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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Single Mom on the verge…

I am on the verge of claiming bankruptcy, it is just a matter of making the appointment. I am a single mother working part time with no support payments coming in. I have about $6000 in RRSP’s and $3000 in RESP’s, will the trustee take that money to put towards the creditors? I am pretty sure both are locked in, but if not can I have that done before I file? Also I will be getting a vacation pay from my work in April, will they take all of that money or just partial for the surplus income? How long does the whole bankruptcy process take to go through? Thanks

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One Response to “Single Mom on the verge…”

Barton Goth, GCO, Bankruptcy Trustees said...

There are only certain circumstances where RRSP’s are exempt and not taken by a trustee, so it would be important for you to bring RRSP documents in with you when you meet with the trustee. As for RESP’s, if they are held in your name they will be lost and be divided as stipulated in the Bankruptcy and Insolvency Act. You must also be advised that trying to lock in any non-exempt assets prior to meeting with a trustee is going to cause you a number of difficulties. Under the Act it is considered a fraudulent preference, will be overturned by the trustee, and may prevent you from being ineligible when it comes to discharge (as it is perceived as an act that is fraudulently trying to protect assets that legally your creditors would have a right to). As a result it is in your best interests to leave the assets as they sit.In terms of vacation pay, most trustee’s will simply treat this as surplus and factor it into the Superintendent’s formula. However, this is also a good thing to discuss with the trustee.The overall duration of a bankruptcy varies depending on how quickly you are able to complete all of your duties and responsibilities. The earliest you will be eligible for discharge will be 9 months from the date you sign, but it is not common for things to take an additional 2 or 3 months.