Summertime is the perfect time to get outside and enjoy barbecue weather.
We’ve asked a few of our Licensed Insolvency Trustees to answer some important bankruptcy questions – while also sharing favourite summer recipes for the grill.
At Spergel our Trustees take your financial fresh start seriously. We also know that summer is in full swing and you should enjoy the fair weather, get outside and have a little fun. No matter what financial stage you are in right now (repayment, delinquent, consumer proposal, bankruptcy, or debt free), summer doesn’t last long so we’ve decided to mix finance with fun. Here are a few favourite recipes from our Trustees paired with some very important answers to your most common bankruptcy questions.
Bankruptcy Question 1
Trustee: Trevor Pringle (Hamilton/Niagara Region)
I have a wealthy aunt who is very ill. If I file personal bankruptcy now, and during the next few months my aunt passes away, what will happen to my inheritance money?
“When you file personal bankruptcy your Licensed Insolvency Trustee essentially steps into your shoes. Inheritance proceeds are considered an asset and for this reason your money will be sent to your LIT. At the end of your bankruptcy your creditors will receive a percentage-based distribution of the funds collected. If you receive an inheritance that is much greater than what you owe to creditors, your LIT may be returning some funds to you after your bankruptcy ends and your creditors have been paid.”
Trevor’s BBQ Pick – Grilled Steak and Summer Vegetable Salad
Bankruptcy Question 2
Trustee: Chad Zizzo (Toronto)
I’ve been out of work for a few months and used my credit card to buy groceries to feed my family. Is it still ok to file personal bankruptcy?
“If you use your credit card right before you file bankruptcy, you should know that it could cause an unwanted problem. Know that your credit card company will review your recent account activity. If your credit card lender sees that you have recently used your credit card to make a significant purchase (for example an airline ticket), they may choose to argue that this debt should not be included in your bankruptcy. Creditors who are successful in this regard will be free to pursue collections with you after your bankruptcy ends. Small purchases for things like groceries and gasoline will likely not be a problem, but you should use caution when spending unused credit card balances as soon as you realize you may need to file personal bankruptcy.”
Photo & Recipe Credit: www.foodnetwork.com
Chad’s BBQ Pick – Cedar Plank Salmon
Bankruptcy Question 3
Trustee: Rob Kilner (Barrie/Newmarket/London)
I’ve been bankrupt before. How long will my credit report be a mess if I file a second time?
“An important bankruptcy question that every second-time bankrupt should ask. The length that your credit report will reflect a second bankruptcy is double the time of your previous bankruptcy. A first-time bankruptcy will be reported on your credit report for approximately 7 years. A second bankruptcy will report for 14 years, but this doesn’t mean you have to wait to start rebuilding your credit.”
Rob’s BBQ Pick – BBQ Smoke Pork Ribs with Apple Mustard and Maple Glaze
Bankruptcy Question 4
Trustee: Jeff Adiken (Head Office, GTA)
Can I keep my car if I file personal bankruptcy?
“In Ontario you may keep one vehicle provided the black book value of the vehicle falls below what is called the “exemption limit”. The exemption limit applies to vehicles that are not leased or financed and are owned outright by the bankrupt person. The Ontario limit is $6,600, if your car’s value is less than this amount you can keep it without any issue. You may also retain any/all leased or financed vehicles – as long as you continue to pay the bill on time each month there should be no issue.”
Photo & Recipe Credit: Bobby Flay c/o www.foodnetwork.com
Jeff’s BBQ Pick – Grilled Chicken Breasts with Spicy Peach Glaze
We hope you feel get creative with your barbecue this summer. For answers to any bankruptcy questions that were not covered in this article please call us at 310-4321. At Spergel we have the answers you are looking for, don’t wait to get the help you need to become debt-free. You owe it to yourself!