My husband has a car on a lease from a company in Winnipeg, which we had a co-signer on. With child support garnishments, and then loss of employment, the payments were not being made on the car, and bills piled up. He is now considering filing for bankruptcy, but what happens to the car, and is the co-signer then left holding the bag?
Free Information About Bankruptcy in Winnipeg Manitoba
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bankruptcy info.
can i keep my vehicle& my house if i declare bankruptcyi am not working .Iam mentally not able to function& physically very drained i have lost my 17 yr old son in afiery car crash;also going through a nasty divorce i am left pennyless ;iasked my husband for help; without results i lost all my savings toalawyer in wpg.13000.00. did absolutely nothing.my husband has his lawyer working on it; its been going on 2 yrs; at the end of my rope.collectors harrasing me steady .cant take it can you help
Bankruptcy Payment change
is it normal for a person who is making say a $500 paymnet to be reassesed half way into the 21 months and have it increase to 950
I have not had a increase in pay but i have recieved profit share but I have also been told that I now have to pay a arears as well that is much more substantial than the profit share from my employer
Excessive Loan on Vehicle
Question: Hello, I consolidated my credit cards and vehicle loan into a single loan with approximately $30,000 owing, transferring the vehicle lien to this new loan. My car’s current market value is about $8000. I have never missed a payment but living cheque to cheque because of the payments and stressing over whether to buy “that next jug of milk” has me exploring options. Is it possible to surrender my vehicle and declare bankruptcy with a solid credit history? Or perhaps pay the value of the vehicle to retain it and be discharged from the remaining debt, although the car value exceeds the exempt amount? Thank you.
Answer: You could file a consumer proposal or declare bankruptcy. If you go bankrupt you can continue making the loan payments and keep the vehicle, but in your case that means you will pay $30,000 to keep a vehicle worth $8,000.
Alternatively, if you go bankrupt or file a proposal you could surrender the vehicle to the lender. They would sell it, and then file a claim in your bankruptcy for the shortfall. You would not need to make any further payments to them, but obviously you also would not have your vehicle.
Third, you could file bankruptcy and then negotiate with the lender, and ask them to reduce your loan to $8,000, which is the value of the car, so that you only make payments on an $8,000 loan. It is very difficult to get the lender to agree to reduced payments, so this is not a likely option.
If you cannot make the payments, surrendering the vehicle may be your best option prior to bankruptcy, and then you may need to talk to family and friends to see if they can assist you in purchasing or borrowing a less expensive vehicle.
Bankruptcy Advice in Winnipeg
Question: Where can I go in Winnipeg to enquire about filing for bankruptcy? I would like to go for advice and to a place that does not cost any money?
Answer: We provide free consultations to help you decide whether or not bankruptcy is right for you. Contact our Winnipeg bankruptcy offices today by phone or e-mail and we will help you review your options.
leave manitoba after bankruptcy
Question: Can a person move to another province after they have claimed bankruptcy in Manitoba?
Answer: Yes, there are no restrictions on where you live, provided you complete your credit counselling sessions and complete the other duties required by your trustee.
Minimum to File Bankruptcy in Winnipeg
Question: I have a question, whats the minimum amount that you can file bankruptcy in Winnipeg? My boyfriend doesn’t t have a proper full time job can he still file bankruptcy? and also how can he find out what he owes the creditors?
Answer: By law you must owe at least $1,000 to file bankruptcy in Canada (the same rules apply everywhere in Canada, including Winnipeg and filing bankruptcy in Ontario). In practice, you will only file bankruptcy if you cannot pay your bills. You will want to first consider all of your options, including filing a consumer proposal.
You do not need to have a full time job to file bankruptcy, although it helps. If you are not working your wages cannot be garnisheed, so it may make sense until he is working to file.
To find out what he owes the creditors, he can contact them, or he can request a copy of his credit report from Equifax or TransUnion.
Father with money troubles
Question: My dad seems to be in some trouble and I have some questions and concerns I hope you can help me with.
I live on a farm with my parents. My dad personally owes approximately $125,000 to various creditors, not including the mortgage on the house we live in. The mortgage is in both my mom and dad’s name as is the title for the land. We have approximately 80 acres on our farm. He is able to make the mortgage payments and the payments are up to date and the taxes and utilities are up to date. The mortgage balance is approximately $65,000. He has no savings. My dad has a vehicle that is worth more than $3000 and one that is worth maybe $1500 if that and does not run properly. He has a loan on the vehicle that is worth more than $3000. He needs the vehicle to get to and from work as we live in rural Manitoba and there is no bus or cab service available to us. I am worried that if he does have to declare bankruptcy that we will lose the house. My mom is also worried that the creditors will come after her for money even though she is not attached to any of his debts other than the mortgage. None of the bank accounts are joint except for the one the mortgage payments come out of. We still need and want to keep the house otherwise we will have nowhere to live. My mom and I just recently moved to the farm as she could not afford to live on her own due to her medical expenses that total approximately $3000/month. I have done a little bit of research on various bankruptcy websites, and am not clear on what would be allowed to be kept in the event he has to declare bankruptcy. The main concern is the house and land and possibly the vehicle that’s worth more than $3000. Is he able to declare bankruptcy for all other creditors except for the bank that the mortgage is at and the bank that the vehicle that’s worth more than $3000 is at because he/we need these? Or does he have to include all creditors?
I have tried to include as much information as possible. Thank you in advance for any information you can give me.
Answer: Thank you for your questions. The Executions Act of Manitoba defines what you are permitted to retain if you go bankrupt, and is defined in paragraph 23:
23(1) Except as provided by The Family Maintenance Act or any other Act, the following personal estate is declared free from seizure by all writs of execution issued by any court in the province, namely:
(a) the furniture and household furnishings and appliances of the judgment debtor reasonably necessary for one household but not exceeding in value the aggregate sum of $4,500.;
(b) the necessary and ordinary clothing of the judgment debtor and the members of his family;
(c) the food and fuel necessary for the judgment debtor and the members of his family for a period of six months, or the cash equivalent thereof;
(d) in the case of a judgment debtor who is a farmer, all animals reasonably necessary for the proper and efficient conduct of his agricultural operations for the next ensuing 12 months;
(e) in the case of a judgment debtor who is a farmer,
(i) all farm machinery, dairy utensils and farm equipment reasonably necessary for the proper and efficient conduct of his agricultural operations for the next ensuing 12 months, and
(ii) one motor vehicle, if required for the purposes of his agricultural operations;
(f) the tools, implements, professional books and other necessaries, not exceeding in value the aggregate sum of $7,500., used by the judgment debtor in the practice of his trade, occupation or profession or to carry on his business and, where the judgment debtor requires the use of a motor vehicle in the course of or for the purposes of his employment, trade, occupation, profession or business or for transportation to and from his place of employment or business, one motor vehicle not exceeding in value the sum of $3,000.;
(g) the articles and furniture necessary to the performance of religious services;
(h) the seed sufficient to seed all the land of the judgment debtor under cultivation;
(i) the health aids, including but without limiting the generality of the foregoing a wheelchair, an air-conditioner, an elevator, a hearing aid, eye glasses and prosthetic or orthopedic equipment, that are reasonably necessary for the health or mobility of the judgment debtor or a member of his family; and
(j) the chattel property of The City of Winnipeg or of any municipality, local government district, school district, school division or school area in the province.
As you can see, basic goods are exempt from seizure, but this is a very complicated area of law. In addition, there are other factors to consider. While the law may indicate your father can keep an asset, cash flow and other considerations may dictate that he should not.
Therefore, given the complexity of this issue, we strongly recommend that you contact a bankruptcy trustee for a no charge initial consultation to review your father’s specific case in more detail.
too poor to go broke
Question: I have been unable to find full time employment for more than 2 years.my debt to creditors including the CRA has become unbearable. I have sold off all assets of any value to survive. I have also had discussions about bankruptcy with a number of trustees. the answer has all ways been the same. No steady income or the ability to pay the receivers monthly charge, there are no trustees who will handle my bankruptcy.Basically I have been told I am too poor to file for bankruptcy. What can I do ??
Answer: The main reason for filing bankruptcy in Canada is to prevent your creditors from garnisheeing your wages, or seizing assets. In your case, until you return to work, your creditors cannot garnishee your wages, so at this time there may be no reason to pay a bankruptcy trustee to protect you from your creditors. Once you return to work you may at that time require protection, so that may be the time to file bankruptcy.
What can I claim?
Can you please tell me if I claim bankruptcy can i claim utilities?(water,hydro bill) and can I claim a speeding ticket that has gone to collections,and my overdraft? What kinds of things can I claim?
Thank you,
