RESPs and Debt Settlement Options
Many people with children plan ahead for their children’s post-secondary education by investing in a Registered Education Savings Plan (RESP). Most people with RESPs who come into our office are concerned about what will happen with their RESP if they choose to file bankruptcy or make a consumer proposal. First of all, I’ll explain what…
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Debt Management Tips for Seniors
No one wants to spend their golden years struggling with credit-card debt. But, sadly, an increasing number of seniors are doing exactly that. For people living on fixed incomes, escalating debt can lead to financial ruin. Many of the debt-management options available to younger people — like getting a second job to pay off the…
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Reading Your Credit Card Agreement
Credit card agreements can be one of the most challenging financial documents to understand. The purpose of a credit card agreement is to spell out the conditions of your line of credit. According to an analysis done by creditcards.com, the average credit card agreement is written at a 12.37 grade level, while the average person…
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Can a person have savings during bankruptcy?
The short answer is “Yes”. By definition, savings can consist of actual cash holdings, RRSPs and other investment products, pensions, and the cash surrender value of insurance policies. Your bankruptcy trustee will recover any non-exempt portion of your savings for the benefit of unsecured creditors at the time of filing. Your bankruptcy estate is also made up…
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Borrowing to Make RRSP Contributions
With the RRSP contribution deadline just around the corner (March 1), many people have either already made their contributions or they are procrastinating and waiting until the last minute to make their contribution. But there are also a number of other people who struggle this time of year as they are unsure if they should…
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What will you lose if you file bankruptcy?
Many people hear the word “bankruptcy” and automatically think the worst. People assume that if they file bankruptcy, they will lose everything. In most cases, this couldn’t be further from the truth. Most people are able to retain most everything that they own. Every province has created a list of exemptions, meaning assets that are protected…
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Consumer Proposal: Will I lose my home?
When you make a consumer proposal, your home and related equity is unaffected. You retain possession and control of your assets. 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. They have no interest in any of your property. When you make a consumer proposal, what you are essentially…
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Bankruptcy: Will I lose my home?
People have many concerns when they come into my office, but a few concerns seem to come up more often than not. One concern that is in the forefront of many minds is the fear of losing their home if they file bankruptcy. The answer depends on whether or not there is any net equity…
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Should I use my RRSP savings to pay off debt?
We understand that most people who are in debt want to deal with their obligations, and don’t want to see a trustee in bankruptcy, make a consumer proposal or file personal bankruptcy. As a result they do what they can to attempt to deal with their debts on their own. Often this includes cashing-in retirement savings. Unfortunately, in…
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If my ex-spouse files bankruptcy, will it affect our joint mortgage?
If you file for bankruptcy your ex-spouse may be affected if you have a joint mortgage. Your bankruptcy will remove you from your responsibility to pay that debt, however, it does not: a) require your mortgage lender to take your name off of the mortgage; or b) take your name off of the deed/title. When you file for bankruptcy, all of your non-exempt…
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