Bankruptcy Law Archives - Page 7 of 11

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.

What is a “Writ of Garnishment”?

Posted on May 22, 2014April 17, 2016 by Jordan Rumanek

What is a “Writ of Garnishment”?

A creditor can file a lawsuit against a debtor. If the lawsuit is successful this is called a judgement. The judgement is a legal document stating that the debtor does, in fact, owe the creditor money. A judgement does not guarantee the debtor will pay the debt, only that the court has confirmed that the debt is legally owing to the creditor.

A “writ of garnishment” is a court order to seize property, wages and/or income. A creditor must obtain a Writ of Garnishment (also called a ‘Garnishment Order’) and serves it to the debtor’s employer. The employer then garnishes wages (percentage of wage depends on the judgement). Those wages are sent to the court and the court delivers the sum to the creditor.

One issue with wage garnishment to consider is that the debtor needs to be earning an income in order to garnish wages. In addition, there are instances when wages/income can not be garnished. For example, disability, welfare and unemployment.

If a debtor decides to file for bankruptcy or consumer proposal, the “writ of garnishment” will no longer be enforced.

See “Writ of Execution” for more details.

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?

Posted on May 14, 2014April 17, 2016 by Jordan Rumanek

Can I keep my credit cards when I go Bankrupt?

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.

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.

Tag: Bankruptcy Law

Forced into Bankruptcy?

Forced into Bankruptcy?

What is a “Writ of Garnishment”?

What is a “Writ of Garnishment”?

Can I keep my credit cards when I go Bankrupt?

Can I keep my credit cards when I go Bankrupt?

Bankruptcy in Ontario: Do I attend Court?

Do I have to attend Court?

Get Started Now

Schedule Your