Bankruptcy Ottawa Ontario » bankruptcy

Death and Bankruptcy in Ottawa

Questions — Tue, 13 Jan 2009 20:31:00 +0000

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.

Pending Wedding to someone who is bankrupt

Questions — Wed, 05 Nov 2008 04:56:00 +0000

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?

RRSP and bankruptcy in Ottawa

Questions — Mon, 09 Apr 2007 13:08:00 +0000

Question: Is RRSP money protected in case of a bankruptcy in Ottawa?

Answer: The answer depends on the type of RRSP. If the RRSP is an RRSP that you have contributed to over the years, perhaps at your bank, than it is probably not protected, meaning you would lose your RRSP if you filed for bankruptcy.

If your RRSP is a locked in RRSP, you would generally not lose it if you filed for bankruptcy. An RRSP is typically locked in when you convert a pension from your former employer to an RRSP, or if your RRSP is through work, where your employer is making the contributions.

This is a complicated area, and there are many exceptions to these rules, so we strongly suggest that you contact a trustee to review your RRSP paperwork before you decide whether or not to fie bankruptcy.