Saskatoon Saskatchewan Personal Bankruptcy Blog

Revenue Canada and bankruptcy

2008-12-05T00:50:00.003-06:00

Question: I have heard that when filing for bankruptcy, money owing to the government such as Income tax and Interest can not be part submited in the bankruptcy.

Is it true?

Answer: No, that is not true. Tax debts are dischargeable in a bankruptcy. Your bankruptcy trustee can provide you with more information.

General bankruptcy question

2008-12-05T00:37:00.003-06:00

Question: My wife started to work full time recently. I have 2 jobs and a business. One job is P/T, the other is on Call and the business is well not providing all of our needs.

If we file for bankruptcy in Saskatoon, do we loose our house and cars?

We are paying a mortgage. The car is paid for, but I use it for my business.

How do I know if I file for bankruptcy?

Answer: The only way to know for sure if you will be required to surrender your house or cars is to discuss it with a trustee prior to filing bankruptcy. If the house is worth about what's owing on the mortgage, you probably will not lose your house, although the final decision may be up to the lender. If you have significant positive equity in your house, it is possible that you will lose it.

To know for sure, have a local real estate agent provide you with an appraisal on your house. Then, get confirmation of the mortgage balance owing from the lender. With these two pieces of information a Saskatoon bankruptcy trustee will then be able to explain your options in more detail.

Bankruptcy and a car

2008-10-29T18:53:00.003-06:00

Question: I bought a car, in 2007 with a bank loan and a co-signer, if I filed bankruptcy would they take away my car?, would it affect the co-signer?

Answer: The answer depends on the lender. Some lenders have a policy that if you go bankrupt and your car payments are up to date, you are allowed to keep the car and keep making the loan payments. Other lenders automatically repossess your car if you file bankruptcy, even if the payments are up to date.

To further complicate matters, there are new bankruptcy rules that may become law in 2009 that may change these procedures.

Given these complexities, we strongly recommend that you contact a licensed Saskatchewan bankruptcy trustee to review your situation and give you specific advice.

non-discretionary expenses

2008-08-21T10:52:00.000-06:00

Question: My wife and I are separated and I pay her $1200 per month for court ordered child support as agreed between us. If I were to declare bankruptcy would this amount be subtracted from my income before my surplus income was calculated?

Answer: Yes, provided you have receipts or other proof that you are paying the child support.

Second Bankruptcy in Saskatoon Saskatchewan

2008-02-27T22:50:00.003-06:00

Question: What disadvantage is there in filing bankruptcy in Saskatoon for a second time?

Answer: In a first bankruptcy you are eligible to be automatically discharged after nine months, provided certain conditions are met. In a second bankruptcy, you are not eligible to be automatically discharged. The court will decide when your bankruptcy will end, so it will last longer than nine months.

In your case you must decide whether a second bankruptcy is the correct option for you, or if you should consider other options, such as a consumer proposal.

To review your options, consult a Saskatoon bankruptcy trustee.

Mother in law debt

2007-07-15T22:03:00.001-06:00

Question: My husband just found out his mother is over 26,000.00 in debt.She is getting approx. 1600.00 pension. She has filed bankruptcy in Saskatoon about 11 yrs ago. Credit cards that come in the mail are her downfall. Any other options besides selling her house and auctioning her belongs to pay of this debt?

Answer: She has three logical options:

First, as you suggest she could sell her house and belongings to pay off the debt.

Second, she could file bankruptcy again. Because this will be her second bankruptcy, she is not eligible to be automatically discharged in nine months, so that may not be a great option.

Third, she could file a consumer proposal, which is an alternative to bankruptcy. She would make a payment each month for up to five years to settle her debt. A proposal only makes sense if, on her fixed income, she can afford to make payments each month.

To determine which option is best for her, we suggest she discuss these options with a bankruptcy trustee.

Leasing a car

2007-04-03T22:23:00.001-06:00

Question: Our bankruptcy is finished at the end of June. I start a new job in May that requires me to travel 5 out of 10 days. Our family vehicle is a 96 Windstar with 302000 km on it. It is in sad need of repairs. The question is whether or not it is worth it. I am wondering if, while in bankruptcy, we are able to lease a car? I would question the saftey of our van when I am doing extensive traveling.

Answer: Yes, it is possible to lease a car while you are bankrupt. In most cases you will pay a lower rate of interest if you wait until you are discharged from bankruptcy before leasing car. Your other options are to purchase an inexpensive car, or to ask a friend or family member to co-sign on your behalf. Either way, be sure you read all of the fine print and understand what you will be paying before you agree to lease or finance a car.

help with bankruptcy in Saskatoon

2007-03-22T11:48:00.001-06:00

Question: how do you determine what bankruptcy is in your personal situation?

Answer: Personal bankruptcy is a very personal decision; it is the correct option for some people, but not for others. We suggest that you
contact a bankruptcy trustee in Saskatoon to arrange for a no-charge initital consultation to review your situation and determine whether or not bankruptcy is the correct option for you.

after discharge

2007-03-21T13:32:00.001-06:00

Question: Hi, My husband and I are currently in the middle of a bankruptcy. We should be discharged by June hopefully. What I would like to know is, we own our home which was exempt, but we are looking into selling by fall, is there a time period that we have to wait to sell, or can we do what we want after we are discharged.
thank you

Answer: If your assets are exempt, you may sell them as soon as you are discharged. To ensure that there are no problems with your discharge, we recommend that you discuss your concerns with your trustee to ensure that your discharge will still proceed as scheduled.

Revenue Canada and bankruptcy

2006-12-20T01:21:00.000-06:00

Question: I was wondering if a person claims bankruptcy and you owe revenue canada money does that get included?

Answer: Yes, debts owed to Revenue Canada (Canada Revenue Agency) are included in a bankruptcy. Please click on the Contact Us link for further information.

Creative Solutions to Financial Difficulties

2006-11-16T10:29:00.000-06:00

In the current economic climate, many individuals find themselves deep in debt and struggling to meet the monthly payments. In a desperate effort to avoid bankruptcy, they may find themselves consolidating some of their debt by way of high interest second mortgages, only to find that they still cannot make ends meet. They charge up their credit cards once again and end up in a worse financial position a year or two later. In today's world, it is not uncommon for an individual to owe anywhere from $50,000 to $150,000 in unsecured debt (lines of credit, credit cards, etc.).

Bankruptcy is not the only answer
Many individuals who fear they may have to file bankruptcy are surprised and relieved to learn that there are other options. At Deloitte, we strive to find the best option available for people to deal with their debts. Proposals have proven to be a viable option for many people.

Proposals can be designed in many ways, dependent on the individual circumstances - assets, liabilities and cash flow. The distribution to unsecured creditors can vary from 10 cents to 100 cents on the dollar. The debtor may retain assets or propose to relinquish assets as part of the proposal. There may be one lump sum payment or monthly payments over a period of time, generally 30 - 60 months.

The options are endless; it just takes experience, creativity and resourcefulness to find the right solution.

Call Deloitte at (306) 343-DEBT (3328) or 1-800-683-DEBT (3328) to find out more about the solutions to your debt.

Vehicle

2006-07-19T21:33:00.000-06:00

Thank you for your recent enquiry. Please be advised we provide a free initial consultation at no obligation to you. Exemptions warrant discussion. We want to ensure that we understand the situation fully before providing an interpretation. To book an appointment to come into our office, at a time that is convenient for you, please call 343-4244 or our toll free # 1-800-683-3328.

Can a vehicle be exempt for medical reasons if a person is on disability pay through work, and needs a vehicle to get around? In my case the vehicle is fully paid for. Thank you.

Completed school and working full time and still not able to pay all your bills?

2006-07-05T21:12:00.000-06:00

Does This Example Sound Like You?

Larry Black went to college for 3 years and accumulated student loans and other credit card debts. Larry has been working full time for the past couple of years, but the cost of living on his own, his student loans, the new vehicle, and other debts are too much for him to handle each month.

What Can You Do?

The rising costs of post-secondary school and the availability of credit, student loans and credit debts tend to be large upon completion of schooling. A tough job market may keep you from your area of study or the job does not provide you with enough take home pay to pay for all of your debts plus living expenses. A consumer proposal may be an option to deal with your student loans. To investigate your options, click here for more information.

Are you required to pay cash for all of your business supplies?

2006-06-26T12:25:00.000-06:00

Does This Example Sound Like You?

Are you a tradesman that used to have good credit, but now due to the downturn in the economy your suppliers have you on COD? Did you have to give the government a series of post-dated cheques to pay your back taxes?

What Can You Do?

If you are used to credit and are suddenly required to pay cash you may be getting hit with a double whammy. When a customer pays their bill to you the money should be used to pay off the credit, but the only way you can start a new job is to use the money for supplies so the old bills don't get paid. Worse still, those post-dated cheques to the government have to be paid or they'll freeze your account. To solve this problem you may be able to offer your creditors a deal in the form of a proposal. A proposal is a negotiated settlement to repay a portion of what you owe over time. If things are really bad you may need to consider bankruptcy. For more information or to ask a question click here.