Bankruptcy Alberta » 2010

Archive for February, 2010

Spousal Support

Questions: How does spousal support affect bankruptcy?

Answer: Spousal support is treated differently from most other debts in a bankruptcy. Amounts for spousal arrears, if any are a debt that survives a bankruptcy discharge and must be paid.

Payments to one’s bankruptcy estate are based on a person’s net income and spousal support paid while in bankruptcy is an allowable deduction from your net income. Spousal support payments will reduce the amount you have to pay into your bankruptcy. Similarily if you are receiving spousal support you will have to add these amounts to your income for bankruptcy purposes.

Posted on February 11th, 2010 by Questions in Spousal Support | No Comments »

Vacations while Bankrupt

Questions: Can you still book and take vacations while filing for bankruptcy?

Answer: A bankruptcy does not preclude you from undertaking your regular activities. You can continue to take vacations subject to your own budget constraints. As you are not suppoed to use credit while bankrupt it may be difficult to book flights, rental cars or hotels without a credit card.

Depending on your income you may also be required to share some of it with your creditors and make payments to your bankruptcy estate. Be sure to meet those requirements before you spend funds on a vacation and get caught on your bankruptcy obligations.

Posted on February 11th, 2010 by Questions in Vacations in Bankruptcy | No Comments »

U S debts

Question: I am a U.S. citizen and moved to Red Deer with my husband who got a transfer back to Canada. The company I worked for in Texas went bankrupt seven months ago and I can’t work in Canada until I apply with imigration and get approved.

This is going to take several months and we are majorly behind on our credit cards. Does a bankruptcy in Canada help us? If so can we file bankruptcy here in Red Deer?

Answer: A bankruptcy in Canada relieves you of any obligation to pay while you are in Canada and U.S. creditors are prevented from enforcing these debts in Canada.

Depending on when you return to the U.S. the rights of the U.S. creditors are not affected by your Canadian bankruptcy and they may resume collection. There may be statute of limitation laws however and these vary by state.

Our Red Deer Trustees would be happy to discuss your situation in more detail and provide you with further feedback. Our bankruptcy services are available in Red Deer.

Posted on February 9th, 2010 by Questions in U.S. debts in Canada | No Comments »

Bankruptcy in Grande Prairie

Question: We recently moved to Grande Prairie from Nova Scotia to find work after being unempolyed for almost a year. We are so far behind and the moving expenses killed us.

Our friends say we can’t file bankruptcy in Grande Prairie until we have been here a year. Do we have to wait? My husband has a new job and the creditors are threatening to serve papers and garnish wages. They have spoken to his Grande Prairie boss and we don’t want it to affect his new job.

Answer: In order to file bankruptcy in Grande Prairie you must reside in Alberta or have carried on business in, or your assets must be located in Alberta. Assuming you have completed your move and have established a residence in Alberta there is no probition against filing in Grande Prairie. One of our Bankruptcy Trustees in Grande Prairie would be happy to meet with you on a no obligation basis and review your options with you free of charge.

Posted on February 8th, 2010 by Questions in Recent Move to Alberta | No Comments »

Co-signer on a Loan

Question: If I have a co-signer on a loan. and we both agree on bankruptcy, how will this effect the other person. the co signer

Answer: If both the co-signer and you are going bankrupt then the debt will be covered by the bankruptcy. However, if the co-signer is not filing a bankruptcy they will be responsible for payment of the entire debt in your place.

Posted on February 8th, 2010 by Questions in co signed debts | No Comments »