Category: Bankruptcy

When should you consider a consumer proposal instead of a bankruptcy?

When you make a consumer proposal, you compromise your total debt. That means that you pay a portion of your debt that you and your creditors agree upon. Therefore your payments are higher than a bankruptcy. In terms of time, consumer proposals last 60 months, while bankruptcies last nine months (if you don’t have surplus…
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Will bankruptcy eliminate all my debts?

If you are facing serious debt problems, bankruptcy may be a powerful remedy. In most situations, all debts are included in a bankruptcy. Some of the most common debts that can be included in a bankruptcy are: Tax debt Car loan debt Cell phone debt Credit card debt Payday loans Student loans (if you have ceased…
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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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Tips For Seniors In Debt

In Ontario senior bankruptcies are increasing rapidly. The unique social and economic situations of seniors put them at a higher risk of insolvency and financial hardship, including unexpected health and long-term nursing care costs. On top of that, in some cases seniors continue to financially support their adult children and grandchildren for longer than they…
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Can you still get a credit card after filing personal 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. Now, that doesn’t mean that if you file bankruptcy, you won’t be able to get a credit card after you’ve been discharged from your bankruptcy (or even during your bankruptcy). There…
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Bankruptcy May Not Be Right For You

When an individual is drowning in debt, often times the first option contemplated is filing personal bankruptcy. Although this option will allow you to find relief from creditors, a bankruptcy isn’t always the right option for everyone. Upon filing bankruptcy, your credit rating goes to an “R9” with the credit bureau and remains so for…
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Does a bankruptcy cover Canada Revenue Agency debts?

If you owe Canada Revenue Agency (CRA) for income taxes, GST, or employee remittances, these debts can be included in a bankruptcy and can be discharged under certain conditions. Generally speaking, a discharge of the debt is granted if you have completed your duties under the Bankruptcy and Insolvency Act and you have complied with…
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Canadian Seniors and Debt

It is becoming clear that more and more Canadian seniors are succumbing to the combined challenges of a fixed income, higher living costs and, in many cases, increasing levels of assistance to dependent children. A past CTV news article about Seniors Struggling with Debt and Bankruptcy outlines some of the issues and causes of seniors getting into financial…
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New Insolvency Information Product From OSB

The Office of the Superintendent of Bankruptcy (OSB) has published new information products to assist consumers in making informed decisions when seeking assistance to resolve serious financial difficulties.  This information can be found here and includes: A new webpage for consumers, What is a Licensed Insolvency Trustee?, which provides information and answers to frequently asked questions about…
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