Winnipeg Manitoba Personal Bankruptcy Blog

Co-signer and bankruptcy

2009-05-08T12:34:00.000-05:00

Question: My mother cosigned a loan for me, will she get stuck with the loan if I file bankruptcy?

Answer: Yes, if you go bankrupt, your co-signer becomes responsible for the loan. We recommend that your mother contact the bank before you go bankrupt and make arrangements to continue making the loan payments so that her credit is not impacted.

own nuthing and bankruptcy???

2009-05-07T17:34:00.000-05:00

Question: I was just wondering can I declare bankruptcy if I own nuthin but the close on my back?? And is it discharged after nine months?? One more thing If I got a loan for a car but lost the car due to it being impounded will my bankruptcy clear that up as well??

Answer: Yes, most people who file for bankruptcy in Winnipeg have no assets.

The shortfall on a car that was previously repossessed is also discharged in a bankruptcy.

A Winnipeg bankruptcy trustee can provide you with more information.

Reposession by vehicle leasing companies

2009-03-14T05:53:00.002-05:00

Question: Can a vehicle leasing company ask for the remaining payments on the lease if they repossessed the vehicle due to non payment if an individual has not filed for bankruptcy? Can they do this if an individual has filed for bankruptcy?

Answer: Yes, if you have not declared bankruptcy, you are liable for all outstanding payments on a leased vehicle. In most cases the leasing company will sell the vehicle to recover the amount owing; if there remains a balance owing, they will pursue you for the difference.

If the vehicle is repossessed or surrendered prior to your bankruptcy, any remaining balance owing is included in your bankruptcy; in that case they cannot pursue you for the remaining payments.

My Ex is declaring Bankruptcy

2009-03-02T15:51:00.002-06:00

Question: We have a joint line of credit. I have zero access to the line of credit, and the debt is 100% his. I know that I will be responsible for it, and will have to pay it.

My question is, how will this affect my credit report? Will it show as a bankruptcy?

Answer: You are correct, you will be responsible for the debt. We suggest that you contact the bank and work out payment arrangements with them. If you keep the loan current, it should not have a negative impact on your credit report, and since you have not gone bankrupt, a bankruptcy should not appear on your credit report.

revenue canada and bankruptcy

2009-02-18T21:33:00.000-06:00

Question: if your major debt is with revenue canada how does that work?

Answer: It is still possible to file bankruptcy and eliminate your debts for taxes to Revenue Canada. However, Revenue Canada is often an active creditor, meaning that they will insist that all tax returns and filed and up to date, and they may also request a creditors' meeting if they have questions about how you incurred the tax debt, and what you plan to do in the future to avoid further tax debt.

Your Winnipeg bankruptcy trustee can provide more information.

When can I rebuild credit after bankruptcy?

2008-12-19T20:45:00.002-06:00

Question: How long after I am released from personal bankruptcy can you begin to build your credit ?

Answer: You may begin to repair and rebuild your credit as soon as your bankruptcy is completed.

Start by saving a set amount of money each month. With savings, you can rebuild your credit. For example, it's possible once you are discharged from bankruptcy to use your savings to acquire a pre-paid, secured credit card to repair your credit. Your savings may also be used as a down payment on a car or house once you have sufficient savings.

Owning a house and car and filing bankruptcy

2008-11-05T15:11:00.001-06:00

Question: I've owned my current home for 5 years and I am still owing on a car. If I do claim bankruptcy because I cannot keep up with all my credit card and line of credit debt, how will this affect my home and car? Will I lose my car? Whatever I've put into the house, will I lose that too?

Answer: The answer depends on the value of the home or car, and the amount owing on the mortgage or car loan. Your trustee will request that you obtain appraisals for your house and car, and confirmation from the lender of the balance owing, and then they will be able to advise you on whether or not your house or car will be impacted by bankruptcy.

Here is an article that provides more detail on What Happens to my House After Filing for Bankruptcy?

For a review of your specific situation, please contact a Winnipeg Manitoba bankruptcy trustee.

Bankruptcy in Winnipeg Manitoba

2008-03-23T18:26:00.002-05:00

Question: I have a huge student loan debt (graduated 1997) but for years was barely able to make a living due to emotional/addiction problems. Now I'm working again, $40K a year, but not in my field. I also have a LOT of other debts - some very old credit cards, City of Winnipeg, MPIC, etc. It's a lot. It feels absolutely overwhelming. Can I declare bankruptcy?

Answer: Yes. The rules for student loans and bankruptcy changed in July, 2008. If your student loan is more than seven years old at the time you file bankruptcy, it will be automatically discharged in your bankruptcy.

When your bankruptcy case has been closed.

2007-10-27T15:20:00.000-05:00

Question: Is it possible to close a bankruptcy case before the client is discharged?

What does a person do if they thought they had been discharged a number of years ago and their credit report indicates that they have, but the trustee says that they haven't? And the trustee says that the case has now been closed?

Answer: There are two different concepts to understand reagarding getting a dishcarge from a bankruptcy in Winnipeg. First, the bankrupt is discharged once they have completed all of their duties, which include making any required payments to the estate, completing their two credit counselling sessions, providing information to allow the trustee to file tax returns, and surrendering non-exempt assets. If these duties are not completed, the bankruptcy will not be discharged.

Second, the trustee is discharged once they have completed the administration of the estate, which includes filing all necessary paperwork with the Office of the Superintendent of Bankruptcy.

It is possible for the trustee to be discharged BEFORE the bankrupt is discharged. If the bankrupt does not complete their duties, the trustee may apply for their own discharge.

The trustee then says that the "file is closed"; they are no longer acting as the trustee. This also means that, because the bankrupt was not discharged, the creditors can now pursue the bankrupt.

In this case the bankrupt should contact the trustee to determine what duties must be completed to obtain their discharge.

Question about a third bankruptcy in Winnipeg

2007-10-04T16:50:00.001-05:00

Question: Could you please tell me I have gone bankrupt 2 times and what happens if you want to file the third time?
Thanks

Answer: In a first bankruptcy in Winnipeg, you are eligible for an automatic discharge after nine months. If it is not your first bankruptcy, the bankruptcy court will determine when your bankruptcy will end.

With a third bankruptcy it is likely that the bankruptcy court will add extra time to your bankruptcy, and perhaps require you to make additional payments. The specific result will depend on your circumstances. For more information, consult a Winnipeg bankruptcy trustee.

Timing Question

2007-09-25T03:26:00.000-05:00

Question: Once you've met with a trustee and you've signed all the documents for bankruptcy, do creditors have a certain time period whereby they can still take money out of your bank accounts to cover credit card debts before creditors are 'stayed'? If so, how much time do they have?

Thank you.

Answer: Technically, as soon as you sign the paperwork the trustee will electronically file your bankruptcy with the Office of the Superintendent of Bankruptcy, and all creditors are "stayed", meaning they are not allowed to take money out of your bank account without permission.

In practice, the trustee must then mail or fax the bankruptcy paperwork to each creditor, so it may be a week or more before the creditors realizes that you are bankrupt.

Therefore, in all cases we recommend that before you file bankruptcy you open a new bank account at a new bank (one where you don't owe money). You then close your old bank account. Since your old bank account no longer has any money in it, it is impossible for a creditor to take money out of an account they don't know exists, provided you don't tell them about your new bank account.

Bondable after bankruptcy in Winnipeg

2007-07-27T10:36:00.000-05:00

Question: Are you bondable after your discharge from Bankruptcy in Winnipeg?

Answer: Yes, in almost all cases you will be bondable after you are discharged from bankruptcy. In fact, in many cases you are bondable even while bankrupt. To find out if you are bondable, as your human resources department at work to check with the bonding or insurance agency.

bankruptcy vs proposal

2006-11-26T23:13:00.000-06:00

If a bankruptcy and a consumer proposalboth take 7 years to clear your file why do a proposal? If you file for bankruptcy will you loose your car or home. If your car is worth not much and you barely have anything paid into your home is there a way not to loose them? Is there a place in Winnipeg free that you can go to for free monthly budgeting to see if you can manage on your own before you proceed with more permanent methods?

Due to injury you cannot make payments on your home.

2006-07-06T14:26:00.000-05:00

Does this sound like you?
John Thomas bought a house three years ago and with his salary was able to keep up with payments. Unfortunately, John was recently involved in an industrial accident and is now on permanent disability. Now, he is falling behind on mortgage payments and doesn’t know what to do to get back on track. What should he do?

What can you do?
The cost of home ownership is often overwhelming and it is not hard to get out of control with payments. Rest assured that you are not the only one who is in this situation. Two options for getting back on your feet include consumer proposals and bankruptcy. However, without a stable income, a consumer proposal is probably not a good option for you. You will probably need to consider bankruptcy. Bankruptcy will solve your financial problems quickly, but you need to be aware of the consequences. For more information on bankruptcy, click here.