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

bankruptcy and separation

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.

Labels: bankruptcy, bankruptcy trustee

Pending inheritance, about to declare bankruptcy

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.

Labels: bankruptcy Ontario

WSIB and garnishing

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.

Can I have a Different Bankruptcy Trustee from my spouse?

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.

Labels: bankruptcy Ontario, bankruptcy trustee

Second Mortgage

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?

Labels: bankruptcy, bankruptcy Ontario, mortgage

what if i will receive a inheritance while bankrupt

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$

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

Pre and Post Bankrupcy Tax Reurns

I filed for bankruptcy in May 2006, my trustee filled a pre and post bankruptcy return on my behalf. Do I recieve either of the refunds if there are any?

Labels: bankruptcy, bankruptcy Ontario, bankruptcy trustee

Ontario Personal Bankruptcy Blog

Posted on Thursday, May 24, 2007

bankruptcy and separation

Posted on Wednesday, May 23, 2007

Pending inheritance, about to declare bankruptcy

WSIB and garnishing

Posted on Friday, May 18, 2007

Can I have a Different Bankruptcy Trustee from my spouse?

Posted on Sunday, May 13, 2007

Second Mortgage

Posted on Saturday, May 05, 2007

what if i will receive a inheritance while bankrupt

Pre and Post Bankrupcy Tax Reurns