Personal Bankruptcy: 4 Frequently Asked Questions

Frequently Asked Questions about Bankruptcy.

It is never easy to declare bankruptcy insofar as it is similar to the recognition of failure. However, this may constitute a chance to draw a southern treaty in the hope of distributing it to zero. It is a solution of last resort that will have consequences series for the credit file of the person concerned. That’s why, of names, people continue to ask questions about these kinds of situations in order to better manage them. Here are some of the most common ones.

 

1. Is it possible that all debts are erased after personal bankruptcy?

Contrary to what some people tend to believe, bankruptcy does not necessarily erase all debts since the debts related to the non-payment of maintenance, to a penalty imposed by a short or to the consequences of a fraud od ‘acts are not eliminated as a result of personal bankruptcy.

 

2. Who is in the list of taxes?

Tax-related debts, as well as those related to the use of credit, such as credit cards, personal margins, loans, or what relates to collection agencies, are included in the bankruptcy. In other words, the majority of the debts contracted in real life are erased after personal bankruptcy.

 

3. Is what RRSP seizable in bankruptcy?

Since the coming into force of Bill C-12 in 2008, RRSPs and RRIFs are not subject to seizure. That said, education savings plans are not immune to foreclosure in bankruptcy. There is, however, since contributions made to an RRSP during the 12 months preceding the bankruptcy or less can be seized. This exception was put in place to prevent people from putting funds out of the reach of creditors while at the same time defaulting on their debts.

 

4. Who survives the release of his debts following a bankruptcy?

General, the liberation of survivors 9 months after the declaration of bankruptcy except that this delay can go up to 21 months in case you have surplus income. The bankruptcy should also be the first and the different parties concerned, namely the creditors, the trustee and the Office of the Superintendent of Bankruptcy, not be opposed to it after taking part in the meetings provided for in the law.

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