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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.
221 comments:
1 – 200 of 221 Newer› Newest»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).
We have a 23 yr old granddaughter who is $25,000 in debt, with a debt load that goes back to 2001, so there is mutiple interest charges. Although she tried to make payments, she found the interest crushed her and she became discouraged. Now she has no bank account because her deposits were withdrawn as soon as they were deposited by her creditors. She cashes her checks at money marts. For health reasons she has not worked recently and lives with friends. How can we direct her to a fresh start? thankyou, Elsie
Elsie - If your granddaughter has no income and no assets then her options are somewhat limited. She could look at doing a consumer proposal but she would have to have something to offer her creditors to "settle the debt". If she has no income she would presumably have to have someone who is prepared to provide her with funds to offer to the creditors. She could also look at filing for bankruptcy if she does not have the ability to do a consumer proposal. Alternatively she could do nothing if she has no income and assets but that option does not allow her to deal with the issue and it will remain out there and may come back on her if she acquires assets or income.
If you or your granddaughter wish to discuss these options we do provide a free no obligation consultation and you can set up an appointment by calling us at:
204-926-2471
Toll Free:
1-888 PwC Debt
(792-3328)
A Quick Question: I am currently separated from my wife. We currently have a big debt which is mostly in my name. It was accrued during our marriage and we are both to blame. So is there a way to force her to take responsibility for her share?
Anon - With regards to your ability to force your wife to take responsibility for the debt in your name which was accumulated during the marriage you should discuss that with your family law lawyer. If the creditors are looking to you for payment and that is causing you financial difficulties you can call us at 204-926-2471 to set up a free consultation.
If a person has a personal residence and a rental property would he be forced to sell the rental property in a bankruptcy? There is no equity in either property but minimal rental income is earned on the rental property.
Anon - in a bankruptcy the trustee would look at the current market value and encumbrances against both the rental property and primary residence to determine whether there is any realizable value in either. The estimate of value of the rental property should take into account the net income provided by that property. If there is realizable value in either the Trustee will have an obligation to make arrangements to obtain that value for the creditors.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
When my wife and I bought our house, we realized that we had a large enough side-yard to possibly subdivided or build. About six months ago, we split our property titles for the lot.
We've since decided to not go ahead with the venture since we'd rather keep the side-yard for our growing family.
We are now facing bankruptcy due to a failed business venture.
Will we lose the lot?
Does it look suspicious if we consolidate the 2 titles back to the way it was when we purchased the house?
Anon - If you combined the lots again into single title and then are forced to look at a bankruptcy the trustee will look at the current market value of combined property and the encumbrances registered against the property to determine whether there is any realizable value in the property. If it is principal residence there is an exemption in Manitoba of $1500 for each joint owner or $2500 if single title. If there is realizable value in the property the Trustee will have an obligation to make arrangements to obtain that value for the creditors. The same exercise would apply if it were two seperate titles but in that case there can be no personal expemption with regards to the vacant lot.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
When my wife and I bought our house, we realized that we had a large enough side-yard to possibly subdivided or build. About six months ago, we split our property titles for the lot.
We've since decided to not go ahead with the venture since we'd rather keep the side-yard for our growing family.
We are now facing bankruptcy due to a failed business venture.
Will we lose the lot?
Does it look suspicious if we consolidate the 2 titles back to the way it was when we purchased the house?
Anon - please see response posted last night.
If you would like to book an appointment to review your situation please contact us at 204-926-2471.
I'm considering bankruptcy and I was wondering about the residence I am in. When purchased 8 years ago, no lawyers or realtors, I intended to turn it over to my child when they turned 18, which is now 3 years away. So is a property, which I consider holding in trust, included in my bankruptcy?
Anon - Based on the limted facts provided it would appear that you purchased the house and title would be in your name. On that basis the house would be an asset in your bankruptcy and any non-exempt equity be an asset which the Trustee would have to realize for the benefit of your creditors.
If you would like to make an appointment to review your particular circumstances and any other information related to the house with us, please call us at 204-926-2471.
As far as I can see there is no equity in the mobile home I currenty reside in with my family. It is rundown and needs alot of work. However my family and I need a place to live because due to my bad credit cannot get a mortgage or loan of any kind (I am considering bankruptcy), "low-income" housing is a joke and there are no friends or family members to move in with. Would I still have to sell my mobile home if I go bankrupt?
My wife is considering bankruptcy due to high credit debt. She has been unable to find a job since she graduated this past summer.
We have a Student Loan with AES/Chase in the amount $41,000. Can this debt be included in the bankruptcy? This is not a Federal Student Loan. It’s an unsecured private school loan.
Total she owes approximately $30,000 in other unsecured credit debt.
The Grand total is approximately $71,000 in outstanding debt.
I financed our home and her car on my credit. Should we consider chapter 7 since she really doesn’t own any property. Or is it better to go with Chapter 13 in her situation?
Anon - In a bankruptcy situation, the Trustee would confirm that there is no equity for unsecured creditors in the mobile home. If that is confirmed then the Trustee generally would leave it to you and the mortgage company to deal with the mobile home. If there is equity then the Trustee has an obligation to realize that for the unsecured creditors. In many cases where the equity may be small the Trustee often makes and arrangement for the bankrupt to pay that in to the estate over a period of time.
If you would like to book an appointment to review your situation please contact us at 204-926-2471.
Anon - the student loan debt which "survives" bankruptcy is for loans made "under the Canada Student Loan Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students..." From your comments it does not appear that your wife's student loans would be ones which survive bankruptcy.
Your reference to Chapter 7 and Chapter 13 are American. In Canada the options for someone facing financial difficulty include making informal arrangements with ones creditors, filing a formal proposal (consumer or division I) under the Bankruptcy and Insolvency Act or filing for Bankruptcy.
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
We were building our dream house and the builder went bankrupt. The bank loaned him 30,000 dollars more than he spent on the house. When the house is completed it will have a value of 310,000 dollars. It needs about 50,000 thousand to complete and 20,000 thousand more in repairs. The Trustee says there is equity in the house due to the appraisal from the very beginning that showed it would value at 300,000 thousand. How do we go about to show the trustee that there is absolutely no equity in the home so that we can purchase the home from the bank. He has sent us no reports after the 60 day time period and won't even look at the records. Please tell us what to do.
If you receive a conditional discharge, and are required to (and making) a minimum monthly payment, can the trustee come after you for wages earned or the money in your bank account?
Thanks
My wife has recently been given a conditional discharge that allows her 25 years to pay off her debt. Will she be considered an undischarged bankrupt for the entire 25 years?
Anon - The first thing that I recommend is that you contact your lawyer with regards to your new house and your builder going bankrupt in order to ensure that you have done everything to protect your interest.
Without all of the details it is difficult to comment on your situation. If, as you indicate, there is a bank with a mortgage on the new house I would recommend that you contact them to let them know of your interest in the house. They will no doubt be dealing with the Trustee in order to be able to protect their security.
Any appraisals of the property in the current state or estimates of the cost to complete the home could be sent to the Trustee as well to give them additional information. Once you have gathered up all of that information I would recommend contacting the Trustee and requesting a meeting to review the matter.
Good Luck
Anon - If you received a discharge conditional on making minimum monthly payments and those payments are being made there would not appear to be any reason for your Trustee to take any action to collect those payments. If payments are not being made the Trustee could consider applying to Court to have the terms of the discharge changed (varied) and / or to request an order to allow it to garnish earnings.
In addition,until such time as the entire conditional discharge amount is paid to the trustee, you remain an undischarged bankrupt and, should you come into possession of any "after acquired property" (i.e. lottery winnings or inheritance), the trustee would be in a position to make a claim to those assets. It is in your interest to pay the conditional order as quickly as possible and certainly to make sure at very least that the minimum monthly payments are made.
Anon - with regards to your wife's conditional discharge which allows her to pay over 25 years, your wife will, unless the conditional order is changed (varied) remain an undischarged bankrupt until such time as the full amount she was ordered to pay is paid into the Bankruptcy Estate.
As I indicated above until such time as the entire conditional discharge amount is paid to the trustee, your wife will remain an undischarged bankrupt and, should she come into possession of any "after acquired property" (i.e. lottery winnings or inheritance), the trustee would be in a position to make a claim to those assets. It is in your wife's interest to pay the conditional order as quickly as possible
Thanks for your prompt reply regarding the conditional discharge question. If a house was purchased, would it be considered "after acquired property"?
Thank you.
Anon - generally a home being purchased by regular monthly mortgage payments would not be considered after-acquired property that a trustee would pursue unless the funds used to purchase the home came in a lump sum from somewhere. The best thing to do if you are considering purchasing a home is to have a conversation with the Trustee so there are no surprises on either party.
Good Luck.
In 2006 I declared personal bankruptcy for the first time. I met with my trustee and payments were calculated.I made the payments for 9 moths and she did a review and later came back and said I had to pay another 13,000.00I had 12 months to pay. This increased my monthly payments to reach the deadline. I paid for 3 months and then I had a family tradgedy happen, I suspended the payments,but kept in touch with the trustee. In the course of dealing with the family situation my health deteriarated so much I had to leave my job and go on disability.I still owe 10,000 to the trustee. I want more time to pay it all off.The trustee says I have to meet a judge to request the additional time. Will I be an undeclared bankruptcy until they decide.Could the judge decide I have paid enough? Can I go to jail for not making all the payments within the time specified. Thanks
Anon - You should have a discussion with your trustee in order to obtain a full explanation. Based on what you have said, it appears that monthly payments had been established based on your estimated income at the date of bankruptcy. The monthly payment amount should have been calculated using the Superintendent's Standard which provides the base for calculating surplus income. The Bankruptcy and Insolvency Act provides that the Trustee must file a report within the first eight months and, where certain conditions are present, make a recommendation on conditions for discharge which can run no longer, in terms of payments, than twelve months after the first nine months following the date of bankruptcy. If, as you have indicated, those payments are not made then the bankrupt has to attend what is referred to as an Application for Discharge which is heard by a Court officer known as a Registrar. Until the Application for Discharge is heard and the Registrar provides an Absolute Discharge, you remain an undischarged bankrupt. You do not go to jail but you remain an undischarged bankrupt until you meet whatever conditions, if any, the Registrar orders.
i am 21 and how about $4,000 in debt to credit cards i am working fulltime and live with my boyfriend and i find it hard to even pay the collectors my mom said i should file for bankruptcy but i dont know if i should for only $4,000... what should i do
Anon - The best option for you depends on your personal circumstances.As an alternative to bankruptcy you may wish to consider filing a consumer proposal if you have some ability to make payments to your creditors.
You can call us at (204) 926-2471 or 1-888-792-3328 to set up a free consultation to review the best option for you.
The company I worked for went bankrupt. I had bought product from them, and was making payments out of my paycheques. Do I still have to pay the rest that I owe. I am not working yet. Will the receivable go against my credit rating?
Anon - if the company went bankrupt then there will be a Trustee in Bankruptcy appointed who will be collecting the outstanding accounts receivable including, I assume, the balance owing from you. If you do not make suitable arrangements with the Trustee and they end up suing you or sending the account to collection, it could end up being reported on your credit report.
You can call us at (204) 926-2471 or 1-888-792-3328 to set up a free consultation if you wish to review your options.
Hello;
I have a question about the Manitoba exemptions. If I were to file bankruptcy I have visions of people coming to my home and seizing everything over a value of $4500.00???.. I have a family of four, upstairs/downstairs furniture, applicances, big screen TV, the kids toys etc.... so am I to understand my house will be gutted to the value of $4500.00???
And our home was just purchased this past summer, so there is no equity built in it yet... when you say the trustee has a duty to realize the value of the home for creditors what does that mean?.. selling the home?
Thanks for your time.
Hello;
I have a question about the Manitoba exemptions. If I were to file bankruptcy I have visions of people coming to my home and seizing everything over a value of $4500.00???.. I have a family of four, upstairs/downstairs furniture, applicances, big screen TV, the kids toys etc.... so am I to understand my house will be gutted to the value of $4500.00???
And our home was just purchased this past summer, so there is no equity built in it yet... when you say the trustee has a duty to realize the value of the home for creditors what does that mean?.. selling the home?
Thanks for your time.
wheelspinning - In terms of the exemption for furniture fixtures and appliances, the value that is used is the realizable value - that is what those items would sell for if sold by auction sale or some similar means, not what it would cost to go and buy them new. If the person has a concerns about the value of their furniture fixtures and appliances you could get an estimate of that value from an auctioneer for whatever fee they would charge for such an estimate in order to give you some idea. If a person has more that the exemption amount then ususally the Trustee will work with the person on how to deal with that excess and quite often the person will make arrangements with the Trustee, subject to creditor approval, to pay the excess in over time.
In terms of the house, the question again relates to realizable value. Which, assuming that the mortgage company has properly registered its mortgage, means the amount that would be realized after paying out the mortgage and any other charges which would have to be paid if a sale were to take place. If the answer is that there would be nothing left in that scenerio, then the Trustee would normally just leave it to the mortgage company and the bankrupt to make arrangements. In general it seems that as long as the mortgage companies are getting their payments on time they are prepared to continue on with a person who ends up declaring bankruptcy.
You can call us at (204) 926-2471 or 1-888-792-3328 to set up a free consultation to review the best option for you if you would like more information.
I am an undischarged bankrupt. Can I still apply for a mortgage?
Billy - you can apply for a mortgage even if you are undischarged as long as you advise the mortgage company of the fact that you are undischarged. Hope that helps.
My ex-wife had $60K 18 months ago. We had a house which had $120K in equity which she 1/2 of the equity as the house was jointly owned. we were about to be separated and she agreed if assume all of her debts and take her name from home title and she would not come after house after our separation. I had to refinance my mortage alone and paid her debt. during 18 mths I paid her child support and other support set by lawyer. After separation she accumulated another huge debt almost $70k and now she wants to do bankruptcy. My question will creditors come to my house and claimed anything. her name is not on the title and we still separated. Thanks in advance
i have a judgement against me and I plan on filing for personal bankruptcy. Does this stop the judgement and their plans to garnishee my wages
we want to file chapter 13. my husband borrowed 32,500 in 2006 and bought a piece of land with his uncle for 65,000. we had been making payments of 300 per month to pay back his grandfather. in oct 2008 we could no longer afford to make the payment so we transferred the land back to his grandfather. the land is worth about 75,000 so their is about 10,000 in equity with 5,000 of that going to his uncle. if we file for chapter 13 would we be responsible for the other 5,000 or would they leave us alone since it is in his grandfathers name now
Anon - The Stay of Proceedings under the Bankruptcy and Insolvency Act does stop the judgment creditor from continuing to garnish your wage after you file for bankruptcy unless they make an Application to Court asking that they be allowed to continue. It is NOT at all common for creditors to bring that Application to Court and generally the garnishee just stops once the person has filed for bankruptcy.
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
riles0618 - your reference to Chapter 13 is a reference to an American option. In Canada, if a person was looking at filing bankruptcy with the scenerio you had set out, the Trustee would be looking for the $5,000 in equity that was transferred to your husband's grandfather - either from your husband or from his grandfather who received the increased value back.
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
I live in Manitoba and am facing the distinct possibility of a third personal bankruptcy. Could you please briefly outline what the process with respect to discharge, penalties. etc. that I will face in the event that this third bankruptcy takes place? Thank you.
Anon - If you find yourself filing for bankruptcy for the third time, the discharge process will be the same as it was in your second bankruptcy. That is, an Application for Discharge in Court before a Registrar in Bankruptcy. As you likely would have heard from the Registrar at the time of your Application for Discharge on the second bankruptcy, the Court is generally "understanding" of a first time bankruptcy, however, every additional Assignment increases the Courts concern. Certainly the causes of the bankruptcies is one of the factors that the Registrars take into account.That having been said the likelihood would be that you would, depending on your financial situation, likely be looking at a reasonably long suspended discharge and/or a conditional discharge. If the Registrar feels that the third bankruptcy is an abuse they also have the ability to refuse a discharge, however, that is not common.
You can call us at (204) 926-2471 or 1-888-792-3328 to set up a free consultation to review the best option for you.
i was recently laid-off from a company of witch I along with others believe the owner is cimmiting fraudulent conveyance; marital conspiracy; constructive fraud Transfers in divorce to hide/protect assets in bankruptcy. He has actually made it openly known to some what his intentions were. He has known for sometime his business was a sinking ship and has spent money frivously prior to any legal filings. His plan is: He laid-off almost all employees without notice and final pay on 2/17; his wife filed the divorce on 2/19; he filed for ch 11bankruptcy on his business on 2/23;
He plans on acting to try to save the company in order to buy himself some time for the divorce to be final and enough time passed before the ch 11 automatically goes into ch 7 to protect his famiies assets. Is there anything that can be done? Who would on contact to report this?
Anon - your references to Chapter 11 and Chapter 7 are American remedies as opposed to Canadian options. In Canada a company could file a Proposal under the Bankruptcy and Insolvency Act or could apply to Court under the Companies Creditors Arrangements Act ("CCAA") to reorganize a corporation. In Canada there would either be a Trustee under a proposal or a Monitor under a CCAA and a person with knowledge of some wrongdoing could certainly report that information to the Monitor or Trustee.
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
Hello,
I have a question regarding bankruptcy. I have a debt from overseas (Germany) which was being paid until my wife and I had work problems. They are asking for the full amount (principal, plus the interest they would have received over the life of the loan, plus all associated costs), and have sent it to a Canadian collection agency. The sum they are claiming is $41k, which would put my wife and I into insolvency. My question is are we able to declare bankruptcy due to this debt or is there a seperate issue becuase the creditor is an overseas bank with no business in Canada?
Thank You
Anon - the basic requirements in order to be able to file for bankruptcy in Canada are that you owe more than $1,000 and are unable to pay your debts as they come due and that you reside, carry on business or own property in Canada. With a foreign creditor, they will be stopped from commencing or continuing any collection action, without getting permission from the Court, and generally speaking,creditors do not go to Court to seek that permission. A discharge from bankruptcy, assuming that it is not a debt which survives bankruptcy (listed in Section 178 of the Act), will discharge that debt in terms of anything in Canada, however, there is a risk that the discharge of the debt would not be recognized outside of Canada and, if you own property outside of Canada, that the creditor would pursue that property for its claim.
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
I have a huge amount of unsecured debt in Canada (credit card debt from a number of sources), which I had to stop paying when I became unemployed with no income. I have since taken a job overseas, but am only making enough to cover my monthly expenses (without making payments on the credit card debt). I checked into either filing for bankruptcy or a proposal, but was told that as long as I was living overseas, there wasn't anything that I could do (and there also wasn't anything that the creditors could do). I really want to clear this situation up since I don't want it still hanging over my head if I eventually move back to Canada. What options (if any) do I have?
Anon - As you indicated, in order to make an assignment in bankruptcy you must be an "insolvent person" which is defined in the Bankruptcy and Insolvency Act as:
"insolvent person" means a person who is not bankrupt and who resides, carries on business or has property in Canada, whose liabilities to creditors provable as claims under this Act amount to one thousand dollars, and
(a) who is for any reason unable to meet his obligations as they generally become due,
(b) who has ceased paying his current obligations in the ordinary course of business as they generally become due, or
(c) the aggregate of whose property is not, at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would not be sufficient to enable payment of all his obligations, due and accruing due;
If a person does not fall within this definition, an assignment in bankruptcy cannot be filed in Canada.
In your note you indicate that you had been advised that there wasn't anything that you could do and nothing the creditors could do. The creditors can continue their collection action which may include issuing a small claims summons or a Statement of Claim which, if undefended, could result in them getting a judgment against you. Whether they would then attempt to have a court in whatever country you now reside in recognize that is another matter. You may wish to review this with a lawyer. Even if they did not pursue collection in a foreign country, if they did obtain a judgment they would be waiting to enforce it if you did return to Canada.
In terms of options if you do not fall within the definition of an "insolvent person", you can certainly attempt to come to a settlement with the creditors who likely don't want to have to try and collect from someone out of the country. Generally those collection agencies earn their money as a percentage of the money they are able to collect.
Hope this information is of assistance.
My consumer proposal was just recently filed. It maybe a 5yr proposal. Do i need to wait 5yrs before say getting a credit card where i give them a $1000 for a credit card with that limit?
Thanks,
Anon - from your comments it appears that you are referring to one of the "secured" credit cards that are being offered by certain institutions, where you put up a deposit equivalent to the limit on the card and then as long as you don't exceed the limit the credit card company is always protected by the deposit they hold. You do not have to wait until your proposal is completed to apply for such a card. Just to ensure that there is no problem in the future with the card you may wish to advise the credit card company that you are in a proposal just so they don't think you are hiding something when they do a credit bureau search and the proposal notation pops up.
As I am sure the Administrator of your Consumer Proposal will have told you, the caution on incurring further debt during the time of the proposal is to make sure that the credit is used properly and does not result in further "new" debt being accumulated, while you are still in the proposal to pay off your old debt.
Hope this information helps.
Can a judge keep you in bankruptcy indefinetly. I am a second time in bankrupt. 15 yrs ago was the first one, and the second bankruptcy was unfortunately due to a divorce.
it is now 25 months since I was in front of a judge and he wants me to come back in sept/09 , because i was on disability , and as of now I am only working part-time.
Can the judge extend my bankruptcy longer, even if I have only the ability to work part-time.
Is there a cap on time.
Anon - as this is your second time in bankruptcy, the only means of being discharged is by an Order of the Court. Depending on your location, it is likely that your Discharge Application was before a Registrar as opposed to a Judge. There is no time limit on a discharge from bankruptcy and if the Registrar feels that the matter should be adjourned for a period of time there is not much, practically speaking, that you can do. You could hire a lawyer and attempt to bring your Application for Discharge on before a Judge. I am not sure if the Court would entertain such an Application.
Generally we would recommend providing your Trustee with whatever information the Court has requested and attending to all duties until such time as the Application is scheduled.Ofter times the Registrar has adjourned an Application for Discharge where the person is recently changed jobs or gone to reduced hours in order for the Registrar to see it that is just a temporary situation or is it a long term situation.
Hope this helps.
DeFehr Furniture files bankruptcy March 27, 2009. After 20 plus years all I get is up to a max of $2000 under WEP? What the f@@k This is to offset severance and termination. Thats it???
Anon - The "eligible wages" claim under WEPP is the greater of $3,000 and 4 times the maximum weekly insurable earnings under the Employment Insurance Act ($3,253.85 as of January 1, 2009), less any wages paid by the Trustee/Receiver and less 6.82% withheld by Service Canada). The $2,000 amount is the "priority" that the claim for "eligible wages" has over securtiy held by creditors of the company over current assets. All payments are made to the employees by Service Canada and they will deal with the Trustee/Receiver on the $2,000 portion.
Hope this clarifies the provisions of the WEPP for you.
I was discharged from Bankruptcy in Jan. 03, one of the liabilities incl. was a TD visa for $300. I recently have been approved for a loan from TD, on one condition that I pay off the $300 first. Is this legal if it's been included in past bankruptcy? Could I obtain documents that prove it was included and from where?
Thank you.
I'm at a point where due to illness a year ago I had to leave my job (job related). I hvaeave been struggling to make payments but how far do I push myself before I drown. I am thinking of filing bankruptcy.
I have friends who ended up doing this in the past and it seemed to trustees they had were unfriendly, even condescending to them.
I do not need to sit down with someone who will treat me less then considering the stress i already have because of my financial situation. In general are trustees understanding people?
Anon - if the debt to TD Visa was owing at the time of your bankruptcy and you were discharged from that bankruptcy, and assuming of course that it was not a debt which survived bankruptcy (i.e. fraud, etc), then it was discharged by your bankruptcy and TD Visa cannot now pursue you for that debt.
In terms of confirming that the debt was owing at the time of your bankruptcy you could contact your trustee, however,I expect that your Trustee will have destroyed their files with six years having elapsed. You could also contact the Office of the Superintendent of Bankruptcy and to see whether they are able to access your file. For Manitoba their phone number is (204)983-3229.
I hope this information assists you.
Anon - in general I believe that Trustees and their staff are understanding people who genuinely care and who realize the stress that people facing financial difficulty are under. Many Trustee offices, including PricewaterhouseCoopers Inc., offer free initial consultations to discuss options for a person facing financial difficulty. IF you are concerned about the people who you might be dealing with, I suggest that you arragne to meet and, if you are not comfortable, that you call another office until you find one that you are comfortable with.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
I went through bankruptcy in Manitoba 3 yrs ago. the main reason I went through this was because of student loans that were 10 yrs old,and I lived subsidized by welfare and raising 2 children alone with very minimal maintenance from the fathers,and working my butt off as a waitress making 600$ a month if I was lucky. the federal government is still claiming i owe them and they took last years income tax?.. a lawyer called me telling me there is lw that hes going to quote that will make me pay... what Law is this?
Anon - The Bankruptcy and Insolvency Act has been amended since your discharge and the period is now seven years. That having been said, you indicate in your question that the reason for your bankruptcy was "because of student loans that were 10 yrs old". As I am sure your Trustee would have gone through with you at the time of your bankruptcy, one of the debts which "survives" bankruptcy under section 178 of the Act is Student loan debts, if the date of bankruptcy occurred within ten years (seven now) of you ceasing to be a full or part time student. That section has been interpreted by the Courts to mean that if you had a student loan and were in school eight (or say 10 based on when you went bankrupt) years ago, but went back to school last year, even part time and without any student loan, you have only been out of school one year and the loan from eight (or ten in your case) years ago would survive if someone filed for bankruptcy now. I am not sure if that may be what you have indicated the lawyer that contacted you may be referring to. You should contact your Trustee if you have further contact from student loans with regards to this matter.
Hope this information helps.
My mother has approximately $60,000 in credit card debt, which is the concerning debt. Her ex-husband holds the sole title of two properties (house and farm). However, both of their names are on the mortage and line of credit for these two properties.
From what I read about joint-ownership credit cards and lines of credit; When a person files bankruptcy, the joint-partner then takes on the full debt of the credit card. Is this the same situation for a mortgage and line of credit on a property? However, I also read on a Canadian bankruptcy website that mortgage debt is not included in bankruptcy, and thus, under the current circumstance, once she files for bankruptcy the mortgage debt would still be in her name? I assume, if this is true, it would be the same situation for the line of credit.
Though curious about the above, our primary concern is not actually with where the mortgage debt lies in the end. Our concern is whether or not these properties are susceptible to being collected on, when they are titled in her ex-husband's name only?
Thank you!
Jen – I will try to address your points in order but would comment that your mother’s situation sounds somewhat complicated. You indicated ex-husband and, as a result, I assume that your mother would have a lawyer handling her separation/divorce and would suggest that she obtain an opinion from her lawyer on the real estate issues you raise.
In terms of joint credit cards and joint lines of credit, if one of the joint holders goes bankrupt you are correct; the creditor will simply look to the other party for the full amount.
In terms of mortgage debt (or any other properly secured debt for that matter) you indicate that you have read that the debt is not included. The debt is included in the bankruptcy but, assuming that it is properly registered etc, it has priority over the bankruptcy estate to the pledged asset. In the case of a house that means that a proper mortgage will have priority to a bankruptcy estate’s interest in the house. That is the mortgage company would have the ability to receive its mortgage payments and to foreclose if those payments are not made. That having been said, if a person vacates a property at the time of the bankruptcy and the mortgage company forecloses and there is a shortfall, the shortfall is, with respect to the person who declared bankruptcy, caught in the bankruptcy.
In the last paragraph you indicate that your concern is whether the properties are “susceptible to being collected on, when they are titled in her ex-husband’s name only?” In a non-bankruptcy situation she should discuss this with her lawyer. If she were to file an assignment in bankruptcy the question will be what is her interest in the properties? In a bankruptcy she will have to declare any interest and the trustee would then have to access whether there is any equity which would be available to her creditors.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your mother's options further.
I have just found out recently that a former girlfriend I had cosigned a business line of credit for has or is in the process of declaring personal bankruptcy. I recieved a demand for payment from the bank but have been unaableto have them contact me back. Is ther anything I can do to limit my liability? The bank said there appeared to be personal charges on the account and possibly some fraudulent activity. She is recently married but I doubt that changes anything.
Is there anything I can do? What is the liklyhood they would accept a reduct amount of $ to just make this go away?
Anon - If you cosigned for the line of credit I expect that if your former girlfriend declares bankruptcy the bank will turn all their sights on you to try and collect. They may well be willing to talk settlement and the sooner you can get in touch with them and make some arrangements the better it is likely to be for you. In terms of options to limit your liability you may wish to discuss with a lawyer. In terms of any future liability I would suggest that you contact the bank and make sure they have frozen the account and will not be increasing any exposure that you may have.
Hope this helps.
can you tell me what the difference between a proposal and bankruptcy is?
my husband started a business hauling rv's which meant the purchase of a truck which is in his name and not the businesses. the demand for this is now almost nonexistant and he has had to get a different job which he doesn't use his truck for? can he claim business bankruptcy with his truck as part of that even though its in his name and not the business. right now the payments of 1100 a month are killing us with only one income of 2240/month. thank you
Anon - Regarding the difference between a bankruptcy and a proposal - There are two different types of proposal depending on how much is owing to creditors. The basic idea of a proposal is that it gives a person who cannot make all of the payments required by their creditors a means of making an offer to their creditors to "settle" their debt on some other basis. The amount of the proposal really depends on the person's circumstances. A proposal has to be sufficient to have the required level of creditors accept the proposal and then it is binding on all of the creditors. A bankruptcy is a process where a person who is not in a position to make a proposal can make what is referred to as an Assignment in Bankruptcy. Under that process the person is able to retain exempt assets and reports their income and expenses to their trustee for the period of bankruptcy. If a person has non-exempt or pledged assets the effect of a bankruptcy on those assets can be discussed with a Trustee as the answer will be unique to each situations. At this time, if a person is filing bankruptcy for the first time they are eligible for an automatic discharge after nine months if they attend two "counseling sessions" during the period. Those sessions provide information on things like budgeting.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
LR – From what you have indicated the debt for the truck is in you husband’s personal name and, as a result, the creditor will look to your husband for payment regardless of what happens with the business. If the business is a proprietorship, the creditors of the business would be able to look to him regardless.
Your husband can call us at 204-926-2471 to set up a free consultation if he would like to explore his options further.
can you tell me if they take your rrsp's when you file for bankruptcy and if you have car loans and a mortgage through the bank is that affected as well???
Lisa – In Manitoba RRSP’s are exempt and you would not lose them if you file for bankruptcy. The only time that there could be an issue is if you had made significant contributions in the recent past. In terms of car loans and mortgages, when a person declares bankruptcy the Trustee looks at the car or house and what the item is worth in the current market and what the outstanding balance owing is and also looks at the mortgage or security agreement held by the bank or finance company to make sure that it is in order and to ensure that it was properly registered. If the security documents are all in order and were properly registered and there is no equity in the asset, the Trustee would leave it to the person filing for bankruptcy and the mortgage / finance company to work out. In general, and in situations like that, we have seen that those parties are generally prepared to continue on with the person declaring bankruptcy as long as they get all their payments on time.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
I lost my job due to a back injury 18 months ago. I have had collectors calling for awhile now. What can collection agencies do? Can they freeze bank accounts? Can they garnishee my moms pension cheque (she is joint with me on a credit care)? Can they take my WCB cheques? I have just received a lump sum back pay from WCB and can offer the creditors a 25% lump sum payment to clear the debt and close the accounts. Thank you
Anon – With regards to your question regarding collection agencies, they will do what the creditor instructs them to do. This can include either by themselves or by engaging legal counsel issuing a statement of claim or small claims Court summons against you in an effort get the matter before the Court and, if successful, to obtain what is referred to as a judgment against you. If they are successful in getting a judgment they can then attempt to attach that to any assets you may have including funds in your bank account if they know where that is. In terms of your Mom they would have to go through the same process in order to get a judgment against her. If Canada Revenue Agency is a creditor they do not have to go through this process to attach to your assets.
In terms of making a lump sum offer to creditors, there is a formal process known as a Proposal, which can be filed to make an offer to one’s creditors.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
I owe my brother money for helping me and my mom out financially. Mom and I own a house worth $25,000 - mortgage free. We want to transfer our share of the house to my brother for pay back of what he has given us. Is this okay even if we owe creditors money as wwll? Do creditors have 'access' to our home? Can creditors or collections agencies find our bank accounts?
If a collection agency is trying to get money from me, can they access acounts that I have joint with someone who they ARE NOT trying to collect from?
Anon – If your brother lent you money and did not take security on the house at the time then transferring the house to him at a later time may result in issues with your creditors. You should review this with your lawyer prior to doing so. If you were to end up filing for bankruptcy and had transferred the house to your brother and he did not have security, the Trustee would be required to look into the circumstances surrounding the transfer and could, depending on your individual circumstance, end up going after your brother for being given the house. If you were to look at filing a proposal and the house had been transferred, the proposal would have to take that into account.
In terms of your question regarding creditors having “access” to your home, the unsecured creditors would have to sue you and if they were successful and obtained a judgment against you from the Court, they could register that judgment against the property.
With regards to creditors or collection agencies finding bank accounts there are various places that they can look including checking any payments you had previously made to them or checking for credit enquiries reported by Equifax and/or TransUnion.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
Anon – If a collection agency obtains a judgment against you and knows where you maintain bank accounts they may attempt to seize bank accounts in your name. If that is a joint account with another party (who is not liable for the debt) then the difficulty will be in trying to prove whose funds are in the account. In any event, having a joint account in those circumstances may lead to the monies in that account being paid out or tied up by the bank in order to protect themselves from paying out monies to the wrong party.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
Hi There,
I have been on long term disability and before that maternity leave. I do not have a job to go back to. I just bought a new car and have a car loan for it, I am worried about losing that. Most of my other debt is unsecured. How do I start the bankruptcy process?
Anon
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
My common law husband is thinking of declaring bankruptcy. We purchased a home 3 years ago (title in his name) for 124k and equity is maybe 4000.00. Will/can they take our home or force us to sell? He is working now full time and we have one child if that makes any difference.
Thank you
"Worried in Winnipeg"
Worried – If your husband declares bankruptcy the Trustee will request a current market value and current mortgage balance in order to confirm the amount of equity in the home. The Trustee will also take into account the personal exemption which exists in Manitoba under the Judgments Act with respect to equity in a principal residence, which is $2,500 where the title is held entirely in his name. If the equity turns out to be a relatively small amount the Trustee often makes arrangements for the person to pay the equity in to the bankruptcy estate over the period of the bankruptcy.
You can call us at 204-926-2471 to set up a free consultation at one of our three Winnipeg offices if you would like to explore your options further.
I have a credit card that has quite a bit on it and i called them to try to make a deal and give them some cash, around 5000 to clear the whole card. the lady i spoke to told me it has to go to collections before they can make a deal like that. should i wait for it to go that far or would doing a proposal be a better idea. My husband is going to be filing a proposal and this card is joint with me. both of us don't want to file and thats why i'm trying to handle the credit card myself. is there any way out of this?? thanks
Lisa – If your husband is going to be filing a proposal and the credit card is joint I expect that the credit card company is going to focus their attention on you to try and get whatever they won’t get out of his proposal.
You could file a proposal as well, but the proposal has to include all of your creditors. If you owe less than $75,000, excluding principal residence mortgages, you could file a consumer proposal. I cannot tell from your question if you have other creditors. For a consumer proposal to be successful, at least ½ of your creditors in dollar amounts have to vote in favor of the proposal if a creditors meeting is called. If the credit card company is owed more that ½ of the amount you owe, the risk is that they will be able to control the proposal.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
If my wife and I file for joint bankruptcy, is the cost of the bankruptcy double? Do the exemptions for personal effects, vehicle, furniture etc. double?
According to this tool... http://www.bankruptcycanada.com/bankpred2.htm our "total equity (shortfall) after provincial exemptions are about $16,000, with a debt load of over $100,000. If we had a family member willing to loan us the $16,000 (understanding that this is a rough estimate tool mind you), would we be able to offer that amount to our creditors and be able to keep our home (where the $16,000 equity comes from)? If so, would it be better to declare bankruptcy or a file a consumer proposal? OR, would we have to file a Division 1 proposal because our total debt owing is over $75,000? I think I read that a joint consumer proposal allows for a proposal of up to $150,000.
Anon – If you are able to file a joint bankruptcy the fees are not double. The fees are either determined by a tariff in a summary administration or by the amount of time spent at the various billing rates of staff involved in the case of an ordinary administration file. In order to file a joint bankruptcy, the debts of you and your wife have to be substantially the same – i.e. the debts largely have to be joint debts for which you are both responsible.
With regards to your question regarding equity, it is unclear if this is equity in a residence or some other asset. Your question suggests that you are considering the option of a proposal and making an offer to your creditors through a proposal. Generally a proposal has to offer the creditors more than they would receive in a bankruptcy. In terms of calculating what that amount might be there is generally a market valuation of the real estate obtained by the person and current mortgage balances and outstanding taxes deducted from that amount. There are provincial exemptions available which depend on how the title to the property is held. The limit at this time for a consumer proposal is $75,000 and is not doubled if a joint consumer proposal is filed.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
My father has filed for bankruptcy, but co-signed my line of credit (for education expenses). Is he still responsible for it (i.e. it's a $50 000 credit line, so can he still be the co-signer, having gone bankrupt?), or can the bank force me to find another co-signer?
Thanks,
Stacey
My father has filed for bankruptcy, but co-signed my line of credit (for education expenses). Is he still responsible for it (i.e. it's a $50 000 credit line, so can he still be the co-signer, having gone bankrupt?), or can the bank force me to find another co-signer?
Stacey – If your father has filed for bankruptcy then the creditor whose credit line he co-signed for you will be a creditor in his bankruptcy and, if there is any dividend from that bankruptcy, they will receive their portion. However, they will look primarily to you for repayment of the line of credit. While they may ask you about another co-signer, I expect that they will be more concerned about the line credit being operated properly and, if there are any payment requirements, that those are met.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
I live in Manitoba. If I declare bankruptcy do I include the Child Support and Child Tax credit I receive each month as income?
I owe 18000.00 on my vehicle, all payments are up to date, the value of the vehicle is 12,000.00 if sold. Will I lose my vehicle if I claim bankruptcy?
Lavals – in terms of child support and child tax credit those amounts get taken into account as part of family income.
In terms of the vehicle, the Trustee will confirm that the creditor who is owed the money has proper security against the vehicle. Assuming that they do, a bankruptcy does not interfere with their rights. Once the Trustee confirms that the security is proper and that there is no equity the Trustee generally disclaims any interest in the vehicle and leaves it to the bankrupt and the creditor to sort out. Generally we have seen creditors like that being prepared to carry on as long as they get their payments on time but that is their choice.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
my husband and I are 5 months into bankruptcy,our income is high $6300.00 net,but we have extremly high medical costs, and now I will loose my benefits. Because of an illness I have, I'm being forced to retire, upon retiring, I will receive a severance pkg.Can I have my employer put this money directly into a RRSP or some other type of registered retirement plan, in order to avoid giving this money to the creditors and keeping it for my retirement(my work pension at 65yrs will be very low.
my husband and I are 5 months into bankruptcy,our income is high $6300.00 net,but we have extremly high medical costs, and now I will loose my benefits. Because of an illness I have, I'm being forced to retire, upon retiring, I will receive a severance pkg.Can I have my employer put this money directly into a RRSP or some other type of registered retirement plan, in order to avoid giving this money to the creditors and keeping it for my retirement(my work pension at 65yrs will be very low.
September 18, 2009 5:58 PM
Anon - the definition of "total income" in the Bankruptcy and Insolvency Act includes "a bankrupt's revenues of whatever nature and from whatever source that are earned or received bu the bankrupt between the date of the bankruptcy and the date of the bankrupt's discharge..." It appears that any severance payment you receive would fall within this definition whether you receive it in cash or have it directed to some other vehicle. You may wish to discuss this in more detail with your lawyer to be certain of where you stand.
i have a checking and savings account through Chase. I also have credit card debt to Chase. I am in process of filing bankruptcy, and I need to know if I have to find a new bank? Can chase ask me to close my account because they were one of my discharges?
Anon – The discussion regarding your bank accounts is one that you should have had with your Trustee in Bankruptcy at the time of your filing.
Generally we recommend that a person in your circumstances does open a new bank account. The advantage of opening a new account is that there are no automatic withdrawls or other charges taken for loan payments etc. after the date of bankruptcy. While we have been successful in obtaining repayment from financial institutions where this has happened, it is the time delay in obtaining those refunds that have been the problem for the individuals involved.
I would not expect that Chase would ask you to close your account but I would expect that they will certainly withdraw any privileges (i.e. overdraft etc.) that your account may have had.
I declared bankruptcy on October 13th, and the current bank that I deal with failed to tell that my account would be closed at the end of this week. Since, I have rent to pay, bankruptcy payments, food to buy and etc. How does a person normally tackle or correct this mess. Lynn
Lynn – The discussion regarding your bank account is one that quite often comes up at the time that a person is filing an Assignment in Bankruptcy and you should discuss this with your Trustee.
From your question it appears that your bank closed your account after learning that you had made an Assignment. That is not something that we have seen occuring. I would suggest that you contact your bank to determine whether they were just wanting to cancel any priveleges (ie overdraft, etc) on your account and whether they are prepared to have just a normal chequing account for you.
If they are not prepared to assist you then you should contact another bank or credit union to open an account. I would also suggest that you contact any parties where you have ongoing liabilities and advise them that you will provide them with the required payment on your new account.
I was absolutely discharged on October 7 by the judge. The trustee wanted a suspended discharge.
How long does the trustee have to send me my discharge papers, and how long before the garnishment of my GST cheque is removed.
I tried to ask the firm that handled my bankruptcy and they will not give me a straight answer or any info.
Thanks!
Anon - in terms of the Discharge Order, the Trustee prepares the form of Order and sends it to the Court for signature. The Court can take several weeks to return the signed Order.
In terms of the GST question, you refer to a garnishment and I am not sure who would be garnishing the GST while you were a bankrupt. If your reference of garnishment is that the Trustee had been depositing the GST in the bankruptcy account your discharge should see that end, however, there can be a question of what the timing of the income was that resulted in the GST. You should discuss with your Trustee when the GST will flow to you.
Hope that helps
The company my husband works for is going into receivership. He has worked there for 25 years. What about severance pay? Doesn't he get a week for very year he's been there? Is it worth it to sue the company?
Anon - If your husband's employer goes into receivership, the Receiver will review the company's payroll records. There is Federal Legislation to protect employees called the Wage Earner Protection Act which covers oustanding wages, vacation pay and severance pay up to a maximum of $3,000 or 4x the maximum insurable earnings under EI.
With regards to your question regarding suing the Company, if there is Receiver appointed it is generally a case of a secured creditor having secuity on all of the company's assets appointing the Receiver. Aside from the Wage Earner Protection Act claim that your husband would have any employee claim would likley come behind the secured creditor but you can discuss with your lawyer if you wish to be sure.
i have been living abroad for 3 years now. i really want to file for bankruptcy but i don't know how to do it from abroad. i do have assets in canada (bank account, vehicle, personal belongings)....i own a motorcycle where i live and that is all i owe. i am married with 3 childrne that depend on my income, plus 1 child lives in canada for whom i pay child support. please tell me how to start! help!
i got your website from bankruptcycanada.com and in it it says that you offer a call from a trustee....do you call even if it is an international call? if so can you let me know through here so i can make that request through bankruptcycanada.com. thank you very much for your help.
Anon – the question of filing for bankruptcy while living abroad is one which the Office of the Superintendent of Bankruptcy (the Government department responsible for the administration of bankruptcies in Canada) (the”OSB”) looks at on a case by case basis. They will require details of both your assets and your creditors both in Canada and abroad in order to provide an indication of whether or not they would accept an Assignment in Bankruptcy. If they are prepared to accept an Assignment, the next question is where in Canada are the majority of your Canadian assets located, as that information will affect where the Assignment must be filed.
The Bankruptcy and Insolvency Act provides that an insolvent person may make an Assignment and defines an insolvent person as:
"insolvent person" means a person who is not bankrupt and who resides, carries on business or has property in Canada, whose liabilities to creditors provable as claims under this Act amount to one thousand dollars, and
(a) who is for any reason unable to meet his obligations as they generally become due,
(b) who has ceased paying his current obligations in the ordinary course of business as they generally become due, or
(c) the aggregate of whose property is not, at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would not be sufficient to enable payment of all his obligations, due and accruing due;
In terms of the process, once it is determined that the OSB would accept an Assignment, then the person provides all of the necessary information to a Trustee in the locality where the bankruptcy is to be filed and the Trustee prepares the statutory documents that have to be filed. The information required to prepare those documents is generally gathered using the “information form” which can be found under the “Tools” heading of our website at www.pwcdebtsolutions.com. Depending on the value of the person’s assets, there are two means of administering the bankruptcy estate. If the person has less than $15,000 in the way of assets that would fall into the bankruptcy, that section of the Act sets a “tariff” for the Trustee’s fees. The Trustee would require satisfactory arrangements for payment of that tariff amount into the estate before taking on the Assignment. Once the statutory documents are signed and returned, the Trustee would file those documents with the OSB and upon filing the person would be bankrupt. Depending on the level of a person’s income, a first time bankrupt is eligible for an automatic discharge after nine months.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
Anon - an initial consultation can be done over the phone if you are living abroad. You can call our office at (204) 926-2471 to discuss your situation.
I used to make a good income but had to go on long term disability 4 years ago due to serious chronic illness. I've now found myself in a very desperate situation. I have around $40,000 in credit card debt. Most of my money each month goes to paying debts: credit card payments are around $1000/month and the rest goes to living/medical expenses. My disability income each month is about $2100 and I have no significant assets other than RRSP company stock from my former job. I found a site on the internet that calculates the amounts for either a consumer proposal or declaring bankruptcy, but it said I don't qualify for either because I don't have any assets? I'm confused because I would prefer to make a consumer proposal, and I thought I could offer them around 50% of what I used to pay, for example $500/month for 5 years (which I could afford) to avoid bankruptcy, and then my creditors would at least receive something. Why do the various website calculators say I don't qualify for a proposal? I'm really desperate and the stress is making my illness worse, and I really had my hopes pinned on easing the stress through a proposal.
Anon – I am not sure what internet sites you are using that are indicating that you do not qualify for either a consumer proposal or a bankruptcy. The basis qualification in order to file either is to be an “insolvent person”, which is defined as someone who owes more than $1000 and the most common other factor, is that the person is unable to pay their debts as they generally come due. If you meet those criteria, you are eligible to file. In terms of how much the consumer proposal has to offer the creditors, each one is different, but the common factor is that the proposal has to offer the creditors more than what they would expect to receive if the person went bankrupt.
You can call us at 204-926-2471 to set up a free consultation if you would like to explore your options further.
Only my name is on the title of our current home. We are selling our current home and using the proceeds to purchase a new home. This new home would be in both of our names. If my husband files for bankruptcy shortly after moving into our new home, would we lose the home? Or would I now be affected by my husbands bankruptcy? Or would he owe part of what we made off the sale of the 1st home that was only in my name? There wouldn't be any more money left over.
What does this mean? "Actual residence of the bankrupt, equity of $1,500 each if in joint tenancy, or $2,500 if not in joint tenancy;"
Anon - if the title to your new home is in both names then your husband's interest in the new home will become part of his bankruptcy estate if he ends up filing for bankruptcy.
You or your husband can call us at 204-926-2471 to set up a free consultation if you wish to discuss this matter further.
Anon - your question refers to the amoiunt of equity in a principal residence that is exempt from seizure. If the title to the house is held in single title then that person is entitled to an exemption of $2,500. If the house is in joint title (i.e. husband and wife own house jointly) then each of them is entitled to a $1,500 exemption.
You can call us at 204-926-2471 to set up a free consultation
do I need a lawyer to file bankrutcy in Manitoba
If a visa bill has gone un paid and has been sent to a collection agency. Then it is paid in full. What happens to one's credit rating?
Alma - you do not need a lawyer to file for bankruptcy in Canada, you need a licensed trustee in bankruptcy.
Our office is a licenses trustee in bankruptcy and you can call us at (204) 926-2471 or 1-888-792-3328 to set up a free consultation
Anon - with regards to your credit rating, there are two credit reporting agencies we run into most often - Equifax and TransUnion. Those companies determine what and how they report information. There is some infomation available on the Government Industry Canada website that may assist you on your question at the following address:
http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02179.html
You can request a copy of your credit report to see what has been reported.
You can call us at 204-926-2471 to set up a free consultation if you need to explore options for dealing wth troubling financial problems.
I have claimed bankruptcy but have made all payments, and am making my final payment this month. I am continuing to recieve phone calls from the Takhar Group - a collection agency. Are they able to continue to call? How do I get the phone calls to stop?
Anon - It apppears from your comments that you expect to receive your automatic discharge from bankruptcy this month. If a creditor is continuing to call you should advise your Trustee and reqeust that they contact the creditor.
Once you are discharged from bankruptcy the debt is discharged unless it is one of the debts which survive bankruptcy pursuant to Section 178 of the Act.
If I file for bankruptcy, am I able to leave the country for 2 weeks for work purposes or for a family holiday? Would I need to inform my trustee that I would be leaving the country and why?
I have approximately $40000 in tax debt and am thinking of filing for bankruptcy. My trusty has informed me that after my 21 months are over, Rev. Can. could challenge my discharge and want me to pay more money. Is this true? And if so, how much longer could they make me pay until I get a discharge?
If I declare bankruptcy, does my wife have to be involved in any way regarding reporting her income or her expenses? If not, how do I fill out my budget papers each month without including her income and expenses. As well as any expenses to do with our child.
My son owes $22,000 in taxes on a business he was in a few years ago. If he makes arrangements for monthly payments but decides he would rather declare bankuptcy can he still do so?
Anon - yes you are allowed to leave the country for two weeks after you have declared bankruptcy. You can inform the Trustee that you are going to be away for a couple of weeks in case there is something going on with your estate that causes them to have a need to reach you.
Anon - On your question regarding the possibility of CRA opposing your discharge, that is correct. Any creditor could choose to oppose a discharge. If that happens and it becomes necessary to have a discharge application heard by the Court, it will be up to the Registrar in Bankruptcy who hears the discharge application to determine what, if any, additional amount should be paid. There is no "rule book" for the registrars on what they must order - each case is treated individually and they will take into account such things as your income, age, circumstance etc at that time.
Hope that helps.
Anon - On your question regarding your wife having to report her income and expenses there is a requirement for the Trustee to obtain family income information monthly. If your wife refuses to provide the information there is an impact on the calculation of what is called surplus income which determines how much you are required to pay into the bankruptcy each month. A Trustee in Bankruptcy can review with you the calculation of surplus income.
You can call us at 204-926-2471 to set up a free consultation appointment if you would like more information.
Anon - with regards to your question regarding your son's tax debt the answer is yes. He can decide at any time to look at the other options of dealing with all is creditors which may include a formal proposal or bankruptcy.
Your son can call us at 204-926-2471 to set up a free consultation if he would like to explore your options further.
i know i can file bankruptcy abroad and this way i can have my canadian debts put 'on hold' while i live abroad. can someone let me know what it is exactly that i need to do in canada AFTER i have my bankruptcy papers in the country i live in? i wish i could come in for the free consultations but i am abroad, so i ask you please let me know through this site as much as you may be able to give me. Thank you very much, have a nice day.
Anon – while you may be able to file for bankruptcy in the country where you are now residing, that will not stop your Canadian creditors from continuing collection actions in Canada and, if you have Canadian assets, from attaching to those assets if they are successful. There is no automatic recognition of a foreign bankruptcy. If you file bankruptcy where you are currently residing a Canadian creditor should be prevented from taking collection action in your current country of residence. You should confirm that with the Trustee you are dealing with in your current country of residence.
If I file does any and all debts with collection agencies no matter who you owe included ie: photo camera tickets with CBV collections or student loans?
Anon - if you either a proposal or a bankruptcy under the Act then all of your debts must be included. That having been said, there is a short list of debts which "survive" bankruptcy. That is, even though they were listing in the bankruptcy you would still be responsible to pay them following your discharge. Those debts include, among other things, student loans if the person has been a student within seven years of the date of bankruptcy and any fine, penalty etc imposed by the court. If your debts fall within those, then you will still owe the money even if you go bankrupt.
You can call us at 204-926-2471 to set up a free consultation appointment if you would like more information.
If I am a senior and on a small CPP and old age suppliment for survivor which equals to just over 1,000 a month how much will I have to pay to file a bankruptcy?
Anon - the amount which you will have to pay depends on your personal circumstances and what, if any, assets would fall into the bankruptcy estate from which the trustee could be paid. There is an amount (the tariff) that the Trustee is entitled to receive under the Act for administering the estate. If you have no assets which would fall into the estate and you are not at a level of income where you would be expected to make payments in to the estate for the benefit of your creditors, then the trustee will review your circumstance and discuss with you the level of contribution towards costs.
You can call us at 204-926-2471 to set up a free consultation appointment if you would like more information.
I have approx $73,000.00 in personal debt (amounts owing to CRA and an old Student Loan) and am considering bankruptcy. I am the sole owner of a corporation and wonder if the company will be affected by the bankruptcy. Thank you!
Anon - if you are the sole shareholder of the corporation and you declare personal bankruptcy your shares in the corporation will "vest" in your bankruptcy estate. That is the bankruptcy estate will become the owner of the shares and will then have to determine whether the shares have a realizable value. In addition, if the corporation owes you any money, that debt will become an asset in the bankruptcy estate and the Trustee would have an obligation to make efforts to collect those monies.
You can call us at 204-926-2471 to set up a free consultation appointment if you would like more information.
Thank you for your response. Can you tell me if a proposal would affect the corporation in the same way?
Anon - In the case of a proposal, the proposal would have to take into account the value of the shares in the corporation when deciding how much to offer to your creditors, in order to make sure that the creditors could see that they would be better off in the proposal than they would be in a bankruptcy.
I am going through the final stages of a divorce and have been left with a lot of debt. I am seriously considering bankruptcy as my only hope of clearing my debt. If I receive spousal support will it be taken away if I declare bankruptcy?
Anon - with respect to your question regarding spousal support, the Office of the Superintendent of Bankruptcy sets a standard, based on the number of people in the family unit, which sets out the amount that the person filing for bankruptcy is to contribute into the bankruptcy estate during the period of bankruptcy. That amount is dependent upon the net family income and number of people in the family.
You can call us at 204-926-2471 to set up a free consultation appointment if you would like more information.
I have just finalized a divorce agreement and would like to know if payments received from "Division of Property" (not spousal) paid on a monthly basis get taken away if a person declares bankruptcy? Also, what about lump sum payments for property settlement?
Anon - with regards to your question regarding payments resulting from a division of property in a marital situation,let me start by saying that each case is unique and the facts need to be looked at. However, in general terms it appears that where the divorce has been finalized, there are cases which indicate that the claim for any monies or property owing would accrue to your trustee if you were to become bankrupt.
You can call us at 204-926-2471 to set up a free consultation appointment if you would like more information.
I financed my vehicle and it got written off and now I owe $7000, I owe taxes from previous years that totals up to $7000, my credit cards at maxed out and totals $8000. I'm getting a thrid party collecting agency after me for the car loan. I make about $38000 (before texes; should I consider bankruptcy?
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