Bankruptcy Exemptions In Nova Scotia
- No limit on clothes for you and your family
- No limit on fuel and food for your family
- Up to $5,000 in household furniture and appliances
- One motor vehicle up to $6,500
- All medical and health aids for you and your family
- Farm equipment, fishing nets, or other tools of your trade up to $7,500
- No limit on grain and seeds or livestock for domestic use by you and your family
For more information on bankruptcy exemptions in Nova Scotia, contact a local a BDO trustee near you.
Get Your Filing Fee And File Your Case
Once youâve completed the paperwork, youâll need to get together your filing fee. The current filing fee for Chapter 7 is $338, which is due in full when you file your Chapter 7 bankruptcy case with the court. Itâs the same amount for single and married filers. The payment must be paid by cashierâs check or money order, you canât make this payment using a credit or debit card. If you feel that you canât afford this fee, you can request a fee waiver, provided you are earning less than 150% of the federal poverty line, considering your combined household income. If the waiver request is not granted , you can also request to pay the filing fee in installments.Â;
Next, print out all the paperwork to file the case with the bankruptcy court. Make certain that you are printing on only one side of the paper and that you have as many copies as needed. If you are unsure, you should reach out to the court clerk to check.Â; It is always a good idea to have a complete set for yourself, both for your records and to use for your 341 hearing.Â;
Then you are ready to go to court to file your documents and officially begin your Chapter 7. You usually also have the option to file by mail, but itâs best to go in person to make sure that everything is complete.Â;Â;
On Your Own: Can You File A Bankruptcy Without A Lawyer And Is This A Good Idea
Bankruptcy law does not oblige you to hire a lawyer to file your bankruptcy relief. The good news now is that you can file it all alone without the help of an attorney. The bad news though is that its not the best decision you should ever make. Some of the factors to consider when you want to hire an attorney for filing a bankruptcy relief will depend on:
- Whether or not youre filing for chapter 13 or chapter 7.
- Your income and property that you possess.
- How technical your bankruptcy is.
- Whether or not you have the skills to handle it on your own.
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Hiring A Bankruptcy Lawyer To Submit Your Forms Online
Bankruptcy attorneys are required to use the U.S. Courtsâ electronic filing system, so theyâre able to submit your bankruptcy forms to the court online. You may be able to use an online questionnaire to provide your lawyerâs customer support team with the information theyâll need to prepare your bankruptcy petition. Depending on the law firm, you may also be able to pay your attorney fees through an online portal. As with the filing fees paid to the bankruptcy court, make sure not to use a credit card.Â;
Using A Bankruptcy Petition Preparer Does Not Mean Your Case Will Be Filed Online
Even though you may be able to work with a bankruptcy petition preparer through an online portal, that doesnât mean youâll be able to file your bankruptcy case online. A petition preparer is any non-lawyer who prepares a bankruptcy petition for you and charges a fee for doing it.Â;
The Bankruptcy Code requires that these bankruptcy petition preparers are heavily regulated. Different courts have different rules limiting the amount a bankruptcy petition preparer can charge. The maximum fees are usually less than $250.00.Â;
Bankruptcy petition preparers may not offer legal advice under any condition. The law restricts these petition preparers to being little more than typists. Youâre still the one that has to submit the paperwork to the court.Â;
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Personal Bankruptcy: A Real
Everyones financial situation is different, but it helps to hear about other peoples stories.
This real-life debt story about a couple who were dealing with a health crisis illustrates the relief that a debt relief program, like bankruptcy or a consumer proposal, can provide to people who are going through tough times.
Bankruptcy Exemptions For Farmers
Up to 160 acres of land is exempt if your principal residence is located on that land and is part of your farm. Any personal property necessary for your farming operations over the next 12 months is also exempt from bankruptcy. For more information about bankruptcy exemptions in Alberta, please speak to a local Licensed Insolvency Trustee.
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When Do You Need A Bankruptcy Lawyer
Most of the times, if you need to file for bankruptcy, you will need the help of a bankruptcy lawyer to help you with your bankruptcy case. It means you will be filing a chapter 13 bankruptcy. This chapter enables you to:
- Catch up with the loan payments you had missed like the mortgages, car loans, etc.
- Cancel junior liens that may not be secure from your premises using lien stripping.
- Reduce your balance or the interest you are entitled to on your car loan.
You should know that chapter 13 of the bankruptcy relief is more complex compared to chapter 7 of the bankruptcy relief. In short, if you want to convince the court to approve your case, you will have to propose a repayment plan thats fair.
In addition to that, if you want to do away with your subsequent or second mortgage, you will be obliged to file more paperwork. For that reason, its just freaking hard to make it without the help of a bankruptcy attorney. Therefore, you need a lawyer to help you with the case.
When Should A Business File Bankruptcy
There are a number of different reasons that a business might choose to file for bankruptcy, and it is usually beyond the control of the business owner. For example, a number of businesses are choosing to file for bankruptcy right now, due to the COVID-19 crisis and the shelter-in-place that has been occurring in most states across the country for the past few months. If you are a business owner struggling with financial hardships during the COVID-19 crisis, you might be reviewing your financial options and wondering when should a business file bankruptcy.
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Exemptions In British Columbia:
- No limit on clothing for you or your dependents; all clothing is exempt from bankruptcy
- Household furnishings and appliances up to $4,000
- One motor vehicle up to $5,000; unless you are behind on child support payments, in which case the limit is $2,000
- Work tools and work-related property up to $10,000
- No limit on medical and dental aids for you or your dependents
Bankruptcy Filing Fees And Other Costs
Bankruptcy court fees depend largely on the kind of bankruptcy.
For both Chapter 7 and Chapter 13 bankruptcy, youll be responsible for paying fees just to have the bankruptcy court hear your case. These can include
- Filing fee The cost to file for Chapter 7 is $335, and $310 for Chapter 13.
- Credit counseling fee If you want to file for bankruptcy, youre required to receive credit counseling first. Many agencies charge a nominal fee for this service, which can cost around $50, according to the Federal Trade Commission. If you cant afford to pay, you may be able to get the fee waived.
- Additional fees You must take a debt education course after you file for bankruptcy in order to get a discharge. The cost can range from $50 to $100, according to the FTC. If you cant afford the fee, you may be able to get the provider to lower its fee or waive it completely.
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Mail Documents To Your Trustee
The Chapter 7 trustee is an official appointed by the court to oversee your case and liquidate, or sell, nonexempt property for the benefit of your creditors. Not all types of bankruptcy require the involvement of a bankruptcy trustee, but both Chapter 7 and Chapter 13 cases have one.Â;Â;
Pay attention to mail you receive from the trustee after filing your case. The trustee will send you a letter asking you to mail them certain financial documents, like tax returns, pay stubs, and bank statements. If you donât send the trustee the requested documents following the instructions provided in their letter, you may not get a discharge of your debts.
Filing For Bankruptcy Can Cost Anywhere From A Few Hundred To A Few Thousand Dollars Depending On The Type Of Bankruptcy Filed And Whether You Hire An Attorney Or Take A Diy Approach
Filing fees and other miscellaneous costs required to file a bankruptcy petition typically range from $300 to $400. If youre filing on your own, you may not have to pay much more than that.
Working with a bankruptcy lawyer can add to those figures significantly. Their fees can vary widely based on the type of bankruptcy you file for, the market rate where your attorney practices and the complexity of your financial situation.
Coming up with any extra money might seem impossible if youre already struggling to pay for basic expenses and creditors are breathing down your neck. Luckily, assistance may be available if you believe bankruptcy is the right choice for you.
Lets look at the two common types of bankruptcy, the fees you may be responsible for and a few ways you might be able to pay for them.
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Northwest Territories / Nunavut / Yukon Exempt Property
;The above exemptions for the territories do not apply if:
- You are behind on child or spousal support payments.
- You have absconded or are about to abscond from the territories, leaving no spouse or family behind.
A Licensed Insolvency Trustees is your trusted resource for current information on insolvency solutions, and factors that may affect your specific situation. Contact a Licensed Trustee today. Your first appointment is free, and your discussion is confidential.
Find a local trustee that you can rely on. We have trustees everywhere from British Columbia to Ontarioand more.
What Happens In Bankruptcy If I Own My Home Outright
What happens in bankruptcy if you own your home outright depends on which type of bankruptcy protection you file for, the value of your home, the state in which you live and other factors surrounding your particular situation. State and federal bankruptcy laws, some of which can be fairly complicated, vary by state.
Bankruptcy Exemptions On Prince Edward Island
- No limit on clothing for you and your family
- No limit on medical or health aids
- Any motor vehicle needed for transportation to work up to $6,500, or up to $3,000 if not used for work
- Household furniture, utensils, equipment, food and fuel up to $5,000
- Tools used by you in your business or trade, up to $2,000
Debts Never Discharged In Bankruptcy
While the goal of both Chapter 7 and Chapter 13 bankruptcy is to put your debts behind you so that you can move on with your life, not all debts are eligible for discharge.
The U.S.Â;BankruptcyÂ;Code lists 19 different categories of debts that cannot be discharged in Chapter 7, Chapter 13, or Chapter 12 . While the specifics vary somewhat among the different chapters, the most common examples of non-dischargeable debts are:
- Alimony and child support.
- Certain unpaid taxes, such as tax liens. However, some federal, state, and local taxes may be eligible for discharge if they date back several years.
- Debts for willful and malicious injury to another person or property. âWillful and maliciousâ here means deliberate and without just cause. In Chapter 13 bankruptcy, this applies only to injury to people; debts for property damage may be discharged.
- Debts for death or personal injury caused by the debtorâs operation of a motor vehicle while intoxicated from alcohol or impaired by other substances.
- Debts that you failed to list in your bankruptcy filing.
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Can You File It On Your Own If Its A Simple Chapter 7 Bankruptcy
Probably you must have now lost hope after those hard truths above, but here is the relief; you can still file a bankruptcy relief on your own if its a simple chapter 7 bankruptcy. In a nutshell, a chapter 7 bankruptcy means:
- Your income is way below the states median level of income.
- You dont own any property and if you do, its little.
- There are no recent transactions made by you regarding property transfers to your preferred debtors.
- There is a low probability that your creditors will make any claim that what they owe you is nondischargeable in bankruptcy. In as much as you may be willing to file your bankruptcy relief on your own, it will still require you to invest a lot of your time. Therefore, if you want your case to go through, obtain your discharge, and secure your property, the following are what you need to do:
- Make sure you fill in the bankruptcy forms properly taking care you dont make any errors.
- Do some research and know how the bankruptcy law works.
- Research on some of the exemptions your state offer.
- Be careful and follow all the steps needed to complete the process.
What Happens To Your Assets
Its a common misconception that if you file for bankruptcy, youll lose all your assets. In reality, many assets are exempt from seizure, such as personal belongings, furniture, tools of the trade, etc. These exemptions vary from province to province.
RRSPs are also exempt from seizure, except for contributions made in the last year. However, you will lose your tax refund for the year, plus any tax refunds from previous years that you have not yet received.
In most cases, you can keep your home and your vehicle during bankruptcy. If you have built up a lot of equity in your house or have other expensive assets that arent exempt in your province, you may consider filing a consumer proposal instead, which has no impact on your assets.
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Attend A Financial Management Course
The list of approved debt education courses is available at the Department of Justice website. InCharge Debt Solutions is an approved agency with our own;online bankruptcy course. The course must be completed within 45 days of meeting with your trustee and creditors.
Lieberman said anyone considering bankruptcy should take the important first step of using an internet search engine to find the bankruptcy court for their area. Each site has a plethora of information for consumers and filers.
If You Need To File Chapter 13 Bankruptcy
There are many reasons to file a Chapter 13 bankruptcy instead of Chapter 7. You might want to file a Chapter 13 bankruptcy because you wish to catch up on mortgage arrears, get rid of your second mortgage, cram down your car loans, or pay back nondischargeable priority debts, such as back taxes or support arrears. Or maybe you make too much money to qualify for a Chapter 7 bankruptcy. No matter your reason, most Chapter 13 cases are too difficult to file on your own.
In addition to filling out the bankruptcy forms , you must also design a proposed repayment plan, which is very difficult to do without the expensive software that most attorneys use. Specific actions such as stripping your second mortgage or cramming down a car loan will require filing additional bankruptcy motions and paperwork with the court.
As a result, some attorneys limit their bankruptcy practice to Chapter 7 because they feel they are not qualified to handle Chapter 13. And, an overwhelming majority of Chapter 13 cases filed without an attorney get dismissed by the court. So if you are planning to file a Chapter 13, it is a good idea to hire a qualified attorney.
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Bankruptcy: Keeping Your Property
If you have a steady income that exceeds;Chapter 7’s limitations;but face unmanageable debts, Chapter 13 may be the best option.
One of the upsides of a Chapter 13 bankruptcy is that you often retain much of your property. Under Chapter 7, various property types may be subject to liquidation or sale to repay creditors. State laws differ on the types of property considered eligible or ineligible for sale in a Chapter 7 case.