May « 2007 « Bankruptcy Ontario: Free Information about Bankruptcy in Ontario

bankruptcy and separation

Thursday, May 24th, 2007

Question: I am considering filing for bankruptcy . I am also in the middle of a legal separation and anticipate receiving some financial consideration. Should I receive a favourable decision which would grant me a small amount of money, will the payout to me be blocked under the law?

Answer: The payout will not be blocked. However, if, while you are bankrupt, you receive a lump sum of money, it is likely that the trustee will seize it for distribution to your creditors. The specific answer will depend on the nature of the payout. If you receive cash, it is likely to be seized. If you receive payment in the form of a pension, it may not be seized.

This is a complicated area, so you should first consult your divorce lawyer, and if required also consult a bankruptcy trustee for more information.

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Pending inheritance, about to declare bankruptcy

Wednesday, May 23rd, 2007

Question: We are about to file for bankruptcy . At some time in the next year (timeframe unknown) I am likely to receive an inheritance from a deceased aunt in a foreign country.

Do I have to notify the trustee of the impending inheritance ahead of time, or wait until it arrives?

If it arrives during the bankruptcy I assume it has to go into the estate.

If it does not arrive until after discharge, what happens in either the scenario where it was notified and taken into account, or not notified at all?

Answer: You should notify your trustee in advance that you may receive an inheritance, and ask the trustee to advise you on how to proceed. If you become entitled to an inheritance while bankrupt, the trustee will seize it. If you believe the inheritance will be large, it may be prudent to delay filing bankruptcy.

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WSIB and garnishing

Wednesday, May 23rd, 2007

Question: Can the WSIB wages be garnisheed?

Answer: It is very difficult to garnishee WSIB (Worker’s Compensation) payments, since they come from the government. However, there is no law that specifically prevents it, so in theory if a creditor got a court order, they would be able to garnishee WSIB payments. However, it would be very unusual for WSIB payments to be garnisheed.

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Can I have a Different Bankruptcy Trustee from my spouse?

Friday, May 18th, 2007

Question: My common law spouse went bankrupt two weeks ago. I have decided that I should go bankrupt as well.

Because we are in a civil law suit as well and have been advised to keep ourselves separate thoughout the legal process, can I file my bankruptcy with a different trustee/firm for separate represtentation or do I have to file at the same place as my spouse?

Answer: Yes, you may file with a different bankruptcy trustee; there is no requirement that you use the same trustee as your spouse.

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Second Mortgage

Monday, May 14th, 2007

I am thinking of claiming bankruptcy. I have a first and second mortgage from different companies. Can I claim Bankruptcy on the second mortgage only and still keep my home and pay only the first mortgage? Also, if I have to include both first and second mortgage in the bankruptcy, how long do I have before i have to move out?

Tags: mortgage
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what if i will receive a inheritance while bankrupt

Saturday, May 5th, 2007

I may receive a inheritance in the range of 150000$ however my debts are 60000$ and my health extremely poor i am looking at going on disability i was defrauded 51000$ of the 60000$ and i am taking a beating on payments since the inheritance was willed to me before filing bankruptcy will the creditors be able to garanshee the full 150000 or just the remainder of the debts owing from the 60000$

Posted in bankruptcy, what do I get to keep if I go bankrupt | 1 Comment »

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