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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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After Divorce settlement

I am being forced due to circumstances to consider bankruptcy while pending divorce proceedings take place and awaiting trial to resolve in Spring `09. I believe the amount of settlement to me with equalization of property and assets, will more than cover the debts I have to pay. If I file for bankruptcy or consumer proposal – and settlement can finally pay the total debts, in will the bankruptcy be wiped out of my records? Also if I file now and settle outside the 9 months, will I keep the settlement and not have to repay the debts? My intnention was to use the settlement to pay debts, however the length of time to settle is so long, that I will not be able to keep up the payments until then. I work part-time.

Posted from: Ontario

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One Response to “After Divorce settlement”

A licensed trustee said...

I think you should use the links to contact a trustee in your area to discuss your situation.

If you file for bankruptcy then any settlement you may be entilted to will be paid to your trustee. If your debts are paid off in full then your trustee may apply to the Court to have your bankruptcy annulled, but they are not required to do so.

If you file a proposal you retain control of the settlement, but depending on the size of the expected settlment, it may affect the payments you will be requird to make into the proposal. Of course once you receive the settlement you may pay out the proposal in full.

Giben the uniqueness of your situation, I really think you should find a trustee locally to speak to directly.