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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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Cash on the day and during bankruptcy

1. How much cash is a single person allowed to keep on the day of bankruptcy ? Would it be $1750 (the legal exempt) ?
2. How much cash am I allow to have during bankruptcy ?
If my income is $1700 per month but I spend only $1300, after 9 months I will have savings of $3600 plus whatever I had on the day of bankruptcy. Would all or part of that money have to be turned over to the trustee ?

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One Response to “Cash on the day and during bankruptcy”

A licensed trustee said...

Match my answers to each of your questions:

1)On the day you file for bankruptcy you may only keep enough cash to pay your immediate living expenses. For example, if you were to file on June 29 and need $800 for rent July 1 your trustee would allow you to have $800 in your bank account. If you filed for bankruptcy July 2 and had already paid your rent your trustee probably would not let you keep the money.

2) There are no rules restricting you from having or saving money during your bankruptcy. As long as you disclose your income properly and make the required payments each month to your trustee you will be permitted to keep “cash” on hand.

Of course, if you are able to save $400 a month during your bankruptcy perhaps you should consider filing a proposal to your creditors (instead of bankruptcy) – just a thought…