Bankruptcy in Ontario

Question: I am in over 74,000 in credit card and other high interest unsecured debts. I recently went through a debt management program and I am still finding that I can’t make that payment. My income was reduced and my husband was laid off. Our combined take home income is less than half than what it used to be. If I file can my husband keep his leased car? And will I have to surrender my families monthly child tax benefits?

Answer: Yes, bankruptcy in Ontario is an option for you. It is possible to keep a leased car if you go bankrupt, provided you are able to make the payments. (If the leased car is in your husband’s name, and only you are going bankrupt, then he would be able to keep the car).

Each month that you are bankrupt you are required to provide the trustee with proof of your family income. If your income is above a certain amount, based on the size of your family, you are required to make additional payments. Therefore, you will not lose your child tax benefits if you go bankrupt, but you may lose a portion of your total income if your income is high.

We suggest you contact a trustee to review your situation and decide if bankruptcy is the correct option in your situation.

If we own the house jointly,three of us- Daughter, Mother and Father- in this case, what would the effect be in bankruptcy ? Father and Mother are retired (in their very late 70’s). The daughter is terminaaly ill with cancer and will-of course- never work again. The house is free of mortgage and any liens.
If the daughter enters Bankruptcy, what is the position of the house as it is jointly owned?

What is the cost to the trustees when going bankrupt? My son is about 20k in debt, no job, no income. what would his cost be?