Stages of Bankruptcy in Canada
In Canada, any individual who owes at least $1,000 and is insolvent can file bankruptcy. Some people be feel a bit overwhelmed before the process even begins, so allow me break down the steps you will take when filing bankruptcy. Consult with a Licensed Insolvency Trustee Your initial consultation with a trustee at Welker and…
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2016 Surplus Income Limits
If you are considering bankruptcy, ask your trustee if your income is in the range that will require you to pay surplus income and, if so, to estimate your surplus income payments. 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…
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Financial Recovery After Divorce
One of the leading causes of divorce in Canada is financial mismanagement. And one of the leading causes of bankruptcy is divorce. The effect of family support obligations, the division of family assets, and the loss of income can have a devastating effect on both parties going through a separation. When I meet with people who…
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Should you switch banks if you file bankruptcy or make a consumer proposal?
We often times recommend that if you file bankruptcy or make a consumer proposal that you get a new bank account at a new bank. Why do we suggest that? If you owe money where you bank, we recommend that you open a new bank account at a new bank. When you file bankruptcy or…
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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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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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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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