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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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Past spending and impact on filing a bankruptcy in Canada

If I think bankrupcy MIGHT be only a possibility, yet I still buy things like firewood to heat my home, pay to have my car fixed, or pay$1000 towards my spouses legal bills for an outstanding debt he may have all from my line of credit,…and then a few weeks later get advice to file for bankrupcy, …what happens to the things I used the money on. ie: how much detail is used to `check` on recent past spending….and how long do they check back to ensure their aren`t questionable things going on.

Posted from: Ontario

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One Response to “Past spending and impact on filing a bankruptcy in Canada”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

As long as you have been wise with the transactions you have made prior to filing for bankruptcy you will not have any difficulty. The key thing is make sure you are primarily using cash. If this cash is used for living expenses and nothing extravagant then you should have not difficulties.

In terms of your use of credit, your Trustee will automatically review the transaction records provided by your creditors for the immediate 3 months prior to bankruptcy and can look prior to that if necessary. But the whole intent behind this is to verify that you have not been involved behaviors that have been detrimental to your creditors interests.

If you are at all concerened you are best to contact a local trustee to discuss your concerns. You will quickly find that most situations there is no issue, and to have an issue you have to have done something extremely foolish (i.e. took a Caribbean vacation 3 months prior to going bankrupt in an effort to use up any remaining balances on your credit cards, all the while knowing you couldn’t afford to pay your credit cards).