January « 2009 « Bankruptcy Ontario: Free Information about Bankruptcy in Ontario

Are Child Support payments recieved calculated as part of monthly income?

Saturday, January 24th, 2009

Question: I pay child support and special expense amounts to my ex. Is the amount of child support moneys she receives included in the calculation of her monthly income to determine payment to her trustee?

Answer: Yes. If you are bankrupt in Ontario, you are required to report your income every month to your trustee. If your income exceeds a certain amount, you are required to pay a portion of your surplus income into your estate for the benefit of your creditors.

Income includes all income from every source. It may be income from employment, from a pension, from social assistance, or from child support. All forms of income are included, whether or not they are taxable. Your trustee can provide you with more information.

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Been bankrupt before,tried credit couselling twice

Wednesday, January 21st, 2009

Question: I have been bankrupt before,10yrs ago, recently tried credit consolidation twice. Make good money, husband on Wcb, both of us are lousy with money,but the mortgage is payed and truck payment, we are 32,000 in debt. Now what? How do we get ahead when we are always behind in everything else, hydro, enbridge, credit debt. I really need someone to help me figure out the juggling. Each week we are broke and borrow from pay day loan. I am at my wits end and I am sure that some of the creditors will now be looking at garnishees.

Answer: The only long term solution, obviously, is to reduce your expenses to the point where your expenses are less than your income. If you currently have debt, and have a good income, and if you want to avoid a second bankruptcy, and if credit counselling was not successful, the next logical option to consider would be a consumer proposal.

You will need to write down everything you spend money on each month, and then contact a trustee for more information.

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Obtaining a Mortgage Post-Bankruptcy

Wednesday, January 21st, 2009

Question: I previously declared bankruptcy and was discharged 9 months ago. I am in the process of getting married and we are looking at purchasing our first home. I have made sure to pay all my bills on time since the discharge and my fiance has impeccable credit. When we approach our bank for a pre-approval will they take both her and my annual salary into account when determining our mortgage pre-approval amount, or hers alone? Additionally, we have approximately 120K saved to put down.

Answer: The bank will take both incomes into consideration. If you have suitable income, and a significant down payment, you should still qualify for a mortgage, even during this credit crisis.

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owning a car after bankruptcy in Ontario?

Tuesday, January 20th, 2009

Question: How long after bankruptcy in Ontario can I own a car in my name?

Answer: It is actually possible to own a car while you are bankrupt in Ontario. Under Ontario law, you are permitted to own a car, with no loans against it, worth up to $5,650 when you go bankrupt. More information can be found in this article on cars and bankruptcy in Ontario.

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Bankruptcy Ontario Question for my Daughter

Tuesday, January 13th, 2009

Question: My daughter is a separated single mom, financially she has hit rock bottom, she is receiving no subsidies and is paying rent, babysitting, hydro etc. more than she earns, she receives no child support as her husband is in rehab, no income, no job. A bank gave my daughter a line of credit for $25,000 knowing her income, that her husband was unemployed, no colateral and no co-signer, they have froze her account as she cannot make the payments. If she files for personal bankrupcy, will that include this line of credit at the bank?

Answer: Yes, a line of credit would be included if she filed for bankruptcy in Ontario. She should immediately open a new bank account at a new bank (where she does not owe any money) so that she has a place to deposit her paycheques and pay her rent.

For more information on bankruptcy, she should contact an Ontario bankruptcy trustee.

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Stuck in Limbo for the rest of my Life

Tuesday, January 13th, 2009

Question: I was to receive a discharge on May 7, 2008. This was an order from the court made on August 7, 2007.

I have not received my discharge and my Trustee has done nothing to help me. Do I need to get a lawyer? How can I get my discharge. Why is this taking so long to get a signature on a document and mail it?

Answer: The first step is to contact your trustee (call them every day if necessary) to find out exactly what has happened. It could be that the paperwork is held up at the court, or there may be another issue.

If you are not satisfied with the answers you are getting from the trustee, you can contact the Office of the Superintendent of Bankruptcy.

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house in wife’s name

Monday, January 12th, 2009

Question: I own a home (with a mtg)in my name. It has been like than for 3 years. I am married and my husband is not on title. He is thinking of going bankrupt. Is my house safe from his bankruptcy. I live in Ontario.

Answer: Your house is probably safe. The key issue will be whether or not the house was ever in your husband’s name. If it was, then the issue will be whether or not he was knowingly insolvent when it was transferred to your name. You should discuss this with a bankruptcy trustee or lawyer to review your specific situation.

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Pensioner cannot afford to pay credit cards

Thursday, January 8th, 2009

Question: Hi I can no longer afford to pay my credit cards once I stop paying them entirely can they take my pension money?

Answer: In general, no, it is not possible for a credit card company to garnishee pension income. Under the Ontario Wages Act wages can be garnisheed, but not pensions.

However, if you bank at XYZ Bank and have a bank account at XYZ Bank, the bank can go into your bank account and take money out to pay your credit card payment. Therefore, if you can’t pay your credit cards, you should open a new bank account at a new bank.

You can get more information on strategies for dealing with credit card debt by talking to a credit counsellor or a trustee in bankruptcy.

Tags: credit card
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Archive for January, 2009