personal bankruptcy
what happens if i cannot make the payments to the bankruptcy firm that were agreed upon
Connecting You with Trusted Licensed Insolvency Trustees – We’re Here to Guide, Not Decide. Learn More
Connecting You with Trusted Licensed Insolvency Trustees – We’re Here to Guide, Not Decide. Learn More
what happens if i cannot make the payments to the bankruptcy firm that were agreed upon
There most definitely is – your husband should seek legal advice about his situation before he even considers filing bankruptcy. Once bankruptcy has started very specific rules kick in and your husband could find himself in some very hot water.
Assuming you return the vehicle and file for bankruptcy you will be released from the shortfall on the car loan, the credit card, and the cel phone contract (if you return the phone and give up the phone number). Traffic fines will survive, as will your student loans unless it has been more than 10 years since you last attended school. For great detail I suggest you contact a trustee in your local area and he will be able to give you a detailed description of the when and why these debts survive (see “Find A Trustee” on the left hand side of this page).
If you file bankruptcy student loans cannot be cleared unless you have been out of school for 10 years or more. As for RRSP’s, these are lost when someone files a bankruptcy, but this doesn’t’ mean it is a good idea to withdraw them now and use them frivolously. If you do this you will likely have to increase the cost of your bankruptcy by the amount that was foolishly spent and should have been distributed among the creditors.
In most cases it means that the trustee will oppose your discharge, and the bankruptcy court will then decide what payments are required for your bankruptcy to end. Since your trustee is familiar with your case, this is definetly something you should discuss with your trustee now, so that a plan can be worked out well before you get to court.