Who will know that I have filed an Assignment in Bankruptcy? We have all seen the notices in the legal section of newspapers notifying creditors about a bankruptcy and notifying everyone about an upcoming meeting of the creditors. The reality is that this only happens in corporate bankruptcies or very large personal bankruptcies usually which have a business background to the bankruptcy. A bankruptcy of an individual is known as a summary administration. The creditors are notified by regular mail. Assets under a summary administration are minimal and notices in a newspaper and meetings with creditors are rare. A bankruptcy is, of course, filed in court but nobody spends their time searching court files and public records to find out information about you. The exception, of course, is the credit bureau (Equifax or Trans Union of Canada) which keep a record of the bankruptcy on their system for a period of six years. Friends and family are unlikely to find out that you filed bankruptcy – unless they need to know. Your employer is only informed if a creditor attempts to garnishee your payroll. Your trustee can usually stop the garnishee but that involves sending a letter to the creditor, the court and someone in the payroll department of your employer. You can keep the notice to your employer confidential by providing your trustee with the private email of someone in authority in the payroll department or by delivering the trustee’s notice by yourself.
What happens if I die or my spouse dies during Bankruptcy?
The short answer to what will happen if you die during bankruptcy is that nothing will happen to you. Your spouse filed a Consumer Proposal to settle his obligations to his creditors. Upon your spouse’s death, the surviving spouse has no obligation to continue making the monthly payment on the proposal, although, the surviving spouse may voluntarily agree to do so. In the majority of cases, the surviving spouse will decide not to continue to make the monthly payments and simply allows the Consumer Proposal to go into default. The proposal will be annulled once the proposal falls 3 payments in arrears. The only obligation of the surviving spouse is for joint debts. The liability for joint debts should be discussed with your trustee at the time the original papers are signed to start the Consumer Proposal.
Upon the death of your spouse, please forward a copy of the death certificate that you receive from the funeral home to your trustee, who is acting in the capacity of the Administrator of the Proposal.
Happy New Year!! What an amazing idea to make a decision or joint decision this January to spend close to nothing—preferably nothing. This time of year is difficult financially for almost everybody and it will be easier than you think to stop spending altogether—for the time being. Get your family and friends involved! Make your priority spending only groceries and cut that grocery list. You have many items in your cupboard, freezer and fridge to plan ahead every week and spend the bare minimum. Make a meal plan every week, freeze soup, casseroles and vegetable dishes. Try and organize potlucks with other people or another family. When considering entertainment, get dressed warm and get outside, go skating, sliding, hiking —there are dozens of free, fun outdoor activities. If the cold outdoors is not your thing, research free indoor events or invite people over to your home. Use up your gift cards, if needed, this month and make sure you return all items you do not need or want—it’s amazing how much money we get back when we remember to return items we do not need. You have 31 days in January to make the most of each day and challenge yourself to not spend money. The less you spend, the more you save for bills and hopefully savings for the rest of the year. Practice positive money spending habits now and you will feel empowered to make this year your best financial year to date. Good Luck! Spend Less! Feel Great!!
It is a smart and responsible idea to include personal finance in your New Year’s Resolutions this year. There are several ways you can improve your financial year if you follow these suggestions then perhaps your goals can lead to a small reward for yourself year-end.
1. Manage your spending. Buying items at 50% off is still spending money. Eliminate wasteful spending, cut back and have a system to call a friend if you want to purchase something over $100.00.
2. Grow your income. If you have $10 or $100 to save just start investing your savings and/or add extra dollars to your superannuation. Visit a financial planner once a year or once every two years—research or ask friends if they know a great financial planner. If you have someone teaching you the language and steps you need to take to secure your future, you are spending your time wisely.
3. Set financial goals. Not only is it important to set long and short-term goals and rewards it is also equally important to talk about them with friends and family. Discuss these goals with your financial advisor and ask for suggestions.