My income is $95,000 per year and I owed $116,000 in unsecured debt.

I was supporting one of my common law’s two children, then half way through the nine month period, the other moved in with us.

Since then I’ve asked on several occasions for them to recalculate my surplus income. My original trustee left the business. They assigned me to another trustee from whom I’ve only heard once. That trustee has since left the business as well leaving one person to ‘wind up’ their business due to the death of the person who owned the company. The bottom line is that I’ve gotten no answers.

They sent me a letter last July stating that I missed a court date for a discharge hearing but I’d never been made aware of that required appearance. After contacting them, they advised that I had to finish my counselling and they would apply for another court date.

I asked them again to send me a revised amount owing based on the changes to my situation.

I’ve heard nothing from them since. I’ve called and left messages, but the message says they are no longer in the office as they’ve wound down the business and check messages occasionally.

I want to change trustees because clearly I’m not getting any level of service and want to deal with the amount owing so I can get on with my life.

As an aside, I am more than a bit annoyed because (although I didn’t know it at the time of filing) I could have done a consumer proposal at about 50 cents on the dollar and probably have avoided this whole mess.

My first thought is to see a bankruptcy lawyer, but I can’t afford that.

Any advice.

Answer: You are correct, you got very bad advice.  A consumer proposal was probably the logical solution to your problems initially.

You have three choices.

First, you could contact the Office of the Superintendent of Bankruptcy and advise them that your trustee is not responding to your requests for information; perhaps they can help.

Your second option would be to contact a bankruptcy lawyer.  I realize that you said that you can’t afford it, but if you are earning $95,000 per year, it may be wise to save $1,000 and get some good, independent advice from an expert.  You are currently an undischarged bankrupt, which in the long run will cost you a significant amount of future hassle and money.

Your final option may be to file a consumer proposal.  It’s unusual to file a proposal while bankrupt, but it is not impossible.  If the proposal is accepted by your creditors, it serves to end your bankruptcy. An Ontario bankruptcy trustee can provide you with more information.

Answer: You are correct that some employers require a credit check, and will not hire someone who has a past bankruptcy or consumer proposal.  That is very rare these days (there were more than 150,000 people who filed bankruptcy or a proposal in Canada last year, so employers generally understand that financial problems are common), but it does still happen.

In general, it is best to be open and up front with employers.  If they tell you they will be conducting a credit check, tell then that you filed bankruptcy, and tell them why.  If they are going to find out, it’s better if they also have an explanation up front.

We also strongly suggest that everyone research their options before deciding to file bankruptcy.  A consumer proposal is a great option for many people, and if your trustee doesn’t want to explain a proposal to you, find another trustee.

As for your specific situation, even though you are bankrupt, it is possible to file a consumer proposal while you are bankrupt.  Whether or not that makes sense will depend on your situation (your income, and how many months remain in your bankruptcy).  You can discuss this with your trustee, or consult another trustee for a second opinion.

Answer: Yes, you have a few options.

First, you could attempt to continue to service your debts on your own. If your income improves, you may be able to pay your debts. If you still have reasonably good credit a debt consolidation loan is another possible option. If you can consolidate and lower the interest rate, you may be able to repay your debts on your own.

A debt management plan through a not for profit credit counsellor is a possible option, if you can afford to repay the debts in full, but need a break on the interest charged. If you can raise a lump sum of money, say $20,000, the creditors may accept a lump sum debt settlement, particularly if you are already six months or more in arrears with them.

If those options don’t work, the next option is a consumer proposal. In a consumer proposal you offer to pay a portion of the amount owing over a three to five year period, and the creditors agree to write off the rest. If you have a job, but can’t repay the debts in full, a consumer proposal is an excellent solution.

To find out which option is best for you, you should arrange a no charge initial consultation with an Ontario bankruptcy trustee and proposal administrator, and they will explain the options in detail, and help you make a decision.

Answer: She has a number of options. Ultimately the correct decision will depend on her future expected income.

If she can’t find a job and her only income is from Unemployment Insurance, and if you and your brother can’t contribute a lot of money, it may be necessary for her to sell the house and find a place to rent to reduce her expenses.

She could try remortgaging the house again, but that’s probably not a practical solution if she has minimal income.

She could also file a consumer proposal or bankruptcy. However, most people who file a consumer proposal or bankruptcy are doing it to prevent their wages from being garnisheed; in her case, until she is working again, that may not be necessary. Again, the correct solution will depend on her future income expectation.

She should contact an Ontario bankruptcy trustee for a no charge initial consultation. Before that meeting she should prepare a list of all of her debts (and gather up all of her credit card statements and other creditor information) so that the trustee has full information to explain all of her options.

Here is my situation: In the past 6 years, I have been married, had a child, divorced, and now have shared custody of my child. I have been living with a woman for over a year now and she is expecting.

I owe approximately 50K in debt on credit cards and 2 seperate lines of credit.

I make 60K a year.

The woman I am living with has been separated from her ex for over one year. He is claiming bankruptcy, which will force her into bankruptcy as well as she is currently not working and is co-owner of their home and vehicles (her ex and the house is in a western province)

with the arrival of a newborn just before Christmas we are very scared about our finances and our future.

Please help! any advice would be greatly appreciated.

Answer: You have severe financial problems and your situation is urgent, but it is not hopeless. You have a number of options.

One option would be to file bankruptcy in Ontario again. However, a second bankruptcy is more costly and cumbersome than a first bankruptcy. It will last for at least one year (instead of the minimum of nine months in a first bankruptcy), and you are required to appear in bankruptcy Court to receive your discharge.

A better option would probably be to file a consumer proposal, where you make a deal with your creditors and avoid a second bankruptcy.

Whether a bankruptcy or a proposal is the correct option will depend on a number of factors. You earn $60,000 per year, so you have good income, which is generally the most important factor in filing a consumer proposal.

Our debt options calculator can help you assess your different options. Then, contact a licensed trustee in Ontario to arrange for a detailed, no obligation, no cost review of all of your options, and then you can make an informed decision.

Answer: She has a few options.

First, she could open a new bank account at a new bank, to prevent her existing creditors from taking money automatically from her account, and then she could simply stop paying her credit cards. They will call and send letter, but if she has no assets to seize and no wages to garnishee, there is virtually no way for the creditors to get anything from her.

Her second option would be to talk to a credit counsellor about making a debt management plan. Credit counselling is a plan where she repays her debts in full, but at a reduced or zero rate of interest. However, if she is living on $900 per month this may be difficult.

A consumer proposal is another option, but again, on $900 per month that may be very difficult to afford.

If she wants to stress relief of dealing with her debts, a personal bankruptcy is an option. However, there is a cost to filing bankruptcy. She will be required to make a monthly payment to her trustee, and she will lose her tax refunds and GST credits while bankrupt. A trustee can provide more information. Ultimately she must decide if she wants to incur the cost of a bankruptcy to get stress relief from her creditors.

Her credit is so bad, wells fargo wouldn’t even look at her for a debt consolidation loan.

She needs serious help, and she doesn’t know where to go from here. Any ideas or solutions?

Answer: Yes, you are correct: if she goes bankrupt and surrenders the car, the co-signer, her parents, would be liable for the shortfall.

She has a number of options, including trying to repay the debts on her own, credit counselling, a consumer proposal, or personal bankruptcy. Here is an article that discusses all of the alternatives to bankruptcy.

All bankruptcy trustees offer a free initial consultation, so if she wants to deal with her debts and get a fresh start, she should contact a trustee for a free initial consultation today.