Bankruptcy Ottawa Ontario » Uncategorized

Debt at Death do you part?

Questions — Sat, 28 Oct 2006 13:20:00 +0000

Question: Can bankruptcy be used lawfully to eleviate financial burden on your family if you were in danger of or close to dying?

Answer: Unless family members have co-signed for your debts, they are not responsible for your debts. If a person dies, the executor of their estate would liquidate their assets and use the funds to pay the creditors. Any remaining funds would be distributed to the heirs. If a living person goes bankrupt, a trustee would sell any non-exempt assets, and the proceeds would go to the creditors, so a bankruptcy in most cases does not protect family members.

We suggest you contact a trustee for further information.

Joint Account

Questions — Thu, 19 Oct 2006 13:02:00 +0000

Question: My spouse and I have a joint bank account held at a Canadian bank but in US Funds. The majority of the deposits have been from his paycheque (as a portion of his pay is in US Funds). I have deposited about $300 US from Independent work I have done. The account has over $5000 US. I have all his pay stubs that show each week the amount he received in US dollars. If I file for bankruptcy alone, would his money be taken? Can I take my name off this account and move my $300 into an account just in my name. Any advice is appreciated. Thanks.

Answer: A joint bank account belongs 100% to both parties. In most cases we recommend that you open a new bank account, at a new bank, before filing bankruptcy. Therefore, in your case, yes, you should take your name off the joint bank account, and deposit your funds in your bank account. Your trustee will be able to explain this in more detail.

Has your paycheque has been reduced?

Questions — Tue, 27 Jun 2006 13:39:00 +0000

Does This Example Sound Like You?
Those extra hours you were counting on are gone. That regular bonus cheque has disappeared. Hours have been reduced on your shift. However you cut it, you are not taking home what you used to. You needed that extra bit to just get by. Now the bills are piling up. There just isn’t enough money to go around. What can you do?

What Can You Do?
The root of your problem may be in your monthly budget. Some people can fix it themselves, by either making more or spending less. If part of your problem is that you are only able to make your minimum monthly payments on your credit cards, you may be digging yourself into a hole which you will need professional help to get out of. If you want to find out what your options are, click here for more information.

Has Revenue Canada frozen your bank account?

Questions — Mon, 26 Jun 2006 15:38:00 +0000

Does This Example Sound Like You?
You own and operate your own business – things were great for the first couple of years, but lately sales have dropped off and in order to pay your suppliers you’ve let your payments to the government slide. Yesterday they froze your bank accounts. What can you do?

What Can You Do?
Solutions for self-employed people are always a bit more complicated. Depending on the legal structure of your business (sole proprietor, partnership or corporation) your approach may be quite different. Let’s say that you’re a sole proprietor and therefore you need the account unfrozen immediately. You have the option of filing bankruptcy or possibly a proposal to your creditors. The 2 questions you need to ask yourself are “do I want to stay in business?” and “am I making any money?” We strongly suggest you meet with a financial professional – for more information click here.