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Friday, July 20, 2007
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Manitoba Bankruptcy Trustee
You can ask me your bankruptcy or proposal questions and I'll do my best to answer them within one business day.
60 comments:
If I file bankruptcy will my wife be affected? She has her own income and career and has no involvement in my debt.
Anon: Your wife will not be affected by your bankruptcy so long as she is not responsible for any of your debt. For more information please refer to:
http://www.mbbankruptcy.com/bankruptcy-FAQs.htm#Q20
I have a lfased vehicle for which the payments are up to date and the equity is flat. Will I be able to keep this in a bankruptcy?
Anon: Most people keep their leased vehicles in a bankruptcy. We will be able to give you specific information on how your vehicle will be treated at a free initial consultation with our firm.
You can call us at 204-926-2471 to set up a free consultation.
Do I still have to pay child support arrears if I file for bankruptcy?
Anon: Yes, you do have to pay these arrears as this is one of the debts that is not erased in a bankruptcy. For more information please refer to:
http://www.mbbankruptcy.com/bankruptcy-FAQs.htm#Q11
My son is going to file bankruptcy soon. I co-signed a loan for him on which $5,000 is still owed. Will I be responsible for that debt if he files?
Anon: Yes, If your son files for bankruptcy you will be responsible for that debt since you co-signed the loan.
Can my husband and I transfer ownership of our house to my mother before we do our bankruptcy? Will that protect the equity in it?
Yours truly,
Jan
Jan: You cannot do that without suffering a serious penalty and putting your discharge from bankruptcy in jeopardy.
It is against the law to try to hide assets from your creditors. Trustees have extraordinary powers to recover monies from such transactions. In addition the courts may impose a severe penalty and suspend your discharge from bankruptcy.
Trustee: I'm involved in a debt repayment plan through a credit counseling firm. I am having trouble meeting the required payments as my remuneration has dropped in the last few years.
I am giving serious consideration to bankruptcy. Is there any option you are aware of of renegotiating the payments I make?
Regards,
Joseph
Joseph: You have a couple of options; filing bankruptcy or filing a consumer proposal. We would have to sit down with you and review your financial information before we could give you specifics.
If you want to meet with one of our PwC debt consultants please call us at 204-926-2471 Toll Free: 1-888 PwC Debt (792-3328).
This initial consultation is free and confidential.
Hello I am considering the possibility of bankruptcy, and want to make sure of the ramifications, my wife and I own a home jointly..there may be a total of $30,000.00 in equity in it. I am trying to establish what my share would be in a buyout situation (of the trustee i would guess?) after real estate fees and closing costs and penalties and her 1/2 share reduction, it leaves maybe $8000.00, would the trustee want all of this or would they accept 10%, 15%, 25%, it may be a better idea for me to sell the house and keep the debt, if I am just going to end up owing the trustee $ 8000.00 and have a ruined credit rating versus owing $15,000.00 after using the $30,000.00 from the home I have also read that some provinces have a home equity exemption amount available to them, I believe Alberta's is $30,000.00 and BC's is $16,000.00, if there is such a thing for Manitoba, could I possibly falll under it?? Thank you for any and all advice I really need to make a decision on this soon.
Anon: The Manitoba exemptions in a bankruptcy are at the following link:
http://www.mbbankruptcy.com/
MB-bankruptcy-exemptions.htm
If you wish to discuss this with one of our trustees at a free no obligation consultation you can set up an appointment by calling us at:
204-926-2471
Toll Free:
1-888 PwC Debt
(792-3328)
I am currently going through a second bankruptcy. When I initially signed the contract, I was given the budget sheets, and told that I had to fill them out for nine months and submit them with the fee for the trustee. At the end of the nine months, a court date would be set for discharge.
My account has been recently passed on to a new person who is now telling me that I have to continue the payments and budget sheets until I am fully discharged.
Can you tell me what is required of me? This just doesn't seem right.
Anon: You should find out if the original person you dealt with is still with that firm. If so, set up a meeting with both people and see if you can get this ironed out.
If the original person is not with the firm I suggest you ask the person you are now dealing with to confirm what you said with that person.
All your communications should be in writing.
I have a Son who has not recieved his last paycheque from someone in the process of declaring bankruptcy. How can he make sure he will still recieve his paycheque?
Anon: There is no guarantee he will get paid, however the best thing for him to do is contact the Employment Standards Branch.
I was in an accident and charged with impaired driving. My leased vehicle was written off and Manitoba Public Insurance (MPI) paid out the value to leasing company.
The charge was dismissed. (thankfully)
Despite the charge being dropped, MPI still wants me to repay them the money they paid to the leasing company.
I was already pretty close to the edge financially and have no way to come up with the money to pay them. Would bankruptcy eliminate this type of debt?
Anon: That debt would be erased in a bankruptcy since the charges against you were dropped. Please refer to the following:
http://www.mbbankruptcy.com/bankruptcy-FAQs.htm#Q11
For more certainty we would like to review the background on this when you come in for a free initial consultation.
does a bankruptcy affect future employment opportunities? Would some one who's been bankrupt still be "bondable"?
Anon: Bankruptcy is not a criminal offense so should have no effect on your being bondable.
My daughter is in financial difficulties and we can easily help her out, however, I wonder if her coming in to a trustee and going through the process of getting a proposal together would be helpful. Her debit is approx $3000 and she has a steady income $ 21,000 gross. Since this has happened to her before and we helped her out and she has not corrected her financial problems I wondered if a trustee is the best option?
Anon: Yes, I can see that you want her to assume responsibility for her actions.
I don't think going bankrupt or filing a proposal will achieve this. Also the amount of debt ($3,000) is too low. The cost of a bankruptcy or a proposal is about $1,700.
She should be able to repay this debt if she has a plan in place and the desire and determination. I agree with you that if you help her out you are teaching her that she does not have to accept responsibility for her actions.
Thanks, That is what I thought,
Could you recommend a counsellor or course etc for financial management/debt reduction. Coming from professionals advise is always better received.
Anon: there is a United Way / Province of Manitoba funded agency called Community Financial Counselling that offers financial counselling, typically to lower income individuals. They offer counselling at very low rates because they are subsidized. They are located in downtown Winnipeg ph 989-1900.
Good luck.
My husband is required to pay x amount per month to his trustee based on our combined income. My unemployment has ended and I have no income other than my child tax credit. The trustee has not made an adjustment to his monthly payments yet, as we are below the standard for a family of 3. What I want to know is if my 16 year old lands a job, does the trustee need to know about his income?
Anon - From your question it appears that you have a copy of the Superintendent's Standard and have been reporting to your Trustee based on a family of three. If that is the case then your husband will have to include any income which your son brings into the home in his monthly reporting. Any surplus which might result is prorated based on the bankrupt's portion of the total family income. Your husband should be discussing this matter with his Trustee in Bankruptcy.
I was going to a college a while ago but I dropped out.I haven't paid the tuition fee when I started because I had to wait for the student loan to get processed.While I was waiting for the loan I kept going to school.About a month after starting the semester I decided to drop out.On the next day I started receiving letters from the college that I owe the tuition fee for the whole semester (even when I was attending only about 1/4 of it) plus interest.In neither one of the corespondence between me and them is stated that they charge an interest which to me looks unfair.
What would you advise me to do?
Thank you.
Anon
In terms of the interest being charged I recommend that you look back at your original registration / invoice rather than the letters you have received.
In terms of any student loan debt which you have, that debt is not discharged by a bankruptcy if you have been a student within 10 years.
You can call us at 204-926-2471 to set up a free consultation.
You can call us at 204-926-2471 to set up a free consultation.
You can call us at (204) 926-2471 or 1-888-792-3328 to set up a free consultation
My wife and I need to file for bankruptcy, but we have no income coming into the home. I'm wondering if there is a way to file for bankruptcy without having to pay the fees the trustee requires?
Anon: If you have no assets which would fall into the bankruptcy, the base cost of the bankruptcy is approximately $1,600. Our office does not expect someone in your situation to come up with that full amount at the time that they are planning to file bankruptcy and will make arrangements for monthly contributions towards that amount. Usually payments are approximately $170 per month.
Hope this helps.
I am self employed, but due to an accident and injury from it I am unable to operate my business and am looking at having to close it. In the past 4 months while injured I have been struggling to keep everything up to date, and in doing so have drained all my assets. If I file for bankruptcy, I have a few debts joint with my girlfriend, who lives with me and our 2 sons. She has not yet completed her divorce proceedings, and is listed on her ex-husbands mortgage as well, but is not making any claim on the house when the divorce is final. If my filing also requires her to file for bankruptcy will those assets be affected as well?
If you have a friend that has loaned you money for a business, and it ends in you declaring bankruptcy, is there a way for him to recieve some relief on the debt via writing it off as a bad business venture on his taxes? If its not included in your bankruptcy can the payments to him be considered in your discharge payments?
Anon: I am assuming from your comments that your business is a sole proprietorship and, as a result, when you ask about filing for bankruptcy you are talking personally. If you file personally and your girlfriend is joint on some of the debts, those joint creditors will look to her for payment. If that forces her to look at filing personal bankruptcy as well then all of her assets would have to be included in her bankruptcy. That would include her interest in the home. The real question will be whether there is equity in that property that would be an asset in her bankruptcy estate if she were to make an assignment in bankruptcy.
You can call us at 204-926-2471 to set up a free consultation.
Anon: Your friend may have an allowable business investment loss if he lent money to your busines and the business goes bankrupt. Your friend should check with his accountant/tax advisor.
If you end up declaring personal bankruptcy, all of your creditors, including your friend, have to be included in the bankruptcy. You cannot pick and choose which creditors are included. If you file for bankruptcy all creditors are treated the same and, assuming that your friend is an unsecured creditor, you cannot make payments to him on his loan after you declare bankruptcy. He would receive his share of whatever monies are available for distribution in the bankruptcy.
The surplus income allowance for a family of 4 is 3,330/month. As my wife currently makes this amount what happens to any income that i make?
I am currently unemployed and want to return to work but I have been advised that up upto 70% of any income I make will be clawed back.
Fireball - the 2008 Superintendent's Standard for a family of 4 is $3413. In the situation you describe that $3413 is subtracted from the family net income and the difference is referred to as "surplus income". At least 50% and no more than 70% of the surplus income is what is expected to be paid in to the Trustee. However, in your case if only you were to go bankrupt, the surplus income is apportioned between you and your wife depending upon the percentage which your income is of the total family income. As a result only a portion of the family surplus would have to be paid in to the Trustee.
You can call us at 204-926-2471 to set up a free consultation and to review the calculation of surplus income.
WHAT TYPE OF QUESTION THE TRUSTEE ASK WHE YOU FILE BANKRUPCY?
Anon: if you choose to file for bankruptcy the trustee will ask and you will have a duty to disclose your complete financial position including assets, liabilities, dispositions, earnings and expenses etc. This information is generally gathered in a "workbook" which can be accessed on the mbbankruptcy.com page under the "personal bankruptcy" heading and then Application Form. That will give you an idea of the information which will be required.
You can call us at 204-926-2471 to set up a free consultation.
I am considering filing bankruptcy and am wondering if I should do so. I have Tax debt. and they are going to garnish my wage for 20 percent of my net. I also have an old student loan from 2002 that will probably come into play soon as well. They are saying that I owe them $7000.00 for taxes from 97-99. I have just started a new job in Nov. of 07, and am not making that much money atm. (13.75 /hr *40 hrs per week.) I cannot afford to have 20 % taken from me every week. Should I or shouldn't I?
Anon:You have a several options; including filing bankruptcy or filing a consumer proposal. We can sit down with you and review your financial information to determine which option may suit your situation. In the case of your student loan, that debt will not be discharged by a bankruptcy if you have been a student within the ten year period before a bankruptcy.
You can call us at 204-926-2471 to set up a free consultation.
My boyfriend left so i wanted to file bankrupcy and he is on the contract.Can i file bankrupcy without him being present.
Anon - you can file for bankruptcy independently of your boyfriend as long as you meet the minimum requirements. If your boyfriend is joint on a debt then the creditor will look to him for payment.
You can call us at 204-926-2471 to set up a free consultation.
when in bankruptcy should home lenders lower your rate
Anon - secured creditors, such as mortgage companies, are not affected by a bankruptcy as long as they have properly registered their security etc. Assuming that the mortgage company has done so then they are free to deal with the asset(s) pledged as security even if the borrower declares bankruptcy. There is nothing that requires a secured creditor to adjust interest rates, payment amounts etc. Sometimes lenders may be prepared to negotiate these things but there is nothing that requires them to do so.
You can call us at 204-926-2471 to set up a free consultation or, if you have already filed ,you should contact your trustee.
My fiance has about $2500 in collections (obviously not considering backruptcy). I am approved for a mortgage, but we will be married when I actually take the motrgage on the house I have bought. Will his debt impact my ability to get the mortgage (i.e. will I have to pay it out for him)? Does he have to be on the mortgage?
Anon: You do not become liable for your finace's debts just because you get married. You do not have an obligation to pay the debt, unless you have guaranteed it or are jointly liable. If your fiance has credit issues I do not think you will want to have him on either the title or the mortgage.
You can call us at 204-926-2471 to set up a free consultation.
My fiance is in the middle of filing for bankruptcy. We have plans to marry in the fall. My name is not on any of his debts. My credit is good, I own a home etc....Can we follow through with the wedding or is it better to hold off till after the bankruptcy is complete?
Anon - If you do proceed with the wedding you do not automatically become liable for your finace's debts once you are married. If you own assets such as your house you may wish to discuss with a lawyer the way in which title to the home is maintained.
There are provisions under the Bankruptcy and Insolvency Act dealing with what is referred to as surplus income and once married the Act contemplates reporting of total family income each month. The Trustee your fiance is speaking with will explain this to her.
Hope this helps.
My husband and I had filed for bankruptcy approximately 10 years ago; at the time we found out from our trustee that his name (along with his siblings)was on the title of a home. They said that a caveate would be placed. Now there is talk to sell the home; is there an "expiration date" on the caveate? and what are we to expect?
For the unsecured debt consolidation loans, you can make the loan application to any debt consolidation agencies. These agencies help you with their best services of experts of the field.
My girlfriend and I are in collections. She is going to declare bankruptcy in the future, I have nothing in my name and no assets. Is there a way to transfer my debt over to hers and make it her debt or is it even legal? If this is legal to do I am considering doing this.
stuck - At the time of your husband's bankruptcy his interest in the property "vested" in his bankruptcy estate. The Trustee registered a caveat to evidence that interest. I expect that at the time none of the other parties with an interest were prepared to make an offer to the trustee to purchase that interest. You can expect that the trustee will want the estate's share of the net sale proceeds. I am not aware of any expiry date on a caveat but you could confirm that with the lawyer handling the sale or land titles office to be sure.
debt consolidation - For some people debt consolidation is the best option to deal with financial difficulties.
You can call us at 204-926-2471 to set up a free consultation to obtain information on debt consolidation or the other options available if you are facing financial difficulty.
anonymous - to "transfer" your debt to hers you would have to go to each of your creditors and have them agree to make such a transfer. It is unlikely that any creditor would agree if your girlfriend is already in collection and about to declare bankrupcty. If you have no assets you may also wish to explore the options available to you as the creditors on any joint debt will be looking to you for payment if your girlfriend does declare bankruptcy.
You can call us at 204-926-2471 to set up a free consultation.
I got my case number and meeting with the creditors i was given a list of things to bring. However I can not find the apprasial to our refinance or never recieved it. What happens if I can not recieve this information.
My husband owned a business and while the business was doing good we bought investment properties. He has now closed the business and we are going to file bankruptcy. We make more than the median and do not pass the means test for chapter 7 however most of our debt is nonconsumer debt it is business debt will we still qualify for chapter 7.
Anon - If you cannot find the appraisal you should be contacting your trustee to advise them that you have been unable to locate the appraisal and will therefore not be in a position to bring it to the creditors meeting. If it was an appraisal obtained by a bank or mortgage company for refinancing you may be able to request a copy from the bank or mortgage company.
Anon - Your question refers to Chapter 7 which is an American process rather than the Canadian Bankruptcy process. If this is the case you should be contacting an American bankruptcy attorney.
If you are Canadian and wish to set up a free consultation you can call us at 1-888 PwC Debt (792-3328).
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