Bankruptcy Question

May 15th, 2006 by Questions

My boyfriend owes over $200,000 to the goverment due to the fact that his ex-wife didn\’t pay the income tax that was deducted from their employee that worked for him for over 3 years, plus his own personal deductions for that time. He is trying to decide whether to file for Bankruptcy but isn\’t sure how that works. He has a house and a truck, will those things be taken if he files? How does bankruptcy work, please help.


One Response to “Bankruptcy Question”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

The answers to these types of questions (specifically the assets) are based on provincial legislation and are good issues to discuss with a local trustee. As for the bankruptcy process, essentially it is a way that you can be cleared from the majority of your unsecured debt, and it usually lasts 9 – 12 months in length depending on how quickly one is able to comply with certain required tasks. For instance, in a bankruptcy each individual is required to make their mandatory trustee payment, attend 2 counseling sessions, keep track of their income and expenses for a minimum of 9 months and submit tax information to the trustee’s office. There can be some additional duties during a bankruptcy depending on the specifics of the situation, but most can expect that at a minimum these are the types of things they will have to complete.

The best thing to do is to contact a local trustee, they will be willing to provide a free consultation where they will review your situation and the options available and help you to determine what is going to be the best fit for your situation.

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