Are my RRSPs protected?
Only RRSP contributions within the twelve (12) month period prior to your date of bankruptcy are not protected. Should your RRSP be part of a Life Insurance contract, it may be protected depending on who the beneficiaries are.
Can filing an assignment in Bankruptcy stop garnishment of my wages?
Yes, filing an assignment in Bankruptcy will stop garnishments, with the exception of garnishments for child and spousal support.
Upon filing, we will immediately inform all garnishing creditors.
When will creditors stop collection calls?
Within five days of you filing bankruptcy, the Licensed Insolvency Trustee or Administrator will mail the Bankruptcy notice to your creditors. Collection calls from creditors should stop once they are notified of your Bankruptcy.
If I go bankrupt will my spouse be obligated to pay my debts?
Unless your spouse has guaranteed or co-signed any of your debts, they are not obligated to pay any of your debts.
Will I lose my car?
The Court Order Enforcement Act of BC provides for an exemption of up to $5,000 equity in one of your vehicles taking into account any secured charge. This exemption is reduced to $2,000 for Court Ordered Family Maintenance debtors.
Will I lose my house?
Should your principal residence be in Greater Vancouver or Greater Victoria, you are allowed an exemption of up to $12,000 equity for your principal residence. The personal exemption elsewhere in B.C. is capped at $9,000.
You may have the option to pay the non-exempt portion of your home equity to the Licensed Insolvency Trustee. Every circumstance is different.
Can personal income tax debts be included in my Bankruptcy?
Yes, all debts, including personal income tax debt, as at the date of your bankruptcy, are eligible to be discharged in a Bankruptcy.
Will my credit report be affected?
Once you are discharged from Bankruptcy, the credit bureau will report the Bankruptcy for 6 years after the discharge date for a first-time Bankruptcy; and 14 years for any subsequent Bankruptcy.
Can I keep my credit cards?
Once you file for bankruptcy, you will have to surrender all your credit cards to the Licensed Insolvency Trustee.
Is the Licensed Insolvency Trustee my lawyer?
No, Licensed Insolvency Trustees are not lawyers. We are impartial officers of the Court with a duty to administer the Bankruptcy and Proposal system fairly and honestly. We are regulated by the Office of the Superintendent of Bankruptcy.
Are my discussions with my Trustee confidential?
Yes. Under the Personal Information Protection Act (PIPA), we cannot discuss any information that you have provided to us with any third party before you file Bankruptcy.
Upon filing an assignment in Bankruptcy, we will ask you to give us the authority to speak with creditors on your behalf.