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HOW DO
I STOP A GARNISHMENT?
Upon filing an assignment
in bankruptcy or a proposal under the Bankruptcy and Insolvency Act
there is an immediate Stay
of Proceeding which prevents creditors from
suing you, garnishing your wages, or taking any further collection
practice
against you.
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WHAT
CAN I KEEP IN A BANKRUPTCY?
A bankrupt is allowed to
keep any property that qualifies as exempt under provincial or federal
legislation and that has not been given as collateral to the
creditors.
Some Typical Manitoba
Exemptions
·
Household furnishings
not exceeding a total value of $4500 (note: this is
resale value,
not replacement value)
· Tools of the trade not
exceeding a total value of $7500, includes;
· One motor vehicle
not exceeding the value of $3000, if necessary as a tool of
the
trade. This includes a vehicle used to get to and from work.
· Equity in a home owned
by the bankrupt to a maximum of $1500 each if in
joint tenancy
$2500 if not in joint tenancy
· Locked-in pension
plans
· Life insurance where
the beneficiary is an immediate family member
Manitoba Farmers
· Animals necessary for
farming operation for 12 months
· Farm machinery and
equipment necessary for ensuing 12 months
of operation
· One motor vehicle if
required in agricultural operations
· One quarter section of
land.
for a more detailed list of exemptions if necessary. Exemptions vary
from one province to another. For Ontario exemptions, please contact
our office.
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HOW
LONG AM I BANKRUPT?
A first time bankrupt is
bankrupt for 9 months and at the end of 9 months if no one opposes the
bankrupt’s discharge the debts are erased. If a creditor, the
Trustee or the Superintendent of Bankruptcy opposes the discharge,
then the bankrupt must attend court. The court will determine what
conditions must be met before the debts are erased.
A second time bankrupt is
not entitled to an automatic bankrupt’s discharge but must attend
court to determine what conditions must be met before the debts are
erased.
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ARE ALL
DEBTS ERASED IN BANKRUPTCY?
Section 178 of the
Bankruptcy and Insolvency Act includes a list of debts NOT erased in
bankruptcy. A summary of the more common debts that are not erased are
as follows:
· Fines and penalties of
the courts (including awards for intentional
bodily harm, sexual
assault and wrongful death)
· Alimony, maintenance
and child support
· Debts resulting from
fraud or misrepresentation
· Student loans (if it
is less than 10 years since you stopped
attending school)
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HOW IS MY
CREDIT RATING AFFECTED?
Information concerning
your bankruptcy or proposal could show up on your file at the credit
bureau for a period of 6 to 7 years after your bankrupt’s discharge.
If you have been bankrupt before this period could be extended to as
much as 14 years. This only means that potential lenders will know
that you have been bankrupt. It does not mean that they will refuse
you credit. It is the lender’s individual credit scoring system that
determines access to credit.
Should you wish to improve
your credit record after obtaining your discharge from bankruptcy you
may wish to talk to your bank or credit union to find out what steps
they would suggest that you take. If you have saved up a down payment,
you are borrowing money to purchase something on which the lender can
take security, and you have not had credit problems since the
bankruptcy, it is unlikely that obtaining credit again will be a
significant problem.
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HOW DO I GO
ABOUT FILING A BANKRUPTCY OR A PROPOSAL?
The best way to get detailed
information about filing an assignment in bankruptcy or a proposal is
to contact us. There is no cost for this and there is no obligation to
proceed with bankruptcy. You may contact us:
by telephone :
204-925-6400
(Winnipeg, Manitoba)
807-468-3406 (Kenora, Ontario)
or 1-800-463-8371 (toll-free in Manitoba and Northwestern Ontario)
by
e-mail:
lct@lctaylor.net
by mail at :
Manitoba: L. C.
Taylor & Co. Ltd. 702-310 Broadway,
Winnipeg, Manitoba, R3C 0S6.
Ontario: P. O. Box
2910,
Kenora, Ontario, P2N 3X8
When you contact us we
will arrange to set up an appointment to speak with you to review your
financial situation. We can do this either by telephone, if you live
in a remote community, or in person at our office in either Winnipeg,
Manitoba
or Kenora, Ontario. We will review any options we see available to you
including options other than those offered under the Bankruptcy and
Insolvency Act. We will ensure that all of your questions are answered
and that you have a clear understanding of what the various processes
would be.
Once we have spoken with
you, you are free to either take further time to think about your
options or to make arrangements to proceed with the filing of a
bankruptcy or proposal.
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