About Bankruptcy Archives - Page 34 of 43

Older Couples and Debts

Posted on April 15, 2014April 17, 2016 by Jordan Rumanek

Older Couples and Debts Questions

My friend and I have both lost our original partners and have started a new relationship with each other. It is possible that we may even start living together in the future. I do not know very much about his finances and wonder if I would become liable for his debts if we started to live together.

The short answer is “no.” Just because you start living together that does not mean that you have any obligation to pay the debts of your partner. It does not matter whether or not you are just living together, have a common-law relationship or get married. Debts always remain with the person who originally obtained the credit.

A word of caution. If your partner asks you to sign any papers on his old debts or if he asks you if you want a supplemental credit card from his visa or mastercard (these are sold as “family” cards) – be careful as you are probably signing a document making yourself liable for the entire debt owing on the card. Similarly, if you both decide to apply for a new joint bank loan or credit card, you must be aware that you will each be liable for 100% of the debt regardless of who charges on the credit card and regardless of whether or not you stay together.

In the early stages of a new relationship, it is wise to keep your finances separate until you are very sure of your future relationship together. Even then, if your partner is self-employed and needs to sign a bank loan or other debt for his business, I would advise you to get independent legal advice before you sign anything. Banks and other lenders ask for a second person to sign on the loan when they are not 100% sure that the borrower is going to pay the loan back or does not have enough security to cover the loan balance if a default occurs. If you are asked to sign anything always ask: “why”?

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.

Student Loans Question

Posted on April 13, 2014April 17, 2016 by Jordan Rumanek

Student Loans Question

I graduated from University in May, 2007, and have not received OSAP since December, 2005. I took a few years off of school and was supposed to start paying back my loan years ago. I have read that after seven years out of school I can include my student loans in a bankruptcy. Does this mean seven years after I ceased to receive OSAP or does this mean seven years after I cease to be enrolled in school?

Student loans are dischargeable by a bankruptcy if you file for bankruptcy or make a proposal more than seven years after the last day of the last term for which you received student loans. If the timing is close, check your statements carefully or call Canada Student Loans and find out the day they consider to be your last day. If you are in difficult financial circumstances, and you need to file within the seven year period, you are still protected from collection action. However, interest does still accrue, so it is best to keep communications open, even during the proceedings. N.B. There is a provision in the Bankruptcy and Insolvency Act for those who have filed after five years to have the debt discharged (at the discretion of the court), if both ongoing financial hardship and good faith in respect of repayment can be demonstrated.

An Alternative to Bankruptcy

Posted on April 10, 2014April 17, 2016 by Jordan Rumanek

An Alternative to Bankruptcy

The Companies’ Creditors Arrangement Act (CCAA): is a federal law allowing corporations in financial difficulty (owe their creditors more than $5 million) to restructure their finances.

Process:
1. Corporations ask the Court for protection while they prepare an offer to creditors for some form of payment (Plan of Compromise or a Plan of Arrangement)

2. These proceedings are carried out under the supervision of the Court. The benefit of this option is that debtor companies are able to continue operating and receive protection from creditors while the Plan of Arrangement is being prepared

3. Creditors then have the opportunity to vote on whether or not to accept the offer

Bankruptcy Abuse and Fraud

Posted on April 9, 2014April 17, 2016 by Jordan Rumanek

Bankruptcy Abuse and Fraud

Office of the Superintendent of Bankruptcy Canada osb.ic.gc.ca

The majority of people who declare bankruptcy are honest, but they have experienced such significant financial problems that the only way to resolve them is through the bankruptcy system. Their difficulties may result from a change in employment, income or family situation, a serious illness, or poor financial management.

There are cases, however, where people abuse the system and continue to obtain and use credit knowing that they can’t repay the money they are borrowing. There are also people who use bankruptcy to get out of situations that they have created themselves through bad faith and fraud.

The Office of the Superintendent of Bankruptcy (OSB) is responsible for supervising the administration of bankruptcy files in Canada and investigating cases where offences may have been committed. It may intervene before the Court in cases where bankrupts have failed to meet their obligations or when their conduct is deemed to be inappropriate. Trustees in bankruptcy and creditors may also make representations to the Court in such matters.

What are the offences?

The most common offences committed under the BIA and the Criminal Code are when the Bankrupt:

Fraudulently disposes of property before or after the bankruptcy;
Makes false entries in a statement of account or hides, destroys or falsifies a document related to his/her property or affairs;
Obtains credit or any other good through false representations;
Conceals or fraudulently removes property, or conceals claims or debts;
Obtains credit or engages in trade without informing the people involved that he/she is bankrupt;
Refuses to respond fully and truthfully to questions posed during an examination held in accordance with the BIA.

Tag: About Bankruptcy

Older Couples and Debts

Older Couples and Debts Questions

Student Loans Question

Student Loans Question

An Alternative to Bankruptcy

An Alternative to Bankruptcy

Bankruptcy Abuse and Fraud

Bankruptcy Abuse and Fraud

Get Started Now

Schedule Your

<img decoding="async" class="alignright size-full wp-image-4442" title="Older Couples and Debts" src="https://b2015488.smushcdn.com/2015488/wp-content/uploads/2014/04/old_debt.jpg?lossy=1&strip=1&webp=1" alt="Older Couples and Debts" width="150" height="150" />Older Couples and Debts Questions

Student Loans Question

<img loading="lazy" decoding="async" class="alignright size-full wp-image-4388" src="https://b2015488.smushcdn.com/2015488/wp-content/uploads/2014/02/stop_150x150.png?lossy=1&strip=1&webp=1" alt="stop_150x150" width="150" height="150" />Bankruptcy Abuse and Fraud

Get Started Now

Schedule Your

Older Couples and Debts Questions

Bankruptcy Abuse and Fraud