More Questions Answered In Greater Detail
What factors determine if bankruptcy is the best solution for me?
There are a number of circumstances that determine when bankruptcy is not the best solution. If your income is sufficient to manage your debt over a given period of time you may be able to renegotiate an arrangement with your creditors…
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Who will know about my bankruptcy?
Only your creditors must be notified of your bankruptcy. It is not necessary for your employer or clients to know about your bankruptcy unless you owe them money as creditors. Though your bankruptcy, as well as your ultimate discharge, are public records and are…
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How does bankruptcy affect my wages?
Wage assignments and garnishments are stopped once bankruptcy is declared. The Trustee reviews the amount of your wages and your living expenses through monthly budgets for the nine months period of your bankruptcy. Your income is then compared to guidelines…
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Will it affect my spouse?
No. Only assets owned by the bankrupt are included in the bankruptcy. If assets are jointly owned with a spouse, then the bankrupt’s portion may have to be sold and distributed to the creditors. It is important to make the Trustee aware of joint assets so that…
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What happens with respect to my taxes?
The Trustee prepares two tax returns in the year of bankruptcy. A pre-bankruptcy income tax return must be filed for the period from January 1 to the date of bankruptcy. A post-bankruptcy income tax return must be filed for the period from the date of bankruptcy to December 31…
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If I go bankrupt, will I need a lawyer?
Generally, you do not require a lawyer to go bankrupt. If you feel the need for legal advice and cannot afford a lawyer, legal aid is available….
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What is a Trustee?
A Licensed Insolvency Trustee is an individual who is designated by the Superintendent of Bankruptcy to administer the bankruptcy or consumer proposal process and provide counseling within the requirements of this process. A Trustee acts on behalf of both the bankrupt and in the interests of the…
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Are student loans discharged in bankruptcy?
In a general sense student loan debts are treated exactly the same as all other unsecured debts, in that they are stayed from taking collection action during a bankruptcy, will receive their share of any distribution and have the same rights as other creditors…
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In this section of our web site we will try to provide you with answers to the questions we are most frequently asked about bankruptcy in Toronto and alternatives to bankruptcy. The first sets of questions are answered directly by Richard Killen himself in a series of video clips. Text answers are also available by clicking on the text link beside the video clip button. Other questions are answered in text only at the bottom of the page.
