Winnipeg Manitoba Personal Bankruptcy Blog

When your bankruptcy case has been closed.

2007-10-27T15:20:00.000-05:00

Question: Is it possible to close a bankruptcy case before the client is discharged?

What does a person do if they thought they had been discharged a number of years ago and their credit report indicates that they have, but the trustee says that they haven't? And the trustee says that the case has now been closed?

Answer: There are two different concepts to understand reagarding getting a dishcarge from a bankruptcy in Winnipeg. First, the bankrupt is discharged once they have completed all of their duties, which include making any required payments to the estate, completing their two credit counselling sessions, providing information to allow the trustee to file tax returns, and surrendering non-exempt assets. If these duties are not completed, the bankruptcy will not be discharged.

Second, the trustee is discharged once they have completed the administration of the estate, which includes filing all necessary paperwork with the Office of the Superintendent of Bankruptcy.

It is possible for the trustee to be discharged BEFORE the bankrupt is discharged. If the bankrupt does not complete their duties, the trustee may apply for their own discharge.

The trustee then says that the "file is closed"; they are no longer acting as the trustee. This also means that, because the bankrupt was not discharged, the creditors can now pursue the bankrupt.

In this case the bankrupt should contact the trustee to determine what duties must be completed to obtain their discharge.

Question about a third bankruptcy in Winnipeg

2007-10-04T16:50:00.001-05:00

Question: Could you please tell me I have gone bankrupt 2 times and what happens if you want to file the third time?
Thanks

Answer: In a first bankruptcy in Winnipeg, you are eligible for an automatic discharge after nine months. If it is not your first bankruptcy, the bankruptcy court will determine when your bankruptcy will end.

With a third bankruptcy it is likely that the bankruptcy court will add extra time to your bankruptcy, and perhaps require you to make additional payments. The specific result will depend on your circumstances. For more information, consult a Winnipeg bankruptcy trustee.

Timing Question

2007-09-25T03:26:00.000-05:00

Question: Once you've met with a trustee and you've signed all the documents for bankruptcy, do creditors have a certain time period whereby they can still take money out of your bank accounts to cover credit card debts before creditors are 'stayed'? If so, how much time do they have?

Thank you.

Answer: Technically, as soon as you sign the paperwork the trustee will electronically file your bankruptcy with the Office of the Superintendent of Bankruptcy, and all creditors are "stayed", meaning they are not allowed to take money out of your bank account without permission.

In practice, the trustee must then mail or fax the bankruptcy paperwork to each creditor, so it may be a week or more before the creditors realizes that you are bankrupt.

Therefore, in all cases we recommend that before you file bankruptcy you open a new bank account at a new bank (one where you don't owe money). You then close your old bank account. Since your old bank account no longer has any money in it, it is impossible for a creditor to take money out of an account they don't know exists, provided you don't tell them about your new bank account.

Bondable after bankruptcy in Winnipeg

2007-07-27T10:36:00.000-05:00

Question: Are you bondable after your discharge from Bankruptcy in Winnipeg?

Answer: Yes, in almost all cases you will be bondable after you are discharged from bankruptcy. In fact, in many cases you are bondable even while bankrupt. To find out if you are bondable, as your human resources department at work to check with the bonding or insurance agency.

bankruptcy vs proposal

2006-11-26T23:13:00.000-06:00

If a bankruptcy and a consumer proposalboth take 7 years to clear your file why do a proposal? If you file for bankruptcy will you loose your car or home. If your car is worth not much and you barely have anything paid into your home is there a way not to loose them? Is there a place in Winnipeg free that you can go to for free monthly budgeting to see if you can manage on your own before you proceed with more permanent methods?

Due to injury you cannot make payments on your home.

2006-07-06T14:26:00.000-05:00

Does this sound like you?
John Thomas bought a house three years ago and with his salary was able to keep up with payments. Unfortunately, John was recently involved in an industrial accident and is now on permanent disability. Now, he is falling behind on mortgage payments and doesn’t know what to do to get back on track. What should he do?

What can you do?
The cost of home ownership is often overwhelming and it is not hard to get out of control with payments. Rest assured that you are not the only one who is in this situation. Two options for getting back on your feet include consumer proposals and bankruptcy. However, without a stable income, a consumer proposal is probably not a good option for you. You will probably need to consider bankruptcy. Bankruptcy will solve your financial problems quickly, but you need to be aware of the consequences. For more information on bankruptcy, click here.