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.

Answer: No, if the house is owned by your husband, and he has always owned the house, than your bankruptcy does not impact on his house.  More information can be found in this article on how bankruptcy affects your spouse.

In Ontario you are permitted to keep one motor vehicle worth up to $5,650, so if your van is old, and has no loans against, you would be permitted to keep it.

Answer: No, debts that you incurred after you filed bankruptcy cannot be included in your bankruptcy.

Under no circumstances should you be borrowing from payday loan places while you are bankrupt.  In fact, it is illegal to borrow while bankrupt unless you specifically advise the lender that you are bankrupt.

You should immediately contact your trustee and determine what course of action you should pursue from this point forward.

Thanks

Answer: The answer depends on whether or not it is you personally that owes the taxes to CRA, or whether it is the corporation that owes the taxes.  On the assumption that you owe the taxes, if you filed bankruptcy you would probably lose your house, or be required to pay the equity in your house to your estate.

Since your situation is complicated, and there are many variables, we strongly recommend that you consult a bankruptcy trustee to arrange an initial consultation to review your specific situation.

Answer: It is very unusual for creditors to attend a creditor’s meeting.  Most creditors are big banks and credit card companies, and they don’t have the resources to be sending staff to creditor’s meetings.  Even if they did show up, they would presumably request that you pay the $15,000, or surrender the house.

Your question is not clear: did you file bankruptcy, or did you file a consumer proposal?  If you filed a consumer proposal, it is possible for the creditors to negotiate a settlement with you.  If you have $15,000 in equity in your house it is unlikely that they would agree to $4,000.  However, they may agree to an initial payment of $4,000, and then further payments of $200 per month for 60 months; that would be total payments of $16,000, which is more than they would get in a bankruptcy, so that may be acceptable to them.

We strongly recommend that you discuss this with your trustee, since it is your trustee’s job to fully inform you of all possible outcomes, so that you understand the different options.

Answer: All bankruptcy trustees in Canada are licensed by the Office of the Superintendent of Bankruptcy.   You can contact them on their website, and they can advise you on the process for making a complaint.

There are many bankruptcy trustees in Ontario, so if you meet with one and are not satisfied with the information they provide, we recommend that you contact another Ontario bankruptcy trustee until you find a trustee that you can work with.  It’s your choice, so getting a second opinion is usually a prudent choice.

Answer: You will not be charged for disposal.  If there is not much equity, it’s likely that the bank will foreclose on the house and sell it.  They would be responsible for disposing of any items on the premises.  If there is equity and the trustee is selling it, the trustee, working with the real estate agent, would be responsible for making the property ready for sale.

If there are any items of value, you could hold a garage sale prior to moving.

Answer: The surplus income calculation is based on the size of your family unit.  If your daughter is simply a boarder, and is not contributing to the household, you would be considered a single person, and her income would not be included in the calculation (but you would also not get credit for her as a dependent).

Each month the calculation is done again, so once she moves out she is clearly not part of the family unit, so at that point it would not be an issue.

We suggest that you discuss this in detail with your trustee, so that they can advise you on the specifics of your situation.

Answer: You are not eligible to be automatically discharged from bankruptcy if gambling was the cause of your financial problems; you would be required to attend a discharge hearing before the Bankruptcy Registrar, and they would determine whether or not your bankruptcy would be extended.  Generally the Registrar would want you to confirm that you are no longer gambling (perhaps through a voluntary self-exclusion at the casino), and also providing proof that you have attended gambling counselling.

In most cases your creditors will be aware of your gambling.  They will see cash advances being taken from your credit cards, bank loans and lines of credit, and they may also have records of cash advances taken on your debt or credit cards at the casino, or through on-line gambling.  So, if you don’t disclose it, and they discover it later, you are in much more trouble than if you had simply disclosed it initially.

We therefore recommend that you be honest; that is generally the least risky alternative.

If you are concerned about a bankruptcy discharge hearing, another option is to file a consumer proposal.  Once the creditors accept your proposal, you simply make the payments; there is no discharge hearing.  Consult a consumer proposal administrator for more information, and to arrange a no charge initial consultation.

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.