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 [...]
An executor of an estate that is overburdened with debt should consider the following to determine if the deceased’s estate is insolvent and should be assigned into bankruptcy: 1. What are the assets in the estate and how difficult are they to convert to cash? Compile a list detailing each asset, the estimated value, the costs to realize on the asset, and any secured loans [...]
Many Canadians found themselves out of work due to the pandemic and resulting lockdowns. Fortunately, the government stepped up quickly with additional benefits to assist Canadians in meeting their basic living expenses. The Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB) were the two benefits most accessible for individuals who were no longer receiving income due to COVID-19. CERB CERB was available [...]
Many people are willing to talk freely about their health and family issues but can be quiet when it comes to their finances. This may leave you feeling alone in struggling with overwhelming debt with no idea where to turn for debt help in Hamilton. There is an abundance of information and services available on the internet but consulting with a Licensed Insolvency Trustee is [...]
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 Bankruptcy and Insolvency Act provides for an insolvent individual to file a personal assignment in bankruptcy or consumer proposal. Upon filing, unsecured creditors are stayed from taking any further collection proceedings. Garnishments (except for spousal or child support), court proceedings and collection calls cease and the debtor is protected from their creditors. The filing provides relief from creditors but the “fresh start” doesn’t occur [...]
A consumer proposal can be filed by a consumer debtor who owes not more than $250,000 (excluding debts secured by the individual’s personal residence). The proposal is an offer to compromise the debt owing over a maximum of five years and usually is comprised of fixed monthly payments. The proposal terms can be as creative as the debtor’s circumstances require, and a majority of the [...]
Many seniors who receive limited pension income once per month find it very difficult to budget. These circumstances actually make it more important to budget to ensure sufficient funds for food and other necessities of life for the entire month. Steps to Create a Budget The first step in creating a budget is to make a list of all income received. Most seniors are eligible [...]
