Can I “redo” my mortgage if I file for personal bankruptcy?
Can I redo my mortgage if I file for personal bankruptcy? This is a question I get asked on a regular basis, so it’s one that I like to revisit every once in a while. The answer to this question depends on what is meant by “redo”. Obviously filing personal bankruptcy damages your credit rating. Filing personal bankruptcy results in a…
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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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Planning on maxing your credit cards before filing bankruptcy? Think again.
Running up your credit card balances when you intend to file bankruptcy is a fairly clear case of intent to defraud your creditors. If you do so, your trustee, creditors or the Office of the Superintendent of Bankruptcy have the ability to discharge you from bankruptcy and you could be ordered to pay back a…
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Why do people say that going bankrupt is a bad thing?
For many people, the thought of filing bankruptcy is intimidating. It conjures up all sorts of horrible images of people losing their home, losing their car and destroying their credit rating forever. The reality is, people are usually misinformed when it comes to bankruptcy. The reality is that the Bankruptcy and Insolvency Act (BIA) was…
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If I am unable to pay the mortgage on my home, may I simply give it back to the bank?
A mortgage is a loan agreement which requires you to repay the loan with interest and which also gives the lender (the mortgagee) a claim on your house if you don’t repay. If you miss a mortgage payment, that’s a default under your mortgage. When you default, the full amount of your mortgage becomes payable…
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Pros and Cons of Credit Card Use
Everyone has heard horror stories of consumers who have fallen into unspeakable credit card debt. Credit cards can be great but it’s also important to be educated to spend responsibly. Here are some pros and cons to shopping with a credit card: Pros Purchasing Power Many credit are accepted virtually anywhere and give you purchasing…
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Can you file bankruptcy while renting?
The majority of people who make consumer proposals or file personal bankruptcy with our office are renters. Most of those people have questions surrounding their current and future rental agreements. Here are some of the common questions we are asked: Will this affect my current rental agreement? Making a consumer proposal or filing personal bankruptcy does not affect your current rental…
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Surrendering Credit Cards In Bankruptcy
When you decide to file personal bankruptcy, you are required by law to give all of your credit cards to the trustee for cancellation. A common question that arises when I inform a client of this requirement is, “do I still have to surrender a credit card if it has a zero balance?” The answer…
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Be Cautious Of High Risk Lenders
It’s fairly common knowledge that if you have bad credit and can’t qualify for a loan, you can go to a high-risk lender. High-risk lenders charge high interest rates will give personal/consolidation loans to individuals who do not qualify for loans elsewhere. Since they are dealing with high-risk customers, there is a high probability that…
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Consumer Proposals and TFSA and RRSP Investments
When you file a consumer proposal you are able to keep ALL of your assets. This includes any amounts that you have invested in an RRSP or TFSA account. When you make a consumer proposal, you are offering your creditors a settlement, which is more than what they would get if you were to go bankrupt. Essentially you are saying,…
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