Montreal Quebec Personal Bankruptcy Blog

I'm moving to New Brunswick but I am a Quebec resident

2010-02-04T15:42:00.000-05:00

Question: I'm moving to New Brunswick but I am a Quebec resident. Which province is best for me to declare bankruptcy? Should I declare bankruptcy in New Brunswick?

Answer: The legal answer is that you should declare bankruptcy either in your province of residence, or the province where your assets and debts are located. If your debts are credit cards, your debts are probably administered out the credit card companies head office in Ontario, so that won't matter.

If you are living in New Brunswick, it is probably easier to file in New Brunswick, so that you are close to your trustee for any meetings that may be required.

Bankruptcy: can I keep a credit card?

2010-02-03T01:03:00.000-05:00

Question: hello, when filing for Bankruptcy can I keep 1 credit card?

Answer: No, when you file bankruptcy you are required to surrender all credit cards. The law is written that way to prevent someone from borrowing money on a credit card when the credit card company did not know about the bankruptcy

Will I get my tax refund?

2010-02-02T13:12:00.000-05:00

Question: I declared bankruptcy in 2009 and was discharged in December of 2009. It is now coming to the time to have my taxes filed.
My current employer has taken off extra taxes in 2009 to ensure that I would not owe money at the end of the year. If a refund is determined for either the Federal and/or Provincial (Quebec) return, will I actually be getting that refund or is it withheld?

Thank you!

Answer: While there may be differences in individual cases, as a general rule you will lose your tax refund for the year of the bankruptcy, so you should assume you will not receive your tax refund for 2009.

Your bankruptcy trustee can provide you with specific information on your case.

in a bind.....

2009-12-11T14:58:00.002-05:00

Question: Hi, I find myself owing some substantial amounts back taxes to both prov revenue qC and CRA after some initial investments involving my rrsp went sour (although both gov. had accepted the claim in 2006.Now they both want the taxes on these RRSPs + interest for the last years.......I filed a NOO with CRA and the case is being represented by the Synergy 200 inc company that came up with the original investment package.........Can I make a deal? (like get rid of interest charges ?? that was my pension and now aside from our home we have nothing and owe +85,000$!!! much of it interest ???

thanks

Ray

Answer: Yes, it is possible to make a deal, but unfortunately making a deal with the government is very difficult in most cases. If you can't make a deal with them, or if you can';t get them to waive penalties and interest, you may have no choice but to consider a consumer proposal or personal bankruptcy.

Federal and Provincial Taxes are too difficult to pay!

2009-10-27T11:04:00.000-04:00

Question: Please tell me what to do? I have absolutely no debts accept Federal and Provincial taxes in the amount of $3000 per month in installments for my last years income. I have made an arrangement with both governments to make installments each month totaling $3000 per month. Now my business has declined this year 50% I cannot afford to pay the taxes from last year....what do I do? If I take another job with less pay I certainly cannot pay these taxes...monthly...I am willing to pay but what worries me is what happens to next years taxes I owe...if I get a regular job and own my own business how can I catch up on these taxes?

Answer: Without knowing what the future will hold, it's impossible to create a perfect strategy. Here are your options:

First, you could pay whatever you can afford each month. If you can afford $1,500 per month, pay that. It's possible that over the next few months your business will improve, and you will be able to get caught up in the future.

Your second option, as you mentioned, would be to get a "regular job" where taxes are deducted from your pay each month, so that at the end of the year you don't owe any taxes. That solves your problem in the future, but does not deal with your old tax debts. It may be that it will take a long time to get caught up with the government.

Your final option would be to file a consumer proposal or personal bankruptcy in Montreal to eliminate your tax debts.

To make your decision, you will need to decide whether or not your business is viable. In other words, in the future will you be able to earn enough to support yourself and to pay your taxes. If you are self employed you should remit your tax installments every month, or every three months; if you are always paying last year's taxes this year, then your business probably isn't viable.

Once you have decided on the viability of your business, talk to a Montreal bankruptcy trustee to discuss a consumer proposal or a bankruptcy, and to evaluate if those options are appropriate for you.

the hill is getting too big to climb

2009-10-12T09:47:00.001-04:00

Question: I am presently on maternity leave so my spouse is the only one working. The debt is piling up and we are now unable to manage month to month. With the value of homes down, the house is now worth less than what we owe. The creditors call all day. Between the calls and taking care of a newborn I am mentally and physically wiped. My health is suffering due to all the stress. We just want to find a way to get our lives back, as impossible as that may feel right now. We desperately need a fresh start. Do you have any advice for us? thank you.

Answer: The answer to your question will depend in part on who owes the debts. If the debts are all in your name, the creditors have no way to garnishee your wages while you are on maternity leave, because you have no wages. You could open a new bank account at a new bank, stop paying them, and simply ignore the phone calls.

Your other option would be to file a consumer proposal or declare bankruptcy to eliminate your debts. However, filing a proposal or bankruptcy costs money, so you would be making payments to protect yourself from creditors that can't garnishee wages until you return to work.

Our best advice would be to speak to a Montreal bankruptcy trustee to review your specific set of circumstances, and then based on that determine which option is best for you.

Collection calls for debt

2009-07-30T18:35:00.002-04:00

Question: I am 1 week late on paying a payment to a creditor. I have called them and let them know that the person I work for has not paid me yet and I will let them know which day to withdraw the funds as I am changing banks. They have called me 6 times today....3 times within one hour. The excuse is that it is a machine that is dialing not them and that they have the right to call. I see this as harassment and am already considering bankruptcy as my financial situation is now out of control. Can they continue to call me this often?

Answer: Unfortunately if you are behind on your payments, your creditors will continue to call. Most of them now use an automated dialing machine, so if you don't answer they will call you again in a set period of time. They don't consider it harassment, since they only count the calls you actually answer.

You have two choices. First, if you believe you will have the money to get them caught up very soon, your best option may be to simply tell them that you will be able to pay them within two weeks, or whatever, and then just keep repeating that information every time they call. Once you pay them, the calls will stop.

The other option, as you suggest, is to do something formal, such as filing a consumer proposal or declaring bankruptcy in Montreal.

If your debts are small, go with the first option. However, if you have no hope to repay your debts, you should speak to a bankruptcy trustee to explore your other options.

Divorce and Bankruptcy in Toronto and Montreal

2009-07-20T10:54:00.000-04:00

Question: I got myself in a mess was divorced 4 years ago and have sole custody of my 14 year old. One year after the divorce I was laid off my employment after 12 years and it took me 5 months to find a job, finally found one less money of course but again 1 year later that company went bankrupt. The last time it took me 7 months to find another job again less money and I was very behind paying everything. I have been working since 1 1/2 years but I just cannot catch up my loan payments and living expenses are just not enough to catch up.

I went to meet with the Bank about a debt consolidation loan and they are offering something but almost 2 weeks of my salary will have to go to pay it off and will take me 8 years they say best they can do. I owe about 45K and after 8 years I will have paid 91K with what they are asking. I just do not know if I should try to do this and kill myself doing it or go another way. I would appreciate it if you could tell me your opinion. My x-husband has nothing to do with me or my son and under no circumstances do I want him to find anything about this. Is there another way I can go. I had a friend who filed for bankruptcy in Toronto; I don't know if I should filed for bankruptcy here in Montreal. Also I have a good job not and do not wish for my employer to find out either.
Thank-you.

Answer: You have presented a good analysis of your situation. You are correct that the first option to consider is to work through your debts on your own. You start by making a personal budget to determine what expenses you can cut to free up more cash to pay your debts. This will also help you understand how much you can afford to repay if you get a debt consolidation loan. The bank has already given you a lot of debt consolidation loans information, so you know the numbers on which to base your decision.

It would appear that it would be very expensive for you to make the payments on the consolidation loan for the next eight years. Given that you know how difficult it is to keep a job during a recession, a big concern would be whether or not you will have un-interrupted income for the next eight years so you can make all of the payments. That's a big risk.

Another option would be to consider a consumer proposal. In a consumer proposal you make payments over a period of up to five years, but in most cases you are repaying less than the full amount of your debt, so the payments are affordable.

If that's not possible, a bankruptcy may be necessary, but that's a last resort.

We suggest you start by using a debt options calculator to evaluate your options, and then contact a Montreal bankruptcy trustee for a free initial consultation to review all of your options.

co-signed

2009-05-05T18:47:00.000-04:00

Question: I co-signed for a friend to get a car. what happens if i go bankrupt ?

Answer: If you go bankrupt, the car lender can no longer pursue you for the debt. Your friend will be responsible to make all payments. We suggest that before you go bankrupt, your friend should contact the lender and ask to have your name removed from the loan. If they won't do that, your friend should confirm that they can continue to make the loan payments if you go bankrupt.

taxes owed and bankruptcy

2009-02-04T12:53:00.003-05:00

Question: hi my spouse currently owes money to the government and they will not make a payment arrangement can they go after my assets to claim what is owed to them since we are married?

Answer: No, your assets are your assets, and no-one, including the government, can go after your assets for someone else's debts. The only exception would be if your spouse has deliberately transferred their assets to you, and then filed bankruptcy in Canada in an attempt to get out of their debts. That would not be permitted.

We suggest you contact a Montreal bankruptcy trustee to review your options and provide you with advice on how to deal with Revenue Canada debts.

filing bankruptcy in Montreal

2009-01-01T08:19:00.004-05:00

Question: am i allowed to own a vehicle after i file bankruptcy in Montreal?

Answer: Yes, it is possible to own a vehicle while you are bankrupt. There are certain conditions that apply, so you should consult a Montreal bankruptcy trustee for further information.

Filing for bankrupcy in Montreal - what do I get to keep?

2008-12-18T15:01:00.003-05:00

Question: I read that you can keep up to $6,000.00 worth of family assets.Does that include appliances....like tv,stereo,fridge,stove?

Answer: Yes, the list of bankruptcy exemptions in Quebec includes basic appliances.

For more information, or to review your specific list of assets before you decide to file bankruptcy in Montreal, we suggest you arrange a free initial consultation with a Montreal bankruptcy trustee.

Planning a Consumer Proposal

2008-12-06T20:35:00.000-05:00

Question: Hello, I am planning a consumer proposal, my question is will it affect my home mortgage or me owning my home in any way?
Mortgage is up to date but credit is starting to lag behind.
Thanks

Answer: In general, a consumer proposal does not affect an existing mortgage. In most cases if your mortgage is up to date the mortgage company will allow you to continue making payments on your mortgage. In fact, wanting to keep their home is one of the most common reasons for filing a consumer proposal.

However, to be sure, it is often advisable to confirm with your mortgage company that your mortgage will not be impacted before you file your consumer proposal.

personal bankruptcy in Montreal, Quebec

2008-08-26T10:15:00.003-04:00

Question: if i file for bankruptcy, can i still keep my house,car and motorcycle that i still owe in full? there is no equity to those items.

Answer: The answer depends on the value of the items, and whether or not there are any liens or loans secured by those assets. For example, if you own a brand new car worth $50,000 with no loans against it, you would not be permitted to keep it if you went bankrupt, unless you were able to give equivalent cash value to the trustee.

Since the rules are complicated, we recommend that you consult a licensed bankruptcy trustee to arrange a no-charge initial consultation to review your specific circumstances.

Bankruptcy and my spouse

2008-04-13T12:04:00.002-04:00

Question: How does my personal bankruptcy affect my spouse?

Answer: The short answer is that filing personal bankruptcy in Montreal does not affect your spouse, provided you have no joint debts with them.

The longer answer is that if you have joint debts, they are responsible for those debts once you go bankrupt.

Full details are available in our article on bankruptcy and your spouse.

RSP and Bankruptcy in Montreal

2007-10-24T15:49:00.000-04:00

Question: Will going bankrupt in Montreal affect my Retirement savings, which is under 1,000$?

Answer: It depends. If your RRSP is locked in as a result of your previous employment, than it is exempt from seizure in a bankruptcy. In most other cases you will lose your RRSP if you go bankrupt.

The specifc answer in your situation will depend on various factors, so we suggest you consult a Montreal bankruptcy trustee to arrange for a free initial consultation to review your situation in more detail.

Bankruptcy in Montreal and House

2007-06-12T14:41:00.001-04:00

Question: I am in debt of more than 45000.
Can I declare bankruptcy in Montreal and not lose my house or pension?

Answer: The answer depends on the value of your house, and the amount owing on your mortgage. In most cases you will not lose your pension if you go bankrupt.

To determine what will happen in your situation, please contact a Montreal bankruptcy trustee for a no-charge initial consultation to review your options.

bankruptcy in Montreal

2007-04-13T18:30:00.001-04:00

Question: If I have 35 000$ in debts, and I made less than 20 000$ last year..(my common law spouse made about 19,000) can I still declare bankruptcy in Montreal?

Answer: Yes, you can declare bankruptcy. The real question is whether or not bankruptcy is the correct solution for you. If you are earning $20,000 per year and have $35,000 in debts, it is unlikely that you will be able to repay your debts on your own, so bankruptcy may be the correct option for you.

We suggest you contact a Montreal bankruptcy trustee to review your options, and to explain the cost of bankruptcy, which is based, in part, on your family income.

Consumer Proposal, Houses and Trustees

2007-03-19T02:48:00.001-04:00

Question: Are trusties to be trusted or are they in it for the money and to buy a persons home because of the big money to be made by reselling it after?

Answer: All bankruptcy trustees in Canada are licensed by the federal government. They are subject to very strict rules, and are not allowed to profit by selling your house. In fact, it would be basically illegal for a trustee to buy a house from a bankrupt for below market value and then sell it later at a profit.

In the event of a personal bankruptcy where a trustee is required to sell a house (which is unusual), the trustee would use a real estate agent, and the house would be sold at fair market value. The trustee would not personally profit from the sale.

Co-signed house

2007-02-13T23:23:00.000-05:00

Question: If I was to file for consumer protection what would that do to a house that is co-signed as well as a car?? Would we have to give up our dwelling or return the car I use for my work?
Thank you.

Answer: If you file a consumer proposal you can continue to pay the mortgage on your house, and the loan on your car, if you want to keep your house and car. If you file for personal bankruptcy you may still be able to keep your house and car; it depends on the value of those items and some other factors.

Either way, your co-signer is still liable for the debts. If you stop paying, they are liable.

Since this is a complicated area, and there are many factors to consider, we suggest you contact a trustee to arrange a no-charge initial consultation to review your options in more detail.

bankruptcy question

2007-01-23T15:53:00.000-05:00

Question: hi, i filed for bankruptcy (personal) a few months ago, i was wondering where i can go to file my income taxes??
thanks

Answer: Your bankruptcy trustee is responsible for filing your income taxes up to the date of your bankruptcy. You should contact your trustee for further information.

Buying a home from a trustee in Quebec

2006-12-24T21:45:00.000-05:00

Rochelle Pont CIRP Trustee says

If the couple are not discharged from bankruptcy, then it will be their trustee selling you the home and not the bankrupt couple. If you purchase a home and the tiltle is registered by a notary and you are buying it free and clear of any encumbrances, You will encounter no legal problems. Look carefully at the deed of sale as to the guarantees and to the warranties.

Two individual cohabitation recently declared bankruptcy due to non payment of personal back taxes.

The couple have not been discharged from bankruptcy but are selling their home.

The home will be transferred to a trustee the day it is sold.

What legal issues should I be aware of if I plan to purchase the home?

Not Discharged from bankruptcy

2006-12-04T13:47:00.000-05:00

if you are not discharged from a bankruptcy can you still put a creidtor on it

Bankruptcy - Criminal Record?

2006-09-29T15:27:00.000-04:00

Question: I've heard that in some cases Bankruptcy can give you a Criminal Record? Is it true?

Answer: No, filing an assignment in bankruptcy does not give you a criminal record.

bankruptcy and credit reports?

2006-09-24T17:26:00.000-04:00

Question: How long does a bankruptcy stay on your credit report after you are discharged?

Answer: According to Equifax canada, the bankruptcy is purged automatically six years form the date discharge in the case of a 1st time filing. If the consumer has declared bankruptcy more than once, the system will keep each bankruptcy for fourteen years from the date of discharge