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FAQ

A: Your creditors, your trustee and the Federal Government via the Superintendent of Bankruptcy are the only parties that are informed about your bankruptcy. They are required to keep this information confidential.

A: Usually, a spouse isn’t required to pay your debts. However, a creditor could pursue a spouse if they have co-signed or guaranteed your debt.

A: Your parents are legally obligated to pay the loan. Often, a creditor is open to accepting regular monthly payments from parents who co-sign a child’s loan. There should be no effect on the parent’s credit so long as the loan payments continue to be made.

A: Yes, filing a bankruptcy or consumer proposal forces the removal of any wage garnishment. This is due to the fact that there is a powerful stay of proceedings that goes into effect which also stops creditors from phoning, sending letters or generally trying to collect in any way.

A: No, you don’t have to lose your car when you file for bankruptcy. If you have a loan secured by the car, you will keep paying that loan, the secured creditor is typically fine with this type of arrangement. If your car is free and clear of any loans then there is an exemption which allows you to retain it in most cases. Please contact us for more information.

A: Yes. This is different than in a bankruptcy as if you file for bankruptcy, your GST credit is forwarded to the bankruptcy by the Federal Government. In some cases, depending on other receipts, GST credits are returned to you after the bankruptcy. Please contact us for more information.

A: There is no impact on your tax returns from filing a consumer proposal. For bankruptcy proceedings, any tax refunds are sent into the bankruptcy by Canada Revenue Agency for the benefit of your creditors. This applies to the calendar year that the bankruptcy begins and to prior years if unfiled.

A: Credit reporting agencies obtain information about insolvency filings from the Federal Government. Filing a consumer proposal or for bankruptcy will appear on your credit rating for some time. Please contact us for more information.

A: Yes. There are two mandatory financial counselling sessions where budgeting is discussed. In addition, there are online resources provided to assist you.

A: In most cases, bankruptcy will not affect your job. Unless you choose to disclose the information to your employer, there is usually no reason that they will need to know about it.

A: A lottery win is classified as after-acquired property. You will be required to remit any lottery winnings into the bankruptcy in order to pay your debts.

A: Your creditors can’t stop the bankruptcy from starting. They do, however, have the right to object to your discharge. Please contact us if you think this may occur.

A: Eventually your file will be closed and your creditors will be able to seek collection from you again. For this reason, it’s important to get your discharge.

A: Yes. As long as you have received a discharge from a prior bankruptcy you can file a subsequent bankruptcy. However, you may wish to consider a consumer proposal instead.

A: In most cases, bankruptcy will not affect your job. In rare instances, where there are bonding requirements or professional boards, it may be problematic. Please contact us to discuss your specific situation.

A: There are several alternatives to consider prior to a bankruptcy filing. Some of the alternatives would include seeking a consolidation loan from a bank or credit union, working with a reputable credit counsellor, selling off assets you don’t need, or making a consumer proposal that provides you the same protection that a bankruptcy filing does.

A: This depends on a variety of factors, primarily how long it takes to get the information together. We provide an application form that will assist you in gathering all of your relevant documents to get started.

A: If you are a homeowner, a careful analysis must be done in order to determine how much equity exists within your home. If there is minimal or no equity, then it is possible to keep your house even if you file for bankruptcy, as long as you continue with your mortgage payments.

A: Your mortgage holder is using the foreclosure process to gain control of the sale of your home. Filing a consumer proposal or bankruptcy can protect you from any shortfall on the sale.