FREQUENTLY ASKED QUESTIONS

Is my spouse responsible for my debts?
The fact that you are married has nothing to do with the money you owe to creditors. The only time your spouse would be responsible for your debts is if he/she has co-signed or guaranteed those debts.

Can I still keep my house during an Insolvency Process?
It is possible to keep your home during an insolvency process. However, due to the uniqueness of each individual circumstance, this will be subject to Trustee review.

Do I still have to pay spousal and/or child support during an Insolvency Process?
Yes. All court ordered child and/or spousal support must continue to be paid and any arrears will be addressed in your insolvency process.

Do I get to keep my car?
Generally the answer is yes. However, certain criteria will need to be assessed by The Trustee - such as: title, value and financing arrangements, if applicable.

What happens to my student loan(s)?
If your end of study date is less than 7 years at the time you file an Insolvency Process, the entire debt survives the insolvency process. However, payments towards this debt are suspended throughout this process. If your end of study date is more than 7 years, the debt will be extinguished at the successful conclusion of your insolvency process.

What are my responsibilities in an insolvency process?
A person in an insolvency process must comply with certain duties including but not limited to: 2 credit counselling sessions, providing monthly budget information to your Trustee’s office and payment remittance as required.

Are there ways to negotiate with Canada Revenue Agency (CRA) with regard to unpaid taxes?
CRA will not accept less than the full amount owing unless you enter an insolvency process.

How long will my insolvency appear on my Credit Bureau Report?
For a first time bankrupt – 7 years from completion of your Bankruptcy. In a Consumer Proposal - 3 years from the completion of the term of your proposal. (Circumstances may vary).

What happens to my assets when I file an insolvency process?
In a Consumer Proposal all assets remain under your control. In a Bankruptcy, all assets are subject to Trustees control and discretion.

What is the Wage Earner Protection Program (WEPP)?
This is a program offered by the Federal Government which provides limited financial compensation to employees who are owed wages, vacation, severance or termination pay by their employer at the time their employer becomes bankrupt or is placed in receivership.

Trustees are obligated to provide detailed information to all employees at the time of the employer’s insolvency and there are specific time frames to be followed by both the Trustee and the employee with regard to the application process.

Regardless of amounts due to an employee, the program only provides a maximum compensation payment of the equivalent of four weeks of insurable Employment Insurance (EI) earnings ($3,738 for 2014), minus amounts prescribed by regulations (ie: income tax)

For more information Click Here

Or by calling the Wage Earner Protection Program department directly at:

Toll-Free: 1 866 683-6516
TTY: 1 800 926-9105