Will Bankruptcy Affect My Kids?

KidsWill Bankruptcy Affect My Kids?

Absolutely not.  Your bankruptcy is yours alone.  Your family is only involved when it comes to the preparation of your budget.  The budget is based on family income (your income and that of your spouse or partner plus any child tax credit being received) and the family living expenses.  When listing the family expenses, there is also shown the cost of your child’s allowance, school and sports fees.  As long as the expenses are reasonable, there is never an issue with the creditors.

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.

Marriage and Debt

MarriageMarriage and Debt

I just got married and I was wondering if I am responsible for my partner’s old debts?  The short answer is no.  Just because you married each other, this does not mean that you have any liability to pay anything from your partner’s old debts.  The old debts were his/hers before you got married – the liability to pay the old debts does not change.  A word of caution.  Do not sign anything that commits you to pay anything against your partner’s debts and do not request or accept a spousal credit card from your new partner.  Keep your finances separate.

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. 

Why You Need a Bankruptcy Discharge

old_debtWhy You Need a Bankruptcy Discharge

Please also refer to our blog:  Bankruptcy – What is a Discharge.

While you are bankrupt, your position is that of an “undischarged bankrupt.”  This means that you have to continue to supply budgets, tax returns and other information to the trustee on an ongoing basis.  You are not allowed to apply for a loan, line of credit, bank overdraft, mortgage, etc. for an amount over $500 without disclosing that you are an undischarged bankrupt.  The chances of being approved are very poor.  If you come into an inheritance or win a lottery while you are still bankrupt, your trustee will have a talk with you about who gets the money.  The trustee will explain that an “after acquired asset” is an asset acquired by the bankrupt person between the date that you filed the bankruptcy and the date you are discharged from your bankruptcy.  You will not be happy with what you hear.  Mortgage companies may renew an existing mortgage (usually at a higher than normal rate) but they will rarely allow you to increase the mortgage nor will they issue a new mortgage to an undischarged bankrupt.

Your discharge from bankruptcy is the start of your recovery and rebuilding of your financial life.  You will be able to apply for a credit card or line of credit with a reasonable chance of success.  Your trustee will assist you in this process.  The credit bureaus (Equifax Canada and Trans Union of Canada) both keep a record of your bankruptcy for 6 years after you are discharged (14 years if it is a second time bankruptcy).  The faster you get your discharge from bankruptcy, the faster it will disappear from your history.  Translation – it will be easier, faster, cheaper to get a credit card or borrow money for the purchase of a car or house after you are discharged from bankruptcy than it is while you are still in the bankruptcy process.

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.

Bankruptcy Discharge For The First Time

Bankruptcy_Trustee_shakinghands-150x150Bankruptcy Discharge For The First Time

For a definition of discharge, please refer to our blog:  Bankruptcy – What is a Discharge.

If you are filing an Assignment in Bankruptcy for the first time, there is a period of time that is allowed for the trustee to complete their administration of your bankruptcy.  The earliest time that you can be discharged from your bankruptcy is 9 months from the date that you originally filed the bankruptcy.  Surplus income (if it applies) will extend your discharge date from 9 months to 21 months.  Other problems may result in your trustee, a creditor or the Office of the Superintendent in Bankruptcy opposing your automatic discharge date to a future undetermined date.  This future date is determined by your trustee only after all of the original problems are resolved.  When your trustee requests you to supply information or answer questions that may arise during the administration of your bankruptcy, “failure to cooperate” with the trustee is the most common reason why your trustee will oppose your automatic discharge.

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.