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Bankruptcy Ontario: Free Information about Bankruptcy in Ontario

Archive for the ‘bankruptcy’ Category

Inheritance before bankruptcy

Wednesday, July 28th, 2010

Question: If I receive an inheritance about one week before going bankrupt do I have to disclose this? I used this money to pay off 2 people who I owe money too and kept the rest for living expenses for one month.

Answer: Yes, you should disclose that to your trustee, who can then determine whether or not it’s an issue.  In general terms, it is considered a “preference” to repay one creditor but not another; it’s not fair that one creditor is receiving and advantage just prior to your bankruptcy.

However, there are other factors that may be relevant, such as the amounts involved, so you should discuss this with your trustee prior to filing bankruptcy.

Documentation, finalization, no response from Trustee

Thursday, July 15th, 2010

Question: We made an arrangement with our bankruptcy trustee to pay around $36,000 as a final payment for what was owing on the equity we had when we went bankrupt. We paid this amount 7 months ago, and have received NO documentation, final notices, or any word that our bankruptcy is dismissed, or finished, or ANYTHING.

Does this seem normal?

We are getting worried…

Should we contact someone within the government or bankruptcy offices about this??

Thanks in advance!

Answer: You should start by talking to your trustee.  The delay may be normal, or there may be other issues.  Ask your trustee to confirm the status of your discharge.

If you are not satisfied with your trustee’s answer, you could contact the Office of the Superintendent of Bankruptcy and ask them to investigate, but that is a step that should only be taken after you have discussed it with your trustee.

Is Bankruptcy in Ontario Public Knowledge?

Thursday, July 15th, 2010

Question: If a person claims bankruptcy in Ontario, is it public knowledge? Can anyone find out about it in Ontario?

Answer: Yes, personal bankruptcy is a legal process, and it is public knowledge.  If you declare bankruptcy a note will be placed on your credit report, so any lender than does a credit check on you will know that you have declared bankruptcy.  In most cases that note is removed six years after your discharge from bankruptcy.

The Office of the Superintendent of Bankruptcy maintains an insolvency database that records all bankruptcies filed since 1973, so it is a matter of public record.

However, in most cases, once you are discharged from bankruptcy lenders will allow you to repair your credit, so as time passes your prior bankruptcy is less of an issue.

Child Support and Bankruptcy in Ontario

Wednesday, July 14th, 2010

Question: I am thinking of claiming for personal bankruptcy. I have two children and at this time I am not receiving any child support from their father. If I claim bankruptcy and he then starts paying child support how does this affect me?

Answer: The amount you are required to pay when you declare bankruptcy in Ontario is based on your family size, and your family income.  If your income increases while you are bankrupt (in your case because you start receiving child support), it is possible that you would be required to pay more in your bankruptcy.

You can learn more about surplus income payments in bankruptcy, and then contact a licensed trustee to do the calculation to determine if child support would increase your bankruptcy payments.

Claim inheritance after discharge

Saturday, July 10th, 2010

Hi, I filed for bankruptcy in June 2009. I was discharged March 23, 2010. My mom passed away March 30, 2010. She left me an inheritance which I have not received yet. Do I have to claim it?

Parental Leave and Savings

Thursday, July 8th, 2010

My husband is the sole breadwinner of the family. We just had a baby recently and he has just started parental leave to help me out. We have 4 children under 5 years old.

I have about $9000 + in debts and unable to pay them. After much thoughts, I have decided that I would have to file bankruptcy. It is just a matter of time before my creditors would send my account to the collection agency. Due to my husband’s divorce, it has been hard for us financially. I have been making lower than minimum payments on my debt as that was all I could afford.

Will my husband’s parental leave affect my bankruptcy? Also, how much money am I allowed to have in my bank account for day to day expenses? We do not have any RRSPs or life insurance and such. Basically living paycheque to paycheque.

Can we contact OSAP for garnish their pay?

Wednesday, July 7th, 2010

tenant not paid their rent. They are students. Can we contact OSAP for garnish their pay? Or we ahve to wait until they found a job and then sue them for the rent that they owed.

business closure

Tuesday, July 6th, 2010

In 2005 I closed my company and took a full time job with a large corporation. In 2006 CRA did audit of my company and assessed $24,000 in corporate taxes as well as payroll deductions in the amount of $17,000. I paid payroll deductions as it was due to CRA but now they want to freeze my account until the debt on the corporation taxes is not paid. I can’t afford to pay this. The company has no assets and I would like to file for its bankrupcy, CRA is the only creditor. How do I do this? Am I liable for the corporation taxes as an individual?

morgage arrears

Monday, July 5th, 2010

recieved a notice asking for past due morgage payments in 10 days from a solicetor,no partial payments or claim to sell the house,how much time will i have to find a place

Ontario HST cheques

Wednesday, June 9th, 2010

Question: This week, cheques are being sent out for Ontario residents regarding the HST. This morning, my son got his for $100.

I filed for bankruptcy in April 2009. I satisfied all conditions and was supposed to be discharged this past January. However, the trustee made a mistake – they opposed the discharge because they claimed I did not attend the final counselling session. I and the counselling agency appealed this successfully and the trustee claims that the paperwork is in the hands of the court. They, the trustee, claim that the courts are slow and will take from six months to a year to discharge my bankruptcy. My question first is – can I expect a rebate for the HST? also, is my case normal? I feel like I’m up against a brick wall with these people .

Answer: No, your case is not normal. In the vast majority of cases, if your counselling sessions are completed, and there are no other reasons to delay your bankruptcy discharge, you would be discharged.  Most trustees will meet with the bankrupt prior to their scheduled discharge date to review any outstanding issues.  At that time, if they were missing a counselling certificate, they could have obtained it without the need for a court application for your discharge.  However, at this point, if the trustee has applied to court, there is probably nothing more you can do, other than to stay in touch with the trustee to find out when your court date is scheduled.

As for your HST cheque, that’s a question for your trustee.  CRA will automatically send all HST cheques to the trustee until the person is discharged.  Since you are not discharged, it would be logical to assume the cheque will go directly to the trustee.  Whether or not you should be receiving the cheque can be determined by the trustee, based on the funds in your estate.