Calgary Alberta Personal Bankruptcy Blog

RESP's

2010-02-08T22:14:00.004-07:00

Question: My wife and I have RESP's for our kids and they are with a local Calgary credit union. We have been told RESP plans with credit unions are member accounts which are protected. Please advise.

Answer: In Alberta exempt assets are set out in the Civil Enforcement Act. There are no special exemptions for credit unions nor any other financial institutions in Alberta. RESP's are not protected and may be seized by judgement creditors in settlement of any debts you may owe.

Can I go bankrupt?

2010-02-08T12:30:00.003-07:00

Question: I lost my job 8 months back and have been surviving on EI. I have been using my credit cards to help make ends meet. I have used them to buy food, clothes and my utilities. I'm receiving collection calls now and one of the collection agents said I can't go bankrupt because I have used my cards to buy neccessities. Is that true?

Answer: It is not true. More than a decade ago the Bankruptcy and Insolvency Act or Bankruptcy Act as it was previously called was amended. There used to be a provision in the Bankruptcy Act that "necessaries of life" would survive a bankruptcy. That provision was repealed and it no longer applies. Credit card debts are forgiveable in a bankruptcy even if they relate to food, clothing or other living expenses.

Credit cards and bankruptcy

2009-05-06T07:16:00.000-06:00

Question: can i draw money from my credit cards and keep it just before i go bankrupt?

Answer: No. Drawing money from credit cards before filing for bankruptcy would be considered fraud, and you would be required to pay it back, even if you went bankrupt.

Rebuilding credit after bankruptcy

2009-05-04T11:57:00.000-06:00

Question: What would be the best way to rebuild credit after filing bankruptcy?

Answer: For residents of Calgary, Alberta, after the conclusion of your bankruptcy the most important step you can take is to begin saving money. By saving money you will have a significant down payment in the future to buy a car or house if needed.

To rebuild your credit after bankruptcy, one option is to get a secured credit card. You give the credit card company a deposit, and they give you a credit card with a credit limit equal to your deposit. The credit card appears on your credit report, and shows that you have begun to rebuild your credit.

Bankruptcy and Spouse

2009-04-03T19:15:00.003-06:00

Question: If I file bankruptcy, how it is going to effect on my wife and her salary. Will her income be considered in family income during bankcruptcy and do we have to pay 50% off her monthly income.

Answer: Yes, surplus income in bankruptcy is based on family income, so if you go bankrupt, your wife's income will impact your bankruptcy payment.

However, you are not required to pay 50% of her income if she is not bankrupt. Surplus income is calculated for the family, and then you pay only your portion of that income. Here is a link to an example surplus income calculation where there are two people in the family, and only one person is bankrupt.

Debt Consolidation and bankruptcy in Calgary

2009-03-22T17:50:00.003-06:00

Question: Can I file bankruptcy even if I have already gotten a credit card debt consolidation loan to consolidate my credit cards?

Answer: Yes, you can file bankruptcy in Calgary even if you have already obtained a debt consolidation loan for your credit cards.

Debt

2009-01-29T14:03:00.002-07:00

Question: I have some debt that I have been avoiding. Ie. student loans, and some BC provincial medical health card payments. My question is if I get married or enter into a common-law relationship here in Alberta, will my partner/husband become partially responsible for them? What if I declare bankruptcy?

Answer: No, your spouse does not become responsible for your debts unless they co-signed for them. Here's an article that explains how bankruptcy affects your spouse.

Properties- Joint and sole ownership

2009-01-15T15:10:00.000-07:00

Question: When I file for bankruptcy, what will happen to my properties and mortgages. I have 2 houses both with mortgages and joint with spouse. Will these properties get repossessed or foreclosed. I've tried selling them but on this market, no one is biting. I'm considering filing for bankruptcy in Calgary but not sure if my spouse will have to file with me given the properties and mortgages we have together.

Answer: The answer depends on the value of your houses, and the amount owing on the mortgages. If you are unable to find buyers for the properties, it is possible that there is minimal equity, and therefore you may be able to keep them if you file bankruptcy.

However, it may also be prudent, if the properties are worth less than the mortgaged value, to surrender the properties to the mortgage holder, which may mean the mortgage holder pursues you and your wife for any resulting shortfall. It may then be necessary for you and your spouse to file bankruptcy.

It is impossible to fully advise you without knowing the exact specifics of your properties. We suggest that you get an appraisal for both properties, and a print out from the bank showing the amount owing on the mortgages, and then book a no charge initial consultation with a Calgary bankruptcy trustee.

locked-in rrsp account and bankruptcy

2008-11-25T16:34:00.001-07:00

Question: How does a filing bankruptcy in Calgary affect a locked-in rrsp account?

Answer: Locked in RRSPs are not affected by bankruptcy; you are allowed to keep them.

In fact, the only money that you lose from an RRSP when you file bankruptcy in Calgary are any contributions you have made to your non-locked in RRSP in the previous year; all other amounts are exempt from seizure.

Credit cards and bankruptcy in Calgary

2008-11-18T03:28:00.000-07:00

Question: Does bankruptcy wipe out the balance on all credit cards?

Answer: Yes, debts owed on credit cards are dischargable in bankruptcy in Calgary.

Credit after Bankruptcy in Alberta

2008-10-27T09:39:00.001-06:00

Question: When your bankruptcy in Calgary is paid off and over, how does your credit start again?

Answer: Once you have been discharged from bankruptcy, you start to rebuild your credit by saving money. If you have cash to use as a down payment or security deposit, it is a lot easier to qualify for future loans. Another option is to get a secured credit card, where you put $1,000 on deposit with the credit card company, and they give you a card with a $1,000 limit, which begins to repair your credit.

Chapter 13 Bankruptcy

2008-08-15T12:25:00.002-06:00

Question: We rent to a person who has just filed Chapter 13 Bankruptcy. Can we evict him if he doesn't pay his full rental payment on our property that we rent to him?

Answer: Unfortunately this is the Bankruptcy Calgary Alberta web site; a Chapter 13 Wage Earner Plan is only available in the United States, and we are not qualified to answer that question. We suggest you contact a U.S. bankruptcy attorney.

working and income under bankrupcy in Calgary

2007-10-25T22:27:00.001-06:00

Question: i was made bankrupt in jan 07. i now have a job, can the courts take any money of me, also can i be called back for futher questions by the offical recievers after being made bankrupt?

Answer: The answer depends on a number of factors. First, have you completed all of your duties and have you been discharged from your bankruptcy in Calgary? If you have been discharged, you have no further obligations.

If you have not been discharged, you are required to report your income each month to your bankruptcy trustee. If you have surplus income, you will be required to pay a portion of your surplus income to the trustee for the benefit of your creditors until you are discharged.

We suggest you contact your bankruptcy trustee to determine what further duties you must complete to finish your bankruptcy.

Who will know that I filed for bankruptcy in Calgary?

2007-10-09T13:23:00.000-06:00

Question: Will anyone know that i filed bankrutcy in Calgary? if so, how? is it public records or what?

Answer: When you go bankrupt, you feel embarrassed and you are probably worried about who will find out that you went bankrupt. There are only a few people that know about your bankruptcy without you volunteering the information:

1. The Office of the Superintendent of Bankruptcy
Official bankruptcy records in Canada are compiled by the federal Office of the Superintendent of Bankruptcy (OSB) and are public records. Every time someone goes bankrupt, it is through this office.

2. Credit bureaus
Every month, the OSB sends a list of new bankruptcies to each of the credit bureaus, like Equifax and Trans Union. These companies then record the bankruptcies on their credit histories of individual consumers. The bankruptcy record for each person is removed from that person's credit report after a set number of years.

3. Current creditors
In order to stop wage garnishments, threatening phone calls, and to alert them of the situation, your trustee will send out letters to each of your creditors informing them of your bankruptcy. If you owe money to friends or relatives, then they will also be included in the mailing, which means they will find out in this way.

4. Your employer
If you are currently having your wages garnisheed, your trustee will send a court order to your employer to stop the garnishment. Your trustee also requires information to file your taxes; if you don't provide it to the trustee, the trustee may contact your employer to obtain the missing information.

5. Anyone you tell
People will not know that you have gone bankrupt just by looking at you. You are free to tell anyone you wish or withhold the information, as long as they aren't a current creditor, a potential creditor, or your employer if your job requires you to report any bankruptcies.

Tax debt and bankruptcy in Calgary

2007-10-01T09:23:00.000-06:00

Question: I am self employed and have not filed personal tax returns or GST returns for several years. Can filing bankruptcy in Calgary help me with the tax problem?

Answer: Personal bankruptcy does discharge debts you owe personally to Canada Revenue Agency (formerly called Revenue Canada) for GST and income tax.

However, you, or your trustee, is required to file outstanding tax returns. If the returns are not filed, Canada Revenue Agency can oppose your discharge from bankruptcy. We therefore recommend that you gather the information necessary to file the outstanding tax returns and either have your accountant prepare the tax returns before you go bankrupt, or bring the information to your Calgary bankruptcy trustee to determine how best to proceed with your bankruptcy.

Getting married and bankruptcy in Calgary

2007-07-03T15:45:00.001-06:00

Question: My fiance and I are both considering filing bankruptcy in Calgary. When we get married if we file jointly, will previous debt from before the marriage be wiped out?

Answer: First, to file a joint bankruptcy, most of your debts must be the same. If you both have separate debts, you will not be filing one bankruptcy together. However, if you both have debts, you can both file bankruptcy.

The purpose of declaring bankruptcy is to discharge your debts, so the answer to your question is yes, if you go bankrupt, whatever debts you had before you declared bankruptcy will be discharged.

There are some exceptions to this, including debts for child support, certain student loans, and other items, so we suggest you and your fiance consult a Calgary bankruptcy trustee to decide if bankruptcy is the correct solution for you.

bankruptcy in Calgary without spouse

2007-06-14T15:18:00.001-06:00

Question: I am wondering if I can file bankruptcy in Calgary by myself since I have so many in my name and without my husbands name. Or does he have to file with me?

Answer: Yes, even if you are married you can file bankruptcy in Calgary on your own; your husband is not required to file bankruptcy with you.

How quickly can I start a calgary bankruptcy?

2007-03-30T10:44:00.001-06:00

Question: I need to stop the collection calls as soon as possible. How quick can I stop the calls?

Answer: It is possible to file a bankruptcy in a matter of a few days. Your trustee will electronically file your bankruptcy after you have signed the bankruptcy paperwork, and the bankruptcy is effective immediately. Your creditors are then notified by mail, so the collection calls normally stop in a week or two.

For more information, we suggest you contact a Calgary bankruptcy trustee to arrange a no-charge initial consultation.

Computer and bankruptcy

2006-11-11T21:06:00.000-07:00

Question: I need to claim bankrupcy and I have a computer that I still owe money too but I will always have a $1000 a munth income and I want to pay it off. I need my computer I can't loose it. I'm on aish and am diabled and I cant get out alot so I need to do this over the phone or online. can you help me or point me in the right direction.

Answer: In Canada, including in Calgary, you cannot file bankruptcy over the phone or online. You must be assessed, in person, by a licensed trustee. We suggest you contact a trustee; they will provide some initial information to you over the phone, or by email. They will want to review your computer loan agreement to advise you on what will happen to the computer in the event that you file bankruptcy in Alberta.

Are you recently separated or divorced and find yourself trying to get by on one income?

2006-06-30T08:49:00.000-06:00

Does This Example Sound Like You?

You are making decent money, but you and your kids were used to being a two income family. Your child support payments don't seem to help much, especially when your ex doesn't pay you on time, if at all. On top of all of this, there all bills your ex said would be taken care of, but haven't. What can you possibly do?

What Can You Do?

The hardest part about becoming a one income family is that most or your expenses stay the same. You still have to pay rent, groceries aren't much cheaper, and the utility bills are the same. You may be able to work out your problems with a consumer proposal and some financial counselling. If you would like some advice from a professional to find out you're your options are, click here for more information.

Was your overtime reduced, and now you can't pay your bills?

2006-06-26T11:14:00.000-06:00

Does This Example Sound Like You?

Tom Johnson works for an automotive parts company. For the last few years he averaged 10 hours of overtime per week, and he used that extra money to pay his bills. His company has less work, and has cancelled all employee overtime. As a result, he is having a hard time paying his bills. What can he do?

What Can You Do?

On his now reduced income, Tom can't make all of the minimum payments on his credit cards. He has a few options. First, he could try to reduce his monthly expenses to free up cash to pay his credit cards. Second, he could file a consumer proposal, making a deal with his creditors to pay them over time. Finally, if all else fails, he could file for bankruptcy. To investigate your options, click here for more information.