Financial Stories Archives - Page 34 of 43

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.

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.

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.

Do I lose my furniture if I go bankrupt?

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

Do I lose my furniture if I go bankrupt?

Generally not.

Recent changes in legislation provide that no creditor may seize furniture or household goods (up to a resale, or garage sale) value of $11,300, even if the furniture has been pledged as collateral for a loan.

The exception is furniture that has been purchased on store credit (and not paid in full). This means that, technically, the store (or their finance branch) that lent money for the purchase of their furniture has a right to repossess it. However, these companies are in the business of selling new furniture (and lending money), not in the sale of used furniture, so do not despair. Talk to your Trustee about your options.

High Interest Rates or High Balances: Should I pay off my credit cards?

Posted on December 12, 2014April 16, 2016 by Jordan Rumanek

High Interest Rates or High Balances: Should I pay off my credit cards?

I am trying to pay off my three credit cards and I need help with a strategy. I have been given a mixed bag of opinions from family and friends but need expert advice. Should I pay my high interest card before my high balance card?

Strategy is key and you have to do what works best for you. You will most often hear that paying off your high interest card is the best choice. However, you need to feel like you are making progress in order to continue paying off your debt. For example, if you have a low balance on one of your cards, it may be beneficial to pay that card off right away. This may empower you and keep you motivated. Keep in mind that budgeting and sacrifice will keep you on the right track. Talk to a trustee to get the personal financial advice you need to succeed.

Category: Financial Stories

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?

Do I lose my furniture if I go bankrupt?

Do I lose my furniture if I go bankrupt?

High Interest Rates or High Balances: Should I pay off my credit cards?

High Interest Rates or High Balances: Should I pay off my credit cards?

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

Are the assets of the debtor’s spouse affected?

<img loading="lazy" decoding="async" class="alignright wp-image-449" title="Credit Card" src="https://b2015488.smushcdn.com/2015488/wp-content/uploads/2012/01/50-150x150.jpg?lossy=1&strip=1&webp=1" alt="High Interest Rate" width="150" height="150" />

High Interest Rates or High Balances: Should I pay off my credit cards?

Get Started Now

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