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 [...]

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 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 [...]

Many people hold off considering a bankruptcy because they are afraid of losing their car.  When you are struggling to pay down debt, it is understandable that you don’t want to jeopardize your ability to drive to work to earn an income.  A trustee is only concerned with assets that have a realizable value. The below summarizes what can happen to your vehicle if you [...]

The passing of a loved one is devastating enough without having to receive collection calls from their creditors. Whether you are the spouse or executor of the deceased’s estate, if there are insufficient assets of the deceased to pay their creditors in full, you should contact a Licensed Insolvency Trustee to discuss a bankruptcy.   Is an executor responsible for paying debt? The family of the [...]

Quick answer – there is no mandatory waiting period.  In order to file a second bankruptcy, you must be discharged from your first bankruptcy, owe more than $1,000 and be insolvent. A second bankruptcy will differ from your first bankruptcy in the following ways: You will be eligible for an automatic discharge in 24 months if you are not required to make surplus income payments [...]

The Office of the Superintendent of Bankruptcy issued its 2019 Canadian Consumer Debtor Profile reporting 22% of consumer insolvency filers had previously filed a bankruptcy. That means that 30,179 of the 137,178 individuals that filed a personal bankruptcy or consumer proposal had been bankrupt previously. With the current COVID-19 pandemic resulting in the closure of many businesses and employee layoffs, insolvency professionals are anticipating a [...]