Ontario Personal Bankruptcy Blog: Experts Answer Personal Bankruptcy Questions

Ontario Personal Bankruptcy Blog provides free personal bankruptcy information and helps Ontario residents dealing with their debt.

Below are the most recent personal bankruptcy questions. Be sure to check out our Frequently Asked Questions page for answers to more common questions about personal bankruptcy in Ontario. Remember, you can always post an anonymous question, as well as arrange for a free consultation with a personal bankruptcy expert near you.

Recent Bankruptcy Questions:

Posted on Thursday, August 28, 2008

Early Discharge from Bankruptcy

Question: Hello I read in the Bankruptcy Act that there was an application you could submit to the Court for an early discharge ( Before the nine month period was up ) Is this True THx

Answer: Yes, it is possible to ask the court for an early discharge. However, in practice, it almost never happens, for a number of reasons.

First, the courts have a back log, so by the time they agree to hear your case the nine months may already be up.

Second, since everyone else is bankrupt for at least nine months, there would need to be a very good reason for the court to allow your bankrupt to end sooner.

A consumer proposal may be a better option if you want a faster procedure. Your trustee can give you more information.

Labels: bankruptcy discharge

Posted on Thursday, August 21, 2008

Can I retain my Anonymity

Question: Due to my complex situation I really need to speak to a Trustee.

Will a Trustee grant me an Free Evaluation if I maintain my anonymity.

At this time my wife and I afraid to reveal our identities because of the complex issues we face

Thanks

Answer: It depends on what you mean by maintaining your anonymity. If you tell the trustee that you committed a criminal act, the trustee, like every other citizen of Ontario, is required to report it. If you did something criminal, you should contact a lawyer, not a trustee.

However, if you are worried about your name being put in the newspaper because you met with a trustee, you probably shouldn't worry. I suggest you contact a trustee; make up a name if you are worried; talk to them on the phone, explain your situation, and then they will tell you what you need to do from there, and then you can decide if a meeting is necessary.

Labels: bankruptcy trustee

Posted on Sunday, August 10, 2008

Bankruptcy HELP! - Cost of Bankruptcy

Questions: I would like to get some more information about my options for bankruptcy in Ontario.

I am separated and single and I have been working like crazy to try and pay off my debt but I do not think it is possible.

I owe:

14,000 in credit card debt
3,000 on another credit card
6,500 in line of credit
4,000 to revenue Canada
4,000 furniture credit card
With my credit card I will have to pay 25% interest and therefore end up paying 25,000 by the time I am done.

I have a car and I currently owe 11,300 on it however I have co-signer that I do not want to get into trouble with all of this. I want to sell the car and pay off the debt and then file for bankruptcy.

how much approximately will all this cost me to file and will I have to pay anything once it is done?

Thanks

Answer: The cost of bankruptcy depends on a number of factors, including your monthly family income, the size of your family, what you pay in child support, and what assets you own.

We suggest you contact a bankruptcy trustee for a free initial consultation; with the above information they will be able to give you an accurate estimate of the cost of bankruptcy in your specific situation. Once you are discharged from bankruptcy, you will have no further bankruptcy payments.

Labels: bankruptcy Ontario, cost of bankruptcy

Thank You for Answering my question.

I wrote to you in July about a personally troubling situation with a Bankruptcy trustee in North York. I declared bankruptcy during a very emotionally wrenching time in my life, after a divorce I was forced to declare Bankruptcy and had been making monthly payments for over three years.

You suggested that I contact the trustee directly. Which I did. It was explained to me that my income was high, and the excess (after the allowable $2000.00) was multiplied by 21 months, the final amount turned out to be considerable. Anyway, they should be filing the discharge papers this month.

Thank you sincerely, for answering my question, which really was starting to cause me considerable frustration.

I still am at a loss to understand why that information could not be provided to me the many times I asked for it.

Labels: bankruptcy discharge, bankruptcy Ontario

Posted on Saturday, August 09, 2008

Creditors contacting debtors after bankruptcy hearing

Question: Can a creditor begin re-sending statements, in an attempt to collect a debt, after you've had a bankruptcy hearing and you were told that the debt would be discharged in 45 days?

Answer: Once you have been discharged from bankruptcy, your debts are discharged. The only exception would be certain debts that are not discharged, such as child support or student loans less than 7 years old (10 years under the old rules). Your trustee can provide you with more specific information.

Labels: bankruptcy discharge

Posted on Saturday, August 02, 2008

Re: Bankruptcy

Question: How long does bankruptcy stay in place? What happens if you do not apply for discharge?

Thank You

Answer: The minimum bankruptcy period is nine months. Your trustee will apply for your discharge, unless you have not completed all of your duties, in which case the bankruptcy remains open until you receive a court discharge. If you are currently an undischarged bankrupt, you should talk to your trustee to determine what is required to complete your bankruptcy.

Labels: bankruptcy

Posted on Tuesday, July 29, 2008

child support payments and bankruptcy or proposal in Ontario

Question: I was with my ex for 10 years and we have 2 kids. We were never married. We separated 3 years ago and he gives me child support payments every month. We had a verbal agreement that we put on paper and had stamped by a lawyer about the amount we agreed he would give me. He owes now about 60 000$ he has accumulated over a few years through gambling and he now needs to file for bankrupty or go through a consumer proposal, whichever the trustee figures he should do. My question is: What happens to the child support payments he gives me if he files for bankrupty and is the outcome the same if he files for bankrupty or goes for consumer proposal?

Thank you for all the good information we can find on your site. It is all very helpful.

Answer: Child support payments are not discharged in a bankruptcy or a consumer proposal. Therefore, regardless of which option he chooses, he is still liable to continue making those payments. The amount he is required to pay the trustee in a bankruptcy may be reduced, since the cost of bankruptcy is determined in part by the bankrupt' surplus income, but that would have no impact on you directly.

Labels: bankruptcy Ontario

Posted on Friday, July 25, 2008

repossesion before bankruptcy in Ontario

Question: With an impending bankruptcy looming on the horizon....and a person is coming up on 3 months in arrears on a vehicle......and knows that they are going to be coming to pick it up via a baliff sometime ....it is inevitable....is it better to deliver the car back to the dealer- finance company myself and hand them the ownership and keys ?.....or wait for the baliff to show up sometime ?

Answer: It's up to you. If you know you will be unable to make payments and will be losing the vehicle anyway, it's often less hassle to simply return the vehicle now. That way you can also stop your car insurance payments, which also saves you money.

Labels: bankruptcy