519-646-2222Blog Articles
Co-Signing debts
Co-signing debts can be very problematic for the co-signer. Usually a debt is co-signed with the best of intentions most often for a family member. It is common to co-sign for a spouse or a child and sometimes people will also co-sign for friends. Everything is good if the borrower is living up to his/her […]
Read moreSupport Payments
Filing a bankruptcy or consumer proposal will not help solve support payment arrears. The debt will survive the proceeding and you will need to keep paying that bill. Similarly, if you are receiving support payments they will be considered as a part of your family’s income throughout the proceeding. Support payments can affect the amount […]
Read moreProblems with the CRA
Most Canadians can lay claims to having had some problems with the CRA. Some problems are way worse than others, as evidenced by recent media stories. The issue appears to be systemic rather than related to any individuals within the organization, although like any other workplace there are good and bad employees. Some of the […]
Read moreLonger loans worse than shorter ones
Are longer loans worse than shorter ones? They certainly are. People don’t think about the compounding of interest or the erosion of the asset they are funding over a term exceeding its lifetime. Let’s think about a house – you buy it for $300,000 but over a 25-year amortization you actually pay $450,000 – an […]
Read moreResign as a director
When you make an assignment into bankruptcy you must resign as a director of any incorporation in which you have an interest. Interestingly you may retain your shares, so you can own the corporation but you cannot be a director. Section 284 (5) of the Corporations Act of Ontario provides: “No undischarged bankrupt shall be a […]
Read moreGovernment debt forgiveness
Are you thinking about government debt forgiveness? Advertisements are everywhere “see if you qualify for debt relief” touts one google headline, “government debt relief programs” says another. Even Licensed Insolvency Trustees are involved, albeit not by design, in the deception. Yes, read that last bit again: we used to be called “Trustees in Bankruptcy” but […]
Read moreGood debt, bad debt
I’d rather have good debt than bad debt, how about you? Good debt, bad debt, it’s all debt – how on earth can one form of debt be called and another bad? O.K. so, some folks might think bad debt is delinquent debt, others may differentiate along the lines of the type of debt, cash […]
Read morePensioners and debt
Pensioners relying on CPP, OAS and GIS have about $1,100 per month of income. The Canadian government has established the poverty line (Low Income Threshold) at over $2,100 per month, effectively setting seniors up to fail. We live in an aging population with an increasing number of Canadians becoming entirely dependent on government pensions as […]
Read moreI can’t go bankrupt on only $5,000
There is no magic number or threshold that must be reached to be eligible to file a bankruptcy or proposal, some people think “I can’t go bankruptcy ononly $5,000”. The reality is that $5,000 for some people might as well be $5,000,000 based on their means. Although it would not make any sense to file […]
Read moreProposals starting at $40.00 per week
Although that may not be the best way or most appropriate way to advertise it is true, consumer proposals starting at $40.00 per week are available to some qualified people. So, what do you need to qualify for such low payments? You need stable income, you generally need to have a lack of means (to […]
Read moreResolving Discharge Issues
A surprising number of people file for bankruptcy then do not get discharged, this blog is a guide to resolving discharge issues that should help regardless of who your trustee was. Common problems: Did not pay the trustee fees Missed attending at the two required counselling sessions Did not provide trustee with the information for […]
Read moreJoint filing
You may be eligible for a joint filing in either bankruptcy or a proposal if you are in some way financially related to the person with who you wish to make a joint filing. The relationship does not need to be a blood relationship since, as previously discussed, a corporation may be considered a person […]
Read moreTrusting a trustee
Many people have concerns about trusting a trustee and sometimes with very good reason. There are a lot of sharks in the debt pool from cagey bankers to sketchy credit counsellors. Trustees fit into the spectrum in different places depending on many factors. Some trustee firms, such as ours, refuse to work with debt referral […]
Read moreReceivership versus Bankruptcy
Are you confused about when to use receivership versus bankruptcy? The media sometimes uses the terms interchangeably but they mean quite different things and are used for divergent reasons. A receivership is used by secured creditors and a bankruptcy is for unsecured creditors. A receiver is appointed either by the court or by an instrument […]
Read moreDo not self-liquidate
Self-liquidation is becoming a major problem for Canadians. Far too many consumers sell off their RSPs and take unnecessary loans against insurance policies to deal with debt problems. Such measures should be last resorts, even behind filing a bankruptcy. Many assets are exempt from seizure or sale by a bankruptcy trustee (Licensed Insolvency Trustee). You […]
Read moreJoint corporate and personal bankruptcies
The definition of a person in the Bankruptcy & Insolvency Act includes a “a corporation” and the Act contemplates the filing of joint files for both bankruptcies and proposals. So, there is no reason why a joint corporate and personal bankruptcy, or proposal, cannot be filed. There may be issues with joint files, imposed by […]
Read moreBankrupts can leave the country
We are sometimes asked if bankrupts can leave the country, and the answer is yes. Now, it is important to recognize the difference between leaving the country and fleeing the country. If someone files for bankruptcy then skips out of the country taking assets and leaving no contact information they may have committed an offence […]
Read moreLooking for a job
Are you looking for a job? What sector are you looking in? How much money do you need to earn to maintain your lifestyle? How much can you anticipate your income changing relative to living costs? These are all important questions for people of all ages, especially those completing college and university educations, to contemplate. […]
Read moreDeceased bankrupts (dead people can go bankrupt)
Yes, dead people can go bankrupt. A deceased person may be assigned into bankruptcy either by the estate executor/trustee with the blessing of the court or by a creditor petitioning the estate into bankruptcy. Of course, another scenario is that a person might die after filing an assignment into bankruptcy. Section 136 of the Bankruptcy […]
Read moreWhat are my options?
If you are in debt over your head, you may very well be asking “what are my options?”. There are four possibilities that we will consider in this article. 1. Pay my creditors as they become due; 2. Consolidate into a mortgage; 3. File a proposal; and 4. File a bankruptcy For each scenario we […]
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