Bankruptcy Court Archives - Page 3 of 5

Forced into Bankruptcy?

Posted on May 29, 2014April 17, 2016 by Jordan Rumanek

Forced into Bankruptcy?

Yes, you can be forced into bankruptcy. An unsecured creditor who is owed more than $1,000 can file in court a petition to force you into bankruptcy. The creditor must prove that you have committed an act of bankruptcy. For example, a fraudulent transfer of property or that you have not paid your bills. Both you and the creditor, who has filed the petition, will make representations in court and if the petition is allowed, a Court order will be issued forcing you into bankruptcy. The Trustee is usually named by the creditor who applies to court for a receiving order. A bankruptcy is an order of the court placing you into bankruptcy.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form.

Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.
To learn more please visit our YouTube Channel.

Bankruptcy in Ontario: Do I attend Court?

Posted on May 13, 2014February 19, 2020 by Jordan Rumanek

Do I have to attend Court?

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 sessions in the time required (the 1^st counseling session has to be done within 60 days of filing and the 2^nd 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.

Who prepares the consumer debtor’s income tax returns?

Posted on May 1, 2014April 17, 2016 by Jordan Rumanek

Who prepares the consumer debtor’s income tax returns?

A bankrupt’s tax year is divided into two parts. If a consumer debtor files an assignment, for example, on May 1, then the tax year is divided into the period between January 1 and April 30 and the second part is the period between May 1 and December 31.

In most cases, the trustee in bankruptcy prepares the income tax returns for both periods of time; that is pre-bankruptcy and post-bankruptcy until the end of the calendar year.

With the pre-bankruptcy return, it is possible in many cases of consumer debtors that there will be a tax refund available. As the consumer debtor has a duty to deliver up all property to the trustee, the tax refund belongs to the estate. The tax refund is technically property of the bankruptcy and the trustee will receive it on the consumer debtor’s behalf and pay it into the estate. Therefore, the consumer debtor may be asked to sign a direction to Canada Customs and Revenue Agency permitting the Agency to pay the trustee although technically the trustee is entitled to the refund as of right.

With the post-bankruptcy return, the trustee may, but need not, prepare the consumer debtor’s bankruptcy return. Once again, if there is a refund, the trustee is entitled to intercept that refund and pay it into the estate for the general distribution to 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 Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Can Canada Revenue Agency Garnish CPP and OAS

Posted on May 1, 2014April 17, 2016 by Jordan Rumanek

Can Canada Revenue Agency Garnish CPP and OAS

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

Tag: Bankruptcy Court

Forced into Bankruptcy?

Forced into Bankruptcy?

Bankruptcy in Ontario: Do I attend Court?

Do I have to attend Court?

Who prepares the consumer debtor’s income tax returns?

Who prepares the consumer debtor’s income tax returns?

Can Canada Revenue Agency Garnish CPP and OAS

Can Canada Revenue Agency Garnish CPP and OAS

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