-
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…
-
Handling my mother’s credit card debt because she’s irresponsible
My mom got a Capital One Credit card in 2014 with a limit of $7300. She eventually ended up maxing out the card and due to some issues with her relationship, she had to move out. They told her they were going to pass her to collections but they never did, so she forgot about it. About 4 years ago, she ended up buying a house (I don’t know how she got a mortgage with this possibly on her credit record), and she had no problems. Then Capital One retained a lawyer to recover the debt + interest, so they lawyer told her, she has to pay back $11,313.73 due…
-
Does debt follow you if you go to another country?
Do provincial and national student loans follow you if you move to another country? I used OSAP for my undergrad and racked up about $50,000 in loans. If I moved to another country would they follow me? If I just stopped paying them back, what would be the consequences? Victor Fong, Licensed Insolvency Trustee responds: In theory, they can. Here’s how it would work: They perform a Google search on your name and review the search results. You’ll probably show up on LinkedIn or on your employer’s website. They review what your job and title are and where you work. If you’re a potential high-income earner such as an engineer,…
-
Consulting a lawyer prior to considering a consumer proposal?
Been slowly slipping deeper into debt the last while, I’ve been beyond stressed about it while my spouse thinks it’s fine. I’ve mentioned the consumer proposal ideal before but my spouse shut it down. So we visited a bank for a consolidation loan, 100k @ 12% and we wouldn’t be able to make the payment without incurring more debt. So we met with a Certified Financial Planner, he recommended looking into a consumer proposal. My spouse now wants to see another Certified Financial Planner, and even mentioned seeing a lawyer? As spouse stated ‘a consumer proposal is for someone who is close to bankruptcy, and that isn’t us’ all the…
-
Badly in need of advice to pay debt off please!!
My job had shortage of work at the end of 2022 so I had no work up until June of this year when I finally found a part time job. This part time job pays scraps, but allows me to buy some groceries, pay my car insurance, and cover rent. Unfortunately, for the 8 months that I wasn’t working, I occurred nearly $10k in debt, which was used to cover rent, insurance and groceries. I don’t spend money on clothes or luxuries, so as much as I wish this debt was avoidable, it wasn’t ( or not in ways that I was aware of). I’ve been paying off what I…
-
Things to consider when asking for advice if you have a serious debt problem
If you have a debt problem, you’ll get better quality advice from a Licensed Insolvency Trustee if you provide the following information: Your province Property laws will very by province, so indicating where you live is very important. Your household income & expenses What’s your monthly net income – i.e., how much gets deposited into your bank account from your employer? Give a breakdown between employment income, spousal support, child support, rental income, Canada Child Benefit, EI, CPP, OAS, etc. What’s your spouse’s monthly net income? Give the same breakdown as above. What are your monthly household disbursements? Some examples: Rent Mortgage Property taxes Maintenance fees Hydro Gas for home…
-
A Millennial banker is $33,000 in debt – what are his options?
29M in GTA with maxed $8,000 RBC Visa @ 20.99% and $25,000 RBC LOC @ 12.5%. Started university later in life and was living out of family home with no outside help so incurred this debt in the last 5 years or so. Finally finished school and am working as a paid intern at a big 5 bank in DT Toronto but currently only making $53,500/yr and interest is killing me. No assets or savings. At this rate I’m never gonna get this paid off so considering a consumer proposal. Is this my best option? Any help appreciated! Victor Fong, Licensed Insolvency Trustee responds: LIT here. In reference to your…
-
Will filing a consumer proposal cost you your job?
Hello all, not sure if this is the best place to post, so please direct me elsewhere if it’s not here! I’m in a bit of a cross roads. I earn good income, $61k salary, plus my partners income ($20k-$30k shift work) gross annually. I was pressured by family to go to university immediately after high school and under ill advice, told to take the full student loans out. That landed me in $40k debt of student loans with nothing to show and it’s been downhill since. At the same time, I had good credit as a new adult and a lot of bills were put under my name without…
-
Can I withdraw a consumer proposal?
Can you withdraw a consumer proposal after it's been filed?
-
Can you cancel a bankruptcy?
Can you cancel a bankruptcy after it's been filed? Our Licensed Insolvency Trustee provides a comprehensive answer.
