Question: How much does it cost to go bankrupt? And why? Seems to me if your going bankrupt it’s because you have no money.
Bankruptcy Does Cost, But What’s Your Alternative?
You are correct; it does cost money to go bankrupt, for two reasons.
First, there is a small cost to cover the administration of your bankruptcy. This includes filing fees and the a small amount to cover your trustees time, staff and office expenses.
Second, although trustees do not work for the government, we are required to follow government rules, and one of the rules concerns “surplus income”. Government guidelines around how much you pay during your bankruptcy are based on a principle that says that the more money you make, the more you are required to pay while you are bankrupt. Put another way, the more you make, the more you are required to contribute to your creditors. If your income is below a certain income threshold you will not be required to make any surplus income payments.
Your question does raise an interesting point: if you have no money, how can you go bankrupt? The answer depends on why you have no money.
If you have no money because all of your money is going to pay your credit cards, bank loans, payday loans and other debts, a bankruptcy will eliminate those payments. If you do not have any surplus income and you have no assets, the cost of your bankruptcy will be fairly low and will likely be much less than you are paying today to keep ahead of your creditors.
If you have no money because you are not working, a bankruptcy may not be necessary. For many people the purpose of bankruptcy is to eliminate debt so that creditors cannot garnishee wages. If you have no wages, you cannot have your wages garnisheed, so it may make sense to wait until you are working to go bankrupt. You will have the money then to pay for your bankruptcy, and you may require protection from your creditors.
The cost of bankruptcy depends on many factors, so we suggest you meet with a licensed bankruptcy trustee for a no charge initial consultation to review the costs in your specific case before you decide to file bankruptcy.
I owe mastercard 5,800.00 dollars and my only income is disability pension and can not make payments ,what can I do? Please help thank you.
Hello.
I owe CaptialOne several thousands dollars but I’m on a disability pension. I’ve had my card for several years now and have made all my monthly payments on time. However things have recently taken a turn for the worse and I’ve found myself with massive debt. I still want to pay down the debt and keep my card but the interest rates are a burden. What should I do?
Thank you for your time.
If you are on a permanent disability pension, it is impossible for Capital One to garnishee your wages (since you are on a pension), so you could stop paying them (although that has negative implications for your credit rating, and may have other consequences). Filing bankruptcy is also an option, but there are costs associated with filing bankruptcy, so you should have a no charge discussion with a Licensed Insolvency Trustee before making a final decision.
Hi…I am thinking about filing for bankruptcy….i am about $25,000.00 in debt…I have continued to pay my cc bills but finding it very difficult…As of right now I do not work and haven’t for a few years. I live with my common law partner. His name is not on my cards. We currently have 2 cars both in my name. They are older cars and their value together is below $3000.00 if not less. We have a joint bank account in both our names…We don’t own a home and he receives cpp and oas….My largest cc debt is on my CIBC card…Our bank account is in another bank…I would like to continue paying on my other 2 cc because they aren’t as much. Is it possible to quit making a payment on my highest CC and continue paying the others…or should I file for bankruptcy and clear my debt??
The short answer is no – you are required to include all of your credit cards (even cards with no balance) when you file for bankruptcy. I suggest you use the links on this site to find a licenced insolvency trustee in your area and give them a call. I am sure you will find the session helpful.
If you are on a disability pension, you have no wages to garnishee, so one option for you is to advise mastercard that you can no longer pay them, and then open a new bank account at a new bank so that they don’t keep taking their monthly payments. This does not eliminate your debt, and they will continue to call you, but if you cannot afford to make any payments, this may be your best option.
A bankruptcy may also be an option, so you should contact a trustee to determine if a bankruptcy is a viable option in your situation.
I have a question for you regarding debt collection. I am hoping you can help, but I do believe it is unique.
My husband and I moved here to Alabama from Toronto Canada in July of 2012. We have a debt collector that is calling us from Canada. We have ignored the calls, and I have set up a dummy email for him to send us requests for us to contact. He has confirmed my husbands employment, he called my husbands office stating that he needed to get information to my husband about a lawsuit against our property? He stated in an email he has confirmed my husbands employment and the fact that we own a home (true, but there is no equity).
My question is this does he have to follow Alabama law, or Ontario Law. He has already violated on Ontario law, he is not supposed to contact us more than three times I a week, he contacted us once with a voice mail, once to my husbands office, once to my mother in law, and three separate emails.
When we moved here we were making payments. Our last payment was April, 2013. We were just not able to keep up with them. We have housing payments, a car lease, utilities, and children to feed.
We received a letter stating that MBNA has sold our debt to a collection agency
I have read on line, that it would be very difficult for him to sue us out of county, but not impossible.
Any advice would be appreciated I am much better with email, as I am hard of hearing, and have a hard time on the phone.
Thanks in Advance
You are correct; it is very difficult for a creditor in Canada to sue you and obtain judgement in another country. The creditor would have to hire a lawyer in Alabama, and convince the courts in Alabama that the debt is enforceable; that may cost more in legal fees than the debt is worth, and they would probably lose. Your strategy of replying by e-mail is probably the correct strategy.
However, I am not a lawyer, and I have no expertise in U.S. law, so if you are worried you should consult an attorney in your jurisdiction for advice.
Hi
I am almost graduating school and for the month of April considered to be part of OSAP. I have no job because I am a full time student and work long hours 3 days a week at an unpaid placement.
I owe a few places money, but my biggest pain in the butt is Bell. They have collectors calling for them now.
I owe around $3000 something because of interest. He has been calling since December 2013. I spoke to an agency in February and they said since I am working to tell him I am considering bankruptcy and I have no income.
His response was to try and borrow money. I explained that I cannot. He said we won’t worry about the bankrupsy unless it actually happens and that since I had a job from June 2012-jan2013 I shouldn’t even be in debt.
I only made about 46$-100$ by weekly. I mostly live off osap and that isn’t a lot.
I won’t be able to afford bankruptcy till closer to sept.
What should I do? I am almost 21 and feel way over my head.
Jessica: At the present time the logical option would be to simply advise the bill collector that you are completing school and are not yet working, and therefore you are unable to pay. They will probably continue to phone you, but there only other option is to take you to court, sue you, and attempt to garnishee your wages. Since you have no wages, that’s not a worry at the present time.
Once you are working you can consider your options, which may include making monthly payments to Bell, based on what you can afford, or saving up money and attempting to make a lump sum settlement with them. If you have further questions a credit counsellor or bankruptcy trustee will provide a no charge initial consultation to explain your options in more detail.
Hi
I have a decent job and my wife works too, our situation is that we simply have more debt than we can afford to pay. We’ve been living paycheck to paycheck for years and whenever we need to buy something extra like tires for our car, or any unexpected expense, we rely on our credit cards. As the cards got higher and higher in balance, our day to day living budget got smaller and smaller.
Today, in order to pay all our loan and credit card debts monthly, we cannot afford to buy clothes, we don’t have any money to do anything, we are living like we are poor. We finally decided that we can’t go like this any longer and started using some of our money for things like clothes and other reasonable living expenses and have started to miss payments on credit cards and 1 of our loans.
I don’t see that things will improve anytime in the near future and we will end up consumed by debt until we retire. I think bankruptcy may be the way to go for us, so we can start fresh, and not let something like this happen again.
Chris
Hi Chris. Yes, if you are unable to pay your debts, a bankruptcy may be an option. Since you are both working and have incomes, a consumer proposal is also an option. I suggest you click on the Contact a Trustee link at the top of this page and meet with a licensed trustee to fully evaluate your options.
I am a single parent of a special needs child, I work part time and home school my child. A few years ago I was in a relationship and we purchased a house together, he put in the down payment. We had a prenuptial type agreement drawn up stating that should the relationship end that if the house was sold he would get his initial down payment back and anything left over would be divided evenly. Years later we separated and he wanted to maintain the home and I did not pursue forcing a sale at the time. A year later I learn he is ill and not able to work, he refused to sell the home, but was not making the mortgage payment. Eventually there was a foreclosure and at the end thousands owed to a mortgage insurance company. They have now garnished my wages, as my ex partner is on disability. I was maintaining all my debts as I didn’t really have much debt other then a small line of credit. I do not see a change in my income given my daughter requires much of my attentions. But with my already meager wages being garnished I can no longer service my line of credit. I am being forced into declaring bankruptcy. Is there any option in court to have compassionate relief of this debt?
Hi Ann. In theory a court can make whatever decision they want, but in practical terms it is unlikely. If you were to apply to court to have the debt reduced or eliminated you may end up spending thousands in legal fees, and there is little chance you would be successful, since you are legally responsible for the debt. A bankruptcy may be a much quicker and less expensive option, particularly since your wages are being garnisheed so you want a quick resolution to the problem.
I am on disability and have over $12,000 in credit card debt due to helping out family and friends who said they needed help but assured me they would start paying me back. That never happened and now I am in major debt. My income is limited and my rent takes up most of my income. I have fallen behind in making payments as I just don’t have the money and after contacting the creditors, they have refused to relieve the interest on the cards so as to allow me to catch up to payments and pay it off. I can barely afford my regular bills, and I am having difficulty affording to buy a decent amount of food each month and am living on very little. After all is said and done, I am left with less than $100 to survive on each month.
I don’t know if I could even afford bancruptcy… and I am scared of losing more money than I can afford to…. so what are my options? I wanted to re-establish my credit because of my past, but in helping others I’ve doomed myself.
What can I do?
Hi Carol. My advice would be to decide what is most important to you: buying food, or paying your credit cards? Personally, if it was me, I would pick food.
If you don’t buy a decent amount of good food your health will suffer. If you don’t pay the credit cards they may keep calling you, but beyond that not much will happen. That’s why I would pick food if I had limited resources. My strategy for you would be as follows:
1. open a new bank account at a new bank, where you don’t owe any money.
2. have your income deposited into the new account.
3. next month, instead of sending a payment, send a short note to each credit card advising them that you are on a fixed income and can no longer afford to make payments.
4. when they call, tell them you are on a fixed income and can’t make any payments, and hang up.
5. it is unlikely that they will sue you, but if they do they can’t garnishee a disability pension, so I would not worry about that.
6. if your family every pays you back you can consider making repayment arrangements at that time.
The key point is that you must look after yourself first, not the credit card companies who clearly are not interested in helping you out.
Thank you for your answer, it was greatly appreciated.
I was actually considering if a consumer proposal would be a better alternative for me, because I would rather not further risk my credit rating and I would possibly be able to afford small monthly payments. Would this be something that I could do?
Hi Carol. Without knowing the specifics of your debt I can’t give you specific numbers, but in general most creditors want to get around a third of their debt or more back in a consumer proposal. So, if you owe $12,000, the minimum proposal that may work would be for $4,000 (although it could be more or less). The minimum cost of a bankruptcy for someone on disability is probably less than $2,000, so a proposal would be twice as costly for you. If the monthly cost is an issue you could start now by saving money (say $50 per month, or whatever you can afford), and then when you have some savings you could start the bankruptcy, and by applying your savings you could lower the monthly cost of the bankruptcy.
My friend is on disability. His house was foreclosed on and it was sold at a loss. Now there is a collection agency trying to collect the amount of the loss from my friend. He cannot afford to repay them as his income is very limited and he has a dependent child to provide for as well. He has informed the collection agency of this however they continue to call him. They have also sent him forms requesting that he discloses all of his monthly bills, where and how much he spends his money. If he offers to pay them a small amount each month is there a minimum that they can refuse to accept as payment? Or if he tells them he cannot repay them because of his fixed income can they come after him at all?
Hi Dee: Collection agencies make money by collecting, so as long as they think they have a chance to collect money they will keep calling. Since your friend no longer has any assets, and does not have wages to garnishee, there is essentially nothing they can do to him. He could simply inform them that he is on a disability income and can’t afford to pay, and hang up the phone. It may also be wise to open a new bank account at a new bank for further protection. If this is causing him stress he should contact a credit counsellor or bankruptcy trustee who can help ally his fears about further collection action.
Quick question, hope you can help. If I file bankruptcy and only receive CTB and the Universal child tax credit as income and will soon be receiving CPP disability, does the disability payment I receive go towards the bankruptcy as income?
Thank you!
Yes, all sources of income are included in the calculation of surplus income. Your trustee can explain the calculation in more detail.
Hi I’m hoping you can help me., I have a
line of credit and I own about 7,000$ I was paying it out but I lost my job 3 mount ago and now I can’t pay, I don’t own car or house, I rent a room from. Friend that now she is letting me stay for free till I get a job., what will happen if I can’t pay?..
My sister is on ODSP. I receive $475.00 per month from ODSP for her rent (she lives with me in my house) her income is $791.00 per month. Last year I co signed a line of credit for her for $10,000.00 and she owes Mastercard $21000.00. Her interest rate on the credit card is $360.00 per month. For the past year I have been paying $200.00 using my line of credit and she pays $300.00 using her line of credit. This is becoming unsustainable. I was wondering if going bankrupt is the only option for her. She has no RRSP and her car is almost 9 years old. I am wondering about the surplus income amount. I get CPP disability and a pension from my former employer. We both use the same bank, have mastercard from same bank and my mortgage and RRSP is the same bank. Because she lives with me, would my income be included to calculate the surplus income. Or should I just stop paying mastercard? Can they sue me or just make phone calls or send a collection agency to get money from her? I just can’t continue paying her bills. Please advise the best options thank you
Susan
Hi Susan. Your situation is complicated, so you should contact a trustee, who can determine whether or not you have surplus income. Since you have co-signed for your sister, if your sister goes bankrupt you would be liable for the full amount of the debt.
Hi Elizabeth. You should discuss your options with a trustee. If you don’t pay your line of credit there’s not much the lender can do at this time. They can’t take your car or house, because you don’t own one. They can’t garnishee your wages until you are working. Once you are back to work you should speak to a trustee and consider your options. You may have enough income to resume payments at that time, or perhaps other options (like credit counselling, a proposal or bankruptcy) may be necessary.
I am nearly sixty years old and haven’t been able to find work for over 2 years. I am about $13,000 in credit card debt and don’t own anything worth selling. Living with the hope of finding employment, I have always payed more than the minimum monthly requirements but it has gotten to the point that the last of my savings are about to run out. What are my options? Thanks for the help.
Hi Frank. Your options would be to:
1. Keep paying what you can until you find work. If you fall behind, the creditors cannot garnishee your wages if you don’t have any, so you could just hold out until you are working.
2. You could file a bankruptcy now, which eliminates the debt, but there is also a monthly cost involved, which may not be practical when your income is low.
It’s a difficult decision, so I suggest you consult a trustee to determine the cost of bankruptcy in your situation, and then decide on the best course of action for you.
If I file for bankruptcy will I lose my credit card? I owe over $600,000 to an insurance company.
Yes, it is a condition of filing bankruptcy that you surrender all credit cards in your name to your trustee.
Hi, I am in debt for over $60000 most of that is student loans from 2004-2006. I was never able to get a job in the field that I went to school for and ended up working min wage jobs and was never able to pay back ( i did make payments when i could, which wasn’t very often). A few years ago i started living with my now common-law spouse and to be honest never thought about the loans. I am now not currently working and am getting stressed out about the debt, they call all the time (to the point I’m making my self ill). My spouse will not help me pay my loans as he has his own to deal with and to be fair he should have to. Someone had suggested that I look into bankruptcy as an option. How would this work if he and I were to come to an agreement for the payment of the monthly fee?
Hi Samantha. This is a question to ask a trustee in your area. Here’s the link to http://bankruptcy-canada.com/trustee/ .
Because you have been out of school for more than seven years, your student loans are eligible to be automatically discharged in a bankruptcy. If this is a first bankruptcy and your income is low, the cost of the bankruptcy would not be a large amount. Your spouse could help you with the monthly payment to the trustee if required.
I recently started receiving ODSP and was on OW for about 2.5 years before that. I have about $45,000 debt on 2 credit cards and a line of credit. I’m wondering if I should just get a new bank account at another bank and forget about the debt? It feels kind of underhanded to me. Do I write letters to the banks I owe saying I’m on ODSP and can’t pay? Do I claim bankruptcy?
Thanks for any help you can give me.
Hi Jen. You are correct, there are two obvious choices in your situation.
First, you could open a new bank account at a new bank, and advise your creditors that you are on ODSP and are unable to pay your debts. They could still sue you, but since you have no wages to garnishee or any assets, there is nothing for them to get. You are being honest with them, so it’s not “underhanded”. You are not hiding from them.
The other option is to claim bankruptcy, which officially eliminates the debts, but there is a cost. If you have a limited income the cost may not be worth it. You could contact a trustee to determine the cost, and then you can decide if the cost is worth it.
I am on a B.C. Disability pension for severe mental health issues.
I have received a letter from a collection company for a credit card debt. I cannot pay so what is the best way to deal with this. I don’t know how they even got my address as I have to live with my mother. I believe this bill is at leSt five or six yrs old and has more than doubled due to interest.
Hi Jay. If the debt is six years old it is highly unlikely that they will take you to court, and even if they do you have no income they can garnishee, so there is probably nothing legally they can do. You could simply advise them that you are on disability and have no money to pay them. Eventually they will realize that they won’t earn a commission from you, and they will stop calling.
You could also go bankrupt, but there is a cost, so if that’s something you want to consider you should contact a trustee to review your options and make an informed decision. If a family member is willing to help you with the cost it may be worthwhile, but if this is your only debt the starting point should be to communicate with the collection agency; they will probably then leave you alone.
I have been to see a trustee and she felt that bankruptcy was the way to go for me. However since then I have run out of E.I. and remain unable to find a job. My house sold and left me with nothing – lawyers and the real estate agent took everything. I have a joint savings account with my sister but most of the money in that account belongs to her. Will she lose that money if I move forward with bankruptcy. Though at this time with zero income I cannot afford to pay for a bankruptcy.
Hi Laurie. If the money in the joint account belongs to your sister, the safest approach for your sister is to take her money and put it in her bank account, so that there is no confusion.
As for bankruptcy, your analysis is correct. The purpose of bankruptcy is to protect you from your creditors so your assets are not seized, and so that your wages are not garnisheed. Since you have no assets and have no wages, there is no compelling reason for you to require protection from your creditors at this time. In most cases the most opportune time to file bankruptcy is after you have started your new job, because you will have funds to pay for the bankruptcy, but you will also have wages that may require protection from the creditors. Your trustee can explain these options in more detail (or if they are not explaining it adequately, it would be wise to speak to a different trustee).
My husband and I owned a house. I was a stay at home mom (2 kids) and never worked in 13yrs yet I was on the mortgage. Well, he cheated and left and after a few months stopped helping me pay the bills. The house went into foreclosure and eventually sold after a year on the market for a loss. I just got a letter saying I owe $55,000. I work and make just enough to support my kids, I have no child support nor alimony. He has since moved out of province ( still in Canada) and has infants now. I do not have any assets either. So basically nothing for the bank to take. Should I file for bankruptcy? My credit is already shot from him leaving me with the bills etc. I just received the letter from the lawyers representing the bank. I plan on telling them where he lives..as they sent his letter to my rental house. We are still married as I can’t afford a lawyer yet. But seperated for over 2yrs now. I am not sure what to do. Thanks
Hi I am on cpp disability and pwd provincial disability. I know that they cannot garnish my disability but they can take money I owe out of my bank account and their is nothing anyone can do to stop it. I owe money to capital one $300, and 460 to the money mart, and about $360 to telus.. I only get $ 886 because of $20 being taken for a damage deposit and my rent is $750 I have ms and mental health problems
If/when your spouse files for bankruptcy one of the things his trustee will have to determine is whether or not there is any equity in your home and who owns the home. You said only his name is on the mortgage – is his the only name on the deed too? If it is then he is entitled to 100% of the equity in the home. If both your names are on the deed then he is entitled to 50% of the equity. The house doesn’t have to be sold, but an amount equal to his share of the equity must be paid into his bankruptcy. As long as he can do that, the house is safe. If he can’t do that then his trustee will ask you if you want to “buy” his share of the house. If you can’t then the house. There are options, but make sure you have a plan in place to deal with the house BEFORE your spouse files. Tell him to look at filing a consumer proposal too…
I have lived with my common law spouse for slightly more than 14 years. We own a house that has been for sale, for almost 6 months now. Our sole source of income is his CPP disability pension, which is supplemented by ODSP. Prior to our relationship, I was in receipt of ODSP, for a serious medial condition@ fibromyalgia. The issues I are dealing with now, is the Credit card debt, which is now over $18,000. When we purchased this house, in 2007, debt free, we both contributed an equal amount to the down payment. My spouse’s mother , a woman who is retired, and in her 80’s is the co-signer for our mortgage. I have become quite ill, probably from the amount of stress that is going on, and also due to the fact that even if the house sells, which seems doubtful, at this time, we will not have enough money to discharge the mortgage, and also to pay any more towards this Credit card . When my father died, I did make a significant payment to the Credit Card debt, (2 years ago). My spouse will not discuss this matter with either his mother, a bankruptcy trustee, or any representative of the credit card company. I would like to know, what my options , if any are. Thank you very much.
Something a lot of people don’t realize is that you and your spouse are not required to “act together” when dealing with your debts. based on the situation as you have described it 9and I am sorry for all the stress you are experiencing) I think you should contact a trustee directly yourself. The worst thing that happens is you will have a better understanding of your rights – the best thing that might happen is you put together a plan to sort out your finances and move on with your life (hey, your spouse might even decide to listen once they see how well things work out for you). Good luck – don’t face this alone…
Hello, I’m not sure if you have come across this scenario before. I owe about 175000 in debts and cant pay them. I applied for a consumer proposal that was accepted but it failed because I couldn’t return to work when planed. I’m on LTD presently. I’m looking at bankruptcy now as my only option. My concern is that when I was doing research on this, I learned that I will be highly unlikely to receive a an absolute discharge but almost certain a conditional bankruptcy. I am moving overseas after I file for bankruptcy and will make my payments required as I will be working over there. However, in a conditional discharge, it appears that I need to attend a bankruptcy court for this. Can I hire a bankruptcy lawyer to represent me at this or should I fly home to deal with this.
Darryl: it is unclear from the facts you have given why you expect to get a conditional discharge. That would be a question to ask your trustee or a bankruptcy lawyer. If you go bankrupt, a creditor can oppose your discharge, and if that happens you would be required to appear in bankruptcy court.
I am in my third bankruptcy.
I don’t want to be in it anymore as the guilt is killing me.
What happens if I stop making my payments?
Thx
Jim: You are eligible to be automatically discharged in a first or second bankruptcy if there are no objections. In a third bankruptcy a court hearing is required. If you don’t complete your obligations, including making your payments, it is likely that the court will not grant your discharge. If you have concerns, you should discuss them with your trustee.
Jim: You are eligible to be automatically discharged in a first or second bankruptcy if there are no objections. In a third bankruptcy a court hearing is required. If you don’t complete your obligations, including making your payments, it is likely that the court will not grant your discharge. If you have concerns, you should discuss them with your trustee.
Hi, I receive ODSP and have got in to serious debt over the past couple of years with many payday loans which I continue to pay and 2 credit cards all to try to survive each month. Then I got a personal loan to try to make things easier by using it to pay off my other loans but that was the worst thing I could have done because the company ended up deciding where the money would go to pay off my credit cards and such, so I was unable to pay the other loans with that money and ended up using my monthly income again, and my personal loan is double payback for what I owe. I am really considering bankruptcy and was wondering do I have to report to ODSP if I were to file.
Thank you
Hi Stephanie. No, you don’t report your bankruptcy to ODSP. Your income from ODSP is reported by you to your trustee.
Hello, i have credit card and line of credit in default for over 7 years. Total amount around 40K. I never declared a bankruptcy. At first i got calls from collection agencies, they all stop after 2 years. One of the banks sued me. I have no garnishable income and no assests to seize.
Question 1. If i dont declare bankruptcy at all will my debts eventually be written off with time?
Question 2. If i file fo bankruptcy will the lawsuit go away?
Thank you in advance
Hi Vic. The debts never go away. However, if you have no income that can be garnisheed, and if you have no assets, then there is no way for the credit card company to collect on the debt, so the fact that it continues to exist may be moot.
If they already sued you and have a judgement, as noted above, there’s no much they can do with it if you have no assets or income. Yes, if you declare bankruptcy the lawsuit and the judgement would be discharged in the bankruptcy.
Hi, I am on PWD disability and have over 30K in credit card debt and now ICBC wants 10K to pay out a claim or pay 6 times more a month. I do not have any assets. Car is not mine but I insure it to drive. I am unable to work and have not in over 20 years and never will work again. I have told the debtors that there is absolutely no way of repaying even 1 cent as I only get $906 per month. Once I pay rent and bills and insurance (which I can’t get now), there is nothing left for food. This has been going on for years with phone calls 5 or 6 times a week demanding money. I can not take them calling anymore. My question is, is there somewhere to go to file bankruptcy and they not charge you? My credit is already shot big time, so I don’t care about bankruptcy wrecking it more. I just want it all to go away. I’m to the point, I just want to die.
Hi Patti. If you have no wages, the simplest option may be to open a new bank account at a new bank, and get a new phone number so they are not calling you. If the phone calls are the biggest issue, a new phone number may be the simplest and quickest solution. Most people declare bankruptcy to prevent their wages from being garnisheed, but since you have no wages that’s not an issue in your case. You can contact a trustee and they can advise you on your options, including various payment options.
I have a serious gambling addiction and have gambled all my money and owe $30,000 in credit card debt. I’m on Canada pension plan and old age security adding up to $1190 a month and I work for McDonald’s getting about $800 a month. I’ve actually considered suicide. I have quit gambling but can’t afford my payments thus paying one credit card with another which can’t go on forever. I’ve read all about bankruptcy and it looks like some creditors can refuse which scares me and I don’t know if I can afford banksupsy. Can they garnish my McDonald’s wages? Then how can I afford to eat. I’d like to keep my place. My starts and mortgage payment add up to $1000 a month. I need help and advice. I hope you can advise me a little before I apply. Thank you
Lois: a creditor cannot refuse your bankruptcy; it is possible that a bankruptcy may last longer if your debts are a result of gambling, but each situation is different, so your best option is to arrange a no charge initial consultation with a trustee who can quote you specific numbers related to your specific situation.
My parents used my name and social insurance number to hide some of their income in 2005 and again used my name for their small business. I got surprised with a 30% wage garnishment for their 2005 abuse that ultimately cost me my job, due to the years since 2005 CRA says they can’t investigate and I’m stuck with the debt. Just yesterday I discovered they also accumulated a large tax debt in my name through their business. As it stands now I have zero income and $14,000 in tax debt due to my parents abuse. I have no hope of getting the money back from them and cannot afford to live, is bankruptcy an option and really my only option? I have no assets or income at this point.
A bankruptcy is an option, but given all of the other issues you have had, we suggest you meet with a trustee for a full review of your options.
Hi dear sir, I am on Ontario odsp. And owe 89,000$ cridet card debt. My first question is that I got a call from collection and I told them I am on odsp. Would the collection agency inform odsp for my debts and would it affect my odsp.
Second question, if I file bankruptcy, still would it affect my odsp. I mean if the odsp find out, will they stop my payments.
I am very scared and I really don’t know what to do and it has made my health worst. I have many types of anxiety. Plz advice me what to do.
Hi Khpelwak. Due to privacy rules, ODSP will only talk to you about your file, not anyone else, so even if the collection agency did call them, they wouldn’t talk to them. Owing money does not impact your ODSP, since eligibility for ODSP is based on your income and medical condition.
Filing bankruptcy does not directly impact your ODSP, because again it is based on your income, not your debts.
You could file bankruptcy, but there is a cost to filing bankruptcy, often in the range of $200 per month for 9 months. Bankruptcy is a way to prevent your wages from being garnisheed, but since you have no wages, and since ODSP cannot garnishee your wages, a bankruptcy may not be necessary in your case. An Ontario bankruptcy trustee can explain your options in more detail.
Hi I just got separated. My wife left me with like 70 thousand dollars of debt.25 thousand in credit cards.20 thousand on a personal bank loan and 25 thousand dollar credit line. I am on EI but it will run out very soon and I will have no income. It’s a very stressful thing. Can I declare bankrupcy if I don’t have a job right now. Thanks
Hi Troy. Yes, you can declare bankruptcy even if you don’t have a job. However, since one of the main purposes of bankruptcy is to protect you from having your wages garnisheed, you may find it is in your best interests to wait until you are working so that you have something to protect. A licensed insolvency trustee can provide you with more information.
Hi Sir,
I am in $33000 debt with credit cards and line of credit. It includes osap loan of $11315. I am using repayment assistance for osap and currently don’t pay any thing because I have no wages. I have no job but was keeping all my payments for 2 years. But I can’t afford to pay them any more. I have no home, no car, no assests or any thing. I have no wages even. I am thinking of applying social assistance. Please tell me my options. I am in very bad health condition and consider working is not an option. Please advise. If I don’t make any payments, will anything bad happen ? Shall I inform all my creditors that I am not able to pay any more monthly payments ? Shall I inform them or not ? Shall I file bankrupcy ? I can’t afford to pay for bank rupcy even. I have 0 money on me. Please give a thoughtful answer. Kind Regards.
Hi Dave. If you have no assets to seize, and no wages to garnishee, you could stop making payments and the creditors would be unable to garnishee your wages or seize assets. So, for you, opening a new bank account at a new bank and doing nothing may be a viable option. You could simply tell your creditors that you have no income. They may call you a few times, but once they realize there is nothing to collect it is likely that they will curtail their collection activity.
as i have found out the poor who will never work again have no chance to go bankrupt. i fell at work in 2009 and now must live on ODSP , but revenue canada still takes every cent it can kinda makes my life on disability hard.bad system..told i would need to pay $240 a month for 9 months , but after rent ,hydro i dont have that much letf..
Hi Garth. I would suggest you contact a number of trustees in your area and see if there is a trustee who can do your bankruptcy for less than $240 per month, or who may have other options for you to consider.
I live in Quebec, am a full-time student, single mother of a 3 yrs old, living in subsidized housing, with no assets and my source of income is student loans.
I have been carrying crippling debts for 15 years.
Recently, a family members that I co-signed for left me with a near $3000 cell phone bill.
My debts amounts to over $20k.
Can I continue going to school and receiving student loan if I go bankrupt?
Are there any reduced fees for low income individuals for the bankruptcy?
Most of the debts are now in collections, most of them i didn’t know they existed until recently. I really want to do a bankruptcy (so that I can rebuild my credit once and for all), but I am concern over the affordability while I am a student.
It is possible to go bankrupt and continue in school, and continue receiving student loans. In most cases the student loan lender will want a letter from the trustee acknowledging that the new student loans will not be part of the bankruptcy. As for the cost of a bankruptcy, and whether or not it is the correct option for you, you should consult a licensed insolvency trustee to review your options.
Hello, I am about $50000 in debt because of illness I suffered in the past
Currently I am employed full time as a residential property manager and in lieu of pay, I receive a unit rent free along with the utilities paid for and tv, phone and internet paid for. I do not receive a paycheck. I do get paid occasionally separately if I do something outside my job description such as painting a unit, but that is a spratic thing. My daughter basically supplies us with our groceries and transportation as I don’t own a vehicle and with our medications. At best I may receive $500 per month extra for painting. Can I go bankrupt in this situation? I really am not interested in consumer proposal. Your thoughts and I’m put on this would be greatly appreciated. Thank you…
Hi Richard. Yes, you can go bankrupt in your situation. For purposes of the surplus income calculation your rent would be considered part of your income, but I suspect it would not make much difference, so the bankruptcy would be relatively low cost for you. I suggest you contact a licensed insolvency trustee for a no charge initial consultation to review your options.
I owe roughly 16k on my td visa and no assets or job. I was thinking of going back to school while being on a student loan. Basically, I’m not planning on working for minimum the next three years so that I can focus on school. I want to know what are my odds of getting sued by td visa?
Hi Regis. If you have no income, and TD knows you have no income, the odds of them suing you are very low. Even if they do sue you, you have no income to garnishee. So, you could go back to school, and only deal with TD if they sue you, or when you graduate if necessary.
Hi
My husband and I are filling for a proposal since We cannot afford our debts. I’ve been out of work for 1 year and half and am on long term dissability which is non taxable so I do not claim it while doing my income taxes. My question is do I have to give that amount for the surplus calculation?
Thank you
Sonia
Hi Sonia. Yes, all income is included in the surplus income calculation.
Hello,
I recently received a Facebook message with a claim against me for an outstanding mortgage debt of 244,000. I had owned the property with my ex and 3 years ago transferred the land title to him and his parents. I did not know this did not release me from the mortgage until I received the claim that I am being sued for it. I have lived in Australia for the past 7 years and have no plans to move back to Alberta canada where I am being sued. What will happen if I file for bankruptcy in Canada? Will it effect my chances of applying for home loans and citizen ship in Australia? If there’s a law suit claim for a mortgage will the bank still try to sell the property to lessen the debt?
Hi Leila. If you have no plans to return to Canada, the creditor cannot garnishee your wages in Canada, so there is likely nothing significant that will result from the lawsuit.
Most people file bankruptcy because they want to prevent their wages from being garnisheed or to protect their assets. Since you have no wages or assets in Canada, and you have no plans to live in Canada, there is probably no point in filing bankruptcy. To file bankruptcy you would have to return to Canada to file.
A mortgage company is required to first sell the property before they pursue you for the difference, so yes, if the property has not yet been sold, that would be the first step, so it is unlikely that you would owe anything near the full amount of the mortgage. In fact, once the property is sold, it is possible that there will be nothing owing.
I have $30K in debt (it was much higher at one point), and while I was working, I was able to pay it easily. Unfortunately, I lost my job at the end of 2014 and was able to easily continue paying on the debt through unemployment. Unfortunately I am still unemployed going on 20 months, and haven’t been able to make a payment in months, and have exhausted all savings and have no ‘hard’ assets. One of the collectors doesn’t believe I’m unemployed and keeps threatening to do a job query on me (I’ve told him to go ahead but he still tells me he’s going to do it).
What are my options?
Hi Kerry. If you have no wages to garnishee, you could continue to do nothing until you are working again. I agree with your approach with the collection agent: if they want to do a “job query”, whatever that is, go ahead!
Once you are working again you may be able to make payment arrangements. If not, and if they are able to garnishee your wages, a consumer proposal or bankruptcy may be an option at that time.
I am declaring bankruptcy next week. I was advised by the trustee to open a new bank account which I did. Will any money I put into the account be seized when the bankruptcy goes through? I am afraid I will be left with nothing.
No, that’s the reason for opening a new bank account at a new bank where you have no debts. It’s a new account, so none of your old creditors know where it is, so they can’t seize money from a bank account that they don’t know exists.
Joseph here.
I am a retired man 68 years old. I receive OAS and CPP and GIS, coming to $1400/month. I have credit card debt I cannot pay back over 50k.
Can they seize my retirement money from the bank?
I am being told they can from people I know.
thank you for your time.
Hi Joseph. If your credit card is with Bank ABC, and you bank with Bank ABC, and you don’t pay your credit card, and your OAS and CPP are deposited into your bank account at Bank ABC, then yes, they could theoretically take the money from your account. If that is the case, it would be prudent to open a new bank account at a new bank where you don’t owe any money. A bankruptcy is also an option, but may not be necessary. A licensed insolvency trustee can provide further specific guidance.
I have $23,000. in credit card debit and $10,000 credit line. I have been out of work for over a year and have been cashing in RRSP’s to live. I don’t own a home or a car, I’ve been staying with relatives. I’m down to $16,000. in RRSP and am getting worried. I’m 59 years old and I don’t want to be destitute and homeless. I don’t know what to do. I’m worried the bank will seize my RRSP’s to pay my line of credit. Continuing to make minimum payments isn’t going to get anything paid off and draining my limited funds. If I declare bankruptcy I’ll lose the last bit of money I have and will be destitute. Is there any way out of this mess.
Hi Anne. You should immediately contact a licensed insolvency trustee for a no charge initial consultation. As long as you have not contributed to your RRSPs in over a year, you would not lose your RRSP if you filed bankruptcy. So, for you, if may be prudent to consider a bankruptcy now, so that you can preserve your RRSP. Your trustee may have other advice, which is why an in-person meeting with a trustee is essential to determine your options.
I’m in my 50’s and have made a lot of bad decisions in my life. I’m trying to make good on all my debts but I can’t make ends meet. I consolidated my credit card, line of credit and overdraft for $36000 still owing for 6.5years. I have a vehicle loan for $50000 6years still remaining(can’t sell it for that amount). My rent, utilities and expenses are $1500p/month. I’m paying total $3500p/month for everything. My take home is $3600p/month. I owe $19000 in taxes for 215 tax year, and will add probably another $7000 for 2016 taxes and I can’t make those currently $300 installment payments. My rent is being paid late with penalties, but still being paid. I have no assets or savings. I work 65-70hrs p/week. Any advise would be greatly appreciated.
Thank you in advance
I would strongly advise you to book a no charge initial consultation with a Licensed Insolvency Trustee: https://bankruptcy-canada.com/contact-a-trustee/
Based on your income and debt level, a consumer proposal may be an excellent option, but you will want a Licensed Insolvency Trustee to review your situation in detail to give you a specific answer, and you will want the opportunity to ask all of your questions so you are comfortable making a decision.
I have cc debt for two cards in the amount of 25,000 and line of credit for 33,000
I have been out of work since Nov 2015 I am almost 62 yrs old and have had no luck in securing a job. I have been living off of EI and my savings. I have not a lot more in savings and quickly using it up. I do not have any assests as I lost everything in fire except for clothes on my back. I have car but still owe quite a bit on it. EI has one more pymt and then nothing but little savings left. Wondering if my option would be to declare bankruptcy and will they take the rest of my savings and also a locked RSP for around 17,000 at the bank where my credit card and line of credit is. Im considering also retiring which would not be a lot per month. Any advise
These are good questions to discuss with a Licensed Insolvency Trustee.
You do not lose a locked in RSP if you go bankrupt, even if it is with a bank where you owe money, so a bankruptcy may be an option. If you are planning to retire there may also be other options, which your trustee can discuss with you.
In 2008, my brother made a consumer proposal with his creditors. I jointly owned a condo with him so I had to buy-out his share of ownership based on the market assessment at that time. I gave the buy-out cheque to his trustee and my brother’s share of ownership was given to me. As a result, the land title document was amended to give me 100% ownership.
However, my brother’s name was not discharged from the mortgage. In order to remove his name, I would have to requalify for the mortgage in my own name which requires a credit application. I was told that I would likely not quality for the mortgage loan on my own so I decided to not make any changes. Whenever the mortgage had to be renewed, both my brother and I would sign the renewal documents and there have been no complications for the past 10 years.
Now my brother is again in a position to either make a consumer proposal or to declare bankruptcy. Apparently, my brother was told that a consumer proposal is not possible because his name is still on the mortgage loan. Also, he was told that if he declares bankruptcy, there is a possibility that his creditors can force the condo to be sold because his name is still on the mortgage.
In the case of bankruptcy, can his creditors actually use the condo as an asset because his name is on the mortgage loan, even though he no longer owns any part of the condo?
Hi Peter. I will give you a generic answer, because I have not reviewed the documents in question. For a more complete answer you should meet with a Licensed Insolvency Trustee or a lawyer.
In a bankruptcy, if he owns a condo, it could be an issue. However, he does not own the condo, as title was transferred to you many years ago, so I don’t see how creditors could seize your condo in his bankruptcy.
As for not being able to file a consumer proposal, there is a rule that says your total debts cannot exceed $250,000, not including the mortgage on your principal residence. In this case, if your brother has signed on the mortgage and if the mortgage is a large amount, that could disqualify him from being able to file a consumer proposal, because this condo is not his principal residence.
It may be wise for you to attempt to qualify for a mortgage on your own, since presumably the mortgage has been paid down for 10 years so it is a much lower amount, and the condo has probably increased in value, so there may now be sufficient equity for you to qualify on our own.
can you add 21yrs of unfilled income or any potential gst taxes to bankruptcy?(self employed newspaper carrier) if realistically outside of winning a lotto max no way of ever being able to pay? this in addition to CC debts ..(currently zero assets, income next nothing.. seriously)
All unsecured debts you owe are included in a bankruptcy, including taxes and GST. However, for CRA to be able to assess what you owe, it is preferable if the tax returns are filed.
I owe about $1500 to Cash Money, Rogers and Koodo, I have no assests but do have a monthly income of $1880 from my job with no other income, how much would I have to pay if I were to claim bankruptcy so they don’t garnish my wages!!!
If you have no surplus income (which in your example you don’t), the minimum payments required in a bankruptcy will be determined by your trustee. If your total debt is $1,500 it is generally less expensive to make payment arrangements directly with your creditors than to file bankruptcy.
I might have missed some creditors when applying for bankruptcy. I just applied this week. Will this be a problem when I get discharged. If they come up on my credit report, how can I get rid of them. Do I need to deal with them personally and send them my bankruptcy discharge files. Or when someone declares bankruptcy all the creditor are automatically cleared. I feel I got all the main debts under control, but there still might be some floating around that could come back to haunt me.
Anyone that you were indebted to at the time you filed for bankruptcy will be included in the procedure, but the only way they’ll find out about it is if you tell your trustee so they may put the creditors on notice. It is fairly common for people to forget a creditor or two, particularly for old debts. If you become aware of someone else that should be on the list just contact your trustee and tell them. You can only get in trouble if you deliberately leave a creditor off the list – there’s no good reason to that…
I am on ODSP, i have credit cards issu since 5-6 years around $90000, I have NO house I renting but i have one car under my name and my wife name worth$2000.
1- Can they go after my car $2000?
2- My 2 kids students on college and they have there own cars under there names and they live with us, can collection take there cars, first car coast $1000 and second one $3000.
3- My only income from ODSP. Collections keep calling and there praive investigations park front of my house since 2 days, I don’t want to go bankruptcy, can i just ignore them?
In Ontario, cars are exempt from seizure if they are valued at $6,600 or less. Based on your value your car is safe. Similarly, your kids cars are safe due to their value and because someone can’t take their cars for your debts.
ODSP cannot be garnisheed. That means a creditor may take you to Court and obtain a judgment against you, BUT the Court won’t let them take your ODSP directly. A Court will let them grab any money in your bank account – so don’t leave money in the bank…
If you are unlikely to return to work then one strategy will be to simply ignore them – the debts don’t “go away”, but while you are on ODSP there’s really not much your creditors can do except annoy you with phone calls and letters.
hi,
I am on ODSP, I do know my ODSP can’t be taken by creditors, but my question is,
I have outstanding student loan debts. I receive $667 monthly and rely on GST & trillium monthly for groceries, personal needs etc. I filed my income tax this year, not expecting a
refund. I was surprised when I was informed i should be getting $154 due to the carbon tax. CRA, however, kindly took said refund. Does this mean they will also take the GST and trillium? My friend advised me to file for bankruptcy, but I’m not sure that will accomplish anything. I finished college over 20 yrs ago, but due to illness and surgeries, now live on disability. I suppose I’m wondering if I should just let it be and do nothing, or take her advice. Thoughts?
Thanks.
The carbon tax rebate was included in every eligible Canadians’ tax refund this year. Canada Student Loans, through CRA, has the right to seize tax refunds for unpaid student debt. That’s why you lost the refund. CRA does not usually take HST and Trillium payments – they haven’t taken them in the past have they? I am not sure I’d file bankruptcy given the facts you’ve shared with me, but if you want someone to give you a more detailed explanation you should contact a licenced insolvency trustee in your area and ask them about your situation.
We opened up a business last year (incorporated) and it is not doing well and we are considering closing the doors. My husband and I are the only shareholders. I am currently on disability (paid from my old work, and also some through CPP). My husband, was unable to return to work 2 years ago after a serious car accident. He is able to work, but just not his former job and is having a hard time finding other work.
The business cost us ~$200,000 and we still owe most of that in loans/ LOC. Since his accident, we also have had to incur substantial cc debt, and even once he gets a pay-out from the insurance co. I am not sure it will cover the debt we’ve incurred since he has been unable to work, and we cannot take a wage from the company. We are trying to keep the business afloat, but it is taking more money every month. We do not know if we can file corporate bankruptcy? or if we should file privately and how one would affect the other? Since niether of us has a wage, should we bother with bankruptcy? We do have some equity in our home (about $100,000), and I am afraid of losing our home as we have 3 children. Any advice would be appreciated. Prior to these past couple of years, opening the business, and my husband’s accident, we had excellent credit ratings and no debt (other than mortgage)
Your situation is really too complicated for a “quick” website answer. The equity in your home is at risk – you should contact a licenced insolvency trustee in your area to discuss your options in detail. There may be no reason to bankruptcy the corporation, but you do need to look at your personal situation. Good luck sorting this out…
I moved home to my parents home after university and own a bunch of furniture, electronics and other items that is in the living space I use at my parents home. They are thinking of filing for bankruptcy and my question is:
Will all the assets I have purchased such as furniture, televisions, vehicles and such be included in liquidation through their bankruptcy when items over $4000 is collected and sold by a bankruptcy trustee?
Hi Luc. If they are your possessions, they would not be part of your parent’s bankruptcy. I would suggest you and your parents make a detailed list of what belongs to you, so that if anyone asks you have documentation that it belongs to you.
My house which I share with my common law spouse of 30 years has no mortgage (is fully paid). I paid half the mortgage, however I have only a pre-nup that I would get paid a _very_ modest monthly payment if we separated, until my share in the house was returned The house is solely in her name. We are Ontario residents.
I have incurred $45,000 in credit card debt (only). The credit card debt has been resold. I have been running a sole proprietorship that has not brought much income in for some time. I was hoping to get a consumer proposal once I found better employment and income again, not declare bankruptcy.
How would the house be treated in my bankruptcy? Would half of it be considered my property, when I have no legal title nor the straight-forward ownership rights of a married spouse?
If the house is in your spouse’s name, and has always been in your spouse’s name, it would not be considered your asset if you filed a consumer proposal or a bankruptcy. However, this is a matter you would want to discuss in detail with a licensed insolvency trustee before making a decision; they can review the house documents and give you a more specific answer.
Hi there i have a line of credit, i was in massive position where i paid my mastercard off with line of credit. So thats one good thing. Now my line of credit is – 10.000 which im at 8,000 now. Ive been paying the min payment a month,so at least im not doing anything wrong there. Im on a cpp pension and odsp, so what can i do when i cant make a payment because of house bills meaning phone cable food etc. Thanks….
Hi Scott. The first step would be to talk to the line of credit lender and explain that you may be late with some of the payments, and see if they will give you a break. If you are unable to pay them, you could consult with a licensed insolvency trustee about filing a bankruptcy or consumer proposal to deal with the debts.
Hi. I have a mortgage with no equity a leased car leased tractor . Have 40k in credit card debts. I a widow . Went through a bankrupcty 20 years ago . Will have to take my pension at age 62 . I am now 60 Will be getting a 15k lump sum at retirement in 1 1/2 yrs . I have my cards /bills paid every month but have exhausted all saving. Im on CPP DISABILITY and LTD from work. My payment obligations are way more than income. What should I do?
Hi Laura. You should contact a licensed insolvency trustee who can explain your options. The initial consultation is free. A consumer proposal or a second bankruptcy may be options, but there may be other options, so the sooner you speak to them the sooner you can make a plan and deal with your debts.
I owe a CC $8000. My debt has been sold twice. The new company has added on an extra $3000 in interest. Totally $11000. I spoke with the first company and told them I had no income, wasn’t working and I have no assists in my name. Everything is in my husbands name. Between the cost of everything and paying off other debts, I cannot afford this one nor would the companies previously work with me. The last company threatened to sue me but it never happened. Now this new company is threatening the same. What is my best option ?
If you have no income and no assets it is unlikely they will bother to sue you – what would be the point? When is the last time you made a payment on the debt or confirmed that you owe the money? (ie did you say on the phone “yes I know I owe you the money?” If you live in Ontario and it has been more than 2 years then the Limitations Act might protect you. A creditor only has 2 years from the last time you made a payment and/or confirmed a debt to sue you. If they sue you after two years you simply advise the Court it has been more than two years and the suit will be dismissed. You have to appear in Court to use the Limitations defense so what for legal letters to make sure you don’t miss the hearing…
My husband got a mortgage on land home, he passed away due to parkinson. I was left with payments. I filed bankruptcy i got 4 months behind. I got caught up but not in time, bankruptcy dismissed me. Bankruptcy reinstalled me (payments went higher a month because of income). they found where some land was deeded to me (not legally mine just deeded to me until stepfather passes). Needless to say income of $2000. a month deceased. I called my bankruptcy lawyer 3 months in a row telling him I was behind could they modify. Lawyer told me to do the best I could. Now I think they are going to dismiss me . What can or do I do??
Hi Karen. If you are in the United States, you will have to talk to your bankruptcy lawyer. If this is a Canadian bankruptcy, you should immediately contact your licensed insolvency trustee and discuss this with them.
Hi
Ok ive been trying to make pymts thru a consolidated credit company for almost a year now.Im struggling ..cant manage ..between rent..food and cost of living .
Im on PWD in B.C. .I owe the biggest billls to credit card company about $2,000 and one to a bank for a Overdraft $ 2,000 also .. ..and a few other little comp debts …Total debt bout$ 8,000.
I declared bankruptcy once and it was completed ..in roughly 2009..I did all i needed to do for 9 mths and it was completed .
What is your best suggestion now ? Im paying $200 now ,a mth to the Cons.Credit Comp now ..its just too much for the next 6 yrs to come!!! I cant manage this .
Hoping it wouldnt be that much in 2nd bankruptcy if i decide to do that ?
Help …appreciated
Thanks Jane
Hi Jane. I strongly recommend that you contact a licensed insolvency trustee in BC and have them review your options. I agree, paying for 6 years to a consolidated credit company is not in your best interests.
Im currently bankrupt, Im about to suffer a major drop in my income which will cause me to be homeles, I will have an income way below the poverty level at less than $1000 income per month. What happens to my bankruptcy as Im in for 21 months (completed 8) but they are telling me I still have to pay even if my total income is $1k per month. I tried askig questions but get zero answers. Please dont tellme to keep asking as the LIT doesnt give information and/or previous details on how bankruptcy works was withheld. I just want to know what will occur? Will i be put in jail,? Will I have to go to court? What happens if I cannot make my monthly payments and I stop, can a trustee take the only income I have left? I have no assets other than an old car 2003 Dodge van which I will be sleeping in.
If your income changes, your surplus income payments change. If you are earning $1,000 per month, you have no surplus income, so no surplus income payments are required. If your trustee has not explained the process or is not communicating with you, you can contact the Office of the Superintendent of Bankruptcy and ask for their advice, or make a complaint.
Hi
I am not working, I’m staying home to care for my 3 kids and my bf works away. We claimed common-law on our returns and now CRA wants $15,000 that I can’t pay back… what my question is, can I still declare bankruptcy with no income only income from my common-law partner and second question will it affect him in any way
Hi Cora. Yes you can declare bankruptcy. As to to the implications for you and your boyfriend, you should discuss this with a licensed insolvency trustee to determine your options.