Is my spouse responsible to pay any loan that I have co-signed for?
Yes. Bankruptcy does not eliminate the debt or other obligations of a spouse, only the obligations of the bankrupt. Any other party that is not bankrupt is responsible for paying their debts as they normally come due. As a result, it may be necessary for your spouse to consider other options.
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.
There are two types of collectors: Third party and first party.
Third party collectors are collecting on behalf of the original creditor, like the bank or a dentist. The legislation and all of the rules about collections, e.g. when they are allowed to call, apply to them.
First party collectors actually purchase accounts from creditors (or other collectors) so that they own the debt. In other words, the bank or the dentist is no longer owed anything. Now the money is owed to the first-party collector. The rules do not apply to them. They can call whenever they like, as often as they like. They can call relatives and employers, at midnight if they want.
First party collectors are usually more aggressive and more difficult to deal with. If you are being harassed by a collector, try to find out if they have purchased the debt, or if they are acting on behalf of a bank (or a dentist). This will tell you if they are breaking the rules or if they are within their rights. If they have, in fact, purchased the debt, you may wish to talk to a Trustee in Bankruptcy to talk about your options.
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.
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.
In Canada, Bankruptcy and Consumer Proposals can only be administered by a Trustee in Bankruptcy, who has been examined and licensed by the bankruptcy division of Industry Canada (the Office of the Superintendent of Bankruptcy).
Licensed Trustees are the most highly trained debt consultants, and the only ones able to impose powerful legal restrictions on your creditors. A trustee can also give useful information and detailed advice about your debt relief options and advise you towards a solution.
It is important to remember that a Trustee has a number of responsibilities that must be fulfilled during your bankruptcy, for example:
for most types of debt, stop collection action and garnishees against your wages;
provide debt counselling;
calculate how much you are required to pay into the bankruptcy based on your personal circumstances;
determine if you have any assets which must be valued and paid out to the creditors;
look into your prior transactions to check for any improper conduct;
refer you to outside resources, if necessary, such as gambling or addiction counselling;
manage and administer your bankruptcy generally.
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.
