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Recent Bankruptcy Questions:
Question (submitted by a reader): If your house is taken over by the bank, is your line of credit automatically paid off?
Answer: If you have a line of credit secured by your house (like a mortgage), and the bank forecloses on the house and sells it, the line of credit is no longer secured by the house, since the house is sold.
If the bank recovers enough money to pay off the line of credit, then yes, it is automatically paid off. However, if the bank does not get enough to fully pay it off, they can pursue you for the shortfall, which in some cases may require you to file a consumer proposal or bankruptcy to deal with the debt.Labels: consumer proposal Brantford, house, personal bankruptcy Brantford
On February 7, 2008 my Brantford bankruptcy office was closed. I was in Ottawa, appearing as an expert witness before the Senate Standing Committee on Banking, Trade and Commerce to provide testimony on the proposed new bankruptcy rules. Most of the witnesses that have appeared before the Committee were lawyers or lobbyists; no-one had appeared to give the average bankrupt's perspective. In my opening remarks I told the Senators that the average person who goes bankrupt in Brantford, or anywhere in Canada, is a real person who in many cases has lost their job, gone through a marriage break-up, suffered through an illness or other personal problem, and is left with an overwhelming amount of debt.
In other words, people who go bankrupt, in most cases, are honest but unfortunate people who need a fresh start. It's important that we don't create bankruptcy rules that make it too difficult for the honest person to get a fresh start.
Our testimony lasted for over an hour, and I believe that when we were finished the Senators had a better appreciation for the problems faced by the average person who needs to file a proposal or bankruptcy in Brantford. I don't plan on returning to Ottawa any time soon, so if you live or work in the Brantford area and want to talk to someone who provides expert testimony on complex rules, but who also will sit down with the average person and help them understand their options, please call me in Brantford at 519-770-4440, or e-mail me to set up a meeting to review your options, and help you get the fresh start I believe you deserve. Labels: bankruptcy Brantford, personal bankruptcy Brantford
Since opening my Brantford bankruptcy office in 1999, one of the most common questions I am asked is "will I lose my car if I go declare personal bankruptcy in Brantford?" This is a big issue in Brantford, because many of us need our cars to get to work (as we all know, there is no subway in Brantford).
The answer depends on a few factors.
First, if you live in Brantford, or anywhere else in Ontario, you are allowed to keep one motor vehicle worth up to $5,650 if you go bankrupt. So, if you are driving an old car, you may be able to keep it.
However, if there is a lien on your car, or if you got a loan and pledged your car as security, whether or not you keep your car if you go bankrupt is up to the lender. The lender in most cases will allow you to keep the car, provided you continue to make all of your regular car payments.
A word of caution: not all banks will allow you to keep your car. Most banks do, but there is one bank in particular that will automatically repossess your car if you go bankrupt, even if your payments are up to date. I don't want to get sued so I'm not going to mention the name of that bank in this blog posting, but if you send me an e-mail or give my office a call in Brantford at 519-770-4440 I would be pleased to review your situation and let you know whether or not it is likely that you will be able to keep your car if you go bankrupt.Labels: personal bankruptcy Brantford
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If you're having financial difficulties and live in the Brantford area, call (519) 770-4440 today to meet with one of our experts, or complete the ask a question form to send us a message and we'll get in contact with you.
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