Archive for the ‘bankruptcy discharge’ Category

Question: I have several credit card debts in my name that have been caused predominantly due to my gambling problem. It is coming to the point that I can no longer make payments on the cards due to my over use of them Gambling. Currently I am married with 2 kids and own a house with little to no equity. I am finding it overwhelming to pay off the debt and deal with the real issue at hand here which is the gambling addiction! If I were to file for bankruptcy what effect would that have on my house, my furniture and things in the house and my financed car (aka the wifes vehicle), please advise.

Thanks

Answer: In a bankruptcy in Ontario you are required to pay your house equity into your bankruptcy estate. If there is no equity, you could keep your house, provided you continued with your mortgage payments. You can continue making your car payments and keep the car as well. If your household furnishings have minimal value you could keep them as well.

The bigger issue is your gambling addiction. Before filing bankruptcy you should get help, through a gambling counsellor or other means. A bankruptcy can deal with your debts, but it will not stop you from gambling, so your gambling problems will continue.

In addition, because gambling is the cause of your financial problems, you will be required to appear in bankruptcy court and request your discharge from bankruptcy from the bankruptcy judge. The judge will want proof that you have received treatment for your gambling problem, and that you are no longer gambling. It is likely that your bankruptcy will also be extended as a result of the gambling issues.

Therefore, you should seek help for your gambling problem now, and then arrange a meeting with an Ontario bankruptcy trustee to decide whether or not a bankruptcy is the correct course of action.

Question: What happens if you win a lottery after you’ve filed and been discharged from personal bankruptcy? Didn’t seem to find this question on your Bankruptcy Ontario FAQ section.

Answer: If you win the lottery while you are bankrupt (before you are discharged), the trustee will seize the lottery winnings and distribute the money to your creditors. If you win more than you owe, the trustee would return the difference to you, since all your creditors would have been paid in full.

If you win the lottery after you have been discharged from bankruptcy, the money is yours to keep.

Question: Can a person’s claim/file of bankruptcy be denied/rejected for any reason?

Answer: If you owe more than $1,000 and you are insolvent (meaning your debts are larger than your assets, and you are unable to pay your debts), then you are eligible to file bankruptcy in Ontario. You meet with a licensed Ontario Bankruptcy Trustee, and if bankruptcy is the correct option for you, they will electronically file the bankruptcy on your behalf. No other humans are involved, so no-one else can stop the bankruptcy from occurring.

However, any creditor may object to your bankruptcy ending. A creditor can object to your discharge if they believe you could have filed a consumer proposal instead of filing bankruptcy, or if you are hiding assets or not being honest. If you complete all of your duties it is unusual for a creditor to object to your discharge.

An Ontario bankruptcy trustee can provide you with more information.

Question: I filled for personal bankruptcy in November 2007 and was discharged in August 2008. I have recently discovered, however, that I am not discharged by my trustee. Can you tell me when my trustee should discharge me and what are they still able to do until then?
Thank You

Answer: You should talk to your trustee to confirm your exact status. You say that you were discharged in August 2008, but you are not discharged. You can’t be both.

It is possible that you were discharged, but your trustee is not yet discharged. That’s not unusual. Your trustee must finish their work, including filing all tax returns (some of which may not be filed until after you are discharged), and they must complete their paperwork and file it with the government to get their discharge. This has no direct impact on you, so it’s not something to worry about.

On the other hand, it’s possible that you were not discharged. If that’s the case, you need to talk to your trustee to find out what you didn’t do, that you need to do, to get your discharge.

Question: I am a discharged first-time bankrupt in Ontario. I was curious as to what would happen with my assets upon my death – am I free to assign them to beneficiaries, or will my previous creditors seize them despite a legal will?

I don’t have an outrageous amount of assets – well below the limits – but there are a few items I wish people to specifically have.

Answer: Since you are discharged from bankruptcy, you are free to do whatever you wish with your assets. Even if you died while you were an undischarged bankrupt, if your assets were below the Ontario exemption limit, you would not lose your assets; they would pass to your beneficiaries under your will.