Family member bankruptsy

December 12th, 2009 by Questions

A family member has recently moved in with me from another province and is thinking about declaring bankruptsy. He mainly owes credit card companies and right now has no job, no car, and no assets. I am helping him with a new `start` here and he is currently waiting for his EI from the past 2 months to come in to purchase a cheap car to go looking for a job. To see the trustee, is there an initial fee? Also, can I attend the meeting with him? Will the EI benefits count against him for the intitial councilling even though he will use them to get a car to search for a job? Thank you.

Posted from: Ontario

Questions

One Response to “Family member bankruptsy”



, A licensed trustee said:

Most trustee do not charge an initial fee for a consultation – you need to check with the firm your family member is going to see to find out their specific policy (make sure you also ask if the second and third consults are also free – in some cases, particularly in Toronto, they may not be).

I am sure whatever trustee your family member sees will not mind if you “tag along”. Often a second person will ask the really important questions that the person facing bankruptcy just can’t see.

As to the impact of buying a car with their EI – it will depend on the value of the car and the timing of the purchase. It’s something to discuss with the trustee…

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