When the COVID-19 pandemic shut down Ontario’s economy in March, 2020, no one could have predicted the extent of job losses and business closures. Many Canadians, who were already struggling with significant levels of debt, found themselves unable to pay even their basic living expenses. The government stepped up and provided benefits in the CERB and CRB to supplement a loss of income, and creditors [...]
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 [...]
The first step to manage your personal debt is to make a complete list of everything you owe as follows: ABC visa $5,000.00 29.9% annual interest $200.00 minimum monthly payment Add up the total debt and the minimum monthly payments and add that amount to your budget as a monthly expense. Arrange to pay the monthly payments by pre-authorized payment to ensure the [...]
We all know that funding an education is expensive. The costs of tuition, books, a laptop, residence and food are significant. Luckily, student loans are available in Canada to assist students to fund their education. Unfortunately, student loans over a three or four-year program can leave a new graduate with a significant level of debt to repay. Student loans provide a six-month non-repayment period once [...]
Wouldn’t it be nice to have a plan in place of where you will spend your monthly income and how much you will put aside in savings? A budget provides you with guidance on how much you will spend monthly on rent, food, gas, etc. to ensure you meet your basic needs. A family budget should be created with input from the whole family to [...]
Only a Licensed Insolvency Trustee can file a voluntary assignment in bankruptcy for you. You do not need a referral to a trustee; you can contact a bankruptcy trustee directly. To provide you with some comfort, I have laid out the following steps to filing bankruptcy: Contact a local Licensed Insolvency Trustee to arrange an initial consultation. Most trustees have websites that you can review [...]
When a person considers filing an assignment in bankruptcy, they are typically concerned with what assets they will lose. They need a fresh start from their debt, but they also may need their vehicle to be able to earn a living and provide for their family. In order for a debtor to retain the basic necessities of life, there are certain assets that are exempt [...]
The minimum fee Taylor Leibow typically charges for a first-time bankruptcy is $1,800 payable in 9 monthly payments of $200.00 each. In addition, your income tax refunds and quarterly GST credits will be forwarded directly to the trustee by Canada Revenue Agency for a specified time period. The actual amount that a trustee can draw as fees for a summary administration is set by tariff [...]
An insolvent debtor can file an assignment in bankruptcy to obtain relief from their debt. Many debtors that I consult with at a free, initial assessment are concerned about how their bankruptcy will affect their spouse. The act of you filing a personal assignment in bankruptcy will affect your spouse in the following circumstances: Filing a bankruptcy will only provide relief to you. If your [...]
Once an individual files an assignment in bankruptcy, they must receive their discharge in order to be relieved of the obligation to pay their creditors. In usual circumstances, between the bankruptcy filing and the discharge, a bankrupt may want to annul (cancel) the bankruptcy. The desire to annul a bankruptcy may arise if the bankrupt becomes entitled to an inheritance or a settlement in a [...]
