When you are struggling with the payment of your debt, the thought that you will have to pay a Licensed Insolvency Trustee to file a bankruptcy may feel overwhelming. The fact that you will no longer be paying your unsecured debt and your creditors will cease collection efforts typically outweighs the burden of the monthly fee. The cost to file a bankruptcy depends on several [...]
Student loans can be discharged in a bankruptcy IF you ceased being a full or part-time student more than 7 years prior to filing an assignment in bankruptcy. The filing of a bankruptcy stops your creditors from pursuing you for collection of their debt, and your discharge will eliminate your responsibility to repay the student loan if you are past the seven-year threshold. Some other factors to [...]
Unfortunately, it seems there are more and more predators attempting to take advantage of honest people. Just last week, a colleague at my office received an email that appeared to come from me requesting they do me a big favour and purchase gift cards as a thank you for our staff. Luckily my colleague was alert and recognized the email address was suspicious. Some common [...]
There are many reasons why assets are registered in the names of two or more parties. Title to a personal residence is typically registered in both spouse’s names as joint tenants so the property automatically transfers to the surviving joint tenant on the passing of the other owner. Title to property may be registered as tenants in common with several parties with differing ownership percentages [...]
Bankruptcy may be considered the “easy way out” by anyone who doesn’t work in the debt relief industry or has never had to file a personal bankruptcy. For Licensed Insolvency Trustees and debtors who have filed a personal assignment in bankruptcy, we understand the decision isn’t taken lightly. Many debtors struggle for far too long to avoid the perceived embarrassment of bankruptcy. If you answer [...]
The stress of carrying too much debt has no geographical boundaries. Many Canadians have fared well during the pandemic with decreased travel and daycare costs while working from home. Unfortunately, others have suffered financially due to loss of income, caring for family, closure of businesses, and increased food and living costs. Ontario will be entering Step 2 of the re-opening plan next week which gives [...]
When you initially borrowed from the Government of Canada to fund your education, you never anticipated that you wouldn’t be able to repay the loan. The loan enabled you to obtain an education, anticipating that future employment in your career field of choice would provide an income to repay the debt. Unfortunately, life changes and you may not have been able to complete your studies, [...]
The Office of the Superintendent of Bankruptcy Canada annually releases a Canadian Consumer Debtor Profile providing details on total insolvency filings; debtor characteristics; median assets, liabilities, income and expenses; and age brackets. The top five reasons for financial difficulty are noted as loss of income, medical reasons, relationship breakdown, business failure and tax liability with financial mismanagement being named by 69% of the participants. The [...]
It has now been over 13 months since the initial restrictions on businesses were implemented in attempts to reduce the transmission of COVID-19. Some businesses were able to pivot their products and services provided and have actually increased their profits. Other businesses have utilized the many government benefits that have been provided through the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Business Account (CEBA) and [...]
I just read an article in the Financial Post, that stated Canadians would rather incur more debt to fund their monthly cash flow shortfall than to seek the advice of a professional. As a Licensed Insolvency Trustee (“LIT”), and thus a professional in debt solutions, I recommend anyone overwhelmed by their debt to consult with a LIT before incurring more debt. If your credit rating [...]
