Is a Consumer Proposal a Loan?
Many people reach out to a Licensed Insolvency Trustee (“LIT”), thinking that we pay their debt in bankruptcy or that we provide a consolidation loan to pay off their debt in a consumer proposal. Both of these assumptions are false. A consumer proposal is not a loan and, accordingly, has no interest on the payment terms. A proposal is a formal, legally binding agreement to compromise the amount that you [...]
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 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 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 [...]
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 [...]
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 [...]