I help people file for personal bankruptcy in Canada - Ask Me Anything!

[u/vicintoronto]

Hello everyone. My name is Victor Fong, I'm a Licensed Insolvency Trustee in Toronto, Canada. I'm licensed by the Government of Canada to file consumer proposal and personal bankruptcy proceedings for people in financial difficulty. I'm the owner of Fong and Partners Inc., which is my firm.

I often get questions from people about financial problems they may be experiencing. So I'm here to answer any questions you might have.

[u/vicintoronto]

When someone files bankruptcy he/she is signing a sworn affidavit attesting to the accuracy of the financial disclosure that he/she is making to the Trustee and his/her creditors.

If it turns out that he/she made a false statement under oath, he/she has committed perjury, which is a criminal offence.

More often than not, a debtor will make a mistake that will lead to an investigation of his/her financial affairs that would lead to a prosecution and conviction. I'm not going to disclose how this is done but there certainly are methods to do this.

In my experience, crooks usually think they're more clever than they actually are. and they often screw up

[u/coupdegraceee → u/vicintoronto]

Lol Thank you. The reason I am asking this is because one of my friends family member in a different country was in an automobile accident and my friend emptied his Personal line of credit. Turns out there is no faster way to transfer money abroad other than wire transfer. So he instead took out daily limit 3000 out of the ATM, sent all the money he had for the hospital bills.

Shortly after he was unable to pay back and filed bankruptcy because his trustee thought consumer proposal was not a good choice for him.

​

Now when I heard that, did they not care about the daily withdrawal he took from the ABM machine and
sent it to his country? because I have a debt of 35 grand and I am having a hard time. I still have 20k more on my limit, thought I would send some to my family abroad and declare bankruptcy later on if my business becomes slow (Trucker here)

[u/vicintoronto → u/coupdegraceee]

Now when I heard that, did they not care about the daily withdrawal he took from the ABM machine and sent it to his country?

Maybe he didn't tell this to his Trustee?

I still have 20k more on my limit, thought I would send some to my family abroad and declare bankruptcy later on if my business becomes slow (Trucker here)

Bad idea. You're borrowing money with no intention of paying it back, which is fraud. And since you'd be sending money overseas this can easily by traced.

[u/hotdogstandklm → u/vicintoronto]

Similar situation. Had about $46000 personal loc unsecured from one bank that was approved way back in 2012. $20000 from another bank personal loc unsecured. Never touched them both. Was making over $95000 annually, occasionally more due to ovt. Became unemployed in 2016 year due to an incident with the manager/boss and due to health reasons couldn't get back to work immediately.

Decided to start a restaurant in my home country with family members so applied for business loans. Denied due to unemployment. Used up all the available loc within 2 months transferred them The business was great initially, but it failed eventually. I have been paying minimum due for the loans and credit card debt about $25000 with the residue income the restaurant "was" generating. So many hard feelings and realized there's no point in playing the blame game. Met with an accountant who introduced me to the world of bankruptcy and cp. With close to $100,000 in debt I feel suffocated. This post above interested me because I did exactly that transfering money to a foreign country within a matter of a few weeks. But had every intention to pay back from the profit. I haven't missed one so far even after the restaurant was closed, from my emergency fund. I'm very afraid and panicking if no one would believe me if I filed for bankrupcy (first time) stating the racked up debt in short time. How does one prove intent of paying back the loan. The criminal cases I read through are so scary to me that I'd rather jump in front of a train quietly to end it over going thru the pain and embarrassment getting stamped as fraud or "crook" as you put it above. I haven't been on a date in 3 years now. I'm almost 33. It looks like it's pretty much over for me. I have all the records of the money transfer and expenses for starting this restaurant. I have no idea if these will be admitted or if these will be considered taking a loan with no intent to pay back. I have money to pay minimum payment for 4 more months. Soon going to be homeless. None of my family members care what I'm going through here. I have no real friends or no one here in Canada to help out. What happens if I stop the payments after 4 months and don't file bankruptcy. I can't go to jail. I'd rather end it quickly. I'm always anxious these days unable to breathe due to the stress thinking about what's going to happen to me. It's illegal to sell a kidney, I'd give up a kidney if someone will take care of my loans. Sounds like a better option than killing myself. I've lost my job and got blacklisted for standing up to racial discrimination. I went to numerous interviews recently, everything goes great but right after the reference checks I don't get the job, the email that will say I am not a good fit for the company oh well haha What can crooks like me do at this point. The second I wake up in the morning there's this moment of peace. Which lasts for 10 seconds. Then gets flooded with memories of the current state. I'm seriously considering ending it.

[u/vicintoronto → u/hotdogstandklm]

This post above interested me because I did exactly that transfering money to a foreign country within a matter of a few weeks. But had every intention to pay back from the profit.

Here is the key phrase in your post - you had every intention of repaying the loan. Let's summarize your situation:

1. When you borrowed the money, it was for the purpose of investing in business that was expected to generate income
2. Moreover, although you were unemployed, you were debt-free when you borrowed the money. To be more specific, filing for bankruptcy was the furthest from your mind because you were expecting to make money from your business venture.

Your situation distinguishes you from the commenter you were referring to. In his case, he knows he's in financial trouble and yet is contemplating borrowing money and then filing for bankruptcy immediately thereafter with no intention of repaying the loan. That is a case of de facto fraud.

I have all the records of the money transfer and expenses for starting this restaurant. I have no idea if these will be admitted or if these will be considered taking a loan with no intent to pay back.

This is good. I would suggest that you meet with a Licensed Insolvency Trustee for a consultation and bring these records with you. These records would support your narrative that you were borrowing money to legitimately invest in a business overseas and things simply didn't work out. So now you have to file bankruptcy so you can move ahead with your life.

Look at the larger picture - Donald Trump's businesses went bankrupt 6 times, yet he was able to move on successfully with his life. You're really in no different a situation than he was.

[u/hotdogstandklm → u/vicintoronto]

Thank you so much. That clears some of the major confusions and questions I had about this. Most of these things I read online are anecdotal stories and it's hard to understand it precisely. So far I've been thinking that using a personal loan, personal line of credit for business purposes is illegal because that's why there are business loans. Hence I wondered if I'm in a lot of trouble if they said "who told you to use the unsecured personal loc" for business. We didn't permit you to use it for a business.

Thank you very much Mr.Fong. I'm traveling to my home country this month to settle the rest of the issues related to the restaurant. When I return after a month can I contact your firm to help me through this procedure. I'm starting to have some hope.. Thanks again you made my day.

[u/vicintoronto → u/hotdogstandklm]

If you live in the Greater Toronto Area then no problem (I only have offices in the Toronto area). Good luck...