There are certain debts that survive a Bankruptcy filing as outlined in Section 178 of the Bankruptcy and Insolvency Act . These include: Court fines, penalties and restitution orders; Alimony, child support and maintenance; Any award by the Court for intentional bodily harm, sexual assault or wrongful death; Any debt or liability arising out of fraud, embezzlement, misappropriation or misconduct while acting in a fiduciary...
There are various duties required of you when you go Bankrupt (some of which are described here). If you do not complete them, the Licensed Insolvency Trustee may obtain its discharge from administering your Bankruptcy, thereby leaving you in Bankruptcy. This will essentially put you back into the same situation as you were prior to filing for Bankruptcy, wherein all of your unsecured creditors can once again pursue you directly for payment of the...
The federal government provides guidelines to all Licensed Insolvency Trustees to help them determine if an individual or family has ‘surplus’ income. Your threshold for surplus income is calculated based on the number of dependents in your household and your net family income. Net family income refers to how much you earn after deducting income taxes, payroll deductions, essential medical expenses, alimony, and child support. It does not typically...
When you file for Bankruptcy, unsecured creditors will be given the chance to file a claim with the Trustee for the amount they are owed in order to receive their share of any funds distributed in your Bankruptcy. Your creditors will deal directly with the Licensed Insolvency Trustee and are required by law to immediately stop contacting you regarding collections. If a creditor persists in contacting you, you should notify your MNP Licensed Insolvency...
If a debt included in your Bankruptcy has been co-signed or guaranteed, the co-signer / guarantor will be responsible for making the payments in full.
It is a piece of legislation that governs the administration of a Bankruptcy estate and oversees the distribution of its value to the Bankruptcy estate’s creditors, while providing a financial fresh start for individual debtors. Both Bankruptcies and Consumer Proposals are debt solutions under the Bankruptcy and Insolvency Act.
