RRSP Loans: Good or Bad?
With the RRSP contribution deadline just around the corner (March 2), it’s better late than never to consider making a contribution. If you don’t have a lump sum of cash set aside for your contribution, should you forgo your contribution this year or should you borrow from the bank? This is a popular debate at…
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When can I include my student loan in a bankruptcy?
As I’ve stated in previous blog posts, student loan debts will be eliminated with personal bankruptcy after you’ve ceased to be a student for a minimum of seven years. There has been some confusion with this in that past as people aren’t sure when the seven years is up. It has to do with when you…
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Consumer Proposal and Tax Debt
If you have tax debt and can’t afford to pay it, one option for dealing with this debt is to file a consumer proposal. Some advantages of filing a consumer proposal are: Canada Revenue Agency will often accept less than the full amount of the tax debt owing. If your tax debt is less than…
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Why are credit counselling sessions mandatory after a bankruptcy?
After filing bankruptcy, you are expected to attend two mandatory credit counselling sessions, required under the Bankruptcy Insolvency Act, to aid in your financial rebuilding process. Credit counseling is there for good reason. Multiple bankruptcy filings are not uncommon in Canada — in fact, they’re becoming more and more frequent. While it’s impossible to educate a…
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Debts Included in a Personal Bankruptcy
There are several kinds of debt that can be included in a personal bankruptcy. Recognizing the kind of debt that is included in a bankruptcy and comparing them to your own debts can be the first step towards obtaining your fresh start. Some of the most common debts are: Tax debt Owing money to the government…
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Common Questions Regarding Bankruptcy
When you finally decide you can’t climb out of debt on your own and need to meet with a trustee, you will likely have a lot of bankruptcy questions to ask. For this reason, we have created a Frequently Asked Questions section on our website dedicated to bankruptcy questions, In our initial meetings, we usually…
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Can a debt collector try to collect on a debt that was discharged in bankruptcy?
No. If you have filed for bankruptcy, a debt collector cannot try to collect debts included in the bankruptcy. If a debt collector calls, tell the debt collector that you filed for bankruptcy and give them the name and phone number of your trustee. Your trustee will communicate directly with them. Even though debt collectors…
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Wages During Bankruptcy
Many people I meet with are concerned that if their wages increase during their bankruptcy, they will have to pay more than originally expected to their creditors. While you’re in bankruptcy, you will be under income restrictions and must do monthly income and expense reporting to the trustee in bankruptcy that you have filed with. There…
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How do I correct an error on my credit report?
You should request a copy of your credit report annually from Equifax and Trans Union, the two Canadian credit-reporting agencies, to verify that your personal information is up to date, your financial information is correct, and to ensure that you have not been the victim of identity fraud. You can do this free of charge by contacting…
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Signs of Financial Danger
At some point in their lives, everyone experiences problems with money. Financial problems aren’t necessarily the result of poor money management. Sometimes situations beyond our control, such as divorce, death of a spouse, health problems or a change in household income can lead to financial hardship and further danger like bankruptcy. While every case is…
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