Vehicle Loans And Bankruptcy
If you file personal bankruptcy the rights of your secured creditors are unaffected. This doesn’t meant that you can’t deal with your secured creditors by filing personal bankruptcy, it means that your secured creditor’s right to either be paid or to repossess your vehicle is unaffected. The reality is secured creditors don’t want to repossess your vehicle. They know if…
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Myths About Bankruptcy
Many people wait too long to get the debt help they need. For most people experiencing money problems, the thought of filing personal bankruptcy or making a consumer proposal is a last resort. Their first instinct is often to sell assets. The problem with this strategy is that people are rarely able to get enough money from…
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Why is it a good idea to consider filing a consumer proposal if you own your home?
If you file personal bankruptcy any equity that you have in your home becomes property of your bankrupt estate. When you make a consumer proposal, your home and related equity is unaffected. The trustee and creditors will not take possession of your property and you will be able to keep any house equity that you have accumulated….
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Can personal loans from friends be included in a personal bankruptcy?
JOE ASKED: I have personal loans with two different friends that alone equal $15,000. Can these loans be eliminated with personal bankruptcy? Can I keep my mortgage? Personal loans are no different than any other debt. Filing personal bankruptcy can definitely eliminate personal loans owed to friends. There is a short list of debts which are not eliminated by filing…
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Should I pay off my credit cards or pay down my mortgage?
I was recently asked by a friend if it was better for them to pay down their mortgage or pay off their credit cards. I answered him with a question of my own. I asked him if he was given the option of the following two investments which would he choose? INVESTMENT A: guaranteed rate…
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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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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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Should you get a loan for an RRSP contribution?
With the RRSP contribution deadline just around the corner (February 29), 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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RRSPs And Creditors
With the February 29th RRSP deadline looming, people who are struggling with debt may be curious about how their RRSP contributions may be affected if they were to file bankruptcy. Certain RRSP and RRIF holdings are protected from creditors under a provision of the Bankruptcy and Insolvency Act. RRSP and registered retirement income fund (RRIF) proceeds held under any…
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RRSP Contributions And Filing Your Income Tax
You can make RRSP contributions during the first sixty days of 2016 and claim these contributions on your 2015 income tax return. Most years the RRSP contribution deadline is March 1, however because 2016 is a leap year the RRSP contribution deadline is February 29, 2016. The main benefits of contributing to RRSPs are; you can build an asset for retirement…
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