St. John's Newfoundland Personal Bankruptcy Blog

Bankruptcy in Canada

2010-02-25T23:06:00.000-03:30

Question: My mother does no live in Newfoundland. She has a lot of debt. Can she come to Newfoundland to go bankrupt, or can she file somewhere else. How does bankruptcy Canada work?

Answer: She can file bankruptcy in Newfoundland if she lives in Newfoundland. If she lives somewhere else in Canada, she can file where she lives. If she does not live in Newfoundland, she should find a trustee where she lives to help her file personal bankruptcy in Canada.

Maximum Monthly income allowed in Bankruptcy in Newfoundland

2009-09-07T12:39:00.003-02:30

Question: I am considering bankruptcy in Newfoundland as an absolute last option. I have two children and a girlfriend. I am curious what is the maximum amount my household is allowed to earn before we start losing 50% of the extra? I reside in St. John's, NL and I have heard is is like $3600.00 per month before we start losing 50% of the extra income. Can you tell me the monthly maximum income allowed for a family of 4 in St. John's, NL?

Answer: The surplus income limit in bankruptcy is the same in Newfoundland as it is in the rest of Canada. In 2009 a family of four is permitted to have net income of $3,474 per month. You then pay a penalty for half of the amount you are over that limit.

The calculation depends on a number of factors, so we suggest you contact a Newfoundland bankruptcy trustee for a no-charge initial consultation to review the calculation for you in more detail.

Refinaced Car Loan and bankruptcy

2009-06-18T08:27:00.000-02:30

Question: If I refinanced my car loan and had a co-signer and I declare bankruptcy, does the co-signer have to pay for the car?

Answer: Yes, if you are unable to make the payments on your car, or any other loan, the co-signer becomes liable for the debt.

cant afford to go bankrupt

2009-02-01T15:12:00.002-03:30

Question: i recently had a consultation with a trustee,it would cost me 350 dollars a month in order for me to declare bankruptcy. i cant afford to pay 350 dollars. what other options do i have?

Answer: You have a number of other options. First, if the trustee has quoted $350 per month, it is likely that you have surplus income, or other assets. If you have no surplus income or assets the cost of bankruptcy is generally less than $350 per month.

One option would be to try credit counselling, where a credit counsellor works out a plan for you to repay all of your debts in full, at a reduce or zero rate of interest.

If you can't afford to repay your debts in full, a consumer proposal is another great option for avoiding bankruptcy and giving you a fresh start.

monthly child tax credit and bankruptcy in Newfoundland

2008-10-21T11:06:00.003-02:30

Question: If a person files for bankruptcy....can they take away the children's child tax credit that they get monthly....???

Answer: No, if you are receiving child tax credits now, you will continue to receive them once you are bankrupt. However, when you are bankrupt, if your family income exceeds a certain amount, the amount you are required to pay while bankrupt, called surplus income, goes up. Your trustee can explain that process in more detail when you meet.

Conditional discharge.

2006-12-17T11:53:00.000-03:30

I'm in conditional discharge and I'm running into a bit of financial difficulty and my brother is willing to cosign a loan and get me out of this financial difficulty and back on sound footing to being able to finish paying off my conditional discharge. Is this allowed?

what do i do

2006-09-09T01:17:00.000-02:30

i owe about 8000 dollars in credit like credit cards and phone bills i only work part time im still living home what do i do someone please tell me i cant afford to pay that

Separated and worried about the effects of bankruptcy on your spouse.

2006-07-07T17:14:00.000-02:30

Does this sound like you?
Heather Kates and her husband are separated. Heather's husband has some credit card debt in his name, and Heather has some in her name, as well as a co-signed loan for a car. Heather's husband is considering filing a proposal or bankruptcy but isn't sure how it will affect her and the kids. What will Heather be responsible for?

What can you do?
Effects on a family member are one of the most common concerns from those considering bankruptcy or a proposal. The debts that should be of concern are those that have been co-signed. If your husband or wife files a proposal or bankruptcy, they will be cleared of all debts; however, you will be responsible for any debts you co-signed. It is highly advised that you contact a licensed bankruptcy trustee to review this situation with you. To find a licensed bankruptcy trustee, click here.