Bankruptcy Discharge Archives - Page 11 of 33

What is bankruptcy?

Posted on March 1, 2015April 16, 2016 by Jordan Rumanek

What is bankruptcy?

Bankruptcy: a person legally declares themselves or their business unable to pay outstanding debts. Depending upon the type of bankruptcy filed, a debtor meets with a judge to determine a payment schedule, or have a legal bankruptcy discharge most debts. Businesses may also declare bankruptcy which either means the business will close or the business will continue to operate with reduced payments to debtors.

Act of Bankruptcy: an act committed by a debtor as defined under the Bankruptcy and Insolvency Act. One of the most common is if a debtor ceases to meet his liabilities generally as they become due. A creditor with a minimum claim of $1000 may file a petition for a receiving order if the debtor has committed such an act within the six months preceding the filing of the petition.

Bankruptcy and Insolvency Act (BIA): a federal statute governing bankruptcy and insolvency in Canada which is applicable to all provinces and territories.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

My Partner Died. Do I Have to Pay their Debts?

Posted on January 15, 2015April 16, 2016 by Jordan Rumanek

My Partner Died. Do I Have to Pay their Debts?

If your partner dies do you have to pay their Debts? Your wife, husband or partner died and their creditors start to contact you and tell you that you have to pay their debts. You are so distraught with this tragedy that you are not thinking clearly and believe what they tell you. Just because you are married or living common law with someone that does not mean that you are liable for their debts. The creditors of the deceased person can look to the assets of the deceased and nothing more. You might, of course, have co-signed a loan or mortgage or had a joint credit card with the deceased or signed something that created your liability. So, if you are ever in this unfortunate situation, ask whoever is calling you to send a copy of what it is that you signed that made you liable for the debt. If you signed nothing, then ask the collection person on the phone to send you a copy of whatever law he is aware of that makes you liable for the debt. You are not refusing to pay any debt that you are liable for, but you are entitled to know what you owe and why you owe it. If you are not sure of anything, please meet with a lawyer or other financial advisor to discuss this matter. If you have children, do not hesitate to ask them for help in reviewing the debt or coming with you to meet with the lawyer or financial advisor.

Are the assets of the debtor’s spouse affected?

Posted on January 10, 2015April 16, 2016 by Jordan Rumanek

Are the assets of the debtor’s spouse affected?

The bankruptcy affects only the person who goes bankrupt. However, if the consumer debtor conveys or transfers property to his or her spouse for a value that is lower than its fair market value within one year prior to bankruptcy, then it is likely that the trustee, or the creditors in certain circumstances, will proceed to set aside the conveyance or transfer. The trustee can attach those assets that have been conveyed or transferred to the spouse or any other person who has not paid fair market value. These are called settlements, fraudulent preferences and reviewable transactions under the Bankruptcy and Insolvency Act. There is also a provincial legislation that is similar to these remedies.

If there is a discharge hearing, the bankrupt is required to submit a statement of income and expenses on a monthly basis to the trustee. The statement of income usually includes the net income of the spouse. In fixing an amount to be paid by the bankrupt as a condition of discharge, the court looks at the combined income, the expenses and the Superintendent’s standards. As a result, it is possible that some of the spouse’s income will be used in making payments to the estate even though the spouse is not bankrupt.

Can I keep one credit card for emergencies if I file for bankruptcy?

Posted on January 10, 2015April 16, 2016 by Jordan Rumanek

Can I keep one credit card for emergencies if I file for bankruptcy?

No, you cannot keep one credit card for emergencies. All credit cards must be tuned over to your trustee when you file an assignment in bankruptcy or a proposal. You can, of course, apply for new credit and new credit cards once you have filed a proposal or a bankruptcy. Your trustee can advise you on how to do this as well as the limitations on how much credit you can get and what disclosures you must make.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. Thank you. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Category: Bankruptcy Discharge

What is bankruptcy?

What is bankruptcy?

My Partner Died. Do I Have to Pay their Debts?

My Partner Died. Do I Have to Pay their Debts?

Are the assets of the debtor’s spouse affected?

Are the assets of the debtor’s spouse affected?

Can I keep one credit card for emergencies if I file for bankruptcy?

Can I keep one credit card for emergencies if I file for bankruptcy?

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