I filed a Consumer Proposal and my trustee tells me that he has to file an Administrator’s Report. I am frightened – what is this?
Your trustee is acting in this situation as the Administrator of your proposal. As such, there is a requirement under the legislation that he submits a report to your creditors that:
1. The proposal was filed with the Officer Receiver who represents the Office of the Superintendent of Bankruptcy
2. Your financial situation and assets listed on your documents are reasonable
3. Your list of creditors (with balances higher than $250) is reasonably accurate
4. Explains what is the cause of your financial problems
5. A brief summary of your net income per month, type of employment, the fact that you do not wish to file a bankruptcy and the amount that the creditors will receive in the proposal. If you and your partner are filing individual proposals at the same time, the joint creditors will be notified of the concurrent proposal so that they realize that they receive payments from both proposals. If the administrator has determined that the payment in the proposal is lower than the creditors would receive in a bankruptcy, there is an obligation to disclose that fact but add any mitigating factors for the creditors to consider before deciding whether or not to vote for or against your offer.
In many cases, the creditors start reviewing your proposal by reading the Report of the Administrator. It is a very important document.
Overdue payments, calls from collection companies, NSF cheques, bank overdraft. The list goes on and on. You feel stressed out just thinking about your debts. Want some peace of mind? Stop the madness and take control. Start by making a list of your debts showing the name, amount owing, interest rate, and minimum monthly payment that is due. I note that many credit cards now show how long it will take to pay off the balance owing if all you pay is the minimum payment and of course, if you do not make any new charges. Focusing on the 20 or 30 years will just increase your stress, not reduce it. Focus instead on which debts have high interest and which have the lower rates. You should be directing whatever money you have to those debts with a high interest rate.
The next thing you have to do is to track your spending for a few weeks (longer if possible). You will then need to prepare a budget for yourself to determine how much money you have each month to service your debts and allow you to live. Note that the budget is an average for a month (not 4 weeks) and you should allow for emergencies and debts like car insurance that are not necessarily paid on a monthly basis. If you need help, Trustees in Bankruptcy (soon to be called Licensed Insolvency Trustee), credit counselors, financial planners, etc. are usually willing to help you in assessing your budget and putting together a plan of action to pay off your debts. If you spend the time to put together the basic information, their fees will be nominal, their expertise invaluable.
Can I Max Out My Credit Cards and Then Go Bankrupt
You could max out your credit cards and then go bankrupt, as long as you do not wish your bankruptcy to go smoothly. Your trustee is obligated to review your spending for the period immediately before you file the bankruptcy. As well, all of the creditors will, by computer, review your charges on credit cards or debits looking for increased spending in the period prior to the date you filed the assignment in bankruptcy. The normal review period is 90 days but his can go to one year (5 years if real estate is involved) if the creditors or trustee has any hint of wrongdoing. If you make a significant purchase or cash withdrawal just before filing your bankruptcy, this is considered to be an offence under the Bankruptcy and Insolvency Act. The trustee, a creditor or the Office of the Superintendent of Bankruptcy will file an Opposition to your discharge from bankruptcy. You also might be required to attend an examination under oath to explain what you did and why you did it. This will result in your bankruptcy taking longer to complete as you may be required to attend a court hearing to obtain your discharge from bankruptcy. As well, you will be likely required to pay to the trustee the amount of the purchase or cash advance that you took. The trustee, of course, distributes these funds to the creditors. In extreme circumstances, the matter could be turned over to the police for investigation which may result in criminal charges of fraud. A finding of fraud results in the debt involved surviving both a bankruptcy or a proposal.
And all you wanted to do was buy that 60” TV or send money to help your family who are in a poor financial situation. Not a good idea.
So to answer your question, Can I Max Out My Credit Cards and Then Go Bankrupt? The answer is NO.
It is important to think about your future housing needs as you get older. There are several different kinds of seniors’ housing so you can find out what types of home support are available in your neighbourhood. At the same time, consider your current home to see if there are things you can do to make it easier and safer, as you get older. If you have a disability, you might be eligible for government assistance to pay for home renovations. You should also find out what kind of services are available in your community such as home support—you may want to ask your family doctor and/or someone you trust for any advice or guidance regarding support services. Researching and understanding your options will help you make future decisions about your housing. There are several different types of seniors housing and access to subsidized units for low-income seniors. You will have the option between independent living, retirement homes and assisted living, nursing homes or long-term care.You should compare costs and services offered in each setting.