About Bankruptcy Archives - Page 35 of 43

What happens to my tax refund in a bankruptcy or proposal?

Posted on April 4, 2014April 17, 2016 by Jordan Rumanek

What happens to my tax refund in a bankruptcy or proposal?

If Canada Revenue Agency (CRA) is one of the creditors in a bankruptcy, any refund you are entitled to, for the year of bankruptcy and any prior year, may be retained by CRA to offset the amount owing. After discharge, any debt still outstanding to CRA which formed part of the bankruptcy, cannot be recovered by CRA. Post-bankruptcy Income tax refunds are property of the estate and any subsequent income tax refund may be retained by you.

If CRA is one of your creditors in a proposal, any refund you are entitled to, for the year of the proposal and any prior year, may be retained by CRA to offset the amount owing. You are entitled to all future income tax refunds.

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.

Do I still have to pay child support if I go bankrupt?

Posted on March 19, 2014April 17, 2016 by Jordan Rumanek

Do I still have to pay child support if I go bankrupt?

The short answer is yes. A requirement to pay child or spousal support remains in place if you go bankrupt or file a consumer proposal. A Trustee would consider those obligations when calculating the amount you have to pay back to your creditors.

It is important to be aware that arrears of support survive bankruptcy, so even after discharge, the debt for support arrears remains. You should also be aware that by eliminating your other debts, going bankrupt or filing a proposal may actually free up income to which you spouse or child may be entitled. It is important to be in touch with your family lawyer to investigate all of the implications of bankruptcy or consumer proposals before you file.

How long will I remain bankrupt?

Posted on March 6, 2014March 7, 2014 by Jordan Rumanek

How Long Will I Remain Bankrupt?

Assuming there are no unusual issues which would require the Trustee to oppose your discharge and require a court hearing, the timing of your discharge depends on a combination of factors. The two most important are whether you have filed a bankruptcy before this one, and your current family income. The formula set by the Office of the Superintendent of Bankruptcy that determines how much a person has to pay in their bankruptcy is called “Surplus Income”.) The guidelines below are based on legislative changes made in September, 2009.

First bankruptcy, no Surplus Income: 9 months, assuming no opposition to discharge

First bankruptcy with Surplus Income: 21 months, assuming no opposition to discharge

Second bankruptcy, no Surplus Income: 24 months, assuming no opposition to discharge

Second bankruptcy with Surplus Income: 36 months, assuming no opposition to discharge

In the case of a third bankruptcy, your discharge would automatically be opposed at the 9 month point. Speak to a Trustee about the possible durations of bankruptcy, as the case law relative to the changes in law is still developing.

For more information Contact Us or Industry Canada

Is there a minimum debt before I can declare Bankruptcy?

Posted on February 20, 2014February 20, 2014 by Jordan Rumanek

Is there a minimum debt before I can declare Bankruptcy?

Yes. You can only file for a voluntary bankrupt if your total debts owing are over $1,000 and be unable to pay your debts. A creditor will not force you into bankruptcy unless the debtor owed is $1,000 or more. However, you are advised to discuss your financial difficulties and schedule a consultation or credit counselling to get the proper information and discuss your options. Bankruptcy should be a last resort and it is important to know your rights and responsibilities.

Contact the Office of the Superintendent for more information. Or if you like a free evaluation please fill out the evaluation form.

Tag: About Bankruptcy

What happens to my tax refund in a bankruptcy or proposal?

What happens to my tax refund in a bankruptcy or proposal?

Do I still have to pay child support if I go bankrupt?

Do I still have to pay child support if I go bankrupt?

How long will I remain bankrupt?

How Long Will I Remain Bankrupt?

Is there a minimum debt before I can declare Bankruptcy?

Is there a minimum debt before I can declare Bankruptcy?

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