Author: welker

Preparing Students For a Financially Sound Future

As students prepare to make the leap from high school to college or university, many have not been prepared for life on their own, especially when it comes to money. Low financial literacy can lead to major debt challenges down the road. Coming out of university with major debt is one of the worst things…
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Missing a Division 1 Proposal Payment in Canada

Many people are surprised to discover that Trustees are able to offer two different types of proposals through the Bankruptcy Insolvency Act. The first of these is the commonly-known Consumer Proposal and the second is called a Division 1 Proposal (you can read about the  differences between the two proposals in a previous blog post). If you have filed…
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Will you really “lose everything” if you file personal bankruptcy?

Contrary to popular belief, you will not “lose everything” by filing for bankruptcy. The Bankruptcy and Insolvency Act works with provincial legislation to protect many personal assets, including your car, furniture and RRSPs, which are often exempt from seizure by the Trustee.  If you have a lot of assets, chances are you will lose most of them. After…
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The Advantage Of Paying Off Your Consumer Proposal Early

  The sooner you pay off your consumer proposal – the better. From the time you file your consumer proposal until it’s paid off, you will have an R9 credit rating (i.e bad debt; placed for collection; moved without giving a new address or bankruptcy). Once the proposal is paid in full, the R9 is…
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Should I use my line of credit to pay off my debt?

We get asked this question a lot. Consolidating debt can definitely be a good strategy. The obvious advantage of consolidating your debt is that you reduce the interest you are paying. Therefore using your line of credit to consolidate your high interest credit card debt will definitely improve your situation and may help you to dig yourself out of…
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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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Will people know that I filed bankruptcy?

This is a common concern among clients who are considering bankruptcy. Many people are embarrassed that they have let their debt get out of hand and want to deal with it as quietly as possible. One of people’s greatest fears of bankruptcy is that their friends and family will find out and somehow think less…
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Be Wary Of Fraudulent Credit Counsellors

Although some credit counselling companies are legitimate, there are many fraudulent credit counsellors who charge high fees, provide little or no service and warn against discussing your money problems with a licensed trustee in bankruptcy. A credit counsellor has no greater ability to negotiate with your creditors than you do. The credit counselling industry is unregulated and anyone can…
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2015 Surplus Income Limits in Canada

When you file for bankruptcy in Canada, you’re allowed to keep a portion of your income each month. If you make more than that portion, you have to contribute half of that surplus income into your bankruptcy estate. That money is distributed to your creditors. These limits have recently been increased due to inflation (as they…
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