A trustee will calculate the equity and if it is less than the provincial exemption, a debtor would keep it in a bankruptcy. Most of the time there is no equity in a leased vehicle.
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 Nick opened his first business he did not realize that he could get a small business loan from the bank. Instead he applied for and received a personal loan, and used his personal credit cards, to fund the start-up. Unfortunately, the business was not successful, and now he owes $70,000, all in his name. Collection letters became daily phone calls, and the threats were getting worse, and no offer of monthly payments would satisfy them. Nick’s wife is afraid that if he files for bankruptcy, they will lose their home, which is finally showing some equity, and that they will not be able to leave the country to visit her family overseas. Nick saw no other alternative..
After many sleepless nights Nick and his wife came to see us. We explained that their house was not in jeopardy, and that out-of-country travel is not restricted by bankruptcy. Fortunately, Nick and his wife were frugal, and their combined income was enough that bankruptcy could be avoided. We helped Nick propose a settlement to his creditors to repay less than half of what he owed, interest-free, over five years. Nick was surprised that there was an alternative to bankruptcy that allowed him to satisfy his creditors. He completed his payments two years early and is now debt-free.
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 Rules for Bankrupt Individuals
Bankruptcy Discharge Rules:
9 month automatic discharge for first time bankrupts who fulfill all their duties and who do not have excess income. (Required monthly payment of less than $100.00 per month)
21 months (or more at the court’s discretion) for first time bankrupts who fulfill all their duties and have excess income. (Required monthly payment of $100.00 per month or greater)
24 months for second time bankrupts who do not have excess income. (Required monthly payment of less than $100.00 per month)
36 months for second time bankrupts who have excess income. (Required monthly payment of $100.00 per month or greater)
Bankrupts with personal income tax debt of $200,000 or more (representing 75 percent or more of total unsecured claims) are not eligible for an automatic discharge. They must go to court for an adjudication.
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.
Consumer Proposal: What if I miss payments to my trustee?
Once your consumer proposal has started, if you miss three (3) payments the consumer proposal is annulled and all legal rights of the creditors are restored. The amount that you owe each creditor is the original amount that you started with less any monies that the creditors received during the consumer proposal before you missed the three (3) monthly payments. The 3 payments are cumulative – you can miss 2 payments and make one up. 3 payments refers being behind 3 payments in total at any time.
If you find that your financial situation has changed, contact your trustee immediately. It may be possible to amend your consumer proposal by reducing your monthly payments to fit your new circumstances.
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.
