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 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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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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How fast can a bankruptcy be filed?
We deal with people in all types of debt situations ranging from people slightly concerned about the balance owing on credit cards to people who have delayed filing bankruptcy and have been threatened with legal action by creditors (requesting information from a court to garnishee your wages). At this point, it is very important that…
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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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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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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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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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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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Students Need Basic Financial Literacy Skills
With the number of young people seeking financial help these days, it’s becoming even more apparent that financial literacy needs to be taught in schools. I can’t tell you the last time I had to solve an algebra equation or explain to someone the properties of matter, but budgeting and money management are skills I…
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