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: 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.
Question: What will happen to my new car if I go bankrupt in Ottawa? Will I lose my car?
What will happen to my new car if I go the proposal way. Will I lose my car?
Answer: The answer depends on the value of the car, and the amount owing on it. If you go bankrupt in Ottawa, or anywhere in Ontario, you are allowed to keep one motor vehicle with no loans against it worth up to $5,650. If the vehicle is worth more than that amount, you can pay the excess amount to the trustee for the benefit of your creditors, so you could keep a $6,650 car by paying the trustee $1,000.
If there is a loan against the car equal to the value of the car, the trustee will not take your car. It will be up to the lender to decide whether or not they will allow you to keep making payments on the car, so you can keep the car.
If you file a consumer proposal, you can keep your car with no loans against it. If there is a loan, as with a bankruptcy it is up to the lender to decide whether or not they will allow you to keep making payments on the vehicle.
This is a complicated area of bankruptcy law, so we suggest you contact an Ottawa bankruptcy trustee for more information.
