FREQUENTLY ASKED QUESTIONS
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QUESTIONS AND ANSWERS
To know more about bankruptcy
Are you drowning in debt and finding yourself in financial distress? Contact Poupart Syndic Inc. without delay to find the solution to your debt problems. Also check out our Frequently Asked Questions, to get answers to your top bankruptcy concerns.
Can I keep my car in bankruptcy?
In most cases, you will be able to keep your car. In the case of a lease, you will need the lender’s agreement to keep your vehicle and you will need to make sure you make the monthly payments. If the value of your car is minimal, you could keep it, under certain conditions.
Will I be able to keep my house?
If the value of your home is equal to your mortgage balance, it may be possible to make arrangements with your mortgagee. However, if the value of your home is substantially more than your mortgage balance, you should probably consider other solutions.
Will my furniture be seized?
No, with the exception of high value furniture, such as antiques and works of art, which are not considered essential.
Will someone come and seize my belongings at the house?
In some cases, your property could be seized. However, once you are under the protection of the Bankruptcy and Insolvency Act, your creditors will no longer be able to seize them.
Can Tax Debts Be Part of Bankruptcy?
Yes, unless they are the result of fraud.
How long will my credit be affected if I file for bankruptcy?
Normally, the credit of people in financial difficulty has already been affected. Following bankruptcy, a note will be placed on your credit report and it will remain there for a period of 6 to 7 years.
What happens to my salary?
The bankrupt’s salary (including commissions) will be monitored monthly. In addition, every month, the person who declared bankruptcy will have to fill out an easy-to-fill form to report their income and expenses. This report will include the amount of monthly income of the bankrupt’s household, amounts spent on rent, food, clothing, etc.
The bankrupt will have to pay the trustee a portion of any excess income, on a monthly basis, according to the standards established by the Superintendent. These standards set out the maximum amounts necessary to support the household of a person who has declared bankruptcy. Surplus income payments must be made monthly, for the duration of the process.
Will my employer know?
No, unless your wages have already been entered.
Who will be informed?
Your creditors will be notified by mail, fax or email. In the majority of cases, no publication in the newspapers will be made, but be aware that the process is still of public order.
Are my RRSPs seizable?
All RRSPs are exempt from seizure with the exception of contributions made during the last twelve (12) months.
Will my creditors stop harassing me?
Yes, since by law any action against you must cease immediately. Secured creditors and alimony are not affected.
How much will it cost me?
The monthly cost is determined based on your income, by the government. As you will no longer have to pay your debts after bankruptcy, you will then be able to make your monthly payments.
Who pays for the services of the trustee?
For a bankruptcy subject to summary administration, the fees are represented by the tariff of the Act and depend on your income.
The base fee covers all services provided, including the cost of mandatory counseling sessions and registration fees. During your initial consultation, it will be decided whether to go for affordable monthly payments or to pay a more substantial sum up front. These monthly payments or lump sum are part of the excess income payment obligations.
For a bankruptcy which is the subject of ordinary administration, which involves significant assets and which requires a considerable workload on the part of the trustee, the latter’s fees will be established according to the number of hours worked by the trustee. personnel, the complexity of the case and several other factors.
Fees are subject to review by the Office of the Superintendent and, if necessary, approved by inspectors / creditors and the court.