About Kathy Lenart

Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP) Canadian Association of Insolvency and Restructuring Professionals (CAIRP)

Can you go bankrupt more than once?

The Bankruptcy and Insolvency Act (“BIA”) is the federal legislation that governs insolvency filings in Canada. There is nothing in the BIA that prevents an individual from filing bankruptcy any number of times. As long as you owe more than $1,000 and are insolvent, you can file an assignment in bankruptcy. To balance the rights of a debtor to be relieved from their debts with [...]

Can you go bankrupt more than once?2024-02-13T09:56:40-05:00

Can I file for bankruptcy if I am current on my debt payments?

To the surprise of many, it is not a requirement for you to be in arrears on your debt payments to file an assignment in bankruptcy or a consumer proposal. It is also not necessary for your debt to have been sent to a collection agency. Many people who file a bankruptcy are making their regular monthly payments on time and may have a decent [...]

Can I file for bankruptcy if I am current on my debt payments?2024-03-18T14:50:12-04:00

Can I retain my bank account in a bankruptcy or consumer proposal?

The number of people who have had the same bank account since they were children is surprising. They feel a sense of dedication to their financial institution and have a relationship with their local branch. I am often asked if they can retain their bank account if they file a bankruptcy or proposal. The answer is – it depends. If you owe If you owe [...]

Can I retain my bank account in a bankruptcy or consumer proposal?2024-02-07T11:31:04-05:00

New Year – New Financial Goals

Happy New Year! Around the world, there are many traditions to ring in the new year and to invite good luck in the next 365 days. From eating 12 grapes for each clock chime at midnight (Spain) to opening every door and window in your home (Ireland) to walking around your house with an empty suitcase (Central and Latin America), each tradition is hoping for [...]

New Year – New Financial Goals2024-02-07T11:31:15-05:00

Income Tax Debt and Insolvency

Based on the number of inquiries I have received recently, the Canada Revenue Agency (“CRA”) is getting more aggressive in their collection proceedings. The CRA has the right to freeze and seize bank account funds, garnish income and send third-party demands to recover their debt. If you owe money to the CRA for personal income tax, CERB, HST or source deductions that you are struggling [...]

Income Tax Debt and Insolvency2024-02-07T11:31:22-05:00

Virtual versus In-Person Bankruptcy Consultation

Pre-pandemic Consultations Pre-pandemic, a Licensed Insolvency Trustee (“LIT”) was required to see all debtors in person prior to them filing a bankruptcy or proposal. The LIT had to perform an in-person assessment of the debtor’s financial situation and discuss the merits and consequences of possible solutions, the rights and responsibilities of the debtor, surplus income requirements, discharge, etc. Post-pandemic Consultations When COVID hit, the Office [...]

Virtual versus In-Person Bankruptcy Consultation2024-02-07T11:31:31-05:00

Why it’s important to be discharged from a bankruptcy

Filing an assignment in bankruptcy legally stays (stops) your unsecured creditors from pursuing you for collection until your trustee is discharged. Your discharge from bankruptcy relieves you from your responsibility to pay your unsecured creditors (other than those that survive a bankruptcy like support, alimony, fraud, etc.). Surprisingly, some people take the hard step of filing a bankruptcy and then don’t complete their statutory duties [...]

Why it’s important to be discharged from a bankruptcy2024-02-07T11:31:40-05:00

Settling debts on your own versus filing a consumer proposal

If you have fallen a couple of months behind on your minimum monthly payments, your creditors have likely sent your debt to a collection agency. The collection agency will make every attempt to get you to pay the debt, with multiple telephone calls trying to convince you to get the money from family or a loan from another source.   Collection agencies get paid if they [...]

Settling debts on your own versus filing a consumer proposal2024-02-07T11:31:48-05:00

What happens if I can no longer pay my consumer proposal?

When you filed your consumer proposal to your creditors, you couldn’t possibly have imagined the world would be affected by a pandemic, followed by rising interest rates and increased cost of living. The reason you filed the proposal was to enable you to compromise your debt at a monthly amount you could afford. If circumstances have resulted in you being unable to continue your monthly [...]

What happens if I can no longer pay my consumer proposal?2024-02-07T11:31:55-05:00

What happens to debts that have been co-signed in a bankruptcy or proposal?

The purpose of filing an assignment in bankruptcy or consumer proposal is to provide you relief from your overwhelming debt.  On filing statutory documents, a stay of proceedings kicks in that stops unsecured creditors from continuing any action to collect their debt.  A garnishment of wages will stop and collection calls will cease.  On completing your bankruptcy or proposal, you are then relieved from [...]

What happens to debts that have been co-signed in a bankruptcy or proposal?2023-10-23T13:16:05-04:00
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