Archive for the ‘bankruptcy trustee’ Category

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.

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.

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.

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.

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.