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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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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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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Getting Rid Of OSAP And CSL Debt
Struggling with student debt is common. Many of the people I see on a daily basis are still struggling with student debt. Graduates don’t have a lot of time to start making money before they have to start paying back their loans. If you owe money to Ontario Student Assistance Program (OSAP) or have a Canada Student Loan (CSL), you have…
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How To Tell If A Debt Collector Is Legitimate
Do you dread that angry voice on the phone demanding you pay your debt? If you’ve ever received that phone call, it can definitely be a nerve-racking phone call. But what if you don’t recognize the debt or the collector? Before you apologize or promise to pay, make sure it’s actually your debt! Just because…
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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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Why A Surplus Income Form Requires Your Spouses Income
As I stated in my blog post, 2015 Surplus Income Limits in Canada, during the bankruptcy period, you will be required to send your trustee a copy of your income and expense statements (i.e. medical expenses, child care, etc.) each month so the trustee can calculate your net income and determine if any surplus income payments…
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Assets That Can Be Kept In A Bankruptcy
You are permitted to keep some assets in a bankruptcy. These exemptions are set by various federal and provincial laws. For personal bankruptcy in Ontario, the following assets are exempt: $5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.); One motor vehicle worth up to $5,650; $11,300 worth of home furnishings; $11,300 worth of…
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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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