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Bankruptcy Ottawa provides free information about personal bankruptcy in Ottawa and bankruptcy alternatives available to residents of Ottawa and the surrounding areas of Ontario.
The sponsors of www.bankruptcy-ottawa.com, Surgeson Carson Associates Inc. - bankruptcy trustees in Ottawa, are licensed by the federal government of Canada to provide personal bankruptcy and consumer proposal information and services to residents in the Ottawa, Ontario area.
Question: If you have filed bankruptcy in Canada in the past,can you do it again? and how long is the wait period before you can do it?
Answer: You can file bankruptcy in Ottawa for a second time provided you are discharged from your first bankruptcy. There is no waiting period.
However, a second bankruptcy is more costly and lasts longer than the first bankruptcy, so you should consult an Ottawa bankruptcy trustee to arrange a free initial consultation before making your decision.
Question: I am in the middle of a divorce and we have many accumulated debts together. The house was taken by the bank but we are left with all the other household debts. What happens with the house? Am I still responsible? Also what happens when the debts are in both of our names?
Answer: If a debt is in both names (you and your ex), you are both responsible for the entire amount of the debt. If a bank repossesses a house and sells it, and does not recover the full amount owing on the mortgage, they will pursue you for the difference.
The same is true for debts that are in both names. If one of you does not make the payments, the lenders will pursue the other person for the full amount owing.
Divorce is one of the leading causes of bankruptcy in Canada, so if you believe that you will not be able to pay all of your debts in full, you should consult an Ottawa bankruptcy trustee to explore all of your options.
Question: If I declare bankruptcy, will I loose my pet dog and my horse I use for work- I am a riding coach ?
Answer: It depends on their value. Unless your pet dog and horse are very valuable, it is unlikely that you would lose them if you filed for bankruptcy. We suggest that you contact an Ottawa bankruptcy trustee who can review your situation and advise you of your options in more detail.
Question: My husband has passed away. He has business debts and credits cards and leases which I have not co-signed on.
His only assets are RRSP’s and a small life insurance policy of which I am the beneficiary.
Am I responsible for his debts as the executor of his estate?
Answer: No, you are not responsible for someone else’s debts, unless you have co-signed for them. As executor of his estate you will work with your lawyer to liquidate his assets and use those assets to pay his creditors; your lawyer can provide you with more information.
Question: I have been advised that one of my creditors is objecting to my discharge, i had made a consumer proposal of $500 a month for 5 years which they did not accept … Should I get a lawyer, I am not getting too many answers from my trustees, any assistance would be appreciated. I was last bankrupt in 1999.
Answer: As a second time bankrupt, you are required to attend a discharge hearing to obtain your discharge. If you are not satisfied with the assistance your trustee is giving you then yes, you could hire a lawyer to represent you at your discharge hearing. However, in most cases the easiest course of action is to request a meeting with your trustee prior to your discharge hearing so that you fully understand what will happen at the hearing, so that you can prepare for it.
Question: I am engaged to someone who is filing bankruptcy. My credit is solid and I have no financial issues. Will my credit be negatively affected by marrying someone who has filed bankruptcy?
Answer: No, your credit is not affected by your spouse’s bankruptcy. However, in the future, your spouse will not be as good a co-signer for you if they had not gone bankruptcy.
For more information, please see this article on Does Filing for Bankruptcy in Canada Affect my Spouse?
Question: When should a person consider bankruptcy in Ottawa? Single Mom with 2 children with an annual income of 35000, but I seem to only make dents in the interest alone. I have finally paid off my student loan but I am maintaining things now. I have yet to inquire about my debts as I don’t want to see what their is let alone have people calling and harassing me all the time without a game plan first. What are the reprecussions of filing bankruptcy to spending the next 15 yrs paying off debt?
Answer: You are correct, bankruptcy is a way to deal with your debts, but it also has some negatives:
First, there will be a note on your credit report for six years after you are discharged, so it will be more difficult to borrow in the future.
Second, while you are bankrupt you are required to make payments based on your income, so if your income increases, your payments increase.
Finally, you may lose some of your assets, such as your tax refund and GST credits.
To determine if bankruptcy is the correct option for you, you should make a list of all of your debts and then call an Ottawa bankruptcy trustee for a free initial consultation, so that you can review your options and decide which option is best for you.
Question: 3 people jointly own a piece of property, one person has a mortgage on the property that has been co-signed by the other two parties. If the person with the mortgage goes bankrupt or files a consumer proposal how can that affect the other two people and could they lose the property or have a lien placed on it?
Answer: It depends on the value of the property. The bankruptcy trustee must turn the bankrupt’s one third interest in the property into cash, so the other two parties could conceivably buy out the bankrupt and keep the property. To start, and appraisal should be done on the property, and the mortgage balance confirmed, and from there the bankruptcy trustee can advise you on the next steps.
Question: Our home was transferred to my husband’s name more than a year ago. My name is not on the title nor is it on the mortgage or insurance. This was done to protect this asset against a possible lien for a debt that I was personally responsible for. Would this home be protected should I file for personal bankruptcy in Ottawa?
Answer: When you file for bankruptcy, you are required to disclose whether or not you sold a house in the previous five years “while you were knowingly insolvent”. In your case you transferred the house to protect it from a creditor, so you were probably insolvent. Whether or not it would be an issue in your bankruptcy will depend on the value of the house and the mortgage balance at the time of the transfer, and your other debts.
As this is a significant issue, we suggest you consult a bankruptcy lawyer or an Ottawa bankruptcy trustee for more information.
Question: I have a managed rrsp to which I have contributed for the last 20 years. is this vulnerable if I go bankrupt in Ottawa? is the law about to change? Thanks Jennifer
Answer: Potentially, yes. If your RRSP is not locked in, you will probably lose it if you file for bankruptcy. There have been many proposed rule changes, but as of today no changes are imminent.
For full details, and for a free initial consultation, we suggest you contact an Ottawa bankruptcy trustee.
