Ontario Personal Bankruptcy Blog

Question: An employer, files bankrupcy. The employer does not inform creditors, employees nor any one associated with the bussiness. The employer continues to run the bussiness into the groud. The question is, are the transactions and financial obligations that are accured AFTER the initial filing of bankrupcy ( 1= years there after) new or are they covered by the protection of the application?

Answer: You are asking a complex legal question. First, if a corporation declares bankruptcy, a trustee is appointed, and the trustee notifies all known creditors of the bankruptcy. A creditor's meeting is held, and a notice of that meeting is published in the local newspaper. Therefore it is impossible for the employer not to inform creditors, unless they have deliberately withheld information from the trustee. If that's the case, you should contact the trustee or a lawyer.

However, if a bankruptcy did occur, any transactions or obligations incurred after the bankruptcy are new; they are not covered by the bankruptcy.

Again, we would strongly suggest that you contact a lawyer for further information on this specific case.

Labels: bankruptcy

Question: My husband and I recently each filed for personal bankruptcy.(we had a business an I became long term disabled) My settlement with the trustee was dealt with in total with my RRSPs. My husband pays $225.00 per month. We have been seperated for a long time yet they combined our houshold income because he was living with me at the time as we couldn't afford to pay two rents. He really wants to leave. How would this affect things? There isn't enough income for everything...

Answer: This is a question you should ask your trustee, since they will know all of the facts of your case.

In general, since you were living together at the start of the bankruptcy, the trustee based your husband's payment on the family income. If you become separated, the payment may change (it may be higher or lower), since it is based on total family income.

Again, your best option is to discuss this with your trustee, since they can "crunch the numbers" for you and show you how things will change if you are separated.

Labels: bankruptcy Ontario