Difference between revisions of "Dealing with Debt (10:V)"

The bankrupt may retain household furnishings and appliances valued at up to $4,000 and any other goods or property exempt from execution under provincial and federal statutes (COEA, s 71(1); Court Order Enforcement Exemption Regulation, B.C. Reg. 28/98, BIA, s 67(1) and relevant amendments). See Section II.B.2: Exemptions from Seizurefor a list of what the COEA allows a debtor to retain. All RRSPs and RRIFs are exempt from seizure in a bankruptcy (except for contributions made in the year preceding bankruptcy).Any material transaction made within the past 5 years is reviewable. If a preference was given to a creditor, the trustee may act on the  transaction. Lastly, any tax refund for the year of bankruptcy or any prior year becomes part of the bankruptcy, and will go to a trustee for  the benefit of the creditors., or it may be seized by the government to fulfil a government debt.  NOTE:                 If the debtor (except anyone in commercial activities (self-employed or business) or in  jail) chooses a trustee and is rejected  (due to a fee charge) because they are unable to pay, they should contact the Office of the Superintendent of Bankruptcy (“OSB”), and ask to participate in the Bankruptcy Assistance Program. The debtor must obtain a written refusal from 2 trustees and, if they qualify for the  program, will then be assigned a trustee in the referral program for a reduced fee (not for free). This program is not available to everyone that cannot afford to pay. Further, it does not exclude non-exempt assets such as GST and income tax refunds from seizure. Information can be  found at the Bankruptcy  Assistance  Program  website (http://www.servicecanada.gc.ca/eng/goc/bankruptcy_assistance.shtml)    or     by calling the OSB’ s national number at 1-877-376-9902. NOTE:             A debtor who is on a low end fixed income, such as a fixed income pension, with               circumstances unlikely to change may have no need  to declare bankruptcy as they               would be, in essence, judgment-proof. Refer to section C above, Communicating with               Creditors when Unable to Make Contractual Payments.I.Student Loan DebtThe  law surrounding student loans and grants is constantly changing, and varies greatly between provincial jurisdictions. Clients should visit the federal and provincial student loan websites to get up to date informationabout repayment assistance. The information found below is up to date as of July of 2014.  1.Federal Student Loan Debt The National Student Loan Service Centre (NSLSC) is responsible for consolidating all federal student debt in Canada. In certain circumstances,  students can apply for the Repayment Assistance Plan (RAP) and receive payment relief. Successful applicants may receive temporary interest  relief, permanent interest relief, and in the case of a student with a disability a portion of the principal amount of their loan may be forgiven. The level of assistance a student will receive is dependent on their income level, the size of their family, and whether they have a disability. For   further   information   on   getting   repayment   assistance   for   Federal   student   loans,   see http://www.canlearn.ca/eng/loans_grants/repayment/help/index.shtml.