Bankruptcy Question & Answer Forum - Canada

Author:		Anonymous
Date:		August 31, 2005
Question:		I am thinking about going for personal bankruptcy as I can see no other way out of my predicament with debts totaling about 35000 dollars and using dredit to make payments which is getting me nowhere fast,i am due a tax return shortly of 2500 and could really use this money, if I get this money then claim bankruptcy shortly after do I have to return this money, what also is the total that I am allowed to keep in money terms from my wages if I do go bankrupt? I make 2250 a month for me and my husband and nothing else.
From:		Bruce, Alger & Associates Inc.
Date:		August 31, 2005
Answer:		If you spent your tax refund before declaring bankruptcy, you would be required to account for where the money went and there is a possiblilty that it could affect your ability to receive a discharge. If the refund is on hand at the date of bankruptcy, it would be required to be turned over to the trustee. With a take home income of $2250 per month, you would be required to make a small monthly payment to the trustee (under $100). Bruce Alger phone: (403) 296-2970 balger@alger.ca