Tax Deadline Will Be Here Before You Know It
It’s that time of year again. Tax time can be a welcome time for some, but for many Ontario residents who do not receive a refund, it can be a time of great stress and anxiety. For those people, even if they have tax deducted from their place of work, the government can require that they hand…
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What happens if my creditors don’t accept my consumer proposal?
It is extremely rare that creditors do not accept a consumer proposal. Creditors know that if a consumer proposal fails, chances are the debtor will file a personal bankruptcy, which they know will produce less recovery than a consumer proposal. In the rare case that your creditors don’t accept your consumer proposal as filed, we will…
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Debt and Divorce
When people get divorced, there are many unforeseen expenses that may lead you into financial difficulty. Household expenses essentially double, which alters your current financial situation and causes major money problems regardless of how much money someone makes or how well they managed their finances while they were in the relationship. Not only that, but you will still…
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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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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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Advantages of Filing a Consumer Proposal
Filing for a consumer proposal is a legal process, done through a bankruptcy trustee. It will provide an insolvent person with a number of meaningful advantages and protections that are much more effective than any kind of credit counselling arrangement or informal payment plan agreed to by one or more of your creditors. Informal agreements or credit…
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Insolvencies Up Again According to March 2016 Statistics
The Office of the Superintendent of Bankruptcy Canada has recently released their statistics for the month of March 2016. Insolvencies in Canada increased by 8.8 percent from the previous month, and up 1.8 percent compared to a year ago. Bankruptcies increased by 10.4 percent, consumer proposals up by 7.2 percent. For the 12 month period ending March…
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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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