personal bankruptcy
Personal bankruptcy related posts written by a Licensed Insolvency Trustee.
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Filing bankruptcy on $18,000 of unpaid rent owed to landlord
My sister recently moved out of her apartment that she hasn’t paid rent for in a close to a year. She owes about $18k in total and the apartment was damaged so she might owe more. She has now found a good job and trying to get her life back together but is worried that this might come back to haunt her. Since she left, the landlord hasn’t tried contacting her. Should she just ignore this or declare bankruptcy to get rid of this owed rent? This is in Ontario Victor Fong, Licensed Insolvency Trustee replies Since she left, the landlord hasn’t tried contacting her. Did your sister even provide…
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RBC rejected consumer proposal but asked for reasoning of credit card usage
Afraid that they’ll fully reject my consumer proposal. What are steps that I can do if they reject it fully? About 60k in debt. I’m scared if i do declare bankruptcy i won’t get discharged due to gambling Victor Fong, Licensed Insolvency Trustee responds You mentioned in the comments that you accumulated the debt through gambling. Have you taken any steps to address your gambling problem? For example, if you’re in the Toronto area, consider doing the following: Register yourself under the Ontario Lottery & Gaming Corporation’s (OLG) Voluntary Exclusion Program. Register yourself under the Centre for Addiction & Mental Health’s (CAMH) gambling counselling program. Then write a letter addressed to RBC…
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What happens when you don’t pay your debts?
I get asked this question a lot when people message me on Reddit asking for advice. So I thought I’d put together a chronology of what typically happens when a debtor owing credit card debt finds himself in this situation: You will get calls from the creditor. If you ignore them, the debt will be sent to an agent acting on the creditor’s behalf – usually a collection agency or a law firm. The agent will likely have your place of employment and banking information on file because you would’ve provided this information to the creditor when you had applied for credit with them. You’ll receive calls, letters and emails…
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What happens if you ignore your creditors?
A reader asks: What are the consequences if a person is declared bankrupt and ignores their debtors? Victor Fong, Licensed Insolvency Trustee responds: The question is using incorrect terminology: a debtor is the person who owes the money. The person who is owed money is called a creditor. Therefore, the question should be rephrased as: “What are the consequences if a person is declared bankrupt and ignores their creditors?” First off, a person is not “declared bankrupt” just because he can’t pay his creditors. He is insolvent. To be insolvent means that he cannot pay his debts as they become due. To answer your question regarding the consequences of ignoring…
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Lost Everything In The Stock Market And In Debt
Hello all, my hands are shaking this while I am typing this. I am in a bit of a situation, I have almost $75,000 of debt including LOC and credit cards. I have invested $55,000 in stock market which is sitting at $3500 from last 3 years. This was such a big mistake. I took out money from LOC to invest in stocks and it’s all gone now. My net income is only $3200 monthly and my monthly expenses is more than that. I am paying minimum payments on all the LOC and credit cards every month. I am the breadwinner of the family and we have an 18 month…
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What to expect when meeting with a Licensed Insolvency Trustee
Please listen to me first. Due to my poor financial decisions and gambling addiction I have accumulated following debts: Credit card = 15000$ Line of credit= 15000$ Money mart=12500$ Cash money =6000$ Other credit card= 4200$+ 5000$ I can’t seem to get out of this. It’s never ending cycle. I am thinking to apply for consumer proposal. Can someone help me what paper work they will ask ? Like tax filing or income verification. I don’t own a house or have a vehicle loan. Thank you and appreciate. Victor Fong, Licensed Insolvency Trustee replies: Here’s what you’ll typically be asked during a consultation meeting. Please note that this list…
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Can you file a bankruptcy if you can afford a consumer proposal?
Hi all, here for various reasons. Young and dumb, was offered credit cards and a line of credit and took them on. Made a lot of irresponsible decisions. I make $60k/year, live in Winnipeg. Live with my partner but we aren’t considered common-law yet. I’m 27f. Debts: 13k Cashback Mastercard 5k Avion Visa 27k Line of Credit All with RBC I was able to stay on top of my monthly payments for a while, managed to reduce my debt to 25k for a while and carried that. Then life just happened. The past 2 years or so has been rough. My partner was unemployed for a about six months, we…
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Can a lawyer file a consumer proposal or bankruptcy on law school debt?
I currently make an income of $80,000 a year before tax. I’m 27 year old female with no assets. I’m not sure if I should consider bankruptcy, consumer proposal or what to do. My debt: 150k line of credit at prime + 1% 50k government student loans at approx prime + 1% No credit card debt (I have 3 credit cards with ~$15k total limits but pay them off monthly) What I’m freaked out about- all my money goes towards paying off debt and living expenses; I feel like I’m drowning and can’t save. My debt feels never ending because of current interest rates and I’m also very aware that…
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What happens if you file for bankruptcy but don’t complete it?
If you file for bankruptcy but don’t complete it, the Licensed Insolvency Trustee will be required to oppose your discharge from bankruptcy and will schedule a discharge hearing with the Bankruptcy Court. You will be given notice of the discharge hearing date so you have the opportunity to attend the hearing and explain to the Court why you didn’t fulfill your obligations. The Court will issue one of the following Orders: You obtain an Absolute Discharge if the Court finds that you did nothing wrong. Your discharge is conditional upon you completing your obligations in your bankruptcy proceedings. If your conduct is especially egregious, your discharge shall be refused. If…
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Can I max out credit cards before bankruptcy?
Here’s what would happen if you did this. Your Licensed Insolvency Trustee would be contacted by the bank which issued you the credit card. The bank would inform your LIT that it’s reviewed your credit card transactions for the 12 month period before you filed bankruptcy and they’ve noticed that you’ve made some questionable transactions such as large purchases, cash advances, vacations, etc. The LIT will arrange for you to be examined under oath by the Office of the Superintendent of Bankruptcy and will ask you questions about these transactions. After the examination, they’ll issue an examination report to both you and your LIT with an opinion as to whether any aspects…
