April 26th, 2009
Question: I had to claim bankruptcy in September of 2001. It is no longer showing on my credit report and I have a student loan that I have been paying every month for almost five years (no missed payments). My question is “if I go to borrow money or buy a house or whatever with a bank, do I have to tell them that I had a bankruptcy in my past?” The reason I ask is because I was honest last week and got screwed on the interest rate for a loan because of this bankruptcy 8 years ago!!
Answer: It’s your decision what you disclose. Most lenders will run a credit report on you before giving you a loan, and in most cases your bankruptcy will not appear on your credit report after seven years, so if your bankruptcy was eight years ago it’s not likely they will know.
More importantly, most lenders don’t care what you did eight years ago. They care about today: what is your income today, what assets do you own today, how much of a down payment do you have today, etc., so a bankruptcy from eight years ago should not be an issue for most lenders.
April 25th, 2009
Question: My calculations are that over the 9 month period my surplus would be 870 dollars. To clarify, that is 870 beyond the 1620 (9months X 180), a total of 2490 paid. Do you think they would keep me in bankruptcy for another 12 months based on that small amount? If so I’m tempted to work a little less, but that seems a little shady almost.
Answer: As a general rule, if your surplus income payments average less than $100 per month, as yours do, it is doubtful that your bankruptcy would be extended beyond the normal first-time bankruptcy minimum period of nine months. It is your decision whether or not you work less while bankrupt. Your trustee can provide you with further information.
April 24th, 2009
Question: I was just discharged from a firstime personal bankruptcy. I have a debt that was forgotten and the creditor was not listed on the liabilities list for my bankruptcy. I just got served a notice from small claims court in regards to this bill, do I have to attend or do I give a copy of my discharge from bankruptcy?
Thank you for any information.
Answer: Even though you are discharged, you should contact your trustee and ask them to send the bankruptcy paperwork to the small claims court and the creditor so that they can stop the lawsuit.
April 23rd, 2009
i filed for bankruptcy in feb, 2009 and now im being considered for a government job in the EI department …. they are going to be doing a personal screening and security check …. what are my chances …. i really need this job…. thanks
Answer: When applying for a job it is best to be honest. If the employer will be doing a credit check (and many employers do) then they will find out that you are bankrupt, so it is better that they find out from you in advance. There is no legal reason why you cannot work for the government while bankrupt, so your bankruptcy should not be a factor in whether or not you get the job.
April 22nd, 2009
Question: does revenue canada get put in as a list of debts that you can cover in aq bankrupsy or are you still liable to pay them the full amount?
Answer: Does owed to CRA (Canada Revenue Agency) are discharged in a bankruptcy, just like bank loans and other debts. Your trustee can explain the requirements in more detail.
April 22nd, 2009
Question: if i had a bankrupsy 37 years ago and aply now what happens
Answer: If you file bankruptcy for a second time you are not eligible to be automatically discharged. You will be required to attend a court hearing, and the bankruptcy judge will determine how long your bankruptcy will last. Since your first bankruptcy was 37 years ago, it is likely a second bankruptcy would last an additional six months to nine months, although that is up to the judge.
April 22nd, 2009
Question: If a couple files for bankruptcy after a failed consumer proposal due to loss of income are they penalized by an extended discharge if employment is found during bankruptcy because of a higher surplus income. If so would this not be penalizing for finding employment and defeat any initiative to seek employment?
Answer: Good question. Surplus income payments are not designed to be a “penalty”. The theory is that the more you make, the more you should be able to contribute to your creditors. However, you are correct. If, during your bankruptcy your income increases dramatically, it is possible that your bankruptcy will last longer than the minimum nine months.
However, if that did happen, you could discuss it with your trustee, and you could also request a discharge hearing in bankruptcy court and explain the circumstances to the bankruptcy judge, who may be lenient given the circumstances (ie. they probably would not punish you for working hard).
April 22nd, 2009
Question: I am in the situation where my only alternative to peace of mind and finances is bankruptcy. If I file my tax return before I file for bankruptcy do you still lose the return or is this collected by the trustee to go towards paying some debt off?
Answer: If you have received your tax refund before you file for bankruptcy you don’t lose your refund for the prior year. Under current rules you lose your tax refund for prior years if you haven’t received them yet, and you lose your tax refund for the year of bankruptcy.
April 22nd, 2009
Question: I am a self employed carpenter I have tools, truck etc. and allot of debt that i have not been able to maintain. If I go bankrupt, how is my income viewed vis a vis surplus income regarding income before/after expenses.
Answer: Surplus income payments are calculated based on your net income, or your income after expenses. Thus if you had revenue of $4,000 in a month, but you had $1,000 worth of business expenses, your surplus income would be calculated based on $3,000 per month. Your bankruptcy trustee can explain this in more detail, and can give you some example surplus income calculations before you file so that you understand exactly how much you are likely to be required to pay for surplus income while bankrupt.
April 21st, 2009
Question: DOES THE TRUSTEE GET HIS/HER FEES FROM THE SURPLUS I WOULD PAY (AS REQUIRED BY THE DIRECTIVE) OR WOULD I PAY THE TRUSTEE’S FEE OUT OF MY SURPLUS PORTION.
TOTAL AMOUNT OF SURPLUS CASH PER MONTHS FOR ME WOULD BE $350.00. MY 50% WOULD BE $175.00. AND $175.00 TO THE TRUSTEE.
THANK YOU FOR YOU HELP.
Answer: The trustee is paid a “tariff”, which is a fancy word meaning that the trustee is paid a portion of the funds available in the bankruptcy estate at the end of the bankruptcy. This fee is set by the government; all trustees receive the same amount.
Most bankruptcy trustees in Ontario will require you to make a minimum contribution to your estate each month (usually in the range of $160 to $200 per month); in addition, you are also required to make surplus income payments based on your income. All of that money is combined, and at the end of the bankruptcy the trustee receives their fee from those amounts, and pays certain expenses, and the rest of the money is paid to the creditors.