Frequently Asked Questions. (Bankruptcy) The questions and answers listed below are a sample of questions commonly asked about Bankruptcy. If you have questions you would like answered please contact Allan Marshall & Associates Inc at 1-888-371-8900. We Can Help! How long does bankruptcy last? Is my bankruptcy Advertised in the local newspaper? How are joint debts or co-signers affected? How should I handle telephone calls or other harassment? How much does bankruptcy cost? Can student loans be included in bankruptcy? What about my credit Rating? When can I get credit again? If I file bankruptcy , can I still pay my family and friends? Will you tell my employer that I filed bankruptcy? Do I still handle my own money? Can I still have a Bank account? Do I have to be living in Canada to file bankruptcy? What happens if I win the lottery while in Bankruptcy? Will I lose my house if I file for Bankruptcy? Are there alternative to bankruptcy? How is my Spouse affected by my bankruptcy? If I declare Bankruptcy does my spouse have too? Will my wages still be garnished? Can I be an officer or director of a Company while I am Bankrupt? Can Bankruptcy Discharge Income tax debt? How long does bankruptcy last? For a first time bankrupt, you are scheduled to receive an automatic discharge in nine months plus a day. Is my bankruptcy advertised in the local newspaper? The vast majority of personal bankruptcy proceedings are not advertised in the local newspaper. Your trustee could confirm any such requirement as it relates to your circumstances. How are joint debts or co-signers affected? Bankruptcy does not affect the creditors right to go after anyone who guaranteed or co- signed a loan. It only protects the person in bankruptcy. If you have a joint debt or have co-signed a debt for someone who enters into bankruptcy, the responsibility for the debt would shift to the guarantor. How should I handle telephone calls or other harassment? When you go into bankruptcy there is a Stay Of Proceedings that goes into effect. This stay stops all legal, and collection proceedings including harassment. Any telephone calls received after bankruptcy should be referred to your trustee. If creditors continue to call, then you should contact your trustee and provide your trustee with the name and number of that creditor so the trustee can contact the creditor and put an end to the harassment. How Much Does Bankruptcy Cost? This can be discussed with your trustee at your interview. At the interview a trustee can accurately determine the cost of your bankruptcy and will provide you with a quote. Often arrangements can be made with the trustee to make monthly payments to cover the cost of administration. There is NO CHARGE for the initial interview or information session. Can Student Loans be Included in Bankruptcy? Student loans can only be discharged by bankruptcy if you ceased to be a full or part time student more then ten years before the date of your bankruptcy. What About My Credit Rating? The fact that you've gone bankrupt remains on public record for up to Seven Years although most credit bureaus remove reference to a bankruptcy after 6 years. If anyone were to do a credit check within six to seven years, they would see you had made an assignment in bankruptcy. Someone who has been through bankruptcy would have to reestablish their credit and could be compared to an 18 year old trying to establish credit for the first time. When Can I get credit again? This Question is hard to answer because it depends on your situation. You may apply for credit the day you are discharged from bankruptcy. Whether you are granted credit depends on the credit grantor and your situation. Recognize that you are going to have to start fresh. If I file bankruptcy , can I still pay my family and friends? No, while you are in bankruptcy you are only responsible for paying your ongoing living expenses. All payment to any of your unsecured creditors must stop. Will you tell my employer that I filed bankruptcy? No, the only time we would contact an employer is if we required tax information you were unable to provide or if your employer was also a creditor. Do I still handle my own money? Yes, a bankrupt continues to receive their own pay cheque and decides how their money is to be spent subject to the requirements under the Bankruptcy and Insolvency Act. Can I still have a Bank account? Yes, you may still have a bank account. We do suggest you open an account and keep you money at a bank to which you do not owe any money. Do I have to be living in Canada to file bankruptcy? No, as long as you lived or carried on business or have assets in Canada you can file for bankruptcy in Canada. You should contact a trustee in the province where you last resided or carried on business to discuss the requirements. What happens if I win the lottery while in Bankruptcy? Any "windfall" must be turned over to the trustee to distribute to your creditors. If there is any money left over after paying your debts, it will be returned to you. Will I lose my house if I file for Bankruptcy? Many people are able to keep their house even though they file for bankruptcy. This question depends on a number of factors, including the amount of equity (if any) in the home and it the mortgage holder being agreeable to letting you keep the house and keep paying the mortgage payments. Each situation is different and your home will be discussed when you meet with us at the initial consultation. Are there alternatives to bankruptcy? Yes, Click on Your Options for more information. How is my Spouse affected by my bankruptcy? Having a Marital or common-law relationships does not make your spouse responsible for your debt. Your spouse would only be responsible for your debts if they co-sign or made a joint application for the credit. As for your spouses assets they would not be affected by your bankruptcy. Only your assets or assets owned jointly are affected by your bankruptcy. The Trustee will explain how each of your assets will be affected at the initial information session. If I declare Bankruptcy does my spouse have too? No, your spouse can decide how they wished to proceed based on their own finances. Will my wages still by garnished? For the most part, garnishees are stopped by Bankruptcy. Certain garnishments such as alimony or child support will continue. Can I be an officer or director of a Company while I am Bankrupt? No, New Brunswick law prohibits an individual who remains an undischarged bankrupt from being the officer or director of a company. Can Bankruptcy Discharge Income tax and other government debt? Yes, Debts like personal income taxes, GST or director's liability for a corporation's government debts are all released by a discharge from Bankruptcy.