Corporate Bankruptcy Archives - Page 35 of 38

Secured Debt and Unsecured Debt

Posted on May 3, 2013April 20, 2016 by Jordan Rumanek

Secured Debt and Unsecured Debt

A secured debt is a debt secured by some collateral (an interest given by a debtor to a creditor in return for a loan). The largest secured debt in many people’s lives is the mortgage loan for their house, and the second largest is their car loan.

If you fall behind on your agreed-upon payments, a secured creditor has the right to repossess, or seize the security (like the house or car), and sell it to pay off the debt. Because secured debts are attached to an asset, the loans are not automatically released in bankruptcy. If the lender sells the asset, like your car, and they do not receive enough to pay off the entire loan, the difference, known as the shortfall, is still owed by you. Contact your Trustee to ask about your options.

An unsecured debt is one where no such security is attached. Many people assume that if they go bankrupt, the credit card company can take back whatever was purchased with a credit card. This is not usually the case, as credit cards generally represent unsecured debt. These debts are among those which are discharged by bankruptcy.

Consult a trustee for more information about different types of debt, and whether a consumer proposal or bankruptcy will help you.

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 Responsibilities to the Trustee if I go Bankrupt?

Posted on May 1, 2013April 20, 2016 by Jordan Rumanek

My Responsibilities to the Trustee if I go Bankrupt?

The website of the Office of the Superintendent of Bankruptcy describes the primary duties of the debtor as follows:

disclose all of his or her assets (property) and liabilities (debts) to the trustee;
advise the trustee of any property disposed of in the past year;
surrender all credit cards to the trustee;
attend the first meeting of creditors (if a meeting is requested by the creditors);
attend two counselling sessions;
advise the trustee in writing of any address changes;
attend an examination at the Office of the Superintendent of Bankruptcy, if required; and
generally assist the trustee in administering the estate.

What happens to the debtor’s bank accounts?

Posted on April 25, 2013April 20, 2016 by Jordan Rumanek

What happens to the debtor’s bank accounts?

On Bankruptcy, all of the consumer debtor’s property automatically vests in the trustee. That means that the consumer debtor’s property is placed in the hands of the trustee for the administration. Therefore, the consumer debtor has a duty to deliver up his or her property to the trustee. For example, the consumer debtor’s bank accounts technically belong to the trustee since the bank owes the consumer debtor the money. The moneys in those bank accounts must be turned over as soon as possible after the assignment in bankruptcy is made. The trustee will, on filing, notify the bank of the assignment.

When the consumer debtor receives a pay cheque for the period subsequent to the date of bankruptcy, that money may be deposited into the bank account. The trustee in bankruptcy will not attach that amount or request that the consumer debtor pay over that sum to the estate. However, in a case where the consumer debtor earns more than a reasonable amount, the trustee will require that the consumer debtor pay the surplus income or turn over a portion of the salary to the trustee for the benefit of creditors. In this connection, see Chapter 10. The Superintendent publishes standards each year. The standards are a scale which the trustee uses in determining whether the consumer debtor can afford to pay any moneys to the creditors while the consumer debtor is undischarged.

What is a Licensed Insolvency Trustee?

Posted on April 22, 2013June 20, 2023 by Jordan Rumanek

Who is a Licensed Insolvency Trustee?

A Licensed Insolvency Trustee is an individual authorized by the Canadian federal government to oversee bankruptcy and consumer proposals in the country. This role falls under the supervision of the Office of the Superintendent of Bankruptcy (OSB), a department within Industry Canada.

According to the OSB website, the key responsibilities of a Trustee include:

Evaluating the debtor’s situation and advising on possible solutions;
Creating official documentation for filing with the OSB and notifying creditors;
Confirming the authenticity of creditors’ claims;
Ensuring that debtors receive mandatory counseling and access to mediation services if disagreements arise over any required income contributions;
Selling the debtor’s assets, excluding those protected by provincial and federal laws, and holding the resulting funds in trust for distribution to creditors;
Overseeing the administration of the bankrupt estate from start to finish;
Evaluating the debtor’s behavior prior to and during bankruptcy, as well as identifying the causes of the bankruptcy.

Contact Rumanek & Company. 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

Category: Corporate Bankruptcy

Secured Debt and Unsecured Debt

Secured Debt and Unsecured Debt

My Responsibilities to the Trustee if I go Bankrupt?

My Responsibilities to the Trustee if I go Bankrupt?

What happens to the debtor’s bank accounts?

What happens to the debtor’s bank accounts?

What is a Licensed Insolvency Trustee?

Who is a Licensed Insolvency Trustee?

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