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too poor to file

i have been told i am too poor to file for bankruptcy. i haven’t had a steady job in over 5 years and have been on ontario works for almost 2 full years. my debts are getting worse, creditor keep calling and i will not have a place to live soon because i have fallen behind in my rent. why do i have to pay to file for bankruptcy if i have no money?? this doesn’t make sense. i was told to get a job then file for bankruptcy. but if i had a job i wouldn’t need to file. this is a dumb law that needs to be amended.

Posted from: Ontario

One Response to “too poor to file”

A licensed trustee said...

If you are currently on Ontario Works or some other form of Social Assistance then you are effectively “creditor proof”. You may still be sued, but the Courts will not allow your social assistance to be garnisheed or seized. That’s why you were told to come back when you find a job – right now you need every dollar you have coming in to eat and live. You don’t need to pay legal fees because you are protected while yo are on assistance.

If you are sued then as soon as you find work you may want to file either bankruptcy or a proposal – depending on how much you owe and how much your new job pays.

Is it a dumb law that needs to be changed? Well since you are currently protected under the law from your creditors why should a trustee incur the costs for you to file for bankruptcy? When you need bankruptcy protection (because you’ve returned to work) it is only fair that you pay for it. After all, it releases you from your debts which are always a lot more money…