Ontario Personal Bankruptcy Blog: March 2007: Answers to Personal Bankruptcy Questions

Posted on Wednesday, March 28, 2007

Should I declare bankruptcy?

Question: my common law partner wants me to go bankrupt again; we both have our own credit,he is suposed to give me 450. a month to help; he has not been giving me it last time borrowed half back. I do not want to lose my RRSPs.I have 6,000. worth not locked in my income fluctuates approx 16,000. to 18,000. my debt is approx 16,000.I have not been very good with my credit.Could you advise me on what to do.I have jumped into things with him too quick over 30 plus years. Thanks

Answer: I strongly suggest that you mmet with a trustee to review your options. Bankruptcy is an option, but you will lose your RRSPs. Another option is a consumer proposal that will allow you to deal with your debts, and keep your RRSPs.

Labels: bankruptcy, consumer proposal, RRSP

Posted on Friday, March 23, 2007

personal Bankruptcy, RRSPs and life insurance

Question: can my life insurance policies be seized if I go bankrupt in Ontario, and how do i know if my RRSPs are locked in?

Answer: In most cases life insurance policies are exempt from seizure, however, it depends on the cash surrender value of the policy, and the beneficiary of the policy (who gets the money if you die).

To determine if your RRSPs are locked in, look at your most recent statement; if it says "LIRA" or "Locked in Retirement Account" on the statement, they are locked in. You can also contact the company that holds your RRSP to confirm their status.

In both cases, you can contact a trustee to review your paperwork and determine what you would lose if you declared bankruptcy in Ontario (the rules are different in other provinces).

Labels: bankruptcy, bankruptcy Ontario, what do I get to keep if I go bankrupt

Posted on Thursday, March 22, 2007

Considering 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.

Labels: bankruptcy, bankruptcy Ontario

Posted on Tuesday, March 13, 2007

joint home owership and bankruptcy

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?

Labels: bankruptcy, bankruptcy Ontario

Posted on Saturday, March 10, 2007

bankruptcy

i feel like an idiot. i went bankrupt in december 2006 and now and its only march i find myself smothered in payday loans and now can't even pay my rent.

what are my choices. i want to clean my act up like i already should have. am done now

Labels: bankruptcy

Posted on Friday, March 09, 2007

cost of bankruptcy

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?

Labels: bankruptcy, bankruptcy Ontario

Posted on Thursday, March 01, 2007

Family unit income and bankruptcy in Ontario

I was wondering if my 12 year old income counts towards our family unit income in the event that I was to go bankrupt in Ontario?

Labels: bankruptcy Ontario