Toronto Ontario Personal Bankruptcy Blog
Toronto Ontario Personal Bankruptcy Blog provides free personal bankruptcy information and helps Toronto residents dealing with their debt.
Below are the most recent personal bankruptcy questions. Be sure to check out our Frequently Asked Questions page for answers to more common questions about personal bankruptcy in Toronto. Remember, you can always post an anonymous question, as well as arrange for a free consultation with a personal bankruptcy expert near you.
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Recent Bankruptcy Questions:
Question: Hi there. I recently received a Suspended Discharge from my Toronto bankruptcy as I am 2nd time bankrupt. My hearing was very straight forward...my prior bankruptcy was over 18 years ago and I followed all criteria for this one...payments, statements and counseling sessions. . My question is...am I able to start to rebuild my credit now...as in purchase a pre-paid credit card or use a low limit credit card if I were able to obtain one (doubtful I know!). Or do I have to wait until the 6 month suspension is up?Thanks so much! Answer: You can apply for a pre-paid credit card, or a secured credit card, whenever you want. However, most credit card companies will only issue the card once your bankruptcy is officially over. Our advice is to start saving money now, since that's the best way to re-build your credit, and then apply for the pre-paid credit card in six months.
Labels: bankruptcy Toronto
Question: Once it is off my Credit Report, will the individual banks that were involved in the consumer proposal lend me money again in the future? Would I have to repay them back what I still owed to be back "in their good books"? Would the answer be any different if I filed bankruptcy in Canada?
Answer: Once you have completed your consumer proposal, you are free to apply for new credit. It will be up to the individual banks to decide whether or not they will lend you money in the future.
You are correct that one factor they will consider will be the fact that they may not have been repaid in full in your consumer proposal. However, they will also consider other factors, such as your current income, and whether or not you have taken steps to repair and rebuild your credit after bankruptcy.
Your goal should be to pay off your consumer proposal as quickly as possible, and then begin saving money and take steps to re-establish credit.Labels: bankruptcy Toronto, consumer proposal
Question: I am a single mother, forced to declare bankruptcy, due to credit card/line of credit debt, and have monthly earnings at or below the monthly excess income limits. I was bankrupt previously, 18 years ago, for a totally different reason, than the current situation.
I will be going to court in February, and have been told that the most likely outcome is to have the bankruptcy discharge deffered 5-6 months.
What happens from the court date till the final discharge ? I have been told that I will no longer have to fill in the monthly income statements. Is this correct. Also, income tax & GST refunds that I would be elegible for in this period. Do they go to me, or to the trustee ?
Answer: Yes, what your trustee has told you appears to be correct. In the case of a second bankruptcy (filed before September 18, 2009) you are required to appear in bankruptcy court in Toronto for a discharge hearing. At that hearing the bankruptcy judge will determine when and how your bankruptcy will end. In the case of a second bankruptcy with no other issues it is common for the Toronto court to grant a "suspended order of discharge", meaning that your official discharge will occur six months in the future. You would not be required to complete further income and expense statements, unless ordered to by the court.
GST refunds continue to be sent by Canada Revenue Agency to the trustee until you are discharged. In most cases you only lose your tax refund up to and including the year of bankruptcy. Your trustee can advise you further, based on your specific circumstances.
NOTE: Under new rules implemented on September 18, 2009, a court hearing is not automatically required if a second bankruptcy is filed after September 18, 2009.Labels: bankruptcy discharge, bankruptcy Toronto
Question: my husband and i have our personal credit in debt, up to 71K due to a business star up, we're not trying to get on our feet but our debt just seems to be getting all of our funds and we can't make payments on time. we're likely to have $ 300 only after our apt lease, utilities and living essentials, such as gas and food, we own our car. can you tell me what are my options consumer proposal or bankruptcy,how can i pay back, do they reduce my debt fee? Thanks
Answer: In a consumer proposal, a settlement is reached with your creditors. For example, in a proposal you may offer to pay $300 per month for 5 years, or $18,000 in total. If the creditors accept, and you make the payments, the remainder of your debt is eliminated.
If you can't afford a proposal, or if the creditors don't accept the offer, the other alternative is personal bankruptcy. The cost of bankruptcy depends on your family income, the size of your family, and certain expenses.
Each situation is different, so we recommend that you contact a Toronto bankruptcy and proposal trustee to review your specific options.Labels: bankruptcy Toronto, consumer proposal
Question: Can a person who recently filed consumer proposal or bankruptcy in Toronto travel out of country on his passport or travel documents like USA on business trips?
Answer: Yes. The filing of a consumer proposal or a personal bankruptcy does not prevent you from being able to travel outside of Canada.Labels: bankruptcy Toronto, consumer proposal
The number of consumer proposals and bankruptcies filed in Toronto increased by 6% in the first six months of 2007, according to statistics just released by the Office of the Superintendent of Bankruptcy. Toronto fared better than the rest of Ontario, where personal insolvency filings increased by 9%. Most surprising is the increase in consumer proposals, which are fast becoming the leading alternative to bankruptcy in Toronto. Consumer proposals increased by 22% across the GTA. In the first six months of last year 2,275 residents of Toronto filed a consumer proposal. In the first six months of this year that number has increased to 2,768. A consumer proposal is a legally binding deal we negotiate with your creditors. Instead of going filing for bankruptcy, you make payments over a period of time (no more than five years), usually for less than the full amount you owe. You avoid bankruptcy, and make one monthly payment, and the creditors get more money than if you went bankrupt, so everyone wins. If you would like more information about consumer proposals or bankruptcy, call our Toronto team at 310-PLAN (310-7526, no area code required) or E-mail us to arrange a free initial consultation. There is help available, so give us a call, and let's get started. Labels: bankruptcy Toronto, consumer proposal
Question: I have a personal vehicle "86 Pontiac" value $2000, basic transportation.
Through a serious family illness, I have become the primary care giver for a parent. Left work and have not been employed for 4+ years. Through the years debt has accumulated. The family purchased a physically challanged adapted vehicle to use for the parent, the vehicle was registered in my personal name as I am the only driver in the family, I pay the insurance through funds given by the family account.
How does this vehicle fit in my personal bankruptcy in Toronto? Thanks Answer: If you file for personal bankruptcy in Toronto, or anywhere in Ontario, you are permitted to keep one motor vehicle worth up to $5,650. If you own more than that, you would be required to either surrender the vehicle to the trustee, or pay to your bankruptcy estate the difference. For example, if you own a $2,000 vehicle and a vehicle worth $8,650, you would declare that the first $5,650 of the $8,650 vehicle was exempt, and you would pay the trustee $3,000 to keep the vehicle. Since you are only permitted to declare one vehicle as exempt, you would also be required to pay the $2,000 value of the other vehicle if you wanted to keep it. If there are liens or loans against any of these vehicles, the answer would change. These rules can get complicated, so I suggest you call us at 310-PLAN, or e-mail us for further information. Labels: bankruptcy Toronto
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This website is sponsored by:
Hoyes Michalos & Associates Inc.
Hoyes Michalos and Associates have offices in Toronto, Ontario to help residents understand bankruptcy and alternatives to bankruptcy in Toronto.
To arrange for a no charge and no obligation initial consultation call them today at 310-PLAN. |
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