519-646-2222Category: Insolvency News
Good 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 moreMortgages in arrears
Across Canada there are 11,249 Bank issued mortgages in arrears. Saskatchewan leads the pack with a .75% delinquency rate, while Ontarians are most up to date on their payments with a .09% delinquency rate. Many more Canadians have private mortgages than in the past, and those mortgages do not appear in these statistics. Nonetheless, it remains […]
Read moreFurniture as security
We sometimes get asked: if furniture can be used as security for debts; and, if the debtor goes bankrupt does the creditor have a right to pick up the stuff? The answer, generally, depends on the nature of the loan and if or not the creditor took the steps necessary to register a security interest. […]
Read moreFamily support arrears
You cannot go bankrupt on family support payments – but if you do owe support arrears for either alimony or child support the claimant (spouse or child) may claim the arrears for the year before the date of bankruptcy, plus any lump sum amount payable, as a priority over most other creditors. Confused? Section 136 […]
Read moreDebt Management Program or Proposal
Debt Management Programs are offered by non-profit Credit Counsellors while only Licensed Insolvency Trustees can file Consumer Proposals. There are advantages and disadvantages to each option. In this blog we will discuss the differences and how each works. The parties: A Debt Management Program (“DMP”) is a voluntary arrangement between you and some of your […]
Read moreJoint Bankruptcies and Proposals
The Bankruptcy & Insolvency Act has provisions that allow for both joint bankruptcy and joint proposal filings. The filings can be between individuals who are related and financially codependent or individuals who are conjoined only by the debts they owe. Interestingly the Act does not prescribe a limit to how many people can be considered […]
Read moreUnderstanding Surplus Income and Bankruptcy
The Bankruptcy and Insolvency Act has a provision (under Section 68) requiring that individuals who make more money than the Government’s Low Income Cut Off (“LICO”) should pay half of that extra or “surplus” for an additional period of twelve months. If that thought seems a bit overwhelming it is not surprising, the whole surplus […]
Read moreRe-establishing credit during a bankruptcy
Yes, you can re-establish credit even though you are currently in a bankruptcy or a proposal. There is nothing under law that prohibits you from obtaining credit while going through a bankruptcy. Section 199 (b) of the Bankruptcy & Insolvency Act requires that you notify the lender you are an undischarged bankrupt if you are […]
Read moreCongratulations on your record debt
That’s right congratulations Canadians for running up record debts for yet another year. There has not been a single year since 1977 when Canadians charged less than the preceding year on credit cards, according to the Canadian Bankers Association In 1977 there were some 8,200,000 bank issued credit cards in circulation in Canada. Of course, […]
Read moreA brief history of credit cards
We have spoken about the phenomenon of credit cards several times in other blogs but this article from the BBC speaks very succinctly to the history of credit cards and how we have become so indebted. Credit cards are the most popular and convenient form of credit on the market. In many circles they are […]
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