Corporate Bankruptcy Archives - Page 36 of 38

Will I lose my house if I go Bankrupt?

Posted on April 10, 2013April 20, 2016 by Jordan Rumanek

Will I lose my house if I go Bankrupt?

In a bankruptcy, assets in excess of your allowed personal exemptions are realizable by the trustee. That means that the trustee is required to collect and distribute the proceeds to your creditors, either by taking over and selling those assets, or by calculating the sale value, and arranging terms for you to pay that amount to the estate.

If you have equity in your house, say $23,000, the trustee has to realize $23,000 (or some other negotiated amount) to your estate. There are two main choices: either sell the house to get the $23,000, or arrange with you to pay the $23,000. It is not the house that the trustee cares about, it is the equity. Most people prefer to make the payment arrangements and keep their house.

If you purchased your house recently, even if it is in your spouse’s name, the trustee will ask you questions and require documentation to show where the funds came from to purchase the property. You have an obligation to provide that documentation. If you have concerns about a recent property purchase in respect of a bankruptcy, make sure to discuss your options with a trustee before making a decision.

Finally, if your home is costing you more than about 30% of your monthly income, it may be too heavy for you to carry. As hard as it may seem, sometimes the best choice is a third one: return the house to the bank as soon as (or before) you file the bankruptcy or proposal. Any shortfall or penalty is covered, as long as the timing is right. Talk to your trustee to help determined the best choice for you and your family.

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.

File your Tax Return! Part 2

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

File your Tax Return! Part 2

Fight the Fear…File your Tax Return! Part 2

Please refer to: “Fight the Fear…File your Tax Return! Part 1” of this tax series to help you get started with your tax return. The lines and numbers on the return may be confusing and frustrating. Please refer to this link for a step-by-step instruction for different lines on the return.

The Income Tax and Benefit Return (T1 General 2012)

Sections of the Return:

Page 1: Identification information

Page 2: Income page…Total Income (Lines 101-150)

Page 3: Net Income (Lines 206-236) & Taxable Income (Lines 244-260)

Page 4: Refund or Balance owing (Lines 420-486), Direct Deposit Option (Lines 460-491), Ontario Opportunities Fund(Donation Section) (Lines 465-466)

(If you owe money, attach a cheque or money order to: Receiver General)

Where do I send my Income Tax and Benefit Return?

Canada Revenue Agency
Tax Centre
1050 Notre Dame Avenue
Sudbury ON
P3A 5C2

What are the types of discharge from bankruptcy?

Posted on March 21, 2013April 20, 2016 by Jordan Rumanek

What are the types of discharge from bankruptcy?

Automatic Discharge: Where a first or second-time bankrupt has fulfilled all of his or her required duties, and where the Trustee is satisfied that an automatic discharge is appropriate, a certificate of discharge is issued by the Trustee directly. If the Trustee has sufficient concern to oppose the discharge, an automatic discharge is no longer available, and the discharge becomes a matter for the court.

Absolute Discharge: An absolute discharge is issued by the court. The debtor is discharged from all debts incurred prior to the date of bankruptcy, except those which by law survive bankruptcy.

Conditional Discharge: The bankrupt’s discharge may be granted conditionally when there are outstanding matters in the administration, such as fees, asset realization, or providing documents or tax information. A conditional order sets the requirements, and when they have been met, the Trustee sends a report to the court recommending that discharge now be granted.

Suspended Discharge:

This type of order is made when the current bankruptcy is not the first insolvency event (bankruptcy or proposal), or there has been serious misconduct by the bankrupt either before or during the bankruptcy. A suspended discharge means that the discharge will take place sometime in the future based on a date set by the court.

Refusal of Discharge: The court may refuse a discharge when it considers that the debtor does not deserve a discharge. An order of this type is extremely rare, and is usually a result of clear and severe misconduct or criminal activity by the bankrupt. A person who has filed repeated bankruptcies may also have a discharge refused, especially if the causes of bankruptcy are similar each time. If discharge is refused, a person remains in bankruptcy indefinitely, but is entitled to go to court after one year to apply for the refusal to be reconsidered.

Gambling: Growing Cause of Bankruptcy

Posted on December 5, 2012April 20, 2016 by Jordan Rumanek

Gambling: Growing Cause of Bankruptcy

One of the ways a person realizes that he has a gambling problem is that over time, his family’s finances are impacted by gambling losses. When a person has cashed in her assets, and has begun borrowing from friends and family, or against credit cards to support the gambling, clearly, she needs help.

A person who has significant debts due to gambling needs help with both his addiction and his debts. Bankruptcy or a consumer proposal may be the only options for the financial element, especially as many people feel they need to hit “rock bottom” before being able to rise up again.

A Trustee in Bankruptcy is qualified to advise a person not only on the bankruptcy or proposal process, but on how each is affected by the debts being a result of gambling.

In particular, Bankruptcy legislation requires that if a bankrupt has significant gambling debts, he or she is not entitled to an automatic discharge, and will have to appear at a discharge hearing. The debtor can expect this hearing to be non-confrontational, and to be asked questions about his or her rehabilitation progress, so that the court might determine the best way to structure the discharge from bankruptcy for both the individual, and commercial society at large.

Of course, bankruptcy is not a substitute for getting real help with a gambling problem. Participating in a qualified and licensed program to help with those issues is highly recommended.

Category: Corporate Bankruptcy

Will I lose my house if I go Bankrupt?

Will I lose my house if I go Bankrupt?

File your Tax Return! Part 2

File your Tax Return! Part 2

What are the types of discharge from bankruptcy?

What are the types of discharge from bankruptcy?

Gambling: Growing Cause of Bankruptcy

Gambling: Growing Cause of Bankruptcy

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