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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If it sounds too good to be true, it probably is!
You may have seen the ads before, all with slightly different promises, such as: “Credit card debt over $8,000? Qualify to reduce your debt by up to 60%” “Canadian banks forced to forgive up to 75% of consumer credit card debt” “New Canadian Debt Program allows Canada residents with over $10,000 in debt to eliminate…
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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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Bankruptcy and Co-signers
Many people who are in debt need a co-signer to sign loans, which is a great way for a debtor to build their credit score. The problem is, it might be hard to get a co-signer to sign your loan. That is because a co-signer is essentially on the hook and responsible for paying back…
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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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If possible, should you pay off your bankruptcy early?
Believe it or not, we have had several clients who have filed bankruptcy and then found themselves in financial excess. When this happens, clients often ask the question “can I pay off my bankruptcy and be discharged faster?” If you’re in the middle of a bankruptcy, and your financial picture starts looking rosy, it’s understandable…
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Bankruptcy and the Economy
Many people look at the statistics published by the Office of the Superintendent of Bankruptcy Canada regarding the numbers of people filing for personal bankruptcy or making a consumer proposal as an indicator of the overall health of our economy and a bad omen for the stock market. The reality is that this is a trailing indicator of…
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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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Government Debt and Your Company
Filing for bankruptcy is never an easy option for business owners. The decision can feel like a personal failure and may leave one unsure about the future. Bankruptcy can certainly be difficult, it can also provide relief for those struggling to keep up with debts. At Welker & Associates we help owners of incorporated companies…
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What are Licensed Insolvency Trustees?
Licensed Insolvency Trustees (LITs) are federally regulated professionals who provide advice and services to individuals and businesses with debt problems. LITs help people make informed choices to deal with their financial difficulties. If you’re in debt, LITs can provide a full range of options. LITs are the only professionals authorized to administer government-regulated insolvency proceedings…
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