Bankruptcy Question

[jbar]

Hi Folks,

I've reviewed several websites pertaining to the bankruptcy laws in Ontario, and still have a general question to those who have been through the process. If debt is accumulated on credit cards (due to unemployment, etc...), how far back does the trustee look at the transaction history? For example, if a person got a credit card 10 years ago, does the trustee look at the full 10 year history of that account? I've had one or two people tell me that they only go back one year...that seems too optimistic to me.

Please feel free to PM me any feedback....I'll respect your privacy and promise to keep my mouth shut.


Thank-you in advance.

 

[jerbear]

I'm sure its 2years.

 

[Terminator2000]

....

 

[tboy]

I don't know what you mean when you say "they look at the transaction history"...I don't think it matters when you incurred the debt, if you're claiming bankruptcy now, it is the debt you have now that is in question.....Just realize that if you have any assets, those will probably be sold off to cover your liabilities....

For eg: if you own a condo worth $165,000.00 and you have debts totalling $100,000.00 you can probably kiss the condo goodbye.

 

[hoser1970]

I don't know what you mean when you say "they look at the transaction history"...I don't think it matters when you incurred the debt, if you're claiming bankruptcy now, it is the debt you have now that is in question.....Just realize that if you have any assets, those will probably be sold off to cover your liabilities....

For eg: if you own a condo worth $165,000.00 and you have debts totalling $100,000.00 you can probably kiss the condo goodbye.

In your scenario, yes you are most likely correct. However, if you own your residence but have a high mortgage on it (say > 80% of the property value) often you can exclude the mortgage from the bankruptcy AND keep the property.

This is because, the bank who holds the mortgage (and a registered charge against the property) will have to be paid first. In this scenario, by the time the property was put through Power of Sale, and all the resulting legal fees, real estate fees etc, were paid off, there would probably not be enough funds left over to cover the mortgage balance (the mortgage would have been insured against default so the bank will still get all the funds to cover the mortgage amount) BUT there will be no money left over to pay off any of the other debts. In this case, it makes no sense to essentially deprive this person of their shelter.

Conversely though, if you own your home free and clear and owe a shit load of money to people, you are most likely going to lose your home in a bankruptcy.

 

[tboy]

Good point hoser, I was making the assumption that you had a fair bit of equity in your property.

But this brings up another question, wouldn't your mortgage be included in your total debt? Especially if the debtor isn't employed and isn't paying his other bills......

BTW: for the record: the only people who are unemployed are the ones who don't want to work. Jbar: go out, get a job, pay your bills......FFS

 

[jbar]

BTW: for the record: the only people who are unemployed are the ones who don't want to work. Jbar: go out, get a job, pay your bills......FFS

Tboy, you know absolutely nothing about my circumstances, and how I got to this position. Even though I'm not looking for sympathy, I'll take the time to enlighten you:

I have spent the several years working in the accounting field (in a retailing company) while trying to obtain an accounting designation (CMA to be exact). Just so we are clear, this has nothing to do with working for an auditing firm and becoming a CA. I've done a good job of working my way up the ladder. The last position I had was a little more specialised within the accounting world, Treasury Analyst to be exact. Therein lies the problem; these positions are far and few inbetween, and the amount of BS I've had to endure has been downright stupid. I've even applied to positions lower in the chain (e.g. accounts receivable, internal reporting - I've done both before the treasury position), but those people keep telling me that I'm over-qualified, and they are afraid that I would leave in six months. I've had agencies send me to interviews were I am completely underqualified, since they are only interested in obtaining their fee (this includes Robert Half). I've had an interview where within the first 5 minutes, I was told I wouldn't be a fit for the company (I'm a 6-foot-5 260lb weight-lifting Scottsman, my interviewer was a Trekkie). The people in the accounting world are SUPER critical, and if they find that they don't like something about you, then you are shown the door. The people on this forum who are a part this industry will know exactly what I am talking about, and understand my problem.

However, you are right, nobody has NO excuse for being unemployed.

P.S. I'm the only reason why global-warming exists. I'm also having dinner with Elvis tonight.