2024-09-25
What happens if I don’t fulfill my duties during a Bankruptcy?
Bankruptcy
If you’re going through a personal Bankruptcy, one of your main goals is to obtain your discharge — that is, to have your debts cleared so you can start fresh.
Monthly Annuity - Will I Lose It In A Bankruptcy?
If your annuity comes from a registered pension plan, the amount in your pension plan would be protected - it cannot be seized in a bankruptcy. In this situation, your monthly annuity amounts would be treated as income during your bankruptcy. They would be subject to the Surplus Income Formula that applies in all personal bankruptcies.
Under that formula, if your monthly income is higher than a certain amount, you're expected to pay an amount into the bankruptcy each month for your creditors. The intent of the formula is to achieve some fairness between you and the creditors. Your creditors will be writing off the debts. In return, if you have the ability to pay, you're expected to pay something into the bankruptcy for your creditors for a limited period of time.
However, there are different types of annuities, so you're best to see a trustee to get some specific advice as to how yours would be treated in a bankruptcy.
Linda Paul
CIRP, LIT
Senior Vice-President
Servicing: Abbotsford, Chilliwack, Maple Ridge, Surrey, Langley
Latest Blog Posts
2024-06-10
Life after Bankruptcy
Bankruptcy
The fresh start you obtain after filing a Consumer Proposal or Bankruptcy offers many new paths for managing your day-to-day needs and planning for your future.
2024-05-30
How Often Can You File For Bankruptcy (MNP 3 Minute Debt Break)
Bankruptcy
Canadians are facing a cost-of-living crisis. With rampant inflation, many have taken on more debt just to make ends meet. With interest rates still high, some households might be considering declaring Bankruptcy for the first, second, or even a third time.
If this sounds like you, don’t worry — many people are in the same situation, and it isn’t anything to be ashamed of. Filing for Bankruptcy or entering a Consumer Proposal might be the solution you need to relieve financial stress and get a fresh start.
