Vancouver British Columbia Bankruptcy Blog

Bankruptcy & Taxes

2009-05-05T14:39:00.000-07:00

Question: I am self employed and owe a great deal both in personal income taxes and GST, does filing personal bankruptcy dissolve these debts?

Answer: Yes, personal bankruptcy discharges tax debts. However, it is important to make a plan so that in the future you don't get behind on your taxes. We strongly recommend that you discuss this with your Vancouver bankruptcy trustee.

personal and business bankruptcy

2008-10-27T09:28:00.000-07:00

Question: If i have debt that is both personal and from my own business do i file bankruptcy separately? or can it all be filed together?

Answer: If you have a corporation, the corporation's debts can only be discharged if the corporation files bankruptcy. You would be able to personally file bankruptcy on any debts in your name, or corporate debts that you have personally guaranteed. A Vancouver bankruptcy trustee can provide you with more information.

Tax Debts and Credit Cards

2008-08-10T17:31:00.002-07:00

Question: I have 30,000 credit card debt and haven't filed taxes in 15 years. i have worked for cash, straight check,and under a company in my own name,for which i have no records . haven't worked for months and need to resolve this situation. where do i start?

Answer: If you truly want a fresh start, you should start by filing your missing tax returns, which you may only be able to do by estimating your income for the missing years. Once the returns are filed, if you owe a significant amount of money, a bankruptcy would be an option, although until the numbers and your job status are known, it is not possible the determine the correct course of action.

Proposal Vs Bakruptcy

2007-10-27T14:31:00.000-07:00

Question: I owe approximately $50,000 to mainly one bank (loan + credit card). I have a job that is $2, 800 net after income tax. I would like to know if I can make a consumer proposal for a debt reduction and how it works? What will be approximately the percentage that is ussually granted in cases like mine.

Answer: It depends on the bank. At a minimum most banks want to get a minimum of 15 to 25 percent of their debt repaid, and perhaps more.

We suggest you contact a proposal administrator for a free initial consultation to review your situation and advise you on your best options.

Available Assets

2006-11-01T10:05:00.000-08:00

If an individual was in the process of initiating a bankruptcy, and at that time that person believed they had a significant asset held in trust by someone else, would the individual be required to use that asset to pay her creditors? Would she be required to declare the asset on her statement of assets? If the asset existed, or the individual believed the asset existed, would the trustee in bankruptcy look into getting the asset for the individual?

Leased auto - status in bankruptcy

2006-08-30T14:05:00.000-07:00

I owe $50,000 in credit card debt and can not meet the minimum payments any more. I know bankruptcy is an option for me. My question is, can I include a leased automobile in a bankruptcy? My payments are too high and it is a lemon.

I live in Portland,OR - Am I a Canadian Resident?

2006-08-25T13:24:00.000-07:00

I live in Portland Oregon. I have significant Canadian debt. I am on contract for a short period of time in Portland. Can I file for bankruptcy in Canada?

Bankruptcy vs Proposal

2006-08-21T15:59:00.000-07:00

I owe approximately $50,000 to 8 credit card companies. I have just got a new job earning approximately $3,000 net after income tax. My wife is pregnant with our 4th child and is due in October. I do not want to file for bankruptcy. Can I do a proposal?

Declaring from Overseas

2006-08-17T23:26:00.000-07:00

I moved overseas five years ago and have since accumulated debts to a credit card company and to Revenue Canada. I am unable to pay these debts. Can I submit a Consumer Proposal or Declaration of bankruptcy from overseas?

Living the dream of home ownership, but the costs are overwhelming?

2006-06-28T10:42:00.000-07:00

Does This Example Sound Like You?

Tony and Tracy Jones met when they were at school. Upon completion of schooling, they married and both were working full-time. As part of their plans they purchased a home and started a family. The costs of home ownership soon began to demand more money each month then budgeted. Renovations, utilities, mortgage payments, property taxes, etc. all became large expenses. Tracy's income was reduced during her maternity leave, leaving the family even shorter each month. Their goals were to take care of the family and keep their house. The financial pressure began to affect Tony and Tracy and now they did not know what to do.

What Can You Do?

The financial requirements of home ownership tend to be larger than most expect. When coupling the cost of home ownership with a wedding, a family, an education, a vehicle, and other costs, it can be too large to handle. If you are having trouble making ends meet the likely starting place is to seek financial counselling to review your situation in greater detail. A consumer proposal or a bankruptcy may be required to give you a fresh start financially. To investigate your options, click here for more information.

Has your marriage ended and left you paying all the debt as well as paying child support?

2006-05-20T08:29:00.000-07:00

Does This Example Sound Like You?

Larry White was married for 8 years and had two children. Recently, things did not work out in the marriage and it ended a year and half ago. Larry is now paying $500 per month in child support. The costs of living on his own, the child support, and his debt payments have become too large to handle each month.

What Can You Do?

If you are now in the position where you can not make ends meet due to significant changes in your marital situation, there are a few options to assist with your debt payments and getting a new start. The likely starting place is to seek financial counselling to review your situation in greater detail. A proposal or a bankruptcy may be required to give you a fresh start financially. To investigate your options, click here for more information.