Bankruptcy – What have you got to lose??
Will I lose my house? Will I lose my car? Are you going to take my RRSP’s? Am I going to jail? What happens when I file bankruptcy? If I call you, do I have to file bankruptcy? Am I automatically bankrupt? These are all real questions we get asked by people just like you.
So what should you expect if you reach out to Vine and Williams for help?
Will I lose my house if I file bankruptcy?
We are interested in the equity in your house. We will not force you to sell your house but we will talk with you about how realistic it is to stay in it. If you can manage your mortgage and property taxes and you want to stay in your house, we will work to figure out how you can keep it. Your creditors are entitled to the value of the equity in your house (what would you be left with if you sold it). We are not interested in putting you and your family on the street. It is almost always better to file a proposal if you are a homeowner.
Will I lose my car if I file bankruptcy?
You are entitled to keep one vehicle worth up to $7,117 free and clear. If it is worth more than that and you don’t have a loan against it, we’ll figure out how you can keep it. We are only interested in the value over $7,117. If your vehicle is leased or financed, you can keep it as long as you can make your payments to the lender. The lender can’t repossess your car just because you file a bankruptcy or proposal.
Will you take my RRSP if I file bankruptcy?
You are entitled to keep everything in your RRSP except contributions in the last 12 months. This rule is to prevent people from putting money in an RRSP just before filing bankruptcy or a proposal to keep it out of the hands of creditors. We will work with you if you contributed in the last 12 months and you don’t want us to withdraw those funds.
Will I go to jail if I file bankruptcy?
Not likely and definitely not just because you file bankruptcy or a proposal. Bankruptcy itself is not a crime and borrowing money and not repaying it isn’t either. If you have committed fraud or obtained credit under false pretenses, we need to know about it so we can properly advise you. Please don’t keep secrets from us … we don’t want to find out later when you are already in bankruptcy.
Contact us to discuss your specific situation and we will be happy to answer your questions about what would happen in a bankruptcy, and whether a consumer proposal is a better way for you to keep all of your assets and deal with your debts. Let’s have a conversation.
Vine and Williams – Licensed Insolvency Trustees
Call 1-833-808-8463 or fill out the form to Contact Us by email.