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Financial Issues This forum is for discussing any of the financial issues involved in your divorce.

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  #1  
Old 08-21-2012, 12:19 AM
runaway runaway is offline
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Ok so I was awarded interm ss back in sept 2011 to begin oct 1 2011. Went through fro as Stbx wouldn't pay voluntarily. Stbx ended up on wsib in march 2012. Fro started receiving money April 2012 through a deduction order. Stbx took me back to court to lower support while on wsib. We agreed to a lower amount only until his return to work. Now he has filed for bankruptcy and I have stopped receiving my support altogether. I have spoken to the fro and they said the deduction orders are still in place. I thought bankruptcy never affected support payments.

The Styx has done everything possible to get out of paying me anything for assets or support. I am so tired of the battle
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Old 08-21-2012, 09:26 AM
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Quote:
Originally Posted by runaway View Post
Ok so I was awarded interm ss back in sept 2011 to begin oct 1 2011. Went through fro as Stbx wouldn't pay voluntarily. Stbx ended up on wsib in march 2012. Fro started receiving money April 2012 through a deduction order. Stbx took me back to court to lower support while on wsib. We agreed to a lower amount only until his return to work. Now he has filed for bankruptcy and I have stopped receiving my support altogether. I have spoken to the fro and they said the deduction orders are still in place. I thought bankruptcy never affected support payments.

The Styx has done everything possible to get out of paying me anything for assets or support. I am so tired of the battle
He will accumulate arrears which will survive bankruptcy. Meanwhile I do not think there is anything you can do but I am not a lawyer by any means. there is probably nothing to deduct from...
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Old 08-21-2012, 09:43 AM
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The intersection of bankruptcy and family law is complicated. Depending on the value of the SS, I would suggest obtaining a legal aid lawyer if you can or, otherwise, retaining a lawyer. The relevant legislation in both areas were not drafted in great contemplation of the other.
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Old 08-21-2012, 09:29 PM
ddol1 ddol1 is offline
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Quote:
Originally Posted by runaway View Post
The Styx has done everything possible to get out of paying me anything for assets or support. I am so tired of the battle
Do you actually have any arrears from property? was your equalization payment settled and paid in full as part of your final settlement. Yhe only thing that you are actually dealing with now is the SS?

the issue of bankrupcy and property issues is not cut and dried - if you care to clarify the status of your property equalization??
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Old 08-21-2012, 10:21 PM
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bankruptcy doesn't effect support orders - if anything the payor is supposedly in a better position to pay if he/she has rid themselves of debt.

Are you sure your stbx is still employed?
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Old 08-21-2012, 10:46 PM
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Quote:
Originally Posted by arabian View Post
bankruptcy doesn't effect support orders - if anything the payor is supposedly in a better position to pay if he/she has rid themselves of debt.

Are you sure your stbx is still employed?
Excellent point and question to investigate in the matter. Highly recommend you request in accordance with Rule 20 of the Family Law Rules (and possibly your existing agreement) confirmation that the other parent in the matter is employed.

You can do this with a Form 20:

http://www.ontariocourtforms.on.ca/f...ept105_ODA.pdf

Good Luck!
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Old 08-21-2012, 11:54 PM
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Exactly! Having bankruptcy protection from Creditors puts the "bankrupt" in an even better situation to pay CS/SS than someone who is struggling to make payments on insurmountable debtload.

Only an a*shole files for bankruptcy trying to absolve themselves of all obligations. The B.I.A is a sad, pathetic failure in my opinion. Trustees run amok, and the only decent Registrars they had (in my "area") are gone. Bankruptcy is meant for "the honest but unfortunate debtor." The person who coined that phrase must have died, and is now rolling over in their grave.

Our bankruptcy laws are without teeth. It is far too easy to file bankruptcy in Canada. The whole BIA needs an overhaul and real consequences need to be put in place for those who abuse the system. As it stands, there is little or no deterrent to file a completely fraudulent assignment in bankruptcy. If there is no opposition, the individual gets an automatic discharge without even having to step into a courtroom, in just nine months (for a "first time bankruptcy).

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I think I got that right. It's a total crock of sh*t too (again, in my opinion) but they are the governing body for all trustees and assignments in bankruptcy, within Canada. Yes, Slughead is correct: you may have grounds to file an opposition. I wish I could say that doing so would do you much good.

Last edited by hadenough; 08-22-2012 at 12:45 AM.
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Old 08-22-2012, 01:20 AM
runaway runaway is offline
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The Styx is collecting wsib. When he filed for bankruptcy the deductions stopped from his wsib cheques which he is still getting. I didn't think bankruptcy affected the fro deduction orders.

No equalization of property had not been done I will basically end up with my half of his pension and ss in the end. I have a lawyer and he told me that him claiming bankruptcy does put him in a better situation for support. My lawyer also said that bankruptcy does not affect support. But yet it stopped right after he filed for bankruptcy.

He wasnt honest on his bankruptcy papers and my lawyer has pointed this out to the trustee.

Fro told me that they have to wait 35 days from the last payment to contact the income source.

The only reason he filed for bankruptcy is to get out of having to pay me anything for the assets and I can assure you he thought he would get out of the support as well.

Of course now any joint debt will fall on me entirely I believe because he has claimed bankruptcy.
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Old 08-22-2012, 01:46 AM
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What joint debts do you have, and are they secured by collateral? PM me if you like. I'm curious to see if your ex saw the same crook trustee mine did. A long shot perhaps, but my life is full of coincidences. I also (depending where you are) can give you the name of a good lawyer that specializes in bankruptcy. Wish I'd met him long ago - instead of the s.o.b that I had the misfortune of 'finding' first. Yeah b/c I really needed more bad luck at the time. :s
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Old 08-22-2012, 11:46 AM
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Quote:
Originally Posted by slughead10 View Post
i hate to break this to you but you wont get half his pension unless he agrees to an if and when type of deal. his obligation to you for equalization payments put you in the position of a creditor. you might want to ask your lawyer about it.

here is a casehttp://www.canlii.org/eliisa/highlight.do?text=equalization+and+bankruptcy&lang uage=en&searchTitle=Search+all+CanLII+Databases&pa th=/en/on/onsc/doc/2007/2007canlii14929/2007canlii14929.html
here is the link Guitard v. Guitard, 2007 CanLII 14929 (ON SC)

I tend not to agree with slughead10 on this one. What this case mean that you have to deal with this in bankruptcy court first. there is quite big case law on this particular issue. Yuo can get book which reffered in this case and read whole chapter on this one and how to deal with this.

My understanding is that you should not allow your ex be discharged which would terminate your equalization claims.
Quote:
[6] Mr. Klotz, at pages 10-8 and 10-9, provides a synopsis of how the failure to obtain a stay impacts on a claim for equalization of net family properties.

“In the equalization provinces of Ontario, Manitoba and P.E.I., the situation is more complex. Here is the capsule version:

(a) The equalization claim is normally a provable claim, so it is caught by the bankruptcy.
(b) The wife can seek equalization against the pension in the matrimonial proceedings, but only if, on or before the bankrupt’s discharge, she obtains an order from the bankruptcy court lifting the stay of proceedings (this is normally referred to as an order granting leave to proceed, or a “leave order”).
(c) Equalization proceedings against the pension are barred after the discharge, absent fraud or other unusual circumstances, unless the wife has obtained leave to proceed from the bankruptcy court before the discharge. In other words, the normal nine-month bankruptcy discharge period operates as a limitation period.
(d) If the husband has filed a bankruptcy proposal instead of a bankruptcy, the wife should seek leave of the bankruptcy court to advance her equalization claim, before or at the time of approval of the proposal. This is another possible limitation period.
(e) If she obtains leave from the bankruptcy court, the quantification of the equalization payment in the subsequent matrimonial proceedings is problematic.
(f) The wife can seek a constructive or resulting trust against the pension, regardless of the bankruptcy, but this remedy may be limited by a questionable decision of the Ontario Court of Appeal.
(g) The wife can seek spousal support, or a material increase in support, by virtue of the non-payment of equalization due to bankruptcy.
(h) The wife can seek to annul the bankruptcy.
(i) The wife can oppose the husband’s discharge.”

[7] It appears that Mr. Guitard’s bankruptcy discharge has terminated his wife’s equalization claims.
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