Category: Bankruptcy

Common Questions Regarding Bankruptcy

When you finally decide you can’t climb out of debt on your own and need to meet with a trustee, you will likely have a lot of bankruptcy questions to ask. For this reason, we have created a Frequently Asked Questions section on our website dedicated to bankruptcy questions, In our initial meetings, we usually…
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Debts Included in a Personal Bankruptcy

There are several kinds of debt that can be included in a personal bankruptcy. Recognizing the kind of debt that is included in a bankruptcy and comparing them to your own debts can be the first step towards obtaining your fresh start. Some of the most common debts are: Tax debt Owing money to the government…
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Why are credit counselling sessions mandatory after a bankruptcy?

After filing bankruptcy, you are expected to attend two mandatory credit counselling sessions, required under the Bankruptcy Insolvency Act, to aid in your financial rebuilding process. Credit counseling is there for good reason. Multiple bankruptcy filings are not uncommon in Canada — in fact, they’re becoming more and more frequent. While it’s impossible to educate a…
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When can I include my student loan in a bankruptcy?

As I’ve stated in previous blog posts, student loan debts will be eliminated with personal bankruptcy after you’ve ceased to be a student for a minimum of seven years. There has been some confusion with this in that past as people aren’t sure when the seven years is up. It has to do with when you…
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Personal Bankruptcy And Tax Returns

There are two tax returns required with personal bankruptcy. The trustee is required to file your income tax return for the tax year in which you file personal bankruptcy. The tax return relating to the year in which you file personal bankruptcy is not standard. In fact it is not one tax return, instead it…
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What are non-discretionary expenses listed under OTHER with a personal bankruptcy?

In my meetings with clients, I am often times asked “what are non-discretionary expenses listed under OTHER with a personal bankruptcy?”. The answer is, there is no list of ‘other non-discretionary expenses’ in the Bankruptcy and Insolvency Act (BIA). Let me first explain the process. When an individual files personal bankruptcy in Ontario, they are…
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Why does the trustee file pre-bankruptcy income tax?

Filing personal bankruptcy deals with all debts which were incurred prior to filing. The reason the trustee files a pre-bankruptcy income tax return is because it needs to include income tax debt which was incurred right up to the date of filing personal bankruptcy. The pre income tax return deals with the period from January…
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Wages During Bankruptcy

Many people I meet with are concerned that if their wages increase during their bankruptcy, they will have to pay more than originally expected to their creditors.  While you’re in bankruptcy, you will be under income restrictions and must do monthly income and expense reporting to the trustee in bankruptcy that you have filed with. There…
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Preparing Students For a Financially Sound Future

As students prepare to make the leap from high school to college or university, many have not been prepared for life on their own, especially when it comes to money. Low financial literacy can lead to major debt challenges down the road. Coming out of university with major debt is one of the worst things…
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