Signs of Financial Danger
At some point in their lives, everyone experiences problems with money. Financial problems aren’t necessarily the result of poor money management. Sometimes situations beyond our control, such as divorce, death of a spouse, health problems or a change in household income can lead to financial hardship and further danger like bankruptcy. While every case is…
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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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How fast can a bankruptcy be filed?
We deal with people in all types of debt situations ranging from people slightly concerned about the balance owing on credit cards to people who have delayed filing bankruptcy and have been threatened with legal action by creditors (requesting information from a court to garnishee your wages). At this point, it is very important that…
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Tips That Will Help Improve Your Credit Score
Your credit rating is like a report card. Having money problems, filing personal bankruptcy or making a consumer proposal will result in a bad mark on your credit report card. Therefore to rebuild your credit rating you have to get as many good marks as possible. The only way to get a good mark is to…
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Assets That Can Be Kept In A Bankruptcy
You are permitted to keep some assets in a bankruptcy. These exemptions are set by various federal and provincial laws. For personal bankruptcy in Ontario, the following assets are exempt: $5,650 worth of personal possessions (clothing, jewelry, sports equipment, etc.); One motor vehicle worth up to $5,650; $11,300 worth of home furnishings; $11,300 worth of…
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Why A Surplus Income Form Requires Your Spouses Income
As I stated in my blog post, 2015 Surplus Income Limits in Canada, 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 care, etc.) each month so the trustee can calculate your net income and determine if any surplus income payments…
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2015 Surplus Income Limits in Canada
When you file for bankruptcy in Canada, you’re allowed to keep a portion of your income each month. If you make more than that portion, you have to contribute half of that surplus income into your bankruptcy estate. That money is distributed to your creditors. These limits have recently been increased due to inflation (as they…
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Will you really “lose everything” if you file personal bankruptcy?
Contrary to popular belief, you will not “lose everything” by filing for bankruptcy. The Bankruptcy and Insolvency Act works with provincial legislation to protect many personal assets, including your car, furniture and RRSPs, which are often exempt from seizure by the Trustee. If you have a lot of assets, chances are you will lose most of them. After…
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Debunking Canadian Bankruptcy Myths
Many people believe that bankruptcy is a rare occurence in Canada, but it may happen more than you think. In fact, bankruptcy happens to almost 120,000 Canadians every year. If that’s surprising to you, here are some myths about bankruptcy that might surprise you even more! Myth #1 – Filing bankruptcy will affect my spouse Many have the…
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Should you file bankruptcy before the new year?
There are some clear advantages to filing before the end of the year. When you file personal bankruptcy the trustee will prepare and file your income tax return and keep the refund for the year of bankruptcy and any prior taxation year that you had not yet filed and received the refund for. What this means is…
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