Do I Have to Tell My Spouse About My Bankruptcy?

old_debtDo I Have to Tell My Spouse About My Bankruptcy?

Now this is an unusual question. The technical answer is: you do not have to tell him or her anything. When you sign the papers to file an Assignment in Bankruptcy, you will be asked to sign a document under the Personal Information Protection and Electronic Documents Act (PIPEDA) which specifies that your trustee will only deal with those people that they are required to do so in order to perform their duty as your trustee. This normally includes only your creditors, Canada Revenue Agency, Office of the Superintendent of Bankruptcy, the court and any collection agencies or lawyers who have been hired by your creditors. If you wish to authorize your trustee to speak to any other party such as your wife/husband, children, employer, brother, sister, etc., you will be asked to do so in writing.

The trustee will not ordinarily disclose your bankruptcy to your employer. The exception is if one of your creditors tries to garnishee your wages. Your trustee can stop the garnishee, but, if the papers have already been sent to your employer, then your trustee will have to send your employer a letter to stop the garnishee.

With respect to your husband or wife, the issue can get more complicated. If they are a creditor, they must be notified for that reason. The usual problem is that your trustee will periodically be sending you documents, notices, etc. and you will have to make sure that your wife or husband does not open your mail. You should be aware that the envelope has only a return address with no name on it. If this is an issue, please speak to your trustee at the initial meeting and we will try to resolve it by way of Email, fax or an outside mail box service.

It is, of course, better to be honest and upfront with your partner about the financial problems and the fact that you have chosen bankruptcy as the solution to your problems.

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. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

University & College Funding

Univertity CollegeUniversity & College Funding

“Saving is a fine thing. Especially when your parents have done it for you” – Winston Churchill

Yes, plan for the future and look into your options such as RESPs for our children but make sure you remind yourself that your children’s education will not support you in retirement. Financial advisors are beginning to stress this last point and it is important to remember that if our children want to get a higher education, there are many paths and options and a few of those include youth getting summer jobs, applying to the hundreds of thousands of scholarships available to students, budgeting for food and books and living a simpler life while in College or University. We don’t need to necessarily stress the “starving student” lifestyle but we also do not want to stress the “starving retiree” either. In sum, if you need to choose between education funds and retirement funds, you need to put yourself first, then you will be in a secure enough position to give your children the best financial advice possible.

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. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Good Debt & Bad Debt

Good Debt & Bad Debtdebt

Good Debt: any money borrowed to buy an appreciating asset where the cost of servicing the loan does not affect your ability to save to the appropriate level & where the principal will be fully repaid before your retirement

Bad Debt: Everything Else

In sum, divide bad debt by your annual income and if that percentage is over 25%, it is time to make larger payments to reduce this number and make sure you also keep good debt at a minimum.

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. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Finances and Your Family

Finances and Your Family

bankruptcyFinances and Your Family: One step to a brighter financial future..

(RESP) Registered Education Savings Plan: This is a registered education tax -free savings program with the government of Canada. It is estimated that any higher education in the next ten years will be approximately 45,000-75,000. Saving a small amount annually for your children’s education is a great way to give them their inheritance-or a portion of their inheritance- when they truly need it. As soon as possible, apply for a SIN number for your children (Call 1-800 O Canada, 1-800-622-6232) and start saving. Ask your financial advisor about your options and how much the government will match in your child’s account annually. You could receive up to 100.00 per year in government grants for opening the account. Remember that you can not take the money out so deposit the minimum amount but do so consistently.

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.