Bankruptcy Montreal Quebec » bankruptcy trustee

Will I get my tax refund?

Questions — Tue, 02 Feb 2010 18:12:00 +0000

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.

Collection calls for debt

Questions — Thu, 30 Jul 2009 22:35:00 +0000

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

Questions — Mon, 20 Jul 2009 14:54:00 +0000

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.

taxes owed and bankruptcy

Questions — Wed, 04 Feb 2009 17:53:00 +0000

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 for bankrupcy in Montreal – what do I get to keep?

Questions — Thu, 18 Dec 2008 20:01:00 +0000

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.

RSP and Bankruptcy in Montreal

Questions — Wed, 24 Oct 2007 19:49:00 +0000

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.

Consumer Proposal, Houses and Trustees

Questions — Mon, 19 Mar 2007 06:48:00 +0000

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.