Question: Hi…
I’m self-employed, with over $165k in unsecured debt with cc, Income tax, GST and one client owed $60k debt too. I live with my wife, adult daughter and teenage son, so there are 4 of us.
I’d like to know, if I file, what the ‘surplus’ income levels would be for me, as my monthly income fluctuates by 50% some months. Plus how long till discharge?
Plus, what about the fact that I owe my current bank more than $13k, and I think that if I do file, they’d “close” my bank accounts…so how would I cash my client’s cheques that is my income? Can you “have” a bank account during bankruptcy? Can you just verify that yes, they would close my accounts?
Plus the GST collections has already put a Request to Pay on that biz account and I’m told by the bank that any $ that I might deposit, would NOT be given to me and they’d have to turn it over to the GST collections.
So, your best advice here pls? I can not think of any way to get back to a level playing field, without filing…can you just confirm this for me?
Herb
Answer: Herb, you need professional advice! To properly answer the questions you are asking would require more information from you, and many hundreds of words in this response. You should contact an Ontario personal bankruptcy trustee and make an appointment for a no charge initial consultation.
Here are some quick thoughts to get you started:
Here’s a link to some information on surplus income in a bankruptcy; your trustee can help you with the math, and help you determine whether or not your adult daughter is considered a dependent.
Second, yes, you can have a bank account while bankrupt in Canada. You should open a new bank account at a new bank to prevent problems, but again, your trustee will explain this to you in more detail.
Your situation is complicated, so contact a trustee today.