wondering if i file bankrupcy am i still going to have to pay for the car in the end. also it our only car we have to get our family around in.
Anon: In a bankruptcy you will have the option of keeping the vehicle and continuing payments or if it is better for you, you can give the vehicle up. Any money owed on it and other eligible debt will be erased when you are discharged or out of bankruptcy.
for confirmation of this bring your documents in with you when you set up your free initial consultation.
If I have credit card debt jointly and in my own name and I declare bankruptcy, primarily on my own debt, will they go after the spouse ( or other person ) for the joint debt? Or can it be left out?
Anon: You must list all your debts when you file bankruptcy. If you file and your spouse does not she will be responsible for any debt outstanding on cards held jointly.
I am a second time bankrupt and I have been dealing with another Trustee company. Although I have complied with all the requirements they have stated that they have discharge themselves, and that I need to pay them a hefty sum to even speak with them on the file.
I have filed a complaint with the BBB, but is there any other governing body I can file a complaint with? Also can I apply for my discharge myself?
Thanks
Anon: You can file a complaint with the office of the Superintendent of Bankruptcy at the following link:
http://strategis.ic.gc.ca/epic/site/bsf-osb.nsf/en/br01003e.html
You can apply for your own discharge but it is complicated. You should contact an insolvency lawyer for advice.
if you filed for bankruptcy but didn't finish all your work and were not discharged what happens now? Do you refile?
Anon: You are not discharged. You cannot file again.
The trustee's report on your discharge will have outlined the reasons why you did not get your discharge. You will have to rectify those deficiencies and ask your trustee if he will get your discharge. If he will not you will have to get an insolvency lawyer to do this for you.
I am trying to reach a collection Agency called CRA and they have number that is always busy wehn I call to resolve it. Can you help?
oilfield high earner, self employed, have not filed income tax for the past 5 years due to messy divorce... several moves were made during that time ... properties were bought and sold, no income tax filed or paid... many records lost ... also have other debts building up... what are consequences if I do nothing? if I leave the country? what assistance available?
Anon: The consequences of ignoring your debt is that your creditors, including CRA, can garnishee your wages. Moving out of the country may not prevent your Canadian creditors from taking legal action in that country.
A bankruptcy will cost about $1,800.00 and will erase most of your debt. Please refer to:
http://alberta.bankruptcycanada.com/faq.htm#debts
I have 3 questions (sorry for long post)
Question 1:
I have a house with $180K equity that I own 50/50 with my wife (only I would be filing). If I go bankrupt: how is the $40K home equity exemption calculated?
A> Do they split the equity (90K/90K), then subtract your $40K exemption on your equity? (which would be $50K max they could take)
B> Do they subtract the $40K exemption on the entire equity and then split it? (so it would look like $70K each of us has)
What is the maximum I will owe from my 1/2 of the house equity? (is it approx. $50K or $70K?)
I assume my wifes $90K equity is safe?
Question 2:
My friend was told by his trustee to get his wife to get an appraisal on the house (they each own 50%), just after his filing. She did and the value came back at $330K, later on a creditor became an inspector and got an appraisal of $428K.
Is there any way a judge would take his $330K instead of the (many months later) $428K appraisal? (or at least average them). His wifes appraisal is just as valid as theirs.
It was in Calgary while house prices were going up. What a waste of time his wifes appraisal was if it is just ignored. Where/what is there relevant case law about it?
Question 3:
I have a friend who filed for bankruptcy over 2 years ago and hasn't been discharged and was blatantly lied to (with witnesses) by his trustee (as there was no reason for him to file, a settlement or refinancing was a way better option)
How does one complain about a trustee misleading them and professional misconduct? (and where/who do they contact / who do trustees get licensed through/report to)
Also is there anywhere that states the regulations/responsibilites to the client that a trustee has?
Thanks
Anon:
Answer to your question #1:
The equity in the debtor's principal residence, including a mobile home, up to a value of $40,000.00. If the debtor is a co-owner of the residence, the amount of the exemption is reduced to an amount that is proportionate to the debtor's ownership interest.
Answer to your question #2:
The judge will accept the appraisal he feels is the most valid.
Answer to your question #2:
Any complaint about a trustee can be made to:
Industry Canada
Office of the Superintendent of Bankruptcy
Standard Life Tower Building
510, 639-Fifth Avenue S.W., 5th Floor
Calgary, AB, T2P 0M9
Tel: (403) 292-5607
Fax: (403) 292-5188
Industry Canada
Office of the Superintendent of Bankruptcy
Suite 725, Canada Place
9700 Jasper Avenue
Edmonton, AB, T5J 4C3
Tel: (780) 495-2476
Fax: (780) 495-2466
James,
I have nearly $20,000 in credit card debt with two card companies that is solely in my name. I own a house jointly with my wife and have a vehicle in my name that is paid for, one in her name that is having payments made on it. I also have several thousand (enough to clear the debt) dollars in RRSP's. If I decide to declare bankruptcy or put in a proposal to these two companies what can happen to my home, vehicles and RRSP's? Are they going to be taken away or otherwise seized or sold or something similar? Thanks
James: When a person goes into bankruptcy all his assets except the equity in assets exempted by the person’s province or territory of residence “vest in” or belong to the trustee. The exemptions for Alberta are at the following link:
http://alberta.bankruptcycanada.com/alberta-bankruptcy-exemptions.htm
I owe 2 credit card companies. Can they take my car when it is payed off in july?
Thank you
Jason: In Alberta a person in bankruptcy is allowed to keep equity in a car of $5,000.
For example, if you have a car worth $10,000 and there is a $6,000 secured debt against it then the equity in the car is $4,000. In Alberta the exemption for a car is $5,000 so in this example you are entitled to the equity of $4,000 and the unsecured creditors cannot take this.
Thank you for the answer. But the thing is im going to file for B-ruptsy. I just whant to know if they can take my car or my wages?
Thank you
Jason
sorry im not going to file so can they still take my
car or my wages.
Jason: A creditor with security on the car can take your car for non payment of the debt. An unsecured creditor can take the car for equity above the $5,000 exemptions level if they get a court order.
We filed in 2003 discharged 9 months later found out in 2008 that my son was eligable for the disability tax credit. They went back 9 years and redid our taxes my question is. Is the trustee able to take pre bankruptcy money from the yrs 1998-2003 to pay to our creditors almost 5 yrs after?
Anon: Income tax refunds, as at the date of bankruptcy, are assets that vest in the trustees. Therefore all tax refunds outstanding as at this time belong to the trustee for the benefit of the creditors.
Please refer to the Alberta Bankruptcy Exemptions on this site for confirmation:
http://alberta.bankruptcycanada.com/alberta-bankruptcy-exemptions.htm
If my parents leave me money when they pass on and I am already 5 yrs or more into the bankruptcy can the trustee take it?When is it that they can no longer touch any money?
Anon: So long as you are in bankruptcy any inheritance you receive will go to the trustee for the benefit of your creditors. Once the creditors are paid in full, plus expenses plus 5% pa interest you will receive the balance.
If you are discharged when you are eligible to receive an inheritance it will all go to you.
I filed a consumer proposal and was discharged 3 years ago. I was told it would be off my record after 3 years but the 5 debts that were included still show up on my credit report as an R9. Should they be removed, or are they supposed to change to a different rating, or stay there as is?
Anon: The credit bureau is supposed to remove past credit history three years after you have completed your proposal. I suggest you send them a copy of your Certificate of Full Performance and politely ask them to remove the comments in question.
I have recently left canada but I owe alot of money in CRA and debt how do i file for canadian bankruptcy for the USA?
Julie: You may be able to file bankruptcy while living in the States. For more information please refer to:
http://alberta.bankruptcycanada.com/faq.htm#f
1) I am hearing different things regarding Bill C-12. I know it received royal ascent, but is the $250,000 CP limit now in effect?
2) Would filing a SECOND proposal (first one is 10+ years old) be treated the same way as a second bankruptcy? (ie: a period LONGER than the typical 3 years on a credit bureau)
3) I assume a credit card with NO outstanding balance when a consumer proposal is filed does NOT have to be included and the individual is able to keep that account active after the proposal is accepted? (ie: no requirement to disclose to the lender of the proposal filing if no debt exists at the time)
4) Is a STUDENT line of credit through one of the banks treated any differently than a typical line of credit with respect to a proposal?
5) Can one file a proposal while a student (assuming they are also working)?
I'm not clear on the joint ownership of a house. I see the 40K comments and the reevaluation based on joint ownership, but nothing on the ramifications. Home purchased pre boom for 257K. My Calgary home equity appraisal will exceed 40k. Wife/commonlaw will not consider selling under any circumstance. What happens in this case?
Anon: The new bankruptcy laws are not expected to be in force until later this year.
You have more questions than can be answered in this forum. I suggest you see a trustee for a free consultation.
http://alberta.bankruptcycanada.com/#offices
Anon: The trustee has the power to force a sale for your equity in the home in excess of the exemption. Your wife will have the opportunity to purchase your equity in the home through the trustee.
Where do i start with fileing for bankruptcy? i have no idea how to start it. how much in dept do you have to be?
Anon: Most people who file bankruptcy will owe at least $6,000.00.
You get started by setting up a free consultation with one of the trustees listed at the following link:
http://alberta.bankruptcycanada.com/#offices
I reside in Guelph Ontario. I am moving to Lake Louise in 2 weeks. I have a debt with quite a few creditors. I am being sued by 2 of my creditors. Should I stay down here and claim bankruptcy as soon as possible or can I still move to Alberta and claim bankruptcy in Calgary? Or am I too late? Please help. I'm going crazy.
Anon: You can file in Alberta, once you establish residence.
this may have been answered already, but here goes. im filing bankruptcy due to too much credit card debt and trying to prevent my wife from having to file. she is an authorized user on all the credit cards, but not a co borrower. im not sure how i managed this but did. to make matters more complicated almost 2 years ago i purchased a 6000 dollar motorcycle to commute in an attempt to save gas money and charged it to my unsecured credit card. i placed the vehicle in my wifes name solely for the purpose of not having to get an "under 21" license plate. in calling random bk attorneys, one of them is stating that she dose not need to file and the bike need not be mentioned. although dishonest, is this true ?
Anon: The situation regarding the bike is not one of the questions asked on the bankruptcy application form:
http://alberta.bankruptcycanada.com/Application.pdf
I am presently living in BC and have been caring for my dad post operation, myself I have had serious health issues the major reason for my serious debt problem which started while living in Ontario. Creditors have tracked me down to my parents now. However I am have been offered a job in Alberta. Can I claim bankruptcy in Alberta once I arrive and start working full time? Also I am engaged to marry, can I still marry if I am in bankruptcy? I am the soul income for the two of us at present, does my partners name get added to my bankruptcy? I have some furniture, nothing fancy, will it be taken from me? Finally I owe the government income tax in excess of $4000.00, what happens, can they take my meager belongings to pay this? If they garnish my wage what will I live on and pay for my partner and me, and rent and necessities of living? I have already sold my car to come to BC, and have very little left except for my wonderful fiancee. Help I am scared to death and don't want to end up back in the hospital over the stress this is causing me.
Anon: You can file bankruptcy in Alberta. For the answers to your other questions please refer to:
http://alberta.bankruptcycanada.com/faq.htm
I'm $30,000 in credit card debt from 9 months ago. (it's a long story) I want to file bankruptcy but will they try to make me pay for it since it's not that long ago? I was reading that it may look suspicious unless it's past 12 months.
Anon: The best thing to do is see a trustee for a confidential consultation. The trustee, after reviewing the information you provide him, will be able to answer your question.
You can find a trustee at:
http://alberta.bankruptcycanada.com/#offices
Hello'
I am asking if there could possibly be any way of my Father filing for bankruptcy? He has filed bankruptcy twice before and is currently two years into ODP through the credit counselling services of alberta...However he has made every payment he has been ordered too under the ODP and was finding it to be very effective, but now that all of his income tax's and gst's have been reviewed and reassesed they want him to pay to the CRA upwards of $26000.00 immediatley or in turn he will from what I understand be under default of his ODP and it will be cancelled. My father has informed me that the last time he was in court for his bankruptcy(ten years or more ago) that the judge informed him that the next time he filed for bankruptcy he would be paying .99 cents on every dollar he owed - so there for he has not even attempted to explore that as an option. My question is - if there is a good record with his ODP and he has a willingness to resolve all of his debt - is there anyway that there coud be some sort of loop hole due to extenuating circumstance where he may be able to find further financial relief - he is old and works 7 days a week and pays half of his monthly income into ODP but that is now being threatened - so Is there any possibility of help in his sittuation? He truly is trying to repay the debts under the ODP but he is just being swallowed every time he thinks things are going good in regards to his debt... Please note that he has nothing of value left and therefore nothing to sell to get any relief.
Thank you so much and I look forward to your response
Anon: Your father should see a trustee in bankruptcy or an insolvency lawyer who will be able to advise him after reviewing his financial information.
Hello,
If I am an undischarged bankrupt, can I be the administrator or executor of the estate of my father, who died without a will?
If I can't, can I get a conditional discharge and then be an administrator?
Thanks
Anon: I'm sorry but I don't know the answer to this question. You will have to ask a wills and estates lawyer.
I own about 12,000 on my car but I want to keep it. I also owe approx. 14,000 in credit card and loan debit plus a 6000 student loan and 800 for income tax. I make a decent amount but finding it hard to keep up with payments. Could I be denied for filing for bankruptcy?
RainbowSunshine: You are eligible to file bankruptcy or (depending on your income) a proposal.
#1-My husband and I have a loan on a truck(44000) the truck is only worth about 20-25000 If we give the truck back to the bank what happens then because the loan is more than the truck is worth?
#2 We also have about 30,000 in credit card debt and are behind on utility bills as well. We just remortgaged the house in Feb so there is no equity there. We only have the truck and an old car. I will be going back to work after mat leave but I won't be making as much money with babysitting costs. What do you suggest we do?
Anon: If you give the truck back to the bank they will sell it and look to you to pay the shortfall. A bankruptcy will erase this and the other debts.
If I file for bunkruptcy and 7 years later it is cleared from my credit history is there any possible way that a creditor can tell I went bankrupt inthe past? if its not on my file and I am asked if I was bankrupt after those 7 years are up do I have to tell the creditor? Basically, what I am asking is...after 7 years will I be totally clean of my bankruptcy? will there be anyway anyone can tell if I went bankrupt in the past? I ask this because I have a substantial amount of debt which can be paid in 7 years if I keep to it. However, what I want to do is start saving money for a house now and buy one in 7 years when there are no records of my bankruptcy hence not affecting my lending rate.
Anon: I think you are on the wrong track here. You don't have to be out of bankruptcy for 6 or 7 years before you can get a mortgage.
It is more critical that you have your debt under control and have a good down payment. The following site has a list of lenders that will lend to people just discharged from bankruptcy:
http://www.bankruptcycanada.com/Mortgage-Loans.htm
------------------------------
"Anon: I think you are on the wrong track here. You don't have to be out of bankruptcy for 6 or 7 years before you can get a mortgage.
It is more critical that you have your debt under control and have a good down payment. The following site has a list of lenders that will lend to people just discharged from bankruptcy:
http://www.bankruptcycanada.com/Mortgage-Loans.htm"
--------------------------------
I understand what you are saying here. I know I can get a mortgage directly after comming out of bankruptcy. However, I do not want to pay the penalties and high interest rates incurred from claiming bakruptcy. So therefore I was wondering, after being out of bankruptcy for 7 years can it still be traced? can creditors tell that I claimed bankruptcy at one point in time? 7 years after the discharge, will there be anyway for anyone to tell that I had claimed bankruptcy before? The answer to this question is imperitive to my future planning. If they can see that I claimed bankruptcy for the rest of my living life, then the advantage is nill. If after 7 years, no one can tell I claimed bankruptcy, then my advantage would be to claim bankruptcy now, and start my savings, and begin establishing a better credit rating right out of the bankruptcy discharge.
Anon: The credit bureaus say they remove all reference to a bankruptcy 6 years after the discharge.
I don't know for sure that they erase the references permanently.
I am just going through a divorce and my exhusband has overed me a low settlement for my monthly spousal support payments. He tells me if I dont take the offer he will declare bankruptcy and then I will no longer receive my support payments. Is this true?
Barb: This is not true. A person cannot erase support payments in a bankruptcy. For more information please refer to:
http://alberta.bankruptcycanada.com/faq.htm#debts
I am, amongst many things, way behind in my Alberta Health care premiums.
Can this be a part of my bankruptcy?
thanks, BM
Anon: Yes, these can be erased in a bankruptcy. Please refer to the following for a list of the debt that cannot be erased in a bankruptcy:
http://alberta.bankruptcycanada.com/faq.htm#debts
can parking tickets / speeding tickets be erased in a bankruptcy or am I liable for them?
thank you.
pjm
Anon: If they fall under fines imposed by a Court then you cannot have them erased in a bankruptcy. Please refer to:
http://alberta.bankruptcycanada.com/faq.htm#debts
I have two questions: (1)Does enforcement of a divorce judgement remain after a personal bankruptcy when the reason for said bankruptcy is directly due to the enforcement in the first place? An appeal to the judgement will not happen, as lawyers will not work for clients left with nothing, and all assets are seized and cannot be sold or refinanced, hence, forcing bankruptcy. (2)There is no consumer debt at issue, only secured mortgage. What kind of proposal is it then?
Anon: You cannot included maintenance or alimony debt in a bankruptcy. Please refer to:
http://alberta.bankruptcycanada.com/faq.htm#n
Also, if you have no unsecured debt then you have no reason for a bankruptcy or a proposal.
if my husband and I jointly go bankrupt and we have only one vehicle worth $10,000c can we keep it or do we have to have 2 seperate vehicles of $5000 each? also, how much would our payments to a trustee be together? Is it cheaper than if we filed seperate?
Anon: If you and your husband jointly own the vehicle then each of you is entitled to the exemption for one vehicle.
You can find out your payments to the trustee by filling out the bankruptcy predictor at the following link:
http://www.bankruptcycanada.com/bankpred2.htm
I filed for bankruptcy in April 2008 in Alberta. I signed a contract allowing my trustee to file taxes (pre and post). It has been a month since they have received my tax information for 2007 and there has been no word yet on when my return will be filed. Our child's next months' tax benefit and application for rental assistance is pending on that tax return. What can I do? I was informed by an agent at H and R block that pre-bankrupcy in my case should be from Jan 2008 to April 2008 and not 2007.
Anon: I suggest you contact the trustee's office and ask when the 2007 taxes will be filed, if not filed already.
The trustee has the right to any tax refunds due up to the date of bankruptcy
Anon: Yes, you each are entitled to an exemption of $10,000.
My vehicle is worth $15,000 and would consider it (I assume) my tool of trade 97% of the time transporting foster children to earn income. I also have another vehicle worth $2000 only for personal use. How does bankruptcy affect me in this case if I file?
Hawk: Your personal vehicle is exempt from seizure.
Your business vehicle qualifies for the $10,000 work exemption. Equity above this amount will have to be paid into the bankruptcy estate.
I jointly own a property in Alberta. The other owner of the property has filed for bankruptcy. The bankruptcy agent has put a caviet on the property. The property is for sale. Will the caviet affect my share of the return from the sale of the property?
Crunch: The caveat will have no effect on your share of the proceeds of sale on the property.
Hi
I suffer from Bipolar and on the highs racked up a lot of debt. I am finally getting help for it.
I currently owe $40000 in credit card debit. $10000 is on a credit card that my husband also has a card. The house and car are both in his name. I don't work right now because of a number of reasons. It's gotten to the point where I am taking a cash advance on one card to pay minimum on another. I used to have 7 credit cards but managed to pay of 2.
Is it possible to claim bankruptcy without having my own income? Do I have to file with my husband or is my debt my business? He doesn't have credit debt.
Thank you for any insight.
Anon: You do not have to have an income to file bankruptcy although you will have to pay for the costs of about $1,700.00. Your husband will not be affected by your bankruptcy except he will be responsible for the $10,000 credit card debt for which he also has a card.
thanks for your quick response.
Couple more questions.
1. Does a bankruptcy effect child tax and UCB? We currently use that to buy formula and diapers and can't afford to lose it.
2. My husband and I have a joint bank account. Should we each get our own?
3. I haven't missed any payment on my credit cards in the 5-7 years I've had them, mostly from "creative banking" I currently pay $800 total in minimum payments. Should I stop making payments so I can get the $1700?
Thank you for the help.
Anon: The bankruptcy will not affect your child tax credit. We cannot answer you other questions because we do not give advice. We only answer bankruptcy questions.
thank you for your help. I will contact a trusty and see about the other two questions. Thank you again
I have always lived in Canada except for 4 years when I went to a private college in the United States. I have $158,000 in loans from Iowa Student Loan Liquidity Corporation®.
If I file bankruptcy in Alberta, will my American debts be discharged? Or will I be required to file in Iowa also? Am I able to file in another country while living in Alberta?
Thanks so much!
Anon: An Alberta bankruptcy will erase that debt in Canada. However if you return to the States the debt will have survived.
For how a US bankruptcy would deal with the debt please refer to one of the Bankruptcy Lawyers at the following link:
http://www.bankruptcyaction.com/
Hi, My boyfriend is going through bankruptcy- first time. He has a surplus, but it has not yet has the amount been confirmed from the trustee. my question is if he cannot pay for it in before its due (he's only got 6 weeks to pay it off) would he just have to make the surplus money stretch through 12 months? Or would he have to report his income for those 12 months and pay the $200/ month and surplus money?
The reason why I ask is, if he has to follow through with reporting his income those 12 months, (expense sheet and all) he'll have to include me too since we will have been considered common law by then.
Please Help Before I go broke too.
Anon: I am not sure of what you are asking. Your boyfriend should make his payments on time. He can claim you as an exemption (and you have to report the income you make) so long as you are living together.
I jointly own a property in Alberta. The co-owner live in Alberta. She has file for bankruptcy. There is a mortgage as well as a loan on the property. The co-owner has never made a payment towards the loan or mortgage. Can I only make my share of the payments without it affecting my credit rating. I do not know where the co-owner is now living and she refuses to answer my emails. What are my options.
Thanks
Anon: Your question cannot be answered with knowing details of the ownership and the nature of your co-ownership. Tenancy in common? Fractional ownership? Percent of ownership?
I suggest you contact an insolvency lawyer to give you advice.
Hi,
Currently on an OPD program for studentloans (30K) and small credit card debt.
May possibly be defaulting on program.
Finished school in 99'.
2 questions:
if i default on opd program, collection agents will still have to make proceedings before garnishment of wages?
also: if i eventually proceed in bankruptcy, i understand minimum vehicle allowance is 5000$, but what if vehicle is used to make income. ie. older pickup truck used in oil/gas as work truck.
current value of truck is approx $9000.
thx
Annon: Your creditors can garnishee your wages, after taking appropriate steps, before or after you default on your OPD filing Only bankruptcies or proposals have a legal stay of proceedings that makes it illegal for creditors to take collection action, including a wage garnishee.
There is a $10,000 exemption for tools of trade that you may be eligible for. Please refer to:
http://alberta.bankruptcycanada.com/alberta-bankruptcy-exemptions.htm
What is the criteria for filing for personel bankrutcy?
Anon: You will qualify for bankruptcy if you cannot meet your debt payment obligations. Technically you only have to owe $1,000.00.
Hi,
I may be defaulting on my OPD program. If I default, do creditors have to take legal action to begin wage garnishing with my employer?
Zed: Yes they will have to take court action to garnishee your wages, except for CRA, who do not have to go to court.
My dad transferred his house to me as a gift in anticipation of moving out of the country to live in his homeland a few months ago but now, those plans have been put on hold because he believes he has been a victim of mortgage fraud and may have to file for bankruptcy. Will this affect the transfer of his house to me?
Anon: The trustee has extraordinary powers to recover items gifted as far back as 5 years, in the case of related parties, if without those funds the gift giver was not able to meet his financial obligations.
My partner gave me a spousal credit card to use. We're separated now If/when she files for bankruptcy, will I be responsible for the credit card debt now? And why?
I may have to sell some of my assets (another vehicle and computer) quickly at a loss to pay for my car repairs so I can continue to work at my job. If I have to go bankrupt, will I owe the bankruptcy trustee for the liquidated assets to pay the creditors?
Anon: You are responsible for the credit card debt since you have a supplemental card. Look at the terms of the credit card contract for confirmation.
Anon: Assuming you file bankruptcy you probably will not owe the trustee for the liquidated value of the sale of these assets since they were sold to provide funds for the emergency repair of a vehicle so you could continue work.
Run this by the trustee at the initial consultation.
After a person is discharged from bankruptcy, what belongs to the bankruptcy trustee?
I was warned that any acquired assets - be it inheritance, lottery winnings, property, tax refunds, work bonuses, etc., will go to the trustee for the benefit of their creditors. It seems claiming bankruptcy would be just prolonging the suffering. Is this true?
What does the trustee use to determine property value of claimant's vehicle, household furniture, clothing, etc?
Anon: When a person is discharged from bankruptcy he can keep any assets or windfalls, such as lottery winnings. Those winnings for example would have to have been won after the date of discharge.
Anon: Vehicles are valued using gold or black books, or in some cases by an appraisal. Furniture is valued at a garage sale price.
Please help me understand:
In a bankruptcy, does one have the option of keeping certain assets (for example a vehicle) continuing its payments free of the trustee, creditor, or anybody lodging a caveat over it?
My spouse gave me a supplemental credit card. I did not authorize a credit check for one but I did use the card. My spouse will declare bankruptcy and is the primary card holder. I destroyed the supplemental card and haven't used it for 4 years. My name is still showing up on the statement and has not been removed upon the primary holder's request.
Will I be responsible for all that debt now as we are separated?
Anon: If there is no equity in the vehicle for the bankruptcy estate the trustee will not interfere.
Anon: You may be responsible for the entire debt. You should contact the credit card company, have your name removed and ask them their position on your responsibility since you have not used the card for 4 years.
Ok, so what you are saying is...
If my vehicle (tool of trade) is worth $20,000 but I still owe $10,100 on it, then the trustee can technically seize it for the bankruptcy estate because of the $100 excess equity in it, correct?
Re: Bankruptcy Predictor
1. Is "take-home" income taxable income only?
2. I earn non-taxable income derived strictly from mileage travelled to cover operating costs - my vehicle is my tool of trade. I assume dividing my non-taxable income by 12 determines the average monthly "costs required to earn income" field, right?
EI, CPP, and tax come off every paycheque though.
3. As I'm separated, do I include the 3 dependants I pay child support for in this field?
Thanks for your patience :)
Anon: If the equity in an asset exceeds the exemption by say $100.00 you would pay this amount and keep the asset.
Stressed:
1) "Take-home pay is your income after deductions, such as income tax, EI, CPP etc.
2) Yes.
3) Yes.
I just financed a used work vehicle for $10,000.
My spouse with 2 children in her custody I pay child support for is declaring bankruptcy, and will most likely seek to divide property and debt.
What can/will happen to the vehicle I just bought (with no money down except the first payment) to earn income?
Dazed: Please direct this question to a divorce lawyer.
Hi there
I was in a car accident almost two years ago. I had no insurance at that time and am now being persued to pay a damage bill that I can simply not afford. I have been trying to save money to pay the total ammount but it seems it wont be sufficent when the deadline comes.
If i claim bankrupcty will i be clear of this debt?
CaptainADD: All your debt except for debt at the following link is erased upon a discharge from bankruptcy:
http://alberta.bankruptcycanada.com/faq.htm#debts
We have an employee who has declared bankrupcy in 2008 and is due a profit share from the company for 2008. Will he have to declare this money other than on his income tax this year? Would there be any advantage to paying him his profit share in Jan 09?
Anon: A person in bankruptcy, as one of his duties, has to declare all his income to the trustee.
What a fabulous resource! Do you entertain questions about corporate proceedings? If so:
Should interest be accrued on receivables collected/held by a trustee and, if so, is it normally disbursed to creditors?
Are initial deposits paid to a trustee ($5K) treated as a receivable?
Many thanks
Anan: You said: "Should interest be accrued on receivables collected/held by a trustee and, if so, is it normally disbursed to creditors?
Are initial deposits paid to a trustee ($5K) treated as a receivable?"
The answer to your first question is YES, AND YES, as all funds received are disbursed to the creditors after allowing for costs including trustee fees.
I don't understand you last question. If you mean is that amount part of the funds eligible for payment to the creditors then the answer is the same as per the interest answer above.
can I keep my home if I am forced to file for bankruptcy?It is probably one/half paid for...thanks
Anon: You allowed to keep equity in a home as set by the province. Please refer to:
http://alberta.bankruptcycanada.com/alberta-bankruptcy-exemptions.htm
Hello,
what is the max amount of debt that you can have to file a consumer proposal. I am confused as to if the new laws are in place to allow $250 000. My husband and i are thinking about doing a joint proposal. We have about $160 000 in credit card and loan debt. We have 2 vehicles that are financed and payments are up to date. Would we be able to keep these?? how often is a proposal rejected??? If making a proposal after bills are paid we have about $4000 left what would be a good amount offer to the creditors or what would be expected???
thank you
What is the max amount of debt you can have when filing a consumer proposal. Is the new law in place to allow $250 000 yet. Can you keep your vehicles?? how often are proposals rejected???
Anon: A Consumer Proposal has a limit of $75,000 in consumer debt not counting a mortgage on a home. If the amount owed is greater than $75,000 a Division I proposal can be filed.
You will work with your trustee to chose the payments to be offered in the proposal. One of the key criteria in making a proposal is that the creditors will have to be better off than if a bankruptcy is filed. For more information please refer to:
http://alberta.bankruptcycanada.com/personal-proposals.htm
Hello. I as well as 5 other individuals that I am aware of invested money in a Calgary company, they were required to pay interest checks monthly, in October these cheks bounced, we have been unable to contact this company since. w1 of the investors went to their offices and was directed by a note on the door to go to a Calgary law office, the lawyer at the law office stated that she was representing them. we have sent default/demand payment letters for the secure notes and to no avail, still no contact. my questions are that when a company and its lawyers are faced with these demand notes do they have to reply, do they start to file for bankruptcy or do they have to be forced to declare bankruptcy. A few of the investors are from ontario, the balance live in alberta. Any help would be appreciated
dc
Ripped Off: Sorry, but we do not give legal advice.
hello again, I think what I was asking is what is the procedure involved with this situation
Hello,
I have just been married for 2 years and have lived for 12 years with my current spouse. I did not know the extent of my spouses debt and now we are faced with bankruptcy. What I would like to know is how restricted would I be on owning a property, as I know that he would be entitled to $40,000 equity, does that apply to me as well? I do not have any debt at this time. We have the opportunity to purchase an estate property for $55,000 that would be our retirement property so how would the equity factor come into play? We at this time have our house and business for sale and will be able to retire considerable debt but not all of it. I hope this has made some sense and your earliest replay would be appreciated.
Dotty
Anon: If he goes bankrupt you will not be affected since you do not owe any debt. For more information on this please refer to:
http://alberta.bankruptcycanada.com/faq.htm#d
My husband has previously filed bankrupty about 8 or 9 years ago and was never discharged. Now we are faced with an income tax debt of $167000.00. We are just recently married and this is debt incurred before we were married. Can the tax debt be erased with bankrupty? Also he has contacted the original trustee repeatedly to find out what he has to do to be discharged so he can file again and they will not even return his calls. What can we do because revenue canada says they are taking legal action in 30 days if the debt is not paid? Please help as we have 6 kids and I am freaking out. Also how would I be affected if he is to file bankrupty? Thank you
I am the trustee on my dad's estate. he is still alive. if i file bankruptcy, will this effect his estate?
Anon: I suggest that your husband retains an insolvency lawyer to advise him on this matter.
Anon: Your filing bankruptcy will not have an effect on your father's estate unless he is responsible for any of your debt.
If you become the beneficiary of his estate through his death, prior to your discharge, those funds will be available for your creditors.
my husband and I have a great deal of unsecured debt (credit cards) but also 4 vehicles one personal and 3 work related (1 lease and 3 financed) a mortgage, an equity loan on the house, plus a large business lease for our one company which includes another work van. Plus one smaller lease for a work related piece of equipment. Our business is not incorporated and all leases and loans are signed personally. Can we claim bankruptcy for only unsecured debt? Or can we surrender some of our other secured debts to alleviate the large payments that have become increasingly difficult to meet because of over-spending on our part and decreased business income? The unsecured debt is a heavy concern, but really is only a small part of the problem. The debt from business leases is the largest problem. We would be prepared to give up the business if we could be protected from the debt, as well as the unsecured debts. This would save us almost $6000/month. Whereas only unsecured debt would save only about $2000/month and hardly seem worth the black mark on our record. (but of course take many, many years to pay off as it is only minimum payments)
We do plan on seeing a trustee, but we want to go with as much information and preparedness as we can. Any advice would be an asset.
Thanks.
Anon: You can give up your assets that are secured and have the shortfall included in the bankruptcy. In this way you can truly get a fresh financial start.
Hello
I have a 26,000 dollar civil lawsuit against me for the cost of a vehicle that i hit while driving with no insurance. i want to claim bankruptcy to get rid of this debt... Is this the best option for me? How much will i pay per month if i claim bankruptcy?
Anon: That debt will be erased in a bankruptcy.
The amount you would pay each month is based on your income, with a minimum amount payable for each of 9 months of approximately $200.00.
The fees are regulated by the government.
Do you know how much i would have to pay per month for a bankruptcy if i made around 1,100$ Bi-Weekly after taxes?
Anon: You can find out how much your payments in a bankruptcy will be by using the Bankruptcy Predictor at the following link:
http://www.bankruptcycanada.com/bankpred2.htm
How does surplus income work? and how do I know if I should make a consumer proposal or file for bankruptcy?
Anon: You can find out how much your payments in a bankruptcy will be and whether you should file bankruptcy or a proposal by using the Bankruptcy Predictor at the following link:
http://www.bankruptcycanada.com/bankpred2.htm
hi i just got discharged from a personal bankruptcy afew months ago,but it did not include the student loan i owe,i finished school 11 years ago,but the last part time course i took was 2 years ago,how long will i have to wait to get discharged from the school loan
hi i just got discharged from a personal bankruptcy afew months ago,but it did not include the student loan i owe,i finished school 11 years ago,but the last part time course i took was 2 years ago,how long will i have to wait to get discharged from the school loan
hi i just got discharged from a personal bankruptcy afew months ago,but it did not include the student loan i owe,i finished school 11 years ago,but the last part time course i took was 2 years ago,how long will i have to wait to get discharged from the school loan
Anon: The student loan debt will be included in the bankruptcy so long as the part time course you took 2 years ago was not funded by student loans.
Your discharge certificate will be proof of the discharge of the student loan debt. Since you did not include the student loan debt in the bankruptcy you will be responsible for paying student loans the same dividend they would have received from the trustee if they had been included.
If you have any questions contact your trustee.
I own a house with a my sister.
She does not wish to sell it and will not sign on a equity take to pay out my debt. (rightfully so)
I am faced with Bankruptcy due to unemployment.
Can my sister be forced to sell the home if I go into bankruptcy.
The mortgage is up to date and will continue to be paid on time each month. All my credit is unsecured.
Equity in the property is around 300,000.00 or 150k each. We live in Alberta.
Will my sister and I lose the house if I have to go Bankrupt. I understand the exemption of 40K but what about my sister's equity?
Anon: If you file bankruptcy the trustee will be obligated to get your equity in the home ($150,000 - 40,000)for the benefit of the creditors.
If your sister will not pay that amount then the trustee will be obligated to go to court to get an order for sale of the property.
My mother is considering bankruptcy option. She had helped me co-signed for a mortgage 8yrs ago, which made her legally on title from 2001 - 2006. In 2007 I decided to take her off title. The property has not been sold but I removed her name off title for the past 2yrs. There was no downpayment, thus no equity nor any cash/proceeds involved on her end. Will she be obligated to disclose this property as an asset?
Anon: She will be obliged to disclose this to the trustee. He will decide if he should proceed to recover any equity that might be available for the creditors.
Hi,I am currently on an orderly payment of debts program with the Credit Counselling of AB. I am in default by 3.5 months and have not been kicked off the program yet. My payments are too large for me at this time and they suggested I contact a trustee to see if they could help.
Patricia: A trustee will be able to help in getting rid of your debt and getting a fresh financial start. The trustees at the following link will give you a free initial consultation:
http://www.bankruptcycanada.com/altatrustees.htm
When you claim bankruptcy in Alberta can you include debt that is in the United States?
Anon: Yes, you should include all debt in a bankruptcy.
I just did a search on my name with land titles and have found that I have an old registration against my name regarding a proposal I defaulted on in 2002. The registration says it does not expire. I have three questions:
Will this affect my ability to buy a house?
How do I clear the registration?
My name has changed since this was registered. Will it show up under my new name?
Thank you
Anon: You should see a lawyer about removing this and for the answers to your other questions.
1)If my mortgage company is the only creditor in my Bankruptcy filing, how long can I remain in my home after filing?
2)What about taxes and utilities during this time period?
3)Will there be any affect on my teachers pension if I file for bankruptcy?
I am 25 years old.
Anon: For foreclosure information please refer to:
http://www.canadianlawsite.ca/realestate.htm#j
Your teachers pension will not be affected by your bankruptcy.
Thank you so much. What are my responsibilities regarding property taxes and utilities during the time I stay during the redenption period?
Anon: If you are living on the premises you must pay the utilities or they will be cut off. The property taxes will be paid from the proceeds of the sale of the property.
One of my debts is cosigned by my parents. I really dont want them to get hurt by this. Am I allowed to remove my name from it then file?
Anon: You must list all your debts when applying for bankruptcy.
If the equity in my home was over 40,000 but then dropped below that amount during my bankruptcy do I still have to pay the over amount?
Anon: Probably not; but ask your trustee to be sure.
Good morning, we are a company from the Czech Republic and as a company in Edmonton got bankrupt, we didn´t get paid for our services. No one wants to provide us with information who is a bankruptcy trustee of the Canadian company. You know, we have to prove our revenue office that we didn´t get paid and so we can´t pay the tax for the income which we actually didn´t obtain. Do you happen to know who could help us with such a situation? Thank you very much indeed and we are looking forward to your reply. Martina Bálová; martina.balova@atlas.cz.
I am not clear on the exemptions of RRSP's or RIFF's in Alberta. I have read the new rulings of July, 2008, but not really sure if this means that they are totally exempt, meaning that they in no way can be claimed as an asset, or are there certain hidden clauses I should be alerted to? (Of course I understand the prior 12 month situation) If they are totally exempt is there an upper limit amount perhaps?
Martina: Ask the trustee of the bankrupt company for a report. If they will not give you one contact the Office of the Superintendent of Bankruptcy:
http://strategis.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01003.html
Ron: RIFFs and RRSPs are exempt from seizure in a bankruptcy, except for contributions in the 12 months prior to bankruptcy. For more information please refer to:
http://alberta.bankruptcycanada.com/new-bankruptcy-laws.htm
I desperately need to find a way out of the mess i am in. About four years ago i filed for bankruptcy with my husband. He is now deceased, and neither of us was discharged from the bankruptcy. He died from cancer, and the medical bills, only having one income, and the issues at hand have overridden the urgency of the discharge. We were so broke we could not pay out the rest of our fees. I tried to have the file reopened, but was afraid they'd take my house when the trustee insisted on an appraisal after we paid them another 2500.00 to open the file again. Its confusing and frightening to me.....i want to get rid of this bankruptcy, and start fresh, so much has happened to me in the last three years. The trustees have long since discharged their interest in the file, but the only one that has come after me for money from the debts is an old student loan. Can i lose my home if i reopen this file to satisfy the requirements of the discharge? Am i better off just staying in bankruptcy and dealing with the fallout? Can i apply to the courts to discharge this without involving a trustee? I hope you can shed some light on this for me. Thank you.
Anon: Sorry, but I can't answer your question because you have not provided enough information. I suggest you contact an insolvency lawyer to advise you on these matters.
advice me to solve 10 lakh debt
I am financing a work vehicle. It was sold to me for 13000 but is worth 15000, and I've put $5000 down. I have no other assets. If I may have to claim bancruptcy because of unforseen excessive debt:
1. What asset value of the vehicle does the trustee consider?
2. Can I keep the vehicle to earn income?
I bought a house which I sold to another buyer who subsequently defaulted on the mortgage he assumed from me. The bank has foreclosed on the house and is seeking repayment from both the owner of the house and me. I have no assets to speak of and earn a low wage so significant restitution is unlikely. If I declare bankruptcy, can the bank still demand payment from me after my bankruptcy is discharged? And am I in fact responsible for the owner's default?
Rhonda: If you file bankruptcy your obligation for the debt will be erased.
My husband is declaring business bankruptcy and we are joint owners on our mortgage. Our loan is for 600,000 and we have only lived there for a year and a half, so our equity is almost nil. In Alberta, if we can still afford our mortgage payment, do we have to sell?
Anon: If you can afford the mortgage payments you do not have to sell.
If I waas in abankruptcy before and cercumstance happen where I was not relased from it , what can I do to get it back again
Anon: You should review the trustee's report on why you did not receive your discharge. If you can now put these issues right you can call the trustee and tell him this and ask if the trustee can get you discharged.
failing this you will have to retain a bankruptcy lawyer.
If I have to declare bankruptcy because of a default on a mortgage assumed from me by another person, does the bankruptcy forgive my personal debts as well, for example on my credit card? I have never missed a credit card payment and am able to pay my bills. Will my credit card be taken from me even though I have excellent credit with the cc issuer?
Rhonda: All your debt is subject to being erased in a bankruptcy. You cannot keep any credit cards when you file bankruptcy.
I have had the misfortune to have had to file for bankruptcy on two occasions. The have been discharged from the first bankruptcy almost 14 years ago. The second bankruptcy was discharged, I believe March 2007 as is was extended because of a court hearing and second bankruptcy. I was confused when the bankrupt trustee advised that filing a second bankruptcy would mean my credit would be bad for 14 years. Is that 14 years from the first or second bankruptcy? As well, how long will it be, before I can have a clear credit rating? I have obtained a Secured Credit Card to re-establish my credit. I am in desparate need of getting a reliable vehicle and I don't want to go to the bank until I have a better understanding what my situtation is. I would appreciate your reply at your earliest convenience. Thank you.
Anon: The following link will give you information regarding credit bureaus and how long your bankruptcy will show on them:
http://www.bankruptcycanada.com/creditbureau1.htm#bankruptcypolicy
i work a job at a company that just filed for bankruptcy protection, what are my rights as an employee.
I dont want to work there if i wont get paid.
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