Archive for July, 2006

Occasionally I get an email from someone in Chatham which does not give me any information about their situation. It might just say something like “I need help”. Although emailing me is a good first step, in order to give information by email, please provide details such as the amount of debt, any assets such as a house or RRSP’s, and how much income you take home from work, employment insurance or other sources. This will help me give you advice faster than if you don’t provide any information at all.

Email a question and together we can develop a plan that is right for you.

I was recently asked by someone in Chatham how bankruptcy effects the spouse.

If the debts are just in the name of the personal filing for bankruptcy then it has no effect. However, if your spouse co-signed the debts, or has a supplementary credit card then that debt becomes the spouses debt.

If you are in this situation, or have a question about your situation, email a question.

I met with someone in Chatham recently who filed for bankruptcy and now the trustee has opposed their discharge. In simple terms, this means that unless he does what is required of him, he will not get out of his bankruptcy.

When you file for bankruptcy your trustee tells you what your duties and responsibilities are. If you do not do what is required you will not be discharged. The court could also advise the trustee to close the file which means that the creditors can start collection on the debt again. Therefore it is important to do what is required.

If you need a plan to deal with your debt, you can email a question.

New legislation was recently passed dealing with the equity in an automobile in a bankruptcy. Prior to June 22, 2006, an automobile was exempt from seizure if its value was greater than $5,650. For example, if the car was valued at $5,000 it was not seized by the trustee, but if it was worth $5,651 it was seized by the bankruptcy or the bankrupt had to pay the trustee the value of $5,651.

Under the new legislation, the first $5,650 is exempt from seizure. For example, if the car is valued at $5,651, the bankrupt person has to pay the difference of $1 ($5,651-$5,650) to the trustee.

This new wording will help people filing bankruptcy to keep their car, and help them get a fresh start.

To discuss your financial situation and develop a plan that is right for you e-mail a question.