This largely depends on the type of restructuring. If you declare bankruptcy, as a requirement of the bankruptcy, you must give up all forms of credit. A Consumer Proposal only deals with unsecured debt with a positive balance – meaning if you have a credit card with a zero balance and you did not have other debts with this institution it would not be included in the proposal, and it would be free for use as a tool after the Consumer Proposal has passed to rebuild your credit. With Informal Proposals you have the option to deal with each debt individually, so cards which are not included in the restructuring would be free for you to retain.
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.
When you file for bankruptcy in Ontario you can avoid going to court providing that you complete all of your duties that your trustee assigns to you, those duties include:
Make the payments to your trustee
You must attend two debt counselling sessionsin the time required (the 1st counseling session has to be done within 60 days of filing and the 2nd counselling session within 210 days of filing but more than 30 days after the first counselling session
You must provide the trustee with all of the required information to file your income taxes for the year of your bankruptcy
Every month while you are bankrupt, you must provide your trustee with income & expense statements and include your pay stubs or other proof of income.
You must pay the required surplus payments to your trustee
Also in a bankruptcy in Ontario you will have to go to court if:
a creditor opposes your discharge
if you have tax debts over $250,000 or representing 75% of your total debt
if your debts were the result of gambling addiction or other addiction
if the duties are not completed
When you go, it is then up to the Court to decide: they could suspend your discharge (extend it) and order you to pay off a portion or all of your debt. If you go to court because duties were not complete you will not get your discharge until you have completed all of the duties.
A good way to avoid court would be to file a consumer proposal in Ontario. In a consumer proposal you can avoid court all together as long as your creditors and the court agree to your consumer proposal.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome bankruptcy in Ontario and debt for more than 25 years.
Yes, Canada Revenue Agency can garnish CPP and OAS as well as all types of pensions. You may hear that creditors may not do this or may only be able to take a percentage. However, Canada Revenue is not a typical creditor. It is important to stress that CRA has more power than a credit card company or other creditor.
In other words, standard garnishment rules do not apply to the CRA. If you owe taxes to CRA and you receive CPP or OAS, CRA can withhold some or all of your monthly pension payments.
But you do have options:
1. Contact Canada Revenue Agency and discuss the possibility of a re-payment plan before they Garnish either pension CPP or OAS
2. Consider a Consumer Proposal
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.
Hopefully, you will have made a will which appointed an executor to handle your final wishes. The executor after arranging for and paying for the funeral and burial costs will use any funds that you have to pay any of your outstanding debts and thereafter, will pay the beneficiary of your will any remaining funds. If there is no will than a close family member or friend will have to hire a lawyer to have a court appoint an executor to handle your affairs. For more information, please go to the website of the Canadian Institute of Certified Executor Advisors – www.cicea.ca.
If there are not enough funds to pay your debts after you die, there are several options. If the debts are substantial, there is a provision in the Bankruptcy and Insolvency Act to have a deceased estate placed into bankruptcy. This requires a meeting with your lawyer (who must obtain a court order to start the bankruptcy) and a trustee in bankruptcy (who will administrate the bankruptcy). If there is no funds in the estate and you do not mind getting the phone calls and letters from collection agencies, you do not have to do anything, except perhaps explain that the person has died.
Under no circumstances is any person liable for the debts of another person unless you signed the original application form as a joint applicant or signed any document since the original application. I have heard many stories over the years of collection companies telling a wife, husband, father, mother, son, daughter, etc. that they are responsible to pay the debt owing for the person who passed away. This is not true. You are not liable to pay anything. The person at the collection agency is on commission – he or she will say anything they need to in order to induce you to pay the outstanding account. The only person you are helping is the collection person at the other end of the phone who earns a commission if they get you to make a payment.
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.
Can I keep my credit cards when I go Bankrupt?
Can I keep my credit cards when I go Bankrupt?
Who Pays My Bills When I Die