# Fresh Start Now | Licensed Insolvency Trustees (Taylor Leibow Inc.) > Fresh Start Now is the personal insolvency division of Taylor Leibow Inc., a Licensed Insolvency Trustee firm helping individuals and businesses in Southern Ontario for over 60 years. We specialize in debt relief solutions including Consumer Proposals and Personal Bankruptcy. Our goal is to stop wage garnishments, harassing collection calls, and legal actions, providing clients with a > ## Debt Relief Solutions (Core Services) *We provide federally regulated insolvency options to eliminate debt.* ### **1. Consumer Proposal** A legal agreement to pay creditors a percentage of what is owed over time (up to 5 years). Assets are generally protected. - [Consumer Proposal Guide](https://freshstartnow.ca/the-process/consumer-proposal/) - [Consumer Proposal vs. Bankruptcy](https://freshstartnow.ca/blog/consumer-proposal-vs-bankruptcy/) - [Settling Debts on Your Own vs. Proposal](https://freshstartnow.ca/blog/settling-debts-on-your-own-versus-filing-a-consumer-proposal/) - [Impact on Credit Score](https://freshstartnow.ca/blog/how-does-a-consumer-proposal-affect-credit-score/) ### **2. Personal Bankruptcy** A legal process to discharge debts for those unable to pay. - [Personal Bankruptcy Overview](https://freshstartnow.ca/the-process/personal-bankruptcy/) - [Cost of Filing Bankruptcy](https://freshstartnow.ca/blog/how-much-does-it-cost-to-claim-bankruptcy-in-canada/) - [Assets You Keep (Exemptions)](https://freshstartnow.ca/blog/what-assets-can-you-keep-in-a-bankruptcy-in-burlington/) - [Surplus Income Explained](https://freshstartnow.ca/blog/understanding-surplus-income-limits-in-a-bankruptcy/) ### **3. Specialized Debt Issues** - **Tax Debt:** [CRA and Bankruptcy](https://freshstartnow.ca/blog/canada-revenue-agency-and-bankruptcy/) | [Debtor Proposal for Tax Debt](https://freshstartnow.ca/blog/meet-the-debtor-proposal-for-personal-income-tax-debt/) - **Student Loans:** [Student Loan Treatment](https://freshstartnow.ca/blog/how-is-student-loan-debt-treated-in-a-consumer-proposal/) - **Wage Garnishment:** [Stopping Garnishments](https://freshstartnow.ca/blog/stopping-a-wage-garnishment/) --- ## Office Locations *We serve the Greater Hamilton, Burlington, and Niagara regions.* * **[Downtown Hamilton](https://freshstartnow.ca/downtown-hamilton/):** * 105 Main St. E., 8th Floor (Effort Square). * Phone: 905-523-0003 * **[Hamilton Mountain](https://freshstartnow.ca/hamilton-mountain/):** * 775 Upper Wentworth St., Office 16. * Phone: 905-523-0003 * **[Burlington](https://freshstartnow.ca/fresh-start-now-burlington/):** * 3310 S. Service Rd #202. * Phone: 905-637-0071 * **[St. Catharines](https://freshstartnow.ca/st-catharines/):** * 43 Church St, Suite 604. * Phone: 905-680-4728 --- ## The Insolvency Process 1. **Assessment:** [Virtual Consultations Available](https://freshstartnow.ca/the-process/virtual-consultations/) 2. **Filing:** [Steps to Filing Bankruptcy](https://freshstartnow.ca/blog/steps-to-filing-bankruptcy/) 3. **Discharge:** [Life After Bankruptcy](https://freshstartnow.ca/blog/is-there-life-after-bankruptcy/) ## Common Questions (AI Context) - **Eligibility:** [Do I Have a Claim?](https://freshstartnow.ca/blog/do-i-have-a-claim/) - **Timing:** [Best Time to File](https://freshstartnow.ca/blog/best-time-to-file-a-personal-bankruptcy/) - **Spousal Impact:** [Bankruptcy and Your Spouse](https://freshstartnow.ca/blog/bankruptcy-and-your-spouse/) --- ## Pages - [Fresh Start Now (Downtown Hamilton)](https://freshstartnow.ca/downtown-hamilton/): Fresh Start Now (Downtown Hamilton) Our Hamilton office is conveniently located on the 8th floor of Effort Square at the... - [Fresh Start Now (Burlington, ON)](https://freshstartnow.ca/fresh-start-now-burlington/): Fresh Start Now (Burlington) Our Burlington office is conveniently located on the South Service Road between Walkers Line and Guelph... - [Fresh Start Now (Hamilton Mountain)](https://freshstartnow.ca/hamilton-mountain/): Fresh Start Now (Hamilton Mountain) Our Hamilton Mountain office is conveniently located at Upper Wentworth and Mohawk Road, directly across... - [Fresh Start Now (St. Catharines)](https://freshstartnow.ca/st-catharines/): Fresh Start Now (St. Catharines) Our St. Catharines office is conveniently located at 43 Church Street, at the corner of... - [Video Resources](https://freshstartnow.ca/video-resources/): https://freshstartnow. ca/wp-content/uploads/2023/05/videos-icon. png VIDEOS Watch our collection of videos for tips and advice on how to tackle your personal and... - [Home](https://freshstartnow.ca/): Do you need a fresh start? Your path to financial freedom starts here. Learn MoreContact Us Do you need a... - [Resources](https://freshstartnow.ca/resources/): Fresh Start Now Debt Relief Resources At Fresh Start Now, our mission is to provide you with the knowledge and... - [Privacy](https://freshstartnow.ca/privacy/): Privacy INTRODUCTION On January 1, 2004, the Government of Canada passed new legislation known as the Personal Information Protection and... - [Virtual Consultations](https://freshstartnow.ca/the-process/virtual-consultations/): The Process Virtual Consultations The first step in managing your credit problems is to speak with a professional who can... - [Get Started](https://freshstartnow.ca/get-started/): Get Started Ready for debt relief and a fresh start? Please fill out and submit this form or call 1-905-523-0003... - [Blog](https://freshstartnow.ca/blog/) - [Kathy Lenart](https://freshstartnow.ca/about-us/kathy-lenart/): https://freshstartnow. ca/wp-content/uploads/2023/09/Kathy-Lenart-2023. jpg About Us Kathy Lenart As a Partner with Taylor Leibow, Chartered Accountants since 1989 and President with... - [Testimonials](https://freshstartnow.ca/testimonials/): Testimonials The greatest reward our team receives comes in the form of comments made from people whose lives have been... - [Personal Bankruptcy](https://freshstartnow.ca/the-process/personal-bankruptcy/): The Process Personal Bankruptcy A personal bankruptcy is a legal process that allows you to become debt free whilst retaining... - [Consumer Proposal](https://freshstartnow.ca/the-process/consumer-proposal/): The Process What is a Consumer Proposal? A consumer proposal is essentially an offer to compromise or settle your debts... - [FAQs](https://freshstartnow.ca/faqs/): FAQs Bankruptcy Frequently Asked Questions Consumer Proposal Frequently Asked Questions - [Contact Us](https://freshstartnow.ca/contact-us/): Fresh Start Now Contact Us Please contact Licensed Insolvency Trustee Kathy Lenart. Call Toll Free: 1-888-287-2525 https://freshstartnow. ca/wp-content/uploads/2022/10/consulting-financial-advisor. jpg Principal... - [About Us](https://freshstartnow.ca/about-us/): Fresh Start Now About Us For over 60 years, Taylor Leibow Inc. has been helping people and business owners who... - [Why Fresh Start Now?](https://freshstartnow.ca/why-fresh-start-now/): Fresh Start Now Why Fresh Start Now? When the debt collectors keep calling and you have no available funds to... - [The Process](https://freshstartnow.ca/the-process/): Fresh Start Now The Process The first stage to becoming debt free is to meet with our Licensed Insolvency Trustee... --- ## Posts - [Meet the debtor – Proposal for personal income tax debt](https://freshstartnow.ca/meet-the-debtor-proposal-for-personal-income-tax-debt/): Joe’s story Joe successfully operated his business as a sole proprietor for many years. His struggles started with the pandemic... - [Insolvency Solutions for the Declining Real Estate Market](https://freshstartnow.ca/insolvency-solutions-for-declining-real-estate-market/): Not so long ago, investing excess savings in the housing market seemed like a safe and potentially lucrative investment strategy... - [Filing Bankruptcy With No Assets](https://freshstartnow.ca/filing-bankruptcy-with-no-assets/): It is not necessary for you to have assets to file an assignment in bankruptcy. In fact, a large majority... - [Why You Need a Licensed Insolvency Trustee](https://freshstartnow.ca/why-you-need-a-licensed-insolvency-trustee/): Struggling with debt and unsure who you can trust? Kathy Lenart explains why only a licensed Trustee in Bankruptcy can... - [Struggling with Debt… What are my options?](https://freshstartnow.ca/struggling-with-debt-what-are-my-options/): Worried about debt and what comes next? Kathy Lenart breaks down your options, from consumer proposals to bankruptcy, so you... - [Struggling with Debt... How do I get a Fresh Start?](https://freshstartnow.ca/struggling-with-debt-how-do-i-get-a-fresh-start/): Looking to turn the page on financial stress? Kathy Lenart guides you through filing options, credit restoration, and taking control... - [Who Can I Trust for Debt and Bankruptcy Advice](https://freshstartnow.ca/who-can-i-trust-for-debt-and-bankruptcy-advice/): Not sure who to trust with debt or bankruptcy advice? In times of uncertainty, Kathy Lenart explains how a licensed... - [Can I lose my house or car during bankruptcy?](https://freshstartnow.ca/can-i-lose-my-house-or-car-during-bankruptcy/): Worried about losing essential assets like your car or home during a bankruptcy or a consumer proposal? In times of... - [How do I rebuild my credit rating after a bankruptcy in St. Catharines?](https://freshstartnow.ca/how-do-i-rebuild-my-credit-rating-after-a-bankruptcy-in-st-catharines/): There is no magic fix to rebuild your credit rating after filing bankruptcy. Slow and deliberate action must be taken... - [Understanding Surplus Income Limits in a Bankruptcy](https://freshstartnow.ca/understanding-surplus-income-limits-in-a-bankruptcy/): The Office of the Superintendent of Bankruptcy has set guidelines as to what they feel is necessary to cover reasonable... - [How does a consumer proposal affect your credit score?](https://freshstartnow.ca/how-does-a-consumer-proposal-affect-credit-score/): There are two credit agencies in Canada; Equifax and TransUnion. They are public companies and not run by any branch... - [What happens to debt when you die?](https://freshstartnow.ca/what-happens-to-debt-when-you-die/): When someone passes away in Canada, a final accounting of their assets and liabilities takes place. The purpose of this... - [What assets can you keep in a bankruptcy in Burlington?](https://freshstartnow.ca/what-assets-can-you-keep-in-a-bankruptcy-in-burlington/): There is often a fear of reaching out to a Licensed Insolvency Trustee to explore bankruptcy due to the misconception... - [How does a consumer proposal work?](https://freshstartnow.ca/how-does-a-consumer-proposal-work/): A consumer proposal allows you to offer a settlement to your unsecured creditors payable over a maximum of 60 months.... - [Step by Step Guide on How to File Bankruptcy in Ontario](https://freshstartnow.ca/step-by-step-guide-on-how-to-file-bankruptcy-in-ontario/): Only a Licensed Insolvency Trustee (“LIT”) can file an assignment in bankruptcy for an individual in Canada. The steps to... - [Should I cash in my RRSP to pay my debt or consider filing an insolvency?](https://freshstartnow.ca/should-i-cash-in-my-rrsp-to-pay-my-debt-or-file-an-insolvency/): If you are struggling with your debt and asking the above question, you should seek the advice of a Licensed... - [Middle aged and struggling with debt?](https://freshstartnow.ca/middle-aged-and-struggling-with-debt/): Unfortunate circumstances can impact anyone. A separation of marriage, loss of income, helping children or lack of financial education can... - [Meet the Trustee – Kathy Lenart](https://freshstartnow.ca/meet-kathy-lenart/): I have been helping debtors who are struggling with overwhelming debt for over 30 years. I understand that reaching out... - [Consumer Proposal vs Bankruptcy – What is the Best Solution for You?](https://freshstartnow.ca/consumer-proposal-vs-bankruptcy/): The best solution for you will depend on your individual circumstances and personal morals. Both a bankruptcy and a consumer... - [Debt Self Help Solutions – What Can You Do?](https://freshstartnow.ca/debt-self-help-solutions/): For many people, being deep in debt can be overwhelming and can have serious consequences on your life. It can... - [Who Goes to See a Licensed Insolvency Trustee?](https://freshstartnow.ca/who-sees-licensed-insolvency-trustee/): The purpose of this blog is to make taking the first step to see a Licensed Insolvency Trustee (“trustee”) easier... - [How does a bankruptcy impact my tax refunds and benefits?](https://freshstartnow.ca/how-does-a-bankruptcy-impact-my-tax-refunds-and-benefits/): Upon filing an assignment in bankruptcy, your assets vest in the trustee to realize for the benefit of your creditors.... - [Should I file a Debt Management Program (DMP) or a Consumer Proposal?](https://freshstartnow.ca/how-do-i-decide-if-a-debt-management-program-or-a-consumer-proposal-is-the-best-solution-for-me/): If you can make your monthly debt payments but are struggling with the accumulating interest and juggling multiple creditors, a... - [Advice for a Fresh Start Under the Bankruptcy and Insolvency Act](https://freshstartnow.ca/advice-fresh-start-under-bankruptcy-and-insolvency-act/): The Bankruptcy and Insolvency Act is federal legislation that was enacted to provide an honest but unfortunate debtor relief from... - [What is the right amount to offer in a consumer proposal?](https://freshstartnow.ca/what-is-the-right-amount-to-offer-in-a-consumer-proposal/): Contrary to the advertisements that may pop up on your social feeds, there is no quick fix - [What happens if you lose a lawsuit and can’t pay in Canada? ](https://freshstartnow.ca/what-happens-if-you-lose-a-lawsuit-and-cant-pay-in-canada/): To clarify, I am not a lawyer, and thus, I am not giving anyone legal advice. If - [When is the best time to see a Licensed Insolvency Trustee?](https://freshstartnow.ca/when-is-the-best-time-to-see-a-licensed-insolvency-trustee/): One of the most common comments I receive when I have helped someone with their debt is, - [What to do when you receive a collection notice from the Canada Revenue Agency (“CRA”)](https://freshstartnow.ca/what-to-do-when-you-receive-a-collection-notice-from-the-canada-revenue-agency-cra/): Amounts owing to the CRA for personal income tax and HST sometimes get pushed aside to concentrate - [What to Know If You Have Financed Home Improvement Equipment](https://freshstartnow.ca/what-to-know-if-you-have-financed-home-improvement-equipment/): One tactic some companies have used over the years has been to promote their items via door-to-door - [How To Avoid Buyer's Remorse](https://freshstartnow.ca/how-to-avoid-buyers-remorse/): Have you ever made a significant purchase and immediately questioned whether it was a good idea? Have - [Can a Debt Consultant Get Me a Better Deal with My Creditors?](https://freshstartnow.ca/can-a-debt-consultant-get-me-a-better-deal-with-my-creditors/): When you are struggling with debt and embarrassed by your financial situation, it is hard to take - [The Meaning of Insolvency](https://freshstartnow.ca/the-meaning-of-insolvency/): If you are in debt, you may hear the word “insolvency” being used. What does this mean, - [Is a Consumer Proposal a Loan?](https://freshstartnow.ca/is-a-consumer-proposal-a-loan/): Many people reach out to a Licensed Insolvency Trustee (“LIT”), thinking that we pay their debt in - [Can you go bankrupt more than once?](https://freshstartnow.ca/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... - [Can I file for bankruptcy if I am current on my debt payments?](https://freshstartnow.ca/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 - [Can I retain my bank account in a bankruptcy or consumer proposal?](https://freshstartnow.ca/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. - [New Year – New Financial Goals](https://freshstartnow.ca/new-year-new-financial-goals/): Happy New Year! Around the world, there are many traditions to ring in the new year and - [Income Tax Debt and Insolvency](https://freshstartnow.ca/income-tax-debt-and-insolvency/): Based on the number of inquiries I have received recently, the Canada Revenue Agency (“CRA”) is getting - [Virtual versus In-Person Bankruptcy Consultation](https://freshstartnow.ca/virtual-versus-in-person-bankruptcy-consultation/): Pre-pandemic Consultations Pre-pandemic, a Licensed Insolvency Trustee (“LIT”) was required to see all debtors in person prior - [Why it’s important to be discharged from a bankruptcy](https://freshstartnow.ca/why-its-important-to-be-discharged-from-a-bankruptcy/): Filing an assignment in bankruptcy legally stays (stops) your unsecured creditors from pursuing you for collection until - [Settling debts on your own versus filing a consumer proposal](https://freshstartnow.ca/settling-debts-on-your-own-versus-filing-a-consumer-proposal/): If you have fallen a couple of months behind on your minimum monthly payments, your creditors have - [What happens if I can no longer pay my consumer proposal?](https://freshstartnow.ca/what-happens-if-i-can-no-longer-pay-my-consumer-proposal/): When you filed your consumer proposal to your creditors, you couldn’t possibly have imagined the world would - [What happens to debts that have been co-signed in a bankruptcy or proposal?](https://freshstartnow.ca/what-happens-to-debts-that-have-been-co-signed-in-a-bankruptcy-or-proposal/): The purpose of filing an assignment in bankruptcy or consumer proposal is to provide you relief from your overwhelming debt.... - [Check Your Credit Report with These Credit Reporting Agencies in Ontario](https://freshstartnow.ca/check-your-credit-report-with-credit-reporting-agencies-in-ontario/): It is recommended that you check your credit report at least once a year for accuracy and - [What is the First Step to Filing a Bankruptcy or Consumer Proposal?](https://freshstartnow.ca/what-is-the-first-step-to-filing-a-bankruptcy-or-consumer-proposal/): If you have finally taken the very difficult step of acknowledging that you cannot handle your debt on your own,... - [What happens if I can no longer continue my business due to overwhelming debt?        ](https://freshstartnow.ca/business-overwhelming-debt/): The Office of the Superintendent of Bankruptcy reported a 58. 3% increase in Canadian business insolvency filings in - [Starting 2023 with a Financial Fresh Start](https://freshstartnow.ca/starting-2023-with-a-financial-fresh-start/): We likely all welcomed the lifting of pandemic restrictions and the return to in-person activities in 2022. - [A True Fresh Start from Filing a Consumer Proposal](https://freshstartnow.ca/a-true-fresh-start-from-filing-a-consumer-proposal/): Three years ago, I met with a gentleman who had no source of income, was unable to - [Office of the Superintendent of Bankruptcy’s (“OSB”) 2021 Canadian Consumer Debtor Profile](https://freshstartnow.ca/osb-2021-canadian-consumer-debtor-profile/): Almost every person that I consult with about a personal bankruptcy or proposal has unique circumstances or - [Tips to Adjust for the Increased Cost of Living](https://freshstartnow.ca/tips-to-adjust-for-the-increased-cost-of-living/): September 6, 2022 Have you actually sat down and analyzed how much groceries have increased over the last year? When... - [Undischarged Bankrupt – What Does It Mean?](https://freshstartnow.ca/undischarged-bankrupt-what-does-it-mean/): One of the more popular searches reaching our website is for the term “undischarged bankrupt” so I - [Who Goes to See a Licensed Insolvency Trustee? March 11, 2022](https://freshstartnow.ca/who-goes-to-see-a-licensed-insolvency-trustee-march-11-2022/): Back in 2018, I wrote a series of blogs on “Who goes to see a Licensed Insolvency Trustee” to share... - [Causes of Financial Difficulty](https://freshstartnow.ca/causes-of-financial-difficulty/): People can be hard on themselves when they are unable to pay their debt obligations. They often - [How To Pay Off Credit Card Debt](https://freshstartnow.ca/how-to-pay-off-credit-card-debt-2/): The average rate of interest charged on credit card debt in Canada is 19%. Some credit cards - [The Canada Revenue Agency and Bankruptcy (What You Need to Know)](https://freshstartnow.ca/canada-revenue-agency-and-bankruptcy/): April can be a very stressful time if you know you will owe taxes when you file - [Take the 30 Day Savings Challenge](https://freshstartnow.ca/take-the-30-day-savings-challenge/): The cost of living has increased significantly, with gas prices at all-time highs and food prices expected - [How to Pay Off Credit Card Debt](https://freshstartnow.ca/how-to-pay-off-credit-card-debt/): A recent internet search for “the average number of credit cards per Canadian” provided the following interesting - [What is Debt Consolidation?](https://freshstartnow.ca/what-is-debt-consolidation/): Debt consolidation is the act of borrowing a new loan to pay off two or more of - [What happens if someone co-signed one of my debts?](https://freshstartnow.ca/co-signed-debts/): Filing a personal assignment in bankruptcy or consumer proposal will immediately provide you relief from most creditor’s - [Why Should I File for Bankruptcy with Taylor Leibow Inc.?](https://freshstartnow.ca/why-file-for-bankruptcy-with-taylor-leibow-inc/): Making the decision to consult a Licensed Insolvency Trustee to file an assignment in bankruptcy is a - [Holiday Spending Tips](https://freshstartnow.ca/holiday-spending-tips/): Have you ever calculated exactly how much you spend over the holiday season? It may be easy - [What Happens When You File for Bankruptcy?](https://freshstartnow.ca/what-happens-when-you-file-for-bankruptcy/): The majority of personal bankruptcies are voluntarily filed by a debtor (the person who owes money) to - [Where to File for Bankruptcy](https://freshstartnow.ca/where-to-file-for-bankruptcy/): The Bankruptcy and Insolvency Act requires that an insolvency proceeding be filed in the “locality of the - [How much does it cost to file bankruptcy?](https://freshstartnow.ca/how-much-does-it-cost-to-file-bankruptcy/): When you are struggling with the payment of your debt, the thought that you will have to - [Does Bankruptcy Clear Student Loans?](https://freshstartnow.ca/does-bankruptcy-clear-student-loans/): Student loans can be discharged in a bankruptcy IF you ceased being a full or part-time student more than - [Be Cautious of Scams](https://freshstartnow.ca/be-cautious-of-scams/): Unfortunately, it seems there are more and more predators attempting to take advantage of honest people. Just - [Assets in Joint Names in a Bankruptcy](https://freshstartnow.ca/assets-in-joint-names-in-a-bankruptcy/): There are many reasons why assets are registered in the names of two or more parties. Title - [When to Consider Bankruptcy](https://freshstartnow.ca/when-to-consider-bankruptcy/): Bankruptcy may be considered the “easy way out” by anyone who doesn’t work in the debt relief - [Debt Relief Solutions in Burlington](https://freshstartnow.ca/debt-relief-solutions-in-burlington/): The stress of carrying too much debt has no geographical boundaries. Many Canadians have fared well during - [How is Student Loan Debt Treated in a Consumer Proposal?](https://freshstartnow.ca/how-is-student-loan-debt-treated-in-a-consumer-proposal/): When you initially borrowed from the Government of Canada to fund your education, you never anticipated that - [Actual Causes of Financial Difficulty](https://freshstartnow.ca/actual-causes-of-financial-difficulty/): The Office of the Superintendent of Bankruptcy Canada annually releases a Canadian Consumer Debtor Profile providing details - [Do I Have to File a Personal Bankruptcy if My Business Fails?](https://freshstartnow.ca/do-i-have-to-file-a-personal-bankruptcy-if-my-business-fails/): It has now been over 13 months since the initial restrictions on businesses were implemented in attempts - [Debt Help in St. Catharines](https://freshstartnow.ca/debt-help-in-st-catharines/): I just read an article in the Financial Post, that stated Canadians would rather incur more debt - [Handling the Insolvency of an Estate](https://freshstartnow.ca/handling-insolvency-of-an-estate/): An executor of an estate that is overburdened with debt should consider the following to determine if - [I Received Government Benefits – Now What?](https://freshstartnow.ca/i-received-government-benefits-now-what/): Many Canadians found themselves out of work due to the pandemic and resulting lockdowns. Fortunately, the government - [Debt Help in Hamilton](https://freshstartnow.ca/debt-help-in-hamilton/): Many people are willing to talk freely about their health and family issues but can be quiet - [What Happens to My Car in a Bankruptcy?](https://freshstartnow.ca/what-happens-to-my-car-in-a-bankruptcy/): Many people hold off considering a bankruptcy because they are afraid of losing their car. When you - [Filing an Estate into Bankruptcy](https://freshstartnow.ca/filing-an-estate-into-bankruptcy/): The passing of a loved one is devastating enough without having to receive collection calls from their - [How long do I have to wait to file a second bankruptcy?](https://freshstartnow.ca/how-long-do-i-have-to-wait-to-file-a-second-bankruptcy/): Quick answer – there is no mandatory waiting period. In order to file a second bankruptcy, you - [The “Fresh Start” of a Personal Insolvency Filing](https://freshstartnow.ca/the-fresh-start-of-a-personal-insolvency-filing/): The Bankruptcy and Insolvency Act provides for an insolvent individual to file a personal assignment in bankruptcy - [Who files a Consumer Proposal?](https://freshstartnow.ca/who-files-a-consumer-proposal/): A consumer proposal can be filed by a consumer debtor who owes not more than $250,000 (excluding - [Budgeting for Seniors Guide](https://freshstartnow.ca/budgeting-for-seniors-guide/): Many seniors who receive limited pension income once per month find it very difficult to budget. These - [How to Deal with Debt After a Loss of Income](https://freshstartnow.ca/how-to-deal-with-debt-after-a-loss-of-income/): When the COVID-19 pandemic shut down Ontario’s economy in March, 2020, no one could have predicted the - [Filing a Second Bankruptcy](https://freshstartnow.ca/filing-a-second-bankruptcy/): The Office of the Superintendent of Bankruptcy issued its 2019 Canadian Consumer Debtor Profile reporting 22% of - [Tips on How To Manage Your Personal Debt](https://freshstartnow.ca/tips-on-how-to-manage-your-personal-debt/): The first step to manage your personal debt is to make a complete list of everything you - [How to Budget While Repaying a Student Loan](https://freshstartnow.ca/how-to-budget-while-repaying-a-student-loan/): We all know that funding an education is expensive. The costs of tuition, books, a laptop, residence - [Tips on How to Create a Family Budget](https://freshstartnow.ca/tips-on-how-to-create-a-family-budget/): Wouldn’t it be nice to have a plan in place of where you will spend your monthly - [Steps to Filing Bankruptcy](https://freshstartnow.ca/steps-to-filing-bankruptcy/): Only a Licensed Insolvency Trustee can file a voluntary assignment in bankruptcy for you. You do not - [What Assets are Exempt from Bankruptcy in Ontario?](https://freshstartnow.ca/assets-exempt-from-bankruptcy-in-ontario/): When a person considers filing an assignment in bankruptcy, they are typically concerned with what assets they - [How much does it cost to claim bankruptcy in Canada?](https://freshstartnow.ca/how-much-does-it-cost-to-claim-bankruptcy-in-canada/): The minimum fee Taylor Leibow typically charges for a first-time bankruptcy is $1,800 payable in 9 monthly - [How does bankruptcy affect my spouse in Canada?](https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/): An insolvent debtor can file an assignment in bankruptcy to obtain relief from their debt. Many debtors - [Annulling a Personal Bankruptcy](https://freshstartnow.ca/annulling-a-personal-bankruptcy/): Once an individual files an assignment in bankruptcy, they must receive their discharge in order to be - [When is the best time to file a personal bankruptcy?](https://freshstartnow.ca/best-time-to-file-a-personal-bankruptcy/): The short answer to this question is that you should file a personal assignment in bankruptcy when - [Understanding the Process of a Consumer Proposal](https://freshstartnow.ca/understanding-the-process-of-a-consumer-proposal/): A consumer proposal is a formal proceeding under the Bankruptcy and Insolvency Act wherein you offer a - [What are “Surplus Income Payments” in a Bankruptcy?](https://freshstartnow.ca/surplus-income-payments-in-a-bankruptcy/): You may be struggling to pay your living expenses and debts and sought the professional advice of - [Choosing a Trustee to File a Personal Bankruptcy](https://freshstartnow.ca/choosing-a-trustee-to-file-a-personal-bankruptcy/): You have finally decided that filing a voluntary assignment into bankruptcy is the only solution for you - [Mistakes to Avoid When Consolidating Your Debt](https://freshstartnow.ca/mistakes-to-avoid-when-consolidating-your-debt/): Creditors’ collection remedies are currently hindered due to the COVID-19 pandemic and the closure of courts except - [Budgeting in COVID-19 Days](https://freshstartnow.ca/budgeting-in-covid-19-days/): We are now in week 5 of living/working in a pandemic world. The Ontario government has currently - [Bankruptcy and Tax Debt During the COVID-19 Pandemic](https://freshstartnow.ca/bankruptcy-and-tax-debt-during-the-covid-19-pandemic/): We are in uncertain times with the COVID-19 pandemic and the significant financial burden it is placing - [Debt Relief Solutions in COVID-19 Environment](https://freshstartnow.ca/debt-relief-solutions-in-covid-19-environment/): I am having a hard time comprehending the magnitude of the COVID-19 virus and the effect on - [What happens if my circumstances change after filing a consumer proposal?](https://freshstartnow.ca/circumstances-change-after-filing-consumer-proposal/): A consumer proposal is a formal filing under the Bankruptcy and Insolvency Act that offers a compromise --- # # Detailed Content ## Pages - Published: 2025-11-18 - Modified: 2026-02-03 - URL: https://freshstartnow.ca/downtown-hamilton/ Fresh Start Now (Downtown Hamilton)Our Hamilton office is conveniently located on the 8th floor of Effort Square at the corner of Main Street East and Catharine Street South, right in the heart of downtown. Just steps from Gore Park, Jackson Square, and the Downtown GO Centre, our office is easily accessible from areas such as Westdale, Dundas, Ancaster and East Hamilton. How to find us: Address 8th Floor, 105 Main St. E. Hamilton, ON Hours Monday to Friday 9:00 am - 4:30 pm Virtual and after hours by appointment. Phone (905) 523-0003
 Fax: (905) 523-2979 Understanding Hamilton’s Financial ChallengesHamilton, with its rich industrial history and evolving economy, presents unique financial challenges to its residents. We understand these challenges and are here to help with: High housing costs and shifting interest rates Job market changes, including layoffs and store/business closures Student and consumer debt pressures Our team is dedicated to helping Hamiltonians navigate these challenges with clear, practical solutions that are tailored to each individual’s unique situation and strengths. We offer a range of services, including debt restructuring, consumer proposals, bankruptcy, budgeting advice, and strategic debt management. Are you ready for a Fresh Start? Please fill out our form or give us a call at 905-523-0003 to set up your appointment with a Licensed Insolvency Trustee. We are local and in your community and available to meet in person or virtually at your convenience. Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Frequently Asked Questions (Downtown Hamilton)Q: Where exactly is the office located? 8th Floor, Effort Square at Main St. E. & Catharine St. S, downtown Hamilton. Q: Do you offer evening appointments? Yes, after hours appointments are available, in... --- - Published: 2025-11-18 - Modified: 2026-02-03 - URL: https://freshstartnow.ca/fresh-start-now-burlington/ Fresh Start Now (Burlington)Our Burlington office is conveniently located on the South Service Road between Walkers Line and Guelph Line, with free parking for all clients. We proudly serve residents across the city, from Aldershot to Alton Village, including neighbourhoods near the Burlington Mall and Spencer Smith Park. Whether you’re commuting along the QEW or walking in from nearby residential areas, our office is easy to reach. How to find us: Address 3310 S. Service Rd #202 Burlington, ON L7N 3M6 Hours Monday to Friday 9:00 am – 4:00 pm Virtual and after hours by appointment Phone 905-637-0071 Fax: 905-637-3195 Understanding Burlington’s Unique Financial ChallengesBurlington is one of Ontario’s most desirable cities to live in, yet many residents face financial pressures, including: High housing costs and fluctuating interest rates Job market changes and occasional retail or service industry shifts Student and consumer debt Balancing family finances and daily expenses Fresh Start Now Burlington provides practical, personalized solutions to help you regain control of your finances and find a path to a fresh start. Are you ready for a Fresh Start? Please fill out our form or give us a call at 905-637-0071 to set up your appointment with a Licensed Insolvency Trustee. We are local and in your community and available to meet in person or virtually at your convenience. Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Frequently Asked Questions (Burlington)Q: Where is the office located? 3310 South Service Road, #202, between Walkers Line and Guelph Line, Burlington. Q: Is parking available? Yes, free parking is available on site for all clients. Q: Can I schedule an evening appointment? Yes, after hours appointments are available, in person and... --- - Published: 2025-11-18 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/hamilton-mountain/ Fresh Start Now (Hamilton Mountain)Our Hamilton Mountain office is conveniently located at Upper Wentworth and Mohawk Road, directly across from the Sackville Hill Seniors Recreation Centre, with free parking available for clients. The office is easily accessible for residents from the West Mountain, East Mountain, Stoney Creek, and neighbouring areas. How to find us: Address Office 16 775 Upper Wentworth St. Hamilton, ON L9A 4V7 Hours Tuesday in person 9-5 Monday to Friday virtually 9-5 After hours by appointment Phone 905-523-0003 Fax: 905-523-2979 Understanding Hamilton Mountain’s Financial ChallengesLiving on the Mountain comes with its own financial pressures. Many residents face challenges such as: Housing costs and mortgage stress Credit card or consumer debt Student loans and family-related financial obligations Employment fluctuations and layoffs in local industries Fresh Start Now is here to help Hamilton Mountain residents navigate these challenges with practical, personalized solutions that put you back in control of your finances. Hamilton Mountain is a welcoming community known for its mix of charming neighbourhoods and local artisans. We are proud to serve the Mountain’s residents with financial guidance tailored to their unique needs. Are you ready for a Fresh Start? Please fill out our form or give us a call at 905-523-0003 to set up your appointment with a Licensed Insolvency Trustee. We are local and in your community and available to meet in person or virtually at your convenience. Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Frequently Asked Questions (Hamilton Mountain)Q: Where is the office located? 775 Upper Wentworth St. , corner of Mohawk Road, across from Sackville Hill Seniors Recreation Centre. Q: Is parking available? Yes, free parking is available on site for all clients.... --- - Published: 2025-11-18 - Modified: 2026-02-03 - URL: https://freshstartnow.ca/st-catharines/ Fresh Start Now (St. Catharines)Our St. Catharines office is conveniently located at 43 Church Street, at the corner of Wellington and Church, right across from Market Square. We are easily accessible from nearby neighbourhoods, including Port Dalhousie, Merritton, Grantham, and Glenridge, and just minutes from major routes like the QEW. How to find us: Address Suite 604 43 Church St St. Catharines, ON L2R 7E1 Hours Monday to Friday 9:00 am – 4:30 pm Virtual and after hours by appointment Phone 905-680-4728 Fax: 905-523-2979 Understanding St. Catharines’ Unique Financial ChallengesAs the largest city in the Niagara Region, St. Catharines has a rich history rooted in industry and the Welland Canal. Today, residents face a variety of financial pressures, such as: Housing affordability and rising interest rates Job market fluctuations, layoffs, or local business closures Student and consumer debt Balancing household and family expenses Fresh Start Now St. Catharines offers tailored solutions to help residents navigate these challenges and regain financial stability. Are you ready for a Fresh Start? Please fill out our form or give us a call at 905-680-4728 to set up your appointment with a Licensed Insolvency Trustee. We are local and in your community and available to meet in person or virtually at your convenience. Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Frequently Asked Questions (St. Catharines)Q: Where is the office located? Suite 604, 43 Church Street, corner of Wellington and Church, downtown St. Catharines. Q: Is parking available? Street parking and nearby lots are available for clients. Q: Can I book after-hours appointments? Yes, after hours appointments are available, in person and virtually, by request What our Customer Say About Us "First met trustee... --- - Published: 2025-11-05 - Modified: 2025-11-19 - URL: https://freshstartnow.ca/video-resources/ VIDEOSWatch our collection of videos for tips and advice on how to tackle your personal and business debt. Can I lose my house or car during bankruptcy? PlayMyths about Credit Score PlayWho can I trust for debt and bankruptcy advice? PlayLATEST BLOG POSTSFind the latest news and tips from our Licensed Insolvency Trustees to help you take control of your finances and get out of debt. Published On: February 9th, 2026Meet the debtor – Proposal for personal income tax debt Joe’s story Joe successfully operated his business as a sole proprietor for many years. His struggles started with the pandemic and he found he could no longer pay his Read Published On: January 26th, 2026Insolvency Solutions for the Declining Real Estate Market Not so long ago, investing excess savings in the housing market seemed like a safe and potentially lucrative investment strategy as values were steadily increasing and interest rates were falling. Read Published On: December 3rd, 2025Filing Bankruptcy With No Assets It is not necessary for you to have assets to file an assignment in bankruptcy. In fact, a large majority of individuals who file bankruptcy do not own any Read Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Join our newsletterNot ready to reach out? Sign up for our newsletter to continue to receive valuable information and tips. Sign Up --- - Published: 2024-05-22 - Modified: 2026-01-08 - URL: https://freshstartnow.ca/ Do you need a fresh start? Your path to financial freedom starts here. Learn MoreContact UsDo you need a fresh start? Your path to financial freedom starts here. Learn MoreContact UsGet started with 3 Easy StepsGet started with 3 Easy StepsLearn about your optionsView our Consumer Proposal and Personal Bankruptcy information below. Fill out your formAnswer a few simple questions to help us understand your situation. Talk to a TrusteeOne of our Licensed Insolvency Trustees will walk you through your personalized options so you can decide what is best for you. Expert Advice Tailored To Your Personal SituationArrange a free consultation with one of our Licensed Insolvency Trustees today START THE PROCESSExpert Advice Tailored To Your Personal SituationArrange a free consultation with one of our Licensed Insolvency Trustees today START THE PROCESSKathy LenartPresidentSettle your debtsConsumer ProposalIf you are struggling to pay down your debts, a Consumer Proposal allows you to make one monthly affordable payment and stop all collection calls. Learn MoreELIMINATE YOUR DEBTPersonal BankruptcyA Personal Bankruptcy may provide the relief you need to get a fresh start. Learn MoreREVIEWSWhat Our Customers Say About Us “I wanted to create an opportunity to profoundly thank you for all of your help wrapping up my discharge as much as for your kind nature along the way. You probably don’t hear it enough, but what you do significantly and positively impacts lives like mine. I can’t thank you enough. ” Dave “Thanks for everything you helped me through the last couple of years. I actually ended up disciplining myself in ways I never would have otherwise. This honestly has been a really positive experience for me and I feel the future is going to be much more manageable. ” Jeremy “I just wanted you to know that you helped me more than you... --- - Published: 2023-05-03 - Modified: 2025-11-19 - URL: https://freshstartnow.ca/resources/ Fresh Start NowDebt Relief ResourcesAt Fresh Start Now, our mission is to provide you with the knowledge and resources you need to achieve your debt-free financial goals. Explore our free resources to help you with budgeting, saving, credit management, and paying down debt. FREE BUDGETING TOOLSUtilize our free worksheets to help you manage your monthly and daily spending and savings. Goals Worksheet VIEW Bi-weekly Paycheck Planner VIEW Does Your Money Have Wings? VIEW Yearly Calendar of Expenses VIEW Budgeting Worksheet VIEW VIDEOSWatch our collection of videos for tips and advice on how to tackle your personal and business debt. How do I get a Fresh Start? PlayWhat are my options? PlayWhy do I need a Trustee? PlayWatch more VideosFAQSOur Frequently Asked Questions will answer the most common questions about the process of claiming bankruptcy and consumer proposals. Bankruptcy FAQs VIEW Consumer Proposal FAQs VIEW LATEST BLOG POSTSFind the latest news and tips from our Licensed Insolvency Trustees to help you take control of your finances and get out of debt. Published On: February 9th, 2026Meet the debtor – Proposal for personal income tax debt Joe’s story Joe successfully operated his business as a sole proprietor for many years. His struggles started with the pandemic and he found he could no longer pay his Read Published On: January 26th, 2026Insolvency Solutions for the Declining Real Estate Market Not so long ago, investing excess savings in the housing market seemed like a safe and potentially lucrative investment strategy as values were steadily increasing and interest rates were falling. Read Published On: December 3rd, 2025Filing Bankruptcy With No Assets It is not necessary for you to have assets to file an assignment in bankruptcy. In fact, a large majority of individuals who file bankruptcy do not own any Read HELPFUL LINKSThese additional links... --- - Published: 2021-10-20 - Modified: 2024-08-07 - URL: https://freshstartnow.ca/privacy/ PrivacyINTRODUCTION On January 1, 2004, the Government of Canada passed new legislation known as the Personal Information Protection and Electronic Documents Act (“PIPEDA”). This legislation requires all companies and firms that provide business services and collect personal information to adopt and inform you of their privacy policies and your rights to privacy under PIPEDA. Taylor Leibow LLP is an independent accounting firm carrying on business in Ontario, Canada. Taylor Leibow Inc. provides insolvency and restructuring services, operating under Taylor Leibow LLP. Our commitment to our clients and contacts is to respect and protect the privacy and confidentiality of personal and business information entrusted to us in the course of rendering our services. As Chartered Professional Accountants, we are governed by CPA Ontario’s Code of Professional Conduct guaranteeing the confidentiality of your personal information. In our privacy policy, we explain the basic principles of our personal information handling practices, including why we collect and use personal information and your rights related to its collection and use. COLLECTION AND USE OF YOUR PERSONAL INFORMATION We collect and use your personal information for the following purposes: To assist us in the analysis of your financial situation and preparation of statutory documents pursuant to the Bankruptcy and Insolvency Act. To prepare your taxation and other returns as required by government and for other regulatory purposes. To understand your needs and determine the suitability of other services we may be able to provide to you. CONSENT We will not collect, use or disclose your personal information without your consent unless required by court order. By providing us with your personal information for any of the purposes listed above, you consent to our collection and use of the information for those purposes. With respect to personal information provided for the preparation of your taxation and other... --- - Published: 2020-08-31 - Modified: 2025-05-21 - URL: https://freshstartnow.ca/the-process/virtual-consultations/ The ProcessVirtual ConsultationsThe first step in managing your credit problems is to speak with a professional who can explain your options and help you make the choice most appropriate for you and your circumstances. Many people struggling with debt, however, may not have access to reliable transportation to travel to one of our offices. At Fresh Start Now, we understand this, which is why we offer virtual consultations from the comfort of your home or office. How you can speak to a member of our teamIn addition to arranging an in-person meeting, you may also set up a telephone or video consultation. During your consultation, the Trustee will get to know you and your situation better in order to help you determine the best path going forward. You will learn about some of the important differences between bankruptcy and a consumer proposal so that you can decide which of these options is the better choice for you. Once you have a plan of action, we will talk with you about the next steps that you’ll need to take. Often debtors feel much better after just the consultation because they no longer feel powerless. They know there is a way out of debt and that we are going to help them throughout the process. Ask your questions through our online chat featureDo you have questions about bankruptcy or a consumer proposal, but don’t feel ready to book a full-length consultation yet? Or have you already had a consultation, but now have follow-up questions? If either of these is the case, you are welcome to call our office, but you may also want to use our convenient online chat feature. We have someone standing by to help you and to answer your questions. Schedule your virtual consultation today! If you are struggling... --- - Published: 2017-11-16 - Modified: 2022-05-31 - URL: https://freshstartnow.ca/get-started/ Get StartedReady for debt relief and a fresh start? Please fill out and submit this form or call 1-905-523-0003 and a Taylor Leibow Insolvency Trustee will be in contact with you within 24 business hours. Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Thank you for taking the time to complete this form. Please advise us of the best time of day you can be reached and we will contact you soon. If you need to speak to a Licensed Insolvency Trustee immediately, please call 1-888-287-2525 or 1-905-523-0003. --- - Published: 2017-11-14 - Modified: 2024-09-05 - URL: https://freshstartnow.ca/blog/ Rebuilding Credit Personal Bankruptcy Legislative Changes Debt Management Consumer Proposal Budgeting and Money Management Articles Show All Meet the debtor – Proposal for personal income tax debt February 9, 2026|Categories: Personal Bankruptcy Joe’s story Joe successfully operated his business as a sole proprietor for many years. His struggles started with the pandemic and he found he could... Read More Insolvency Solutions for the Declining Real Estate Market January 26, 2026|Categories: Personal Bankruptcy Not so long ago, investing excess savings in the housing market seemed like a safe and potentially lucrative investment strategy as values were steadily increasing... Read More Filing Bankruptcy With No Assets December 3, 2025|Categories: Personal Bankruptcy It is not necessary for you to have assets to file an assignment in bankruptcy. In fact, a large majority of individuals who file bankruptcy... Read More How do I rebuild my credit rating after a bankruptcy in St. Catharines? October 20, 2025|Categories: Personal Bankruptcy There is no magic fix to rebuild your credit rating after filing bankruptcy. Slow and deliberate action must be taken to gain positive reportings on... Read More Understanding Surplus Income Limits in a Bankruptcy October 6, 2025|Categories: Personal Bankruptcy The Office of the Superintendent of Bankruptcy has set guidelines as to what they feel is necessary to cover reasonable living expenses in a bankruptcy... . Read More How does a consumer proposal affect your credit score? September 8, 2025|Categories: Consumer Proposal There are two credit agencies in Canada; Equifax and TransUnion. They are public companies and not run by any branch of government. Every time you... Read More What happens to debt when you die? September 5, 2025|Categories: Debt Management When someone passes away in Canada, a final accounting of their assets and liabilities takes place. The purpose of this is twofold: To settle any... Read... --- - Published: 2017-11-13 - Modified: 2025-06-13 - URL: https://freshstartnow.ca/about-us/kathy-lenart/ About UsKathy LenartAs a Partner with Taylor Leibow, Chartered Accountants since 1989 and President with Taylor Leibow Inc. , Licensed Insolvency Trustee, Kathy is responsible for the effective administration and management of corporate and personal bankruptcies and proposals. Kathy’s greatest satisfaction comes from providing an individual with a solution to their financial difficulties and is currently concentrating her efforts on building this area of the practice. Kathy graduated from the University of Waterloo in 1989 and received her CA designation in 1991. Kathy is a Chartered Insolvency and Restructuring Professional and a Licensed Insolvency Trustee. Kathy is committed to her profession and currently stands as secretary and board member for the Ontario Association of Insolvency and Restructuring Professionals. Kathy is a member of the finance committee for her church, St. Paul’s United. A Hamilton native, Kathy currently lives on the Stoney Creek mountain with her husband and two children. Kathy enjoys spending her free time with her family and encouraging their participation in sports. Email: klenart@taylorleibow. com Phone: 905-523-0003 ext. 233 Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Join our newsletterNot ready to reach out? Sign up for our newsletter to continue to receive valuable information and tips. Sign Up --- - Published: 2017-11-13 - Modified: 2026-02-03 - URL: https://freshstartnow.ca/testimonials/ TestimonialsThe greatest reward our team receives comes in the form of comments made from people whose lives have been positively impacted from using our services. “Thank you for giving me the opportunity to restore hope that I can have some order in my financial future. ” Robert “From a client who is very happy to be sending his last payment on his consumer proposal - You have no idea how happy I am. this is the last time that I have to do this! This is my final payment! I am celebrating . ” Dave “Jeff explained very clearly every scenario and options available. Jeff was kind, thorough, compassionate and straight forward explaining the law. 30 minutes later and a great worry, hopelessness, burden and weight was lifted from me. I strongly recommend Jeff & Fresh Start Now. ” Jeremy “I cant believe its almost over... I am beside myself with joy that I managed to get through this and wanted to extend my deepest thanks and gratitude to you and your firm for helping me out of financial ruin. ” Deana “Using your service was a lifesaver. I have been able to regain control of my finances and move on with my life. And I can’t thank you enough for all your help. ” RosalineAll Testimonials “I truly appreciate your prompt attention and response. Your continued support has been a big help to me, and I’m very grateful for your assistance. Once again, thank you very much and I truly appreciate this. ” – Salmata “I want to thank you and your staff for holding my hand through this process and keeping my dignity. ” – Martin “Thank you for giving me the opportunity to restore hope that I can have some order in my financial future. ” –... --- - Published: 2017-11-13 - Modified: 2026-02-03 - URL: https://freshstartnow.ca/the-process/personal-bankruptcy/ The ProcessPersonal BankruptcyA personal bankruptcy is a legal process that allows you to become debt free whilst retaining enough assets to allow you to have a Fresh Start in life (excluding secured debt and debts that survive a bankruptcy). At a free, initial assessment our Trustees will review your financial situation in detail and explore all debt relief options with you. If you decide to proceed with an assignment in bankruptcy, they will prepare the statutory documents for you to sign. Once the bankruptcy is filed with the Office of the Superintendent of Bankruptcy, your Trustee will work with you to ensure you understand and follow your obligations to eventually obtain your discharge. Stay of Proceedings Upon the filing of a bankruptcy assignment, there is an automatic stay of proceedings in place which stops your unsecured creditors from pursuing you for payment of their debt. The stay of proceedings will stop a wage garnishment and collection calls and provide you with peace of mind. The stay of proceedings is also effective against the Government of Canada and garnishments for income tax and other tax debts. AssetsYour Trustee will work with you to realize on any non-exempt assets you own that have a value. You may be able to settle with the Trustee to retain these assets, or the Trustee will sell them if an agreement cannot be reached. When reviewing your assets, the Trustee will compare the value of the asset to any debt secured against it to calculate if there is any realizable value. For example, if you own a home worth $100,000 and have a mortgage secured against it for $80,000, the equity or value is only $20,000. Under Provincial legislation, certain assets are exempt from seizure by your Trustee. For example: Your home if the equity is... --- - Published: 2017-11-13 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/the-process/consumer-proposal/ The ProcessWhat is a Consumer Proposal? A consumer proposal is essentially an offer to compromise or settle your debts with your creditors. The terms of a consumer proposal can be creative and will generally offer a percentage of your debt payable in regular monthly payments. Terms can also be negotiated that include escalating payments or a lump sum. In order to file a consumer proposal, your unsecured debts excluding your mortgage on your principal residence must not exceed $250,000 and the proposal must be completed within five years. Where do I file a Consumer Proposal in Ontario? A consumer proposal can only be filed with a Licensed Insolvency Trustee. A referral is not required, and you can contact a local Licensed Insolvency Trustee directly to arrange an initial consultation. A listing of Trustees can be obtained on The Office of the Superintendent of Bankruptcy website or on the Canadian Association of Insolvency and Restructuring Professionals website. Taylor Leibow has offices in Hamilton, Burlington, and St. Catharines where you will meet with a Licensed Insolvency Trustee to review your financial situation, listen to them explain the consumer proposal process, and decide if a consumer proposal is the best solution for you to become debt free. The initial meeting is free of charge and currently can be performed either in person, via telephone or virtually. As long as the consumer proposal offers more to your creditors than they will receive in a bankruptcy and the Trustee is satisfied you can fulfill the terms offered, a proposal can be offered to your creditors. Consumer proposals can include unsecured credit card debt, lines of credit, payday loans, income taxes owing to the Canada Revenue Agency and student loans if you completed your studies greater than seven years prior to filing the proposal. Consumer Proposal... --- - Published: 2015-07-02 - Modified: 2024-09-05 - URL: https://freshstartnow.ca/faqs/ FAQsBankruptcy Frequently Asked QuestionsDoes bankruptcy clear debt in Canada? Rocket Marketing2025-05-20T12:41:02-04:00Does bankruptcy clear debt in Canada? Bankruptcy eliminates most unsecured debts, but certain debts, such as student loans (less than seven years old), child support, and court fines, are not discharged. How long can a bank account be frozen in Canada? Rocket Marketing2025-05-20T12:40:22-04:00How long can a bank account be frozen in Canada? There is no fixed time limit. A bank account remains frozen until the issue is resolved, such as paying the debt, negotiating a settlement, or obtaining a court order to release it. What happens when you declare bankruptcy in Ontario? Rocket Marketing2025-05-20T12:31:08-04:00What happens when you declare bankruptcy in Ontario? Unsecured creditors are immediately stopped from pursuing you for collection of your debts. The non-exempt value of your assets must be realized, your debts are discharged, and you will be required to complete financial counseling. A first bankruptcy affects your credit for seven years after discharge. Does the government pay for bankruptcies in Canada? Rocket Marketing2025-05-20T11:59:03-04:00Does the government pay for bankruptcies in Canada? No, individuals filing for bankruptcy must cover administrative costs, which include trustee fees. If you cannot afford the fees, you may be eligible for assistance through the Bankruptcy Assistance Program. Contact the Office of the Superintendent of Bankruptcy for details. How long does a bankruptcy last in Ontario? Rocket Marketing2025-05-20T09:43:46-04:00How long does a bankruptcy last in Ontario? A first-time bankrupt in Ontario is eligible for an automatic discharge in nine months if their income is below a set threshold. The automatic discharge is extended to 21 months if they are required to make surplus income payments. Repeat bankruptcies last longer. Can you claim bankruptcy and keep your car? Rocket Marketing2025-05-13T16:42:03-04:00Can you claim bankruptcy and keep your car? If the equity in your car is below the... --- - Published: 2015-07-01 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/contact-us/ Fresh Start NowContact UsPlease contact Licensed Insolvency Trustee Kathy Lenart. Call Toll Free: 1-888-287-2525 Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Principal Location Hamilton Office - Free ParkingAddress 8th Floor 105 Main St E. Hamilton, ON L8N 1G6 Hours Monday-Friday: 9am - 5pm After hours by appointment Phone 905-523-0003 Fax: 905-523-2979 Hamilton Mountain - Free ParkingAddress Office 6 775 Upper Wentworth St. Hamilton, ON L9A 4V7 Hours Monday-Friday: 9am - 5pm After hours by appointment Phone 905-523-0003 Fax: 905-523-2979 Burlington Office - Free ParkingAddress Suite 202 3310 South Service Rd Burlington, ON L7N 3M6 Hours Monday-Friday: 9am - 5pm After hours by appointment Phone 905-637-0071 Fax: 905-523-2979 St. Catharines OfficeAddress Suite 604 43 Church St St. Catharines, ON L2R 7E1 Hours Monday-Friday: 9am - 5pm After hours by appointment Phone 905-680-4728 Fax: 905-523-2979 Virtual OfficesBecause we value your time, we also offer virtual consultations from our physical offices and other service areas below. Whether you’re exploring options or reviewing your financial situation, our virtual consultations simplify the journey toward financial freedom. Schedule your free, no-obligation consultation with our Licensed Insolvency Trustees from the comfort of your home or office. If you decide an insolvency is the best solution for you, all documents can be conveniently signed electronically. Start with a call or video session today to begin your Fresh Start Now. Beamsville Brantford DundasFort Erie Grimsby MiltonNiagara FallsOakvilleThoroldWaterdownWellandJoin our newsletterNot ready to reach out? Sign up for our newsletter to continue to receive valuable information and tips. Sign Up --- - Published: 2015-02-20 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/about-us/ Fresh Start NowAbout UsFor over 60 years, Taylor Leibow Inc. has been helping people and business owners who have found themselves in financial difficulty get a Fresh Start. Our compassionate Licensed Insolvency Trustees and administrative staff understand everyone’s circumstances and situation is different and are here to listen and provide financial solutions. Our goal is to ensure you fully understand the process, your alternatives (personal bankruptcy, consumer proposal) and to take action that relieves your stress. The purpose of our business and this website is to help people who are dealing with issues surrounding debt overload. If you are seeking advice and options that will help you get a Fresh Start and relieve the pressure of collection harassment or garnishment, you have taken the right step by visiting our website. Credit cards, loans, taxes, bills, and other financial obligations can stack up in a hurry. You need to know that you are not alone and that Kathy has been helping Canadians with their debt for over 40 years to get a financial Fresh Start, rebuild their credit and develop financial balance in their lives. Discussing your situation with us in person, at our Hamilton, Burlington or St. Catharines offices, or virtually, is a no-obligation and strictly confidential way to learn how we are different and how we can help you. The first step – making the phone call – is the hardest. Please contact our Licensed Insolvency Trustees to discuss your financial situation over a cup of coffee. Our history proves that you will feel a burden lift by taking that step. Contact Us Our TrusteesPlease click on a profile below to find out more about our Licensed Insolvency Trustees: Kathy LenartPresidentBook a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select... --- - Published: 2015-02-20 - Modified: 2025-05-21 - URL: https://freshstartnow.ca/why-fresh-start-now/ Fresh Start NowWhy Fresh Start Now? When the debt collectors keep calling and you have no available funds to meet your obligations, you require advice and assistance from professionals who can quickly explain your options and recommend a course of action. Going bankrupt may be a consideration but is not always the best course of action. Taylor Leibow’s team of insolvency specialists in our Hamilton, Burlington, and St. Catharines offices have created a unique three stage process for helping individuals choose the best plan based on their specific needs and situation. Our unique process is called... The Three Steps to Financial StabilityAssessmentOur Licensed Insolvency Trustees will personally perform a detailed analysis of your financial circumstances. We will then discuss the advantages and disadvantages of all alternatives and come up with a creative solution that works for you. ProtectionStop the calls from creditors – now. We are committed to providing you with the relief you need immediately. On the filing of bankruptcy or consumer proposal documents, creditors are legally stopped from pursuing you for collection. In most cases, we can file the paperwork within a few days, or a couple of hours if required. Financial StabilityWe not only want to help you resolve your current financial burden, we want to ensure that you are on the path to a solid financial future. We will review your monthly income and expenses, and you will be required to attend two counselling sessions to learn about budgeting and money management. We will also explain the steps you need to take to rebuild your credit score. Book a FREE consultation with Fresh Start Now Full Name * Phone Number* City * Email * Please select the best time for us to contact you * MorningAfternoonEveningAnytime Join our newsletterNot ready to reach out? Sign up for... --- - Published: 2015-02-20 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/the-process/ Fresh Start NowThe ProcessThe first stage to becoming debt free is to meet with our Licensed Insolvency Trustee – Kathy Lenart. The fact you are reading this means you already recognize the signs of financial difficulty and are ready to take the necessary steps to get your life back in order. We will collect personal and financial information from you – your name, address, monthly income and living expenses, assets that you own and debts that you owe. etc. This can be done personally with one of our Trustees or please feel free to complete our fillable “Debtor Information Form” attached. The Trustee will then review this information in detail with you and will advise you of all solutions that are available to you and whether they are applicable to your circumstances. The Trustee will ensure that you understand the advantages and disadvantages of each alternative to enable you to make an informed decision on the best route for you to become debt free. If you decide that you wish to proceed with filing a bankruptcy or consumer proposal, we will set up a second appointment to sign the necessary paperwork in our Hamilton, Burlington or St. Catharines offices or you may sign virtually if it is easier for you. Depending on information available, we can usually prepare documents for signature within a few days, however this can be expedited depending on your personal circumstances (for example you may have a pending wage garnishment or lawsuit, threatening phone calls, etc. ). The signed documents are then filed with the Office of the Superintendent of Bankruptcy which stops any legal action by creditors to collect their debt. A bankruptcy or proposal filed under the Bankruptcy and Insolvency Act are the only legal remedies that can stop a wage garnishment or Court... --- --- ## Posts - Published: 2026-02-09 - Modified: 2026-02-13 - URL: https://freshstartnow.ca/meet-the-debtor-proposal-for-personal-income-tax-debt/ Joe’s story Joe successfully operated his business as a sole proprietor for many years. His struggles started with the pandemic and he found he could no longer pay his personal income tax and his business and living expenses. Paying rent and buying food were a priority, so he filed his tax returns to avoid penalties, but interest accrued on the balance owing. His income was then further negatively impacted by advancements in Artificial Intelligence and its impact on his industry. Canada Revenue Agency is becoming more aggressive with their collection proceedings, and the final “straw” for Joe was when they froze his bank account leaving him unable to pay any expenses. With $90,000 owing in income tax and another $15,000 in credit card debt, that’s when he reached out to me for help. Bankruptcy option We reviewed his financial situation in detail and determined his business assets fell below the exemption for tools of the trade under the Execution Act in Ontario. His only realizable asset was a second vehicle worth about $2,000. As a single individual his income was above the threshold set by the Superintendent of Bankruptcy and thus in a bankruptcy, he would be required to make surplus income payments totaling $18,000. 00. We estimated total realizations of $20,000 in a bankruptcy. Consumer proposal option We then discussed offering a proposal to his creditors, reducing the total amount paid, at a monthly amount he could afford. A proposal must offer more to your creditors than recovered in a bankruptcy and be completed in a maximum of 60 months. Based on Joe’s capability to pay, a proposal of $27,600 payable at $460 per month with no further interest was feasible. Canada Revenue Agency didn’t agree to the original proposal, but we were able to negotiate $500 per month... --- - Published: 2026-01-26 - Modified: 2026-02-09 - URL: https://freshstartnow.ca/insolvency-solutions-for-declining-real-estate-market/ Not so long ago, investing excess savings in the housing market seemed like a safe and potentially lucrative investment strategy as values were steadily increasing and interest rates were falling. Due to affordability challenges, inventory levels and rising interest rates, the average home value in Hamilton has decreased 14% year over year from December 2024. Many mortgages are coming up for renewal in 2026 and will face higher interest rates and thus higher monthly payments further impeding affordability. We are currently consulting with many debtors who can no longer afford their monthly mortgage payments and the selling value of their house is insufficient to pay the mortgage in full. They are at a loss as to next steps. Short Sale of Property Your realtor or legal counsel may be able to negotiate with your mortgagee to allow a short sale to enable you to sell your house. You will be left responsible to pay the balance owing but will avoid a power of sale and related legal costs. Bankruptcy or Proposal A bankruptcy or a proposal can also address the shortfall on a property. You can essentially walk away from the property and allow the mortgagee to sell the property pursuant to their security agreement. Any shortfall incurred by the mortgagee, including legal costs, can be eliminated in an insolvency proceeding. A free consultation with a Licensed Insolvency Trustee will provide a detailed analysis of your financial situation and potential solutions that will allow you to move forward free from the burden of a mortgage shortfall. The trustee will consider your assets, liabilities, monthly income and expenses, and any guarantors of your debt in exploring solutions. The purpose of the Bankruptcy and Insolvency Act is to provide relief to an honest but unfortunate debtor. No one wants to file a... --- - Published: 2025-12-03 - Modified: 2025-12-03 - URL: https://freshstartnow.ca/filing-bankruptcy-with-no-assets/ It is not necessary for you to have assets to file an assignment in bankruptcy. In fact, a large majority of individuals who file bankruptcy do not own any realizable assets. They are struggling monthly to pay their living expenses and have insufficient cash flow to pay down their debt. When you file an assignment in bankruptcy, your assets that are not exempt from seizure or fully encumbered, vest in the trustee to realize on for the general benefit of your creditors. This means that the trustee will cash in your TFSA, will sell your house or car to realize the equity or you can make an offer to purchase them back from the trustee. If you do not have any assets, there is nothing for the trustee to take. In the year of bankruptcy, your trustee will file your personal income tax return and any refund for the year of bankruptcy or any prior year will be forwarded directly to your trustee as property of your estate. Depending on your net monthly income and family size, you may be obligated to make surplus income payments to your trustee. The Superintendent of Bankruptcy has issued a directive as to what they think is necessary to cover reasonable living expenses, and if your income exceeds this threshold, you must make surplus income payments to your trustee for the benefit of your creditors. When there are realizable assets, the trustee’s fees can be paid from the assets realized. If you have no assets and are not required to make surplus income payments, then you will be obligated to pay the trustee a minimum fee for them to administer your estate. The amount of the fee varies depending on if it is a first, second or third bankruptcy. The minimum fee that Taylor... --- - Published: 2025-11-10 - Modified: 2025-11-10 - URL: https://freshstartnow.ca/why-you-need-a-licensed-insolvency-trustee/ Struggling with debt and unsure who you can trust? Kathy Lenart explains why only a licensed Trustee in Bankruptcy can provide legal relief from creditors and guide you safely through the process. See how today. Video ResourcesBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2025-11-10 - Modified: 2025-11-10 - URL: https://freshstartnow.ca/struggling-with-debt-what-are-my-options/ Worried about debt and what comes next? Kathy Lenart breaks down your options, from consumer proposals to bankruptcy, so you can take control and move forward with peace of mind. See how today. Video ResourcesBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2025-11-10 - Modified: 2025-11-10 - URL: https://freshstartnow.ca/struggling-with-debt-how-do-i-get-a-fresh-start/ Looking to turn the page on financial stress? Kathy Lenart guides you through filing options, credit restoration, and taking control of your financial future with confidence. See how today. Video ResourcesBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2025-11-04 - Modified: 2025-11-10 - URL: https://freshstartnow.ca/who-can-i-trust-for-debt-and-bankruptcy-advice/ Not sure who to trust with debt or bankruptcy advice? In times of uncertainty, Kathy Lenart explains how a licensed insolvency trustee provides reliable guidance and solutions you can count on. See how today. Video ResourcesBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2025-11-04 - Modified: 2025-11-10 - URL: https://freshstartnow.ca/can-i-lose-my-house-or-car-during-bankruptcy/ Worried about losing essential assets like your car or home during a bankruptcy or a consumer proposal? In times of uncertainty, Kathy Lenart explains how secured assets are treated in Canada and what options you have to protect what matters most. See how today. Video ResourcesBy Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2025-10-20 - Modified: 2025-10-21 - URL: https://freshstartnow.ca/how-do-i-rebuild-my-credit-rating-after-a-bankruptcy-in-st-catharines/ There is no magic fix to rebuild your credit rating after filing bankruptcy. Slow and deliberate action must be taken to gain positive reportings on your credit report that will then improve your credit score. You must also be cautious about applying for credit if you have concerns about qualifying. Being rejected for credit will further negatively impact your credit score. Several tips to improve your credit rating after filing for bankruptcy in St Catharines: Accumulate savings and then apply for a secured credit card. You will need to save $500 - $1,000 to provide as security and will then be granted a credit card with the same limit. If you made monthly payments to your trustee during your bankruptcy, set aside those excess funds in savings until you have the funds for the deposit. Invest the time in researching different secured credit cards that are available from your bank or other lending institutions. The annual fees and interest rates will fluctuate, and since you intend to pay the debt in full each month, I recommend the lower annual fee. Put your groceries and gas on your credit card every month and pay the balance in full by the due date. You should have developed a budget during your credit counselling sessions, so you are comfortable charging your groceries and knowing you have the funds to pay the balance when due. Utilize 30% of your credit limit. Do not max out your credit card every month. Pay your bills on time. Cell phone providers typically report to the credit bureaus, so make sure you pay on time every month. Once you have used a secured credit card for a year or so, talk to your bank about obtaining a traditional credit card with a low balance. Store credit cards like... --- - Published: 2025-10-06 - Modified: 2025-10-08 - URL: https://freshstartnow.ca/understanding-surplus-income-limits-in-a-bankruptcy/ The Office of the Superintendent of Bankruptcy has set guidelines as to what they feel is necessary to cover reasonable living expenses in a bankruptcy. If income exceeds the threshold, then payment of 50% of the excess must be paid to the trustee as “surplus income payments”. The purpose of the guideline is to ensure application across all personal bankruptcies on an equal basis. The guideline anticipates that changes may have to be made in lifestyle to be able to afford the surplus income payment which is a tradeoff for discharging your debt. The guideline is standard across Canada and based on your income, family size and certain non-discretionary expenses (spousal and child support payments per a Court order or written agreement, medical costs not covered, and childcare are the most common). The actual funds left over at the end of the month do not impact on the calculation. For a family of 1, the directive amount is currently $2,666. 00. Net take home income from all sources (employment, Ontario Works, support, etc. ) less non-discretionary expenses is compared to the directive. If the net exceeds the directive, then surplus income payments of 50% must be paid to the trustee and the bankruptcy will be extended by a further 12 months. For example: Payroll $4,200. 00 Less: child support paid (750. 00) Net for surplus purposes $3,450. 00 Directive for family of 1 (2,666. 00) Surplus Income 784. 00 Surplus income payment of 50% $392. 00 The directive amounts are as follows: Family of 1 $2,666. 00 Family of 2 $3,318. 00 Family of 3 $4,080. 00 Family of 4 $4,953. 00 Family of 5 $5,618. 00 If you are seeking help for overwhelming debt, don’t let the surplus income requirement scare you from reaching out to a Licensed Insolvency... --- - Published: 2025-09-08 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/how-does-a-consumer-proposal-affect-credit-score/ There are two credit agencies in Canada; Equifax and TransUnion. They are public companies and not run by any branch of government. Every time you take out a loan, credit card or borrow money from a financial institution, the lender reports the activity on these to one or both of the credit agencies. They choose which one(s) they wish to use. The purpose of these agencies is to maintain financial data on each individual as a resource for financial institutions to decide if you will be a good customer if they were to lend you money. I. e. are you a good credit risk and they will be repaid in full? The credit bureaus keep information on payments made and whether they were paid on time or late. Each loan/credit card is assigned a risk rating with R1 being the highest (pays on time as agreed) to R9 (debt written off in a bankruptcy) An R5 debt rating is the lowest rating where payments are being made and current. A consumer proposal rates an included debt as an R7. What is a Credit Score? Based on your credit report, the credit agencies calculate a number called a credit score by using a complex computer algorithm. A credit score is not a measure of how financially successful you are, it is an indication on how responsible you are using credit. They range from 300 to 900; the higher the score indicating that you are more responsible. With a higher credit score, banks and lenders will be more open to lending you money and at lower interest rates. A lower credit score will indicate that you are less responsible with money and a bank may be unwilling or less willing to lend you money. It may also be at a higher interest... --- - Published: 2025-09-05 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/what-happens-to-debt-when-you-die/ When someone passes away in Canada, a final accounting of their assets and liabilities takes place. The purpose of this is twofold: To settle any debts outstanding from available assets To transfer any remaining assets to any beneficiary Assuming the individual passed away with a last will and testament, then the above is a well followed process of probate (vetting the will and legally appointing the executor of the estate), followed by a sale of any assets and final distribution of value. Often, the individual may pass away with more debt than available assets to settle those debts, and so a call to a Licensed Insolvency Trustee from the executors may follow for advice on how they should proceed. The common concern is that the beneficiaries (often close family members) and/or the executor of the estate are personally liable for the debts of the deceased. Beneficiaries of an estate are not personally liable for the debts of the deceased, unless they co-signed the debt or are joint borrowers. Executors can be held liable if they distribute assets to the beneficiaries without first settling any outstanding debts. A common misconception is that “debt dies with the individual”. This is incorrect as the deceased’s estate becomes responsible for paying the debts. If there are insufficient assets available at the time of passing, then they are unlikely to be paid in full. Here are some basic guidelines for executors: Sell all assets and hold all the proceeds in an estate bank account Ascertain all debts owed by the deceased (this can be difficult to do as information may be unavailable or difficult to locate) File outstanding tax returns and pay any taxes due Inform the creditors that the borrower has passed away and distribute any final payment. If there are insufficient assets to... --- - Published: 2025-09-02 - Modified: 2025-09-02 - URL: https://freshstartnow.ca/what-assets-can-you-keep-in-a-bankruptcy-in-burlington/ There is often a fear of reaching out to a Licensed Insolvency Trustee to explore bankruptcy due to the misconception that you lose all your assets. The Execution Act in Ontario allows you to retain your household furnishings, a vehicle up to a set value, and most RRSPs are exempt from seizure in bankruptcy. The purpose of filing an assignment in bankruptcy is to provide you with relief from your debt and allow you to move forward with a fresh start. To assist in your rehabilitation to a fresh financial future, the following assets are exempt in a bankruptcy and are retained by you: The Execution Act of Ontario Household furniture up to a liquidation value of $14,180; One personal automobile up to a value of $7,117; Tools of the trade required to operate your business up to $14,405; and Your home if the equity is less than $10,783. If the equity is higher than the exemption, then the exemption is lost. Additionally: Life insurance policies with a designated beneficiary of a spouse or child are exempt Registered Retirement Savings Plan and Registered Disability Savings Plan, other than contributions in the 12 months preceding your bankruptcy, are exempt We refer you to https://freshstartnow. ca/the-process/personal-bankruptcy/ on our website for further details on assets you can keep in a bankruptcy. The trustees at Taylor Leibow Inc. would be happy to set up a free consultation in Burlington to review your personal situation in detail and explore if a bankruptcy can provide you with relief from overwhelming debt. Reach out to us today to discuss what assets you can retain while eliminating your debt. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2025-08-11 - Modified: 2025-08-18 - URL: https://freshstartnow.ca/how-does-a-consumer-proposal-work/ A consumer proposal allows you to offer a settlement to your unsecured creditors payable over a maximum of 60 months. The filing of a consumer proposal gives you immediate protection from your creditors and no further payments are made directly to your unsecured creditors during the process. A proposal works as follows: You meet with a Licensed Insolvency Trustee to review your financial situation in detail (assets, liabilities, income and expenses, any transfer of assets, etc. ). The trustee will explore many solutions with you - one of which is a consumer proposal. To file a consumer proposal, you must owe less than $250,000. 00 and be insolvent. This means that if you sold all your realizable assets you wouldn’t be able to pay your debt in full and are struggling to make payments as they become due. The trustee will explore what would be realized in a bankruptcy and then you offer more to your creditors in the proposal. The amount you offer to your creditors includes the administrator’s fees and no further interest is payable. The creditors have 45 days to vote and a majority of the creditor voting must accept the terms offered. If the original proposal is not accepted, the trustee will negotiate with the creditors and yourself to an amount you can agree on. Once the proposal is accepted by the required majority of creditors, all of your unsecured creditors are bound by the proposal. You make monthly payments to the trustee and the trustee will distribute the funds to your creditors typically every 6-12 months. You will have to attend two counselling sessions which will teach you about budgeting and rebuilding credit. The proposal is reported on your credit report as an R7 for 3 years from completion of the proposal. Debts that survive... --- - Published: 2025-07-04 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/step-by-step-guide-on-how-to-file-bankruptcy-in-ontario/ Only a Licensed Insolvency Trustee (“LIT”) can file an assignment in bankruptcy for an individual in Canada. The steps to file an assignment in bankruptcy are as follows: Reach out to a LIT to schedule an in-person or virtual consultation to review your assets, liabilities, income and expenses, co-signors of your debt, and any transfer of your assets. The trustee explains solutions for debt relief, and you decide which solution is best for your circumstances. Statutory documents are prepared by the trustee and signed under oath as being a true statement of your affairs. Documents are filed with the Office of the Superintendent of Bankruptcy (“OSB”), which issues a Certificate of Appointment confirming your bankruptcy, and a stay of proceedings is implemented, which stops your unsecured creditors from taking legal action against you. The bankruptcy filing can stop a garnishment of your wages by an unsecured creditor. Assets that have a realizable value vest in the trustee to realize for the benefit of your creditors. This means the trustee will collapse any non-exempt investments (TFSA, GIC, etc. ), collect amounts owing to you from any other party, and realize on equity in your house or other assets. Monthly Income and Expense forms must be submitted to determine if you are required to pay surplus income payments. If your income exceeds a threshold set by the OSB, 50% of any surplus must be paid to the trustee for the benefit of your creditors. Tax returns for the year of bankruptcy will be prepared by the trustee, and any refund will go to your trustee. Creditors could request a meeting of creditors to ask you questions on your financial situation and disposition of assets. You must attend 2 counselling sessions on budgeting, money management and rebuilding credit. A first time bankrupt will... --- - Published: 2025-06-26 - Modified: 2025-07-31 - URL: https://freshstartnow.ca/should-i-cash-in-my-rrsp-to-pay-my-debt-or-file-an-insolvency/ If you are struggling with your debt and asking the above question, you should seek the advice of a Licensed Insolvency Trustee (“LIT”) to review your financial situation in detail and explore all solutions. Your RRSPs may be protected from your creditors and retained for your future retirement. A couple of important items to consider: RRSPs that are held with a life insurance company and have a designated beneficiary of a parent, child, or spouse are exempt in a bankruptcy, and thus you would be able to keep them. All other RRSPs are exempt in a bankruptcy, other than contributions in the last 12 months. Thus, if you file an assignment in bankruptcy, the trustee will only be looking to realize on the contributions in the 12 months preceding your bankruptcy. On a withdrawal of an RRSP, the financial institution will withhold some tax at source. You will be obligated to report the income on your personal income tax return, and depending on your other income, you may owe more personal income tax. An insolvency is the filing of a bankruptcy or consumer proposal to deal with your unsecured debt. An insolvency will stop a garnishment of your wages and legal action by an unsecured creditor. Free consultation and solutions analysis A free consultation with a LIT will review your realizable assets, exempt assets, liabilities, income and expenses. The trustee will review your assets that must be realized in a bankruptcy, potential surplus income payments that may be required, and tax refunds that will be distributed to the trustee. They will explain how much you could offer to your creditors to settle your debt with one monthly payment over a maximum 5-year time period in a consumer proposal. They will compare bankruptcy and consumer proposals to the do-it-yourself options of... --- - Published: 2025-06-03 - Modified: 2025-06-03 - URL: https://freshstartnow.ca/middle-aged-and-struggling-with-debt/ Unfortunate circumstances can impact anyone. A separation of marriage, loss of income, helping children or lack of financial education can leave a middle-aged woman struggling with debt. Being unable to handle your own finances can be overwhelming and impact your health. Don’t struggle alone. The Licensed Insolvency Trustees at Taylor Leibow Inc. will review your financial situation in a non-judgmental, compassionate manner and discuss the following solutions: Budget to pay down your debt Are you aware of your monthly expenditures? Do you track all of your spending to analyze where you could cut back to put more money towards your debt payments? Can you reduce your non-discretionary spending (entertainment, clothes) and concentrate on paying down your debt? If you are able, pay down the highest interest-bearing loans first to minimize the interest cost. Debt consolidation loan You may be finding it difficult to juggle numerous loan and credit card payments at very high interest rates. Talk to your bank to see if you qualify for a consolidation loan. This will leave you with one monthly payment at a lower interest rate. Consumer Proposal You can make an offer to settle your debts with one monthly payment over a maximum of 5 years. No further interest is charged and the trustee’s fees are included in the proposal payment. A proposal stops a garnishment of wages and creditor phone calls. Bankruptcy The purpose of a bankruptcy is to provide relief to an honest but unfortunate debtor. If none of the above solutions work for you, a bankruptcy will eliminate the majority of your unsecured debt and allow you to rebuild moving forward. For more information, check out the resources on the Financial Consumer Affairs of Canada website at https://www. canada. ca/en/services/finance/debt. html. Take the first step to a financial fresh start today... --- - Published: 2025-05-29 - Modified: 2025-05-29 - URL: https://freshstartnow.ca/meet-kathy-lenart/ I have been helping debtors who are struggling with overwhelming debt for over 30 years. I understand that reaching out to a Trustee is a really difficult step to take and that everyone’s circumstances are different and very personal to them. I thought it might be easier to explore solutions with me if you knew a bit about me. I am a born and raised Hamiltonian. From early on in high school, numbers have always been “my thing”. I worked numerous jobs in retail (McDonalds, Towers and The Beer Store) and thus learned the importance of customer service and a courteous disposition very early. I joined Taylor Leibow in 1989 after graduating from the University of Waterloo and started as a junior providing accounting services. Many people in my profession change employers multiple times in order to progress, but Taylor Leibow has a great reputation, acknowledges hard work and the culture is unbeatable. After obtaining my Chartered Accountant designation in 1991, I went on to obtain my Chartered Insolvency and Restructuring Professional designation and became a Licensed Insolvency Trustee in 1996. This is when I found the ultimate satisfaction in helping people find a path forward to a brighter financial future. Most people I meet find themselves unable to pay their debt due to life circumstances. The fact that I have the training and experience to help them find a financial fresh start is very rewarding. Maintaining the integrity of my profession is important to me and I currently stand on the Professional Conduct Committee for the Canadian Association of Insolvency and Restructuring Professionals. Outside of Taylor Leibow, I enjoy the outdoors, staying active, travelling and spending time with my adult children. Take the first step to a financial fresh start and reach out to me today. By Kathy Lenart... --- - Published: 2025-04-12 - Modified: 2025-05-30 - URL: https://freshstartnow.ca/consumer-proposal-vs-bankruptcy/ The best solution for you will depend on your individual circumstances and personal morals. Both a bankruptcy and a consumer proposal are formal filings pursuant to the Bankruptcy and Insolvency Act and both provide you protection from your unsecured creditors. They both impact your credit rating and stop a garnishment of your wages by Canada Revenue Agency and other creditors. You must attend two credit counselling sessions in either solution. The similarities end there. Bankruptcy Assets with a value that exceeds a secured loan and are not exempt from seizure (e. g. furniture, vehicle up to $7,117) must be realized by your trustee for the benefit of your creditors. You can offer to buy the assets back from your trustee, but they must be paid for over a shorter period of time. Income tax refunds, GST and some other benefits are assets the trustee will directly receive. Surplus income payments may have to be paid to your trustee if your income exceeds a threshold based on your family size. You will be required to submit monthly income and expense statements and your surplus income payment may increase if your income increases during your bankruptcy. The trustee has the right to realize on after acquired assets which consist of inheritances, lottery winnings, etc. Consumer Proposal An offer is made to your creditors to compromise your debt over a maximum of 5 years. The proposal must offer more to your creditors more than they would receive in a bankruptcy but because you are extending the payments over 5 years, the monthly payment is lower and more affordable. Future increases in income will not impact your creditor and Court approved proposal. Receipt of a future asset (inheritance) will not impact your creditor and Court approved proposal. You can always pay the proposal off... --- - Published: 2025-04-09 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/debt-self-help-solutions/ For many people, being deep in debt can be overwhelming and can have serious consequences on your life. It can negatively affect your: Health - mood, lack of sleep, stress Relationships – spouse, family, friends Work – poor performance due to the above Indeed, the feeling that there is “no way out” of your situation can make it difficult to take any positive action to improve your situation. But what can you do to help yourself turn things around: Consider increasing your income by taking on an additional part-time job. There are many opportunities that allow you to work from home with a computer and use any spare hours you may have. Sell any assets that you no longer need and use the cash to reduce your debt. The internet is awash with auction websites that allow you to easily list and sell items at no cost. Review your budget and try and reduce unnecessary monthly expenditure. Do you really need all those streaming services you pay for monthly, or that gym subscription you never use? Look for ways to consolidate your individual debts into one payment with a lower interest rate. Your bank may be willing to assist you if you ask. If you are comfortable doing so, talk to your family and friends about your situation. They may be suffering also, and you will realize you are not alone. If you have tried the above and still find yourself struggling with debt, then you need to seek professional help You can: File a debt management plan with a licensed credit counsellor. This is an informal arrangement with your creditors where you will repay all the debt, usually with a lower interest rate and an additional fee. Talk to a Licensed Insolvency Trustee. They are regulated by the Federal... --- - Published: 2025-03-20 - Modified: 2025-03-20 - URL: https://freshstartnow.ca/who-sees-licensed-insolvency-trustee/ The purpose of this blog is to make taking the first step to see a Licensed Insolvency Trustee (“trustee”) easier by reading about others who started their path to financial freedom by reaching out to a trustee. Free, initial consultation An initial consultation with a trustee is free of charge and the trustee has an obligation to review all possible solutions with you. I recently met with a couple (let’s call them Joe & Carol) that were struggling to pay down about $60,000 in debt. They both had full time jobs, earned a good monthly income and were lucky to have a low monthly rent payment. We started with a review of their monthly expenses. When we added up the amount they spent on entertainment and food for a family of two, it quickly became apparent that they needed to make some changes to their spending. I recommended that they track every dollar they spend for a couple of months so they could make informed decisions on where they could spend less. Debt Relief Solutions Based on their unique circumstances, we discussed the following solutions: Debt consolidation loan for $60,000. They had already spoke to their bank and didn’t qualify. Debt management program through an accredited credit counselling agency to pay their debt in full. An assignment in bankruptcy would result in surplus income payments of around $43,000 and they would have to settle on the equity in one car of approximately $2,000. The total anticipated payments of $45,000 plus losing their tax refunds and the reporting on their credit rating didn’t make sense to them to eliminate $60,000 in debt. They could offer their creditors a consumer proposal payable over 5 years. Since a proposal must offer more than what is available in a bankruptcy, we discussed offering a... --- - Published: 2025-02-19 - Modified: 2025-02-19 - URL: https://freshstartnow.ca/how-does-a-bankruptcy-impact-my-tax-refunds-and-benefits/ Upon filing an assignment in bankruptcy, your assets vest in the trustee to realize for the benefit of your creditors. This means that the trustee effectively steps into your shoes as the owner of your property. Tax refunds for the year of bankruptcy and any year preceding your bankruptcy are considered property and thus will be sent directly to your trustee (see https://www. canada. ca/en/revenue-agency/services/tax/individuals/information-on-bankruptcy. html). What you lose Canada Revenue Agency will be notified of your bankruptcy and will re-direct the following payments to your trustee: Income tax refunds. Your trustee will file 2 tax returns in the year of bankruptcy and any refund from either of these returns will be sent to your trustee. If you have not received a refund for a year preceding your bankruptcy, that refund will also be sent to your trustee. Quarterly GST cheques during the term of your bankruptcy. For a first-time bankrupt who receives an automatic discharge in 9 months, the trustee will likely receive 3 of your quarterly GST cheques. In certain circumstances, you may receive the GST cheques back at the end of your bankruptcy, but that will just be a pleasant surprise. Climate Action Benefits/Canada Carbon Rebate and other benefits where the base year precedes your date of bankruptcy. If you take a look at the notices you receive with these benefits, the base year is typically at least one prior year, and thus, these benefit cheques may go to your trustee for a while. Canada Workers Benefit If you claim the disability tax credit for yourself or any other person for the year of bankruptcy or any prior year, those tax refunds will go to your trustee regardless of when you actually make the claim. The fact that you are discharged from bankruptcy will not impact the... --- - Published: 2025-01-13 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/how-do-i-decide-if-a-debt-management-program-or-a-consumer-proposal-is-the-best-solution-for-me/ If you can make your monthly debt payments but are struggling with the accumulating interest and juggling multiple creditors, a dmp may be the best solution. A consumer proposal may be a better option if your assets are significantly less than your debts and you can’t make the monthly required payments. A Licensed Insolvency Trustee will provide a free consultation to review your financial situation in detail and analyze if a dmp or consumer proposal is the best debt relief solution for you. The trustee will explain the following differences between the two solutions: Debt Management Program Negotiated through a not for profit, accredited credit counselling agency Pay your creditors in full typically over a 4-year time period by making one monthly payment to the agency who then distributes the funds to your creditors Interest is reduced and may eliminated Can’t force creditors to participate, and some creditors, like Canada Revenue Agency, won’t participate Reported as an R7 for 3 years from completion of the program Consumer Proposal Negotiated through a Licensed Insolvency Trustee Stay of proceedings on filing, which stops garnishments and collection activity Offer a compromise to your creditors payable over a maximum of 5 years Proposal must offer more to your creditors than would be available in a bankruptcy Requires the majority in dollar value of creditors voting to accept the terms. All unsecured creditors are then bound by the proposal terms. Canada Revenue Agency for personal income tax and student loans will participate in a consumer proposal No further interest and payments include the trustee’s fees Reported as an R7 for 3 years from completion of the program I caution you against paying anyone for an initial consultation. The Office of the Superintendent of Bankruptcy (Industry Canada) is warning debtors to avoid debt advisors and recommending... --- - Published: 2024-12-04 - Modified: 2025-03-10 - URL: https://freshstartnow.ca/advice-fresh-start-under-bankruptcy-and-insolvency-act/ The Bankruptcy and Insolvency Act is federal legislation that was enacted to provide an honest but unfortunate debtor relief from their debt. The objective of filing a bankruptcy or proposal is to enable a debtor to eliminate their unsecured debt and to move forward with a fresh start and to be a future contributor to society. There are also provisions to maintain the integrity of the system and to ensure the process is not abused. A little advice to debtors to avoid issues in their insolvency proceedings: Do not max out your credit cards and lines of credit prior to filing. Creditors do not look favourably on considerable debt incurred just prior to an insolvency filing and could oppose your discharge or vote against a proposal. Regardless of sound reasons to transfer an asset to a family member, the transaction will be subject to scrutiny by the trustee and creditors and could be reversed. Paying a significant amount to a creditor to protect a co-signor could be considered a preferential payment that your trustee will try to recover. Accurately prepare your monthly income and expense statements to track every dollar you spend. You can’t create a reasonable budget for future financial stability if you do not know where your money is spent. Complete your statutory duties. There is a stay of proceedings once you file your bankruptcy, but it is your discharge that relieves you of your obligation to pay creditors. If you don’t complete your duties (2 counselling sessions, providing tax information, etc. ), you will not get your discharge, and your creditors may be able to pursue you for payment again. If you are struggling with debt, reach out to Taylor Leibow Inc. to review your financial situation in detail and educate yourself on possible solutions. By Kathy... --- - Published: 2024-11-15 - Modified: 2024-11-15 - URL: https://freshstartnow.ca/what-is-the-right-amount-to-offer-in-a-consumer-proposal/ Contrary to the advertisements that may pop up on your social feeds, there is no quick fix to reduce your debt by 80%. There is a consumer proposal, which is a formal filing under the Bankruptcy and Insolvency Act to compromise the amount that you owe to your creditors, payable over a maximum of 5 years. The proposal, once accepted, is all that you will pay – there is no additional interest, and the trustee’s fees are included. How do you determine how much to offer your creditors in a proposal? Based on personal circumstances, some people want to pay the least amount possible, while others feel a moral obligation to pay the most they can afford. So, what is the right amount to offer? A consumer proposal must offer your creditors more than they would receive in a bankruptcy. A proposal can only be filed with a Licensed Insolvency Trustee (LIT) who will consider: The realizable value of any assets that you own. Savings, investments, vehicles and real property are all assets. The trustee will look at the value compared to any exemptions or secured loans to determine if there is excess value realizable in a bankruptcy. Surplus income payments – based on your income and family size, you may be required to make surplus income payments in a bankruptcy. The number of months you will be required to make the payments will depend on whether this is a first or second bankruptcy filing. The amount that you owe and who you owe money to. LITs have experience in filing proposals and have a general idea as to how much each financial institution may accept in a proposal. If you have sold or transferred any of your assets in the last five years, and how you disposed of the... --- - Published: 2024-11-15 - Modified: 2025-04-29 - URL: https://freshstartnow.ca/what-happens-if-you-lose-a-lawsuit-and-cant-pay-in-canada/ To clarify, I am not a lawyer, and thus, I am not giving anyone legal advice. If you disagree with the outcome of your lawsuit, you should consult with your lawyer on your right to appeal. As a Licensed Insolvency Trustee (LIT), I meet with many people who have a judgment against them as they failed to file a defence to a statement of claim or had judgment awarded against them at trial. Once a creditor obtains a judgement, they can then take enforcement steps to collect their debt by obtaining a garnishment order or a writ of seizure and sale of personal property. If you are unable to pay the debt in full but can afford monthly payments, contact the creditor to try to come to agreeable repayment terms over time. If you are struggling with all of your debt, consult with a Licensed Insolvency Trustee to review your full financial situation and potential solutions. The LIT will review the following solutions: Obtaining a consolidation loan to pay the judgement and any other debt in full and be left with one loan at hopefully a lower interest rate. Debt management program through an accredited not-for-profit credit counselling agency. They negotiate with your creditors to accept payments over a 4-year time period and may be able to reduce the interest paid on your debt. A judgement creditor may not be willing to step back and participate in the program when they have the right to enforce their judgement. A consumer proposal offers a compromise to your creditors to settle the debt you owe them over a maximum 5-year time period. A proposal can only be filed with a LIT who will review your financial situation in detail to determine how much you can offer that is affordable to you. On... --- - Published: 2024-10-17 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/when-is-the-best-time-to-see-a-licensed-insolvency-trustee/ One of the most common comments I receive when I have helped someone with their debt is, “I wish I had come to see you a year (or two) ago. ” Being deep in debt can cause feelings of helplessness, despair and failure. This not only affects you but it can also have an impact on those close to you such as loved ones, family, friends and co-workers. The stress can cause sleeplessness and worry and can have negative effects on your health and state of mind. Procrastination is driven by a variety of thoughts and habits, but fundamentally, we avoid certain tasks because we do not believe we will enjoy doing them. Dealing with personal finances is hard, and trying to fix a broken budget takes a lot of work and discipline. Sometimes, it is easier to pay the interest every month than to deal with the problem. After all, I can afford the minimum payment and so it’s fine to be in debt, right? Wrong! Being in debt is spending your future wealth, and carrying a debt for a long period of time is simply throwing your money away. At the extreme, you may be working hard just to pay the interest to get by every month. Those who do tackle the issue will go through a series of self-help remedies: try and reduce expenses, look for a side gig to add some extra income, cash in some financial investments, or try and sell those household items that have been lying around the house that you no longer have a need for. Often these remedies come up short and only provide a short-term “band-aid” solution to the underlying problem. Only when there seems like no other option do we reach out to a Licensed Insolvency Trustee for help.... --- - Published: 2024-10-15 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/what-to-do-when-you-receive-a-collection-notice-from-the-canada-revenue-agency-cra/ Amounts owing to the CRA for personal income tax and HST sometimes get pushed aside to concentrate on paying your everyday living expenses. The CRA does charge interest on the amount owed to them, but it is usually lower than the interest rate on credit cards and payday loans. Eventually, the CRA will send a collection notice to demand repayment. Do not ignore the collection letter. The CRA has higher rights than most creditors and can garnish your wages, freeze your bank accounts and put a lien against your assets without serving you with a Statement of Claim. If you receive a collection letter, you should: Communicate with the CRA so they know that you take this debt seriously. Call the CRA representative assigned to your account, who is referred to in your letter. If you are not able to pay the debt in full, ask them to allow you a couple of weeks to review your finances and come up with a payment plan. Make a list of all income that you receive in a month and all of your living expenses. Analyze if you can cut back on any discretionary expenses (dining out, streaming services, entertainment) to increase the amount available to pay off your CRA debt. Divide your CRA debt by the amount that you can afford to pay every month to see how long it will take you to pay off the debt. Contact the CRA to see if they would agree to your monthly payment plan. The CRA will likely be looking to have their debt paid in full in 12-18 months. The CRA may grant relief from penalty or interest if extraordinary circumstances or financial hardship prevent you from paying your taxes. More details are available at Taxpayer relief provisions—Canada. ca. If the CRA... --- - Published: 2024-10-08 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/what-to-know-if-you-have-financed-home-improvement-equipment/ One tactic some companies have used over the years has been to promote their items via door-to-door sales. That is, the salesman would uninvitedly knock on your door and attempt to sell you a piece of machinery to improve the use of your home. Typically, these types of equipment would be home heating, air conditioners, or water treatment equipment. Many times, these pieces of equipment were sold at inflated prices and then financed over many years, enabling small monthly payments to be made. It seemed very affordable; however, the true cost of the installed equipment may have been up to five times the actual cost that a reputable supplier would have installed it for. At the same time the contract was signed, the seller would also get a written agreement from the homeowner allowing the loan to be secured via a registration on title to the property that it was being installed in. What this means is that if the loan was not repaid, the seller could enforce the loan and was entitled to be paid out of the sales proceeds of the property when sold. Recent changes to legislation has meant that the title registrations made by these companies on your homes are no longer valid and, on application, can be removed. The debt would still exist, and if you stopped paying, they would still be entitled to recover the equipment installed; however, they would no longer have security over the larger and more valuable asset, your house. In reality, the seller would be unlikely to come and take back their water heater or water softener since it would be uneconomical to do so (the labour charge to remove it may be more than the equipment is worth). If you stop paying the monthly payments, the equipment sellers or... --- - Published: 2024-09-06 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/how-to-avoid-buyers-remorse/ Have you ever made a significant purchase and immediately questioned whether it was a good idea? Have you been out with friends and spent a significant amount on a dinner and then woke up the next morning wondering how you will make ends meet for the rest of the month? Understanding the difference between needs and wants, implementing a budget and setting SMART goals for yourself will help provide you the financial resources to make wiser decisions and avoid buyer’s remorse. A need is a necessity of life – we all need shelter, food, clothing and transportation for employment purposes. A want is something you would like to have but could live without. When implementing a budget, you should first ensure your needs are met. Your wants are secondary and can be saved for in your goals. A budget is a spending plan based on income and expenses. Tracking all of your expenses for a couple of months will allow you to understand the cost of your basic needs and then set a budget as to how you would like to allocate excess funds for “wants” and savings. A goal is what you want to achieve. If you would like to attend a concert or go on a trip with your friends, setting a goal to set aside funds in your budget will allow you to save to reach your goal. To assist you in reaching your goal, they should be SMART goals: Specific – what you want to save the funds for Measurable – a set amount Achievable – you can afford the monthly amount Relevant – important to you Time Bound – set time frame for you to achieve the goal Implementing the above financial habits will allow you to enjoy a purchase you have budgeted and saved... --- - Published: 2024-07-16 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/can-a-debt-consultant-get-me-a-better-deal-with-my-creditors/ When you are struggling with debt and embarrassed by your financial situation, it is hard to take the first step to reach out for help. The internet is a good resource for researching debt relief solutions and budgeting tools. When researching, you will find many debt consultants who offer to “reduce your debt by 80%” or state they are the only ones advocating for you or acting in your best interest in an insolvency filing. They will review your financial situation (like a trustee would), explain all possible solutions (again, like a trustee would), charge you a fee, and then if you need to file a consumer proposal or a bankruptcy, they will refer you to a Licensed Insolvency Trustee (“LIT”). LITs are the only ones licensed by the Office of the Superintendent of Bankruptcy to file a bankruptcy or proposal. LITs are bound by legislation, standards, and Rules of Professional Conduct. A LIT must perform a detailed assessment of your financial situation and explore all possible solutions with you – including a consolidation loan, debt management program, consumer proposal and bankruptcy. LITs understand the “fresh start” and rehabilitation principles of the legislation and want to obtain the best solution for you. LITs also deal with creditors regularly and can provide advice on what percentage of recovery creditors would likely accept in a consumer proposal based on your specific financial situation. In my experience, a debt consultant will not get you a better deal with your creditors and will only end up costing you additional, unnecessary fees. Reach out to a LIT to obtain a free, non-judgmental consultation on solutions that work best for you. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2024-06-28 - Modified: 2026-01-02 - URL: https://freshstartnow.ca/the-meaning-of-insolvency/ If you are in debt, you may hear the word “insolvency” being used. What does this mean, and how does it affect the options available to you for dealing with your debt? The Bankruptcy and Insolvency Act (the “BIA”) is the legal framework used by all Licensed Insolvency Trustees (the “Trustee”) for administering how they help companies and individuals who find themselves in financial difficulty due to having an unmanageable amount of debt. According to the BIA, an Insolvent person is a person who, for any reason, is unable to meet their obligations as they fall due. Simply put, this means that if you have stopped paying your debts due to a lack of available funds or feel that you are unable to pay your debts, then you are insolvent. In addition, you may also find yourself in the position that you have more debts than the value of any assets you own, and this can also cause you to be insolvent. Insolvency is, therefore, a state of being, and if you are insolvent, you may feel like you have fallen into a deep hole that you are unable to crawl out of. Some people call this the debt spiral. Having unmanageable debt can cause anxiety, health issues, and can affect your family relationships and have an impact on your work performance. The test for insolvency is important because it allows a Trustee to be able to help you. Most people who see a Trustee have more debt than assets, and in this situation, the Trustee will craft a solution that could see you just repaying a percentage of what you owe to your creditors without any interest. Because of the current higher interest rates, many people who have more assets than debts (because they may own their own house)... --- - Published: 2024-04-23 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/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 owe your creditors. A proposal can offer payment in full, but typically offers a percentage of the total amount of your unsecured debt. The proposal must offer to your creditors a higher return than they would receive in a bankruptcy and must be completed in 5 years. The terms of the proposal can be creative and flexible to provide you with the best chance of successful completion. A consumer proposal can only be filed through a LIT who works with you to develop the terms of your proposal. The LIT will review your financial situation in detail and advise you on a reasonable amount that you can offer to your creditors based on their experience. A consumer proposal is filed under the Bankruptcy and Insolvency Act and will be reported on your credit report as an R7 for 3 years from completion of your proposal. The benefit of a proposal is that you can retain your assets, keep your tax refunds and GST and know that you will be debt free in 5 years. Please feel free to reach out to us for a free consultation or refer to the Office of the Superintendent of Bankruptcy website at https://ised-isde. canada. ca/site/office-superintendent-bankruptcy/en/you-owe-money/you-owe-money-consumer-proposals for more information. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2024-02-13 - Modified: 2025-03-11 - URL: https://freshstartnow.ca/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 the rights of creditors to expect to be repaid and to maintain the integrity of the insolvency system, the discharge process becomes lengthier and more punitive with a second or subsequent bankruptcy. A first-time bankrupt is eligible for an automatic discharge in 9 or 21 months (depending on their income and family size), and the bankruptcy will be reported on their credit report as an R9 for 6-7 years from discharge. A second-time bankrupt is eligible for an automatic discharge in 24 or 36 months (depending on their income and family size), and the bankruptcy will be reported on their credit report as an R9 for 14 years from discharge. A third or subsequent bankruptcy filer must attend a discharge hearing, and the Court can suspend their discharge, impose conditions or refuse the granting of a discharge. In the Hamilton/Toronto area, we are seeing that a third-time bankrupt is receiving a suspension of 12-18 months as long as there are no other issues/opposing creditors. The bankruptcy will permanently be reported in the credit bureaus. The BIA is there to provide relief to an honest but unfortunate debt, and sometimes, misfortune happens more than once. Reach out to a Licensed Insolvency Trustee to review your financial situation in detail and explore all solutions with you. At a free initial assessment, a trustee will fully explain the bankruptcy process and how it will impact you in a... --- - Published: 2024-02-08 - Modified: 2024-03-18 - URL: https://freshstartnow.ca/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 credit rating. The problem arises when you have to re-borrow each month to cover your living expenses. Additionally, minimum payments may only cover interest charges and not reduce the actual principal debt owed. So yes, an insolvent person can file for bankruptcy even if they are current on their debt payments. You are insolvent if you owe at least $1,000 and: You are unable to meet your obligations as they become due; You have ceased paying your current obligations in the ordinary course of business as they become due; or The value of all of your property is not sufficient to enable payment of all of your debt. I would caution anyone from filing a bankruptcy for debt of less than $5,000, but everyone’s circumstances are personal. If wages are being garnished or your debt is at a very high interest rate, a bankruptcy might provide you relief. At a free consultation, a Licensed Insolvency Trustee will review your financial situation in detail and review all available solutions with you. Don’t continue to struggle on a monthly basis; reach out today to get a fresh start. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2024-01-19 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/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 your bank any money – overdraft of your bank account, credit card or a loan – then you will have to open a new bank account at a new financial institution. Your bank has the right to set-off (take) any funds in your bank account against the debt that is owed to them upon you filing an insolvency. Technically, they can’t take any funds after the date of insolvency, but it is always cleaner to change banks to ensure you are not scrambling to have your funds released. If your creditors have access to your bank account via pre-authorized payments (“PAPs”) or postdated cheques (yes, some people still write cheques), then you should close your bank account upon filing an insolvency. You want to ensure no further amounts are charged to your account that could possibly result in service charges and non-sufficient fund charges for which you would be responsible. If you have a joint account with another person and owe your financial institution money, you will definitely want to close that account to ensure the co-owner is not left responsible for charges on the account. If you don't owe If you have no debt owing to your financial institution and none of your unsecured creditors have access to your bank account, you can keep your bank account. This is always easiest as there is no need to change your direct deposits and ongoing PAPs... --- - Published: 2024-01-02 - Modified: 2024-02-07 - URL: https://freshstartnow.ca/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 good fortune in the following year. If you have struggled in 2023 with your finances, I recommend that your New Year’s tradition be to make a plan to reduce your expenditures in 2024. If you haven’t been tracking every dollar you spend, you may be surprised by how much your monthly grocery expenditure increased in 2023. The budgeted amount for other expenses may have to be reduced to reach your financial goals. Plan to concentrate on reducing one expense every month in 2024. January – Reach out to your cable/internet provider to see if you can reduce your services to lower your monthly bill. February – Review your insurance premiums and shop around to see if you can get a better rate. March – Plan ahead for low-cost/free activities to entertain the kids during March break. April – File your taxes early so you continue to receive any benefits you are entitled to. May – Cancel one streaming service and sign up for a library card for free movies and books. June – Plan to walk to work instead of driving or using public transportation. Breaking the financial goals down to one per month will be less overwhelming and provide momentum for the next month when achieved. From all of us at Taylor Leibow Inc. , we wish you health and financial stability in 2024! By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA,... --- - Published: 2023-12-05 - Modified: 2024-03-26 - URL: https://freshstartnow.ca/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 to repay, reach out to a Licensed Insolvency Trustee to discuss solutions. Solutions Amounts owing to the CRA can be discharged in a personal bankruptcy or consumer proposal unless they have previously registered a lien on the title of your property. Further, a bankruptcy or consumer proposal will stop a garnishment of your wages or pension. If you operate a business and deduct withholdings from your employees, the CRA may have a deemed trust claim against your assets. If you are a director of a corporation and the company does not pay outstanding HST and source deductions, the CRA can assess you personally for the outstanding amounts. This director’s assessment liability can be included in a personal bankruptcy or proposal. Bankruptcy isn’t the only solution to deal with overwhelming tax debt. The CRA will accept a proposal to compromise your debt if the terms are fair and reasonable and you are current on all outstanding tax returns. Taylor Leibow Inc. offers a free initial assessment to review your financial situation in detail and explore solutions. Don’t let your wages continue to be garnished or hide from tax debt – reach out to us today. We are ready to talk when you are. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2023-10-16 - Modified: 2025-12-03 - URL: https://freshstartnow.ca/virtual-versus-in-person-bankruptcy-consultation/ Pre-pandemic Consultations Pre-pandemic, a Licensed Insolvency Trustee (“LIT”) was required to see all debtors in person prior to them filing a bankruptcy or proposal. The LIT had to perform an in-person assessment of the debtor’s financial situation and discuss the merits and consequences of possible solutions, the rights and responsibilities of the debtor, surplus income requirements, discharge, etc. Post-pandemic Consultations When COVID hit, the Office of the Superintendent of Bankruptcy (“OSB”) authorized LITs to perform the assessment virtually to ensure continued access to the insolvency system. Post-pandemic, many trustees in our insolvency community fought to return to the requirement to see debtors in person to ensure our profession would be able to continue to offer in-person services to those who really need them. Currently, LITs are obligated to offer an in-person or videoconference assessment at the debtor’s informed choice. At Taylor Leibow, all of our initial assessments and signups are with the LIT. Personally, I prefer in-person meetings as I feel sitting across a desk allows both of us to obtain a better comfort level with each other. We are able to pass documents back and forth, better read non-verbal cues from each other, offer a coffee to calm nerves and sometimes even a tissue when emotions become overwhelming. Meeting at our Hamilton and Burlington offices also allows you to meet our administrative team, who you will be dealing with on a regular basis. Having a smiling face greet you as you walk into what you may feel is an intimidating meeting provides comfort. Virtual meetings do provide a flexible option if your work schedule, family commitments, or health hinder you from meeting in person. Reach out to Taylor Leibow Inc. if you are struggling with overwhelming debt. I would be happy to meet you in our local offices in... --- - Published: 2023-08-29 - Modified: 2024-02-07 - URL: https://freshstartnow.ca/why-its-important-to-be-discharged-from-a-bankruptcy/ Filing an assignment in bankruptcy legally stays (stops) your unsecured creditors from pursuing you for collection until your trustee is discharged. Your discharge from bankruptcy relieves you from your responsibility to pay your unsecured creditors (other than those that survive a bankruptcy like support, alimony, fraud, etc. ). Surprisingly, some people take the hard step of filing a bankruptcy and then don’t complete their statutory duties and remain undischarged. If you remain undischarged and your trustee obtains their discharge, your creditors’ rights to pursue you for collection are revived. In many cases your creditors have written off the debt and don’t bother to take any collection proceedings, but it is still important to be discharged from your bankruptcy for the following reasons: You are not eligible to sponsor another individual to come to Canada while an undischarged bankrupt. If you become the beneficiary of an inheritance while undischarged, your trustee has the right to be re-appointed and directly receive your entitlement from the inheritance to pay your creditors in full plus 5% per year interest plus fees. If you accumulated debt since your last bankruptcy, you are unable to file another bankruptcy without first obtaining a discharge from your prior filing. When applying for a mortgage in the future, the fact that you are undischarged is typically uncovered and hinders your ability to be eligible for a mortgage. The bankruptcy will be reported on your credit bureau for 6-7 years from discharge. The bankruptcy filing may fall off your credit report in the interim, but when you obtain your discharge it will be reported again impacting your credit score which delays your fresh start. While the above reasons may not seem important at the moment, they may sometime in the future. I recommend you reach out to your trustee today... --- - Published: 2023-07-19 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/settling-debts-on-your-own-versus-filing-a-consumer-proposal/ If you have fallen a couple of months behind on your minimum monthly payments, your creditors have likely sent your debt to a collection agency. The collection agency will make every attempt to get you to pay the debt, with multiple telephone calls trying to convince you to get the money from family or a loan from another source. Collection agencies get paid if they collect money from you, so they may be relentless and sometimes a little harsh in their calls. They also may be willing to settle the debt at a lower amount to at least recover some funds. You may receive a letter offering to settle a $5,000. 00 debt for $2,000. 00. This sounds like a good deal, but the issue is they will want the funds in a lump sum amount immediately. If you are able to come up with a lump sum amount, you will want to make sure that you have proper documentation that they are accepting the lump sum payment in full and final satisfaction of their debt. You could deal with each of your creditors individually to try and get them to accept a settlement, but if one refuses, you may find yourself struggling again. There is no protection from your creditors taking legal action while you are attempting to negotiate with them. Filing a Consumer Proposal A consumer proposal is a formal filing under the Bankruptcy and Insolvency Act and will provide you immediate protection from all unsecured creditors taking any legal action. A proposal can offer monthly payments over a maximum of 5 years, and you only need 50. 1% of the creditors that vote on the proposal to accept the terms. If a majority of your creditors agree with the offer or a negotiated amount, then all of... --- - Published: 2023-06-26 - Modified: 2024-02-07 - URL: https://freshstartnow.ca/what-happens-if-i-can-no-longer-pay-my-consumer-proposal/ When you filed your consumer proposal to your creditors, you couldn’t possibly have imagined the world would be affected by a pandemic, followed by rising interest rates and increased cost of living. The reason you filed the proposal was to enable you to compromise your debt at a monthly amount you could afford. If circumstances have resulted in you being unable to continue your monthly proposal payments, reach out to the Licensed Insolvency Trustee with whom you filed your proposal. They will review your current financial circumstances, keeping in mind how much is left owing on your proposal and discuss the following options: Find a way to increase your income or decrease your expenses to enable you to complete the proposal if that makes the most sense based on the balance remaining. Contact your cable or cell phone provider to see if you can reduce your monthly bill. You can miss two proposal payments during the whole term of your proposal and not be in default. These two months may give you some breathing room to get back on track with your monthly payments. Making a partial payment in the third month may provide you with one extra month before default. Make up the missed payments with your tax refund or quarterly GST payment. Amend the terms of your consumer proposal. The amended proposal does have to be voted on by your creditors, and if the required majority of creditors do not accept the terms, the total amount that you originally owed may be revived, less dividends plus interest. File an assignment in bankruptcy. If there is a significant amount left owing on your proposal and your circumstances have changed drastically, a bankruptcy may be the best solution. Your Licensed Insolvency Trustee wants you to succeed in completing your proposal... --- - Published: 2023-05-18 - Modified: 2023-10-23 - URL: https://freshstartnow.ca/what-happens-to-debts-that-have-been-co-signed-in-a-bankruptcy-or-proposal/ The purpose of filing an assignment in bankruptcy or consumer proposal is to provide you relief from your overwhelming debt. On filing statutory documents, a stay of proceedings kicks in that stops unsecured creditors from continuing any action to collect their debt. A garnishment of wages will stop and collection calls will cease. On completing your bankruptcy or proposal, you are then relieved from your obligation to pay unsecured creditors (other than those that survive under S178 which is a topic for another day). All of the above refers to you only. A bankruptcy or proposal does not protect or relieve any other party that is responsible to pay the debt. Creditors maintain the right to pursue a co-signor for collection of their debt. At your initial assessment with a Licensed Insolvency Trustee, they will inquire if your debt was incurred in your name only or if the debt is co-signed, guaranteed or if there are any supplementary card holders on your credit cards. If other parties will remain responsible to pay the debt, you will have to consider if this impacts your decision to file a bankruptcy or consumer proposal. Please feel free to reach out for a free initial assessment to discuss further. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2023-04-19 - Modified: 2023-09-07 - URL: https://freshstartnow.ca/check-your-credit-report-with-credit-reporting-agencies-in-ontario/ It is recommended that you check your credit report at least once a year for accuracy and to identify any fraudulent activity. There are two major credit reporting agencies in Ontario – Equifax Canada and Trans Union Canada. Checking one agency and then following up with the other after six months will enable you to detect any fraudulent activity more quickly. You can obtain a consumer disclosure or report from each agency free online at www. equifax. ca or www. transunion. ca. Creditors voluntarily report to the credit bureaus, so your report may not disclose all of your debt. Review your reports to ensure: Your personal information is accurate, and there are no unknown addresses or phone numbers attached to your account Any debt that is reported is owed by you Payments are accurately reported There are no accounts listed that you were not aware of A bankruptcy or consumer proposal is properly reported There are no negative reportings on your account past the maximum reporting period Errors on your credit report could impact your ability to obtain future credit and also be a sign of fraudulent activity. If there is an error on your report, contact the credit bureau to request the error be corrected by providing supporting documentation. If you think you are a victim of identity theft, notify the credit bureaus, put an alert on your bureau to caution future lenders to contact you before granting credit, and notify the Canadian Anti-Fraud Centre. Being diligent in regularly checking your credit report and correcting issues on a timely basis will ensure future credit applications are not impacted by inaccuracies. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2023-03-10 - Modified: 2025-03-10 - URL: https://freshstartnow.ca/what-is-the-first-step-to-filing-a-bankruptcy-or-consumer-proposal/ If you have finally taken the very difficult step of acknowledging that you cannot handle your debt on your own, your first step should be to reach out to a Licensed Insolvency Trustee. There is no need to see or pay a debt consultant first – contact a trustee directly. The trustees at Taylor Leibow Inc. can be reached by telephone, email or the chat feature on our website. At a free initial assessment, our trustees will review your financial situation in detail by analyzing your assets, liabilities, monthly income and expenses, co-signors and dispositions of assets. We will then explore which of the following solutions is best for you: Debt consolidation loan Debt management program through a not-for-profit credit counsellor Consumer proposal Bankruptcy We are now able to meet and sign statutory documents virtually or in person and have offices in Hamilton, Burlington, and St. Catharines for your convenience. Reach out to us today at Freshstartnow. ca. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2023-02-10 - Modified: 2023-05-31 - URL: https://freshstartnow.ca/business-overwhelming-debt/ The Office of the Superintendent of Bankruptcy reported a 58. 3% increase in Canadian business insolvency filings in the 4th quarter of 2022 (October to December). From the business owners that I have recently met with, the causes of their financial difficulties stem from: Rising interest rates resulting in significantly higher monthly payments on bank loans and operating lines of credit Delays in obtaining product during the pandemic due to supply and shipping issues Increased costs of inventory, shipping and operating expenses Large amounts owing for HST, unremitted source deductions and personal income tax and Canada Revenue Agency is starting to press for payment Concern about obligation to repay government CEBA loan of $40,000 or $60,000 by December 31st, 2023, to be eligible for grant Lack of employees to operate efficiently; and Consumers are cutting back and being more cost-conscious A Licensed Insolvency Trustee can assist with two solutions to deal with an insolvent business: assignment in bankruptcy a proposal which is an offer to your creditors to compromise your debt Many factors have to be considered in evaluating the best solution for you. At a free initial appointment with Taylor Leibow Inc. , we will review your business’s financial situation in detail and explore if a bankruptcy or proposal can allow you to continue to operate your business for a profitable future. Reach out to us today. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2023-01-11 - Modified: 2023-05-18 - URL: https://freshstartnow.ca/starting-2023-with-a-financial-fresh-start/ We likely all welcomed the lifting of pandemic restrictions and the return to in-person activities in 2022. Unfortunately, along with that return to “normalcy” came decreasing house values, increased interest rates and increased costs of living. Statistics Canada recently reported that Canadian households’ debt-to-income ratio rose by $1. 83 in debt for every dollar of household disposable income. On top of the increasing debt level, multiple hikes to the rate of interest has caused significant increases in monthly payments for variable mortgages and lines of credit. If you are struggling with making your monthly debt payments or your payments are only being applied to interest and not reducing your debt, reach out to a Licensed Insolvency Trustee (“LIT”). A LIT will provide a detailed review of your financial situation and explore debt relief solutions. The most common debt relief solutions are: Debt consolidation loan – consolidate all of your debt into one loan at a lower interest rate with one monthly payment Debt management program – paying your creditors in full over 4 years with one payment through a non-profit credit counselling agency Consumer proposal – offering a compromise to your creditors over a maximum of 5 years Bankruptcy This initial assessment is typically free of charge and will educate you on your options and explain the pros and cons of each solution. Start 2023 with a financial fresh start and reach out to us today. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Member of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP) Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2022-11-23 - Modified: 2023-05-18 - URL: https://freshstartnow.ca/a-true-fresh-start-from-filing-a-consumer-proposal/ Three years ago, I met with a gentleman who had no source of income, was unable to find employment and owed approximately $20,000 in credit card debt. Let’s call him “Joe. ” Joe and I reviewed his financial situation in detail to find a solution that would provide him relief from the stress of not being able to pay his debt. Joe’s expenses at the time were minimal, but he still needed approximately $1,400 a month to pay for his rent, utilities, food, etc. During our discussion, Joe advised that he had funds in a Registered Disability Savings Plan (that were exempt from seizure) and in a Tax-Free Savings Account. I advised Joe that if he filed an assignment in bankruptcy at that time that I would seize the funds in the TFSA, leaving him with no ability to pay his rent, buy food or look for employment. Fast forward 3 years, and Joe recently came back to see me. His savings in his TFSA have been depleted as he used them to live off during his two years of unemployment. The great news is Joe has been working full-time for a full year and has maintained his place of residence. He has still been struggling with his monthly debt payments and finds with accumulating interest, the debt is not decreasing. Joe could have filed an assignment in bankruptcy and paid the minimum fee of $1,800 with no recovery to his creditors. Instead, Joe chose to file a consumer proposal, offering to settle his debt at $7,200 at a monthly amount that he can afford. Based on votes to date, it appears the creditors will accept the terms of his proposal. As Licensed Insolvency Trustees, we help people on a daily basis deal with their debt. Joe’s story has touched... --- - Published: 2022-10-25 - Modified: 2023-05-18 - URL: https://freshstartnow.ca/osb-2021-canadian-consumer-debtor-profile/ Almost every person that I consult with about a personal bankruptcy or proposal has unique circumstances or a personal story as to how they ended up unable to pay their debt. Accordingly, I don’t like to compare one person’s situation to another. I listen, accumulate information, and provide debt relief solutions. For the debtor, it sometimes makes it easier for them to be able to compare their situation to others who have filed an insolvency. They like to feel that they are not alone and that others have been able to move forward to a better financial state. The OSB issued their Canadian Consumer Debtor Profile 2021 (https://www. ic. gc. ca/eic/site/bsf-osb. nsf/eng/br04667. html) that provides details on the characteristics of a debtor who filed a personal bankruptcy or consumer proposal. Of the 90,092 consumer insolvency filings in 2021: 51% were male and 49% were female 42% were single and 34% were married/common law The average age was 46 and there were 2 people in the household Median income was $2,566 per month Only 16% owned their own home Median debt was $45,770 with 86% of debtors having credit card debt of $12,330 53% of debtors had bank loans owing a median amount of $11,300 The most common reason for financial difficulty was loss of income If you are struggling with debt, reach out to me to tell me your story. In a free consultation, we will review your financial situation with no judgment and explore solutions to provide you a fresh start. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP) Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2022-09-13 - Modified: 2023-05-18 - URL: https://freshstartnow.ca/tips-to-adjust-for-the-increased-cost-of-living/ September 6, 2022 Have you actually sat down and analyzed how much groceries have increased over the last year? When did the regular price of butter increase to almost $7. 00? Since when did we think paying $1. 45 a litre for gas was a deal? Over-bidding on house purchases has become the norm – but over-bidding on a rental property due to low supply and high demand is a new concept for me. On top of the increased cost of living, if you have a line of credit or variable rate mortgage – your monthly debt payments have also increased with the interest rate increases this year. A recent report by Equifax states Canadians are using credit to alleviate the current pressures of increased costs of living. Before turning to credit, here are a couple of tips to try and reduce your expenses to live within your means: Contact your cable, internet and phone service providers to eliminate unnecessary services and to inquire if there are any current promotions that can reduce your monthly bill. Check out gasbuddy. com when filling your gas tank to find the cheapest stations in your area. Talk to your co-workers about opportunities to carpool and share gas costs. Download the app Reebee to compare grocery store flyers and plan your weekly meals around current sales. Cook larger meals and freeze them in small portions for easy to heat up meals instead of ordering take-out on those busy nights. Turn off lights when not in use and try to do laundry during off-peak rate hours. If you are really struggling with your utility bills, the Low Income Energy Assistance Program (LEAP) offers a once-a-year grant to hydro or Enbridge services in Ontario. Look for free activities in your area to entertain your family. Check... --- - Published: 2022-07-25 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/undischarged-bankrupt-what-does-it-mean/ One of the more popular searches reaching our website is for the term “undischarged bankrupt” so I thought I would explain what it means to remain undischarged. The Bankruptcy and Insolvency Act provides a debtor with protection from collection proceedings from unsecured creditors upon filing an assignment in bankruptcy. This “stay of proceedings” stops garnishments of income (other than spousal or child support) and collection calls until your trustee is discharged. The signing of statutory bankruptcy documents with a Licensed Insolvency Trustee does not eliminate your obligation to pay your debt though – a discharge does. Once the bankruptcy documents are filed, you become an undischarged bankrupt until you receive your discharge automatically or by the court. A bankrupt who fails to comply with all the duties imposed by legislation or who fails to complete any conditions imposed by court, will remain an undischarged bankrupt. There are a couple major implications to remaining undischarged: your trustee can pursue any assets you may acquire while undischarged and could seize an inheritance or lottery winning After advising you of the implications, your trustee will proceed to obtain their discharge which will then lift the above stay of proceedings and revive your creditor’s rights to pursue you for payment of their debt plus interest A future real estate purchase could be jeopardized by remaining undischarged you cannot file a subsequent bankruptcy if you are not discharged I recommend that if you are taking the difficult step of filing an assignment in bankruptcy, complete your statutory duties, obtain your discharge and start rebuilding for the future. If you are an undischarged bankrupt, contact your trustee to see what needs to be completed in order to obtain your discharge. You may have to retain legal counsel to re-apply for a discharge hearing, but your trustee... --- - Published: 2022-06-15 - Modified: 2025-03-11 - URL: https://freshstartnow.ca/who-goes-to-see-a-licensed-insolvency-trustee-march-11-2022/ Back in 2018, I wrote a series of blogs on “Who goes to see a Licensed Insolvency Trustee” to share the stories of people who had reached out to Taylor Leibow Inc. for help with their overwhelming debt. Reading about other people who may have similar circumstances as you will hopefully provide you with the comfort to reach out to a professional to discuss your financial situation. Let’s talk about “Sandy. ” Sandy is a senior who continued to work far past her retirement years in order to supplement her pension income. Unfortunately, her employer closed their business due to the pandemic and Sandy’s income dropped significantly. She subsequently suffered some health issues and is unable to seek new employment to increase her income. Sandy was unable to cover her basic living expenses, let alone pay anything towards her debt of $75,000 or her car payment. She reached out to us for a free, initial assessment where we reviewed her situation in detail and discussed the following options: A debt consolidation loan was not viable at this time as she has no unencumbered assets to secure the loan, no ability to make payments and does not want to ask anyone to co-sign a loan for her. A debt management program was not a workable option as she was not able to make a monthly payment of at least $1,500 per month for four years. A consumer proposal which offers a compromise to her creditors was not an option as she had no surplus funds to offer creditors on her limited pension income Sandy decided to file an assignment in bankruptcy and return her vehicle to the secured creditor. This solution enabled her to eliminate the monthly cost of her car payment and insurance while also eliminating her debt. Reminding Sandy... --- - Published: 2022-06-13 - Modified: 2024-06-18 - URL: https://freshstartnow.ca/causes-of-financial-difficulty/ People can be hard on themselves when they are unable to pay their debt obligations. They often feel a sense of failure and embarrassment that they borrowed money with good intentions, but are unable to repay it. After struggling through a pandemic and its effect on employment, businesses and the cost of everyday items, we all understand a little better that sometimes life changes can significantly impact our finances through no fault of our own. It may make you feel a bit better to know you are not alone. Many people struggle to repay debt due to a variety of reasons. The most common causes of financial difficulty are: Loss of employment or income reduction Illness or medical problems resulting in reduced income or increased costs Separation or divorce Mismanagement of finances – overspending and use of credit Unexpected expenses Helping family and friends Tax debt due to failing to set aside funds from self-employment income to pay personal income tax and HST collected If you are struggling to pay your debt, contact a Licensed Insolvency Trustee for a free initial assessment to review your financial situation and explore solutions. The Bankruptcy and Insolvency Act was enacted to provide relief to honest but unfortunate debtors. Filing a personal bankruptcy or consumer proposal could allow you to move forward with a financial fresh start. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP) Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2022-05-13 - Modified: 2024-06-18 - URL: https://freshstartnow.ca/how-to-pay-off-credit-card-debt-2/ The average rate of interest charged on credit card debt in Canada is 19%. Some credit cards carry an interest rate as high as 29. 9%, and cash advances typically incur an even higher interest rate. Making minimum payments of $125 a month on a $5,000 credit card at 29. 9% interest will take over 19 years to pay off and will result in paying $24,000 in interest. With the increased cost of living, paying down credit card debt may seem impossible. A comprehensive analysis of your financial situation will lead you to the best solution to pay off your credit card debt. Make a detailed list of all of your creditors with the balance owing, the interest rate charged and minimum monthly payment. Sort the list by highest interest bearing to lowest interest bearing and add up the total amount owing. Make a detailed list of your monthly income and living expenses (rent, heat, food, gas, etc. ) excluding unsecured debt repayment. Try to decrease discretionary spending (eating out, movies, etc. ) and contact cable or internet providers to reduce monthly charges. Determine how much is left at the end of the month to apply towards your debt. Make a listing of your assets – savings accounts, investments, equity in any real property, etc. It may be an option to use investments that are earning a minimal return to pay down your highest interest-bearing debt. Contact your credit card lender and see if they can offer a better interest rate. If you have credit room on a lower interest-bearing account, transfer the balance from a higher interest-bearing card. The less interest you have to pay, the quicker you can pay off the debt. Contact your financial institution to see if you are eligible for a debt consolidation loan. This... --- - Published: 2022-04-13 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/canada-revenue-agency-and-bankruptcy/ April can be a very stressful time if you know you will owe taxes when you file your personal income tax return but do not have the funds available to pay the debt. Personal tax returns are due on May 2nd this year, and you should always file on time to avoid penalties, even if you can’t pay the amount owing in full. Canada Revenue Agency (“CRA”) will work with a taxpayer in accepting monthly payments to settle the debt in full, with interest, within a reasonable time period. CRA provides tips on paying taxes on their website at https://www. canada. ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2022/find-help-cannot-pay-your-taxes. html. We caution that avoiding communication with CRA and not paying your taxes could result in them taking enhanced collection proceedings by immediately garnishing your income or registering a lien on your property. Many people are not aware that personal income tax, HST and director’s liability for HST and source deductions from a business are debts that can be included in a bankruptcy or consumer proposal. Some other facts about CRA and bankruptcy that you may not be aware of are: Filing a personal bankruptcy will stop a garnishment of your wages or pension. A bankruptcy provides a cut-off date that will enable you to receive tax refunds and GST in a future year. Your trustee will file your pre and post-bankruptcy income tax return in the year of bankruptcy to ensure you continue to be compliant with CRA’s requirements. Any taxes owing right up to the bankruptcy date are discharged in the bankruptcy, giving you a fresh start moving forward. If CRA has registered a lien on your assets, a bankruptcy will not discharge this debt unless you give up the asset. Always consult a trustee before it gets to this stage if you are struggling to... --- - Published: 2022-03-14 - Modified: 2022-08-02 - URL: https://freshstartnow.ca/take-the-30-day-savings-challenge/ The cost of living has increased significantly, with gas prices at all-time highs and food prices expected to continue to climb by 5-7% in 2022. We understand budgets may be tight, but we challenge you to save $100. 00 in the next 30 days. That works out to only $3. 33 per day but will add up to $1,200. 00 in a year. Think of the peace of mind you will have knowing you’ve accumulated savings of $1,200. 00 after twelve months for emergencies or to reach a financial goal. Here are a couple of tips to help you meet our 30-day savings challenge: Use a spending journal to track every dollar you spend so you can then make an educated decision on where to decrease your discretionary expenditures Take a look in your pantry and plan your weekly meals to utilize the items you already have Always use a list when grocery shopping – studies show you will spend 25% less than shopping without a list Put your spare change in a piggy bank – even though we don’t use cash as much as we used to, that change will now be loonies and toonies and accumulate much quicker Use accumulated points – redeem your air miles, optimum or gas points and then put the saved cash in your savings account Contact your service providers (cable and internet) to see if you can reduce your monthly billing Reduce your hydro bill by doing laundry during off-peak hours at significantly reduced rates Manage expectations – avoid “keeping up with the Joneses” and spend based on your own family’s priorities Plan minimal cost family fun – a picnic at the park, visit Hamilton’s many waterfalls, movie or game night, stroll through a Farmer’s market, etc. We would be happy to hear... --- - Published: 2022-02-22 - Modified: 2022-02-22 - URL: https://freshstartnow.ca/how-to-pay-off-credit-card-debt/ A recent internet search for “the average number of credit cards per Canadian” provided the following interesting facts: There were 76. 2 million credit cards in circulation in 2021 (Source: Statista) 78% of Canadians have a reward linked to their credit card (Source: Payments Canada) The average Canadian carries 1. 4 credit cards (Source: Canadian Bankers Association) As of 2021, the lowest among Canadian credit card rates is 8. 99% (Source: Rate Hub) During the pandemic, 60% of Canadians paid for transactions using credit cards (Source: Bank of Canada) Let’s face it, using credit cards provides many benefits like earning rewards, contactless payment and a grace period to pay cash for the purchase. Accumulating several credit cards, with increasing balances and high interest rates offsets any potential benefits. If you are struggling to pay off multiple credit cards, here are a couple of tips: Speak to your bank manager to see if you are eligible for a debt consolidation loan to pay off all your credit cards in full and then only have one monthly loan payment. Make minimum payments on all of your credit cards but concentrate on paying down the highest interest-bearing card first. Review your monthly expenditures and see where you can cut back on discretionary expenses (like entertainment, eating out, etc. ) to increase the payments on your highest-interest-bearing credit card. While you are paying off your credit cards, put the cards away in a safe place to avoid easy access to use. Once a credit card is paid down, decide whether to cancel the card to avoid future abuse or if you want to retain it for responsible use once all your cards are paid off. Try to use only one credit card for budgeted purchases (food and gas) and pay that card in full... --- - Published: 2022-01-25 - Modified: 2022-02-22 - URL: https://freshstartnow.ca/what-is-debt-consolidation/ Debt consolidation is the act of borrowing a new loan to pay off two or more of your current liabilities and consumer debts, including credit cards, lines of credit, pay day loans, etc. The new loan essentially combines multiple debts into a single, larger debt that requires one monthly payment instead of juggling to pay multiple creditors on differing due dates. How Does Debt Consolidation Work? The major benefit to a consolidation loan is the interest rate should be much lower than the rate you are paying on a credit card or pay day loan. The terms of the loan likely enable the loan to be paid off at any time without penalty. Ensure you research the full cost and details of the loan before signing any documents. The new lender may require a co-signor or that an asset be pledged as security for the loan. I caution you to seriously consider that you are making someone else responsible to pay your debt if you should fail to make a payment. It would be advisable to speak to a Licensed Insolvency Trustee to explore other debt relief solutions before taking this step. If you think a consolidation loan will help you to pay down your debt, contact the lending institution that you owe the most money to first. Unsuccessful attempts at borrowing funds will negatively impact your credit score, so be strategic in approaching financial institutions. If you are successful in obtaining a consolidation loan, I recommend that you cancel the credit cards that you consolidated and refrain from incurring any other credit until the loan is paid. Cancelling credit cards could negatively impact your credit score in the short term, but will prevent you from the temptation to utilize available credit and leave you in a better financial position.... --- - Published: 2022-01-10 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/co-signed-debts/ Filing a personal assignment in bankruptcy or consumer proposal will immediately provide you relief from most creditor’s collections proceedings and ultimately eliminate your unsecured debt. A formal stay of proceedings under the Bankruptcy and Insolvency Act stops a garnishment of your wages and collection calls. Unfortunately, this protection does not extend to an individual who co-signed any of your debt. When a person co-signs or guarantees a loan or jointly borrows funds, they are taking on the risk that they could be responsible for paying the entire debt. If you, as the primary borrower, miss payments, file a consumer proposal or a personal bankruptcy, the creditor will pursue the co-signor for payment of the full amount of the debt. The creditor may be willing to accept a payment plan, but the co-signor will be responsible to negotiate these terms with the creditor directly. Further, if someone had a supplemental credit card on one of your credit card accounts, they could be responsible for payment of the charges they incurred with their supplemental card. They should consult with their own legal counsel for advice. Leaving someone else responsible for your debt is not ideal, but the Bankruptcy and Insolvency Act requires that you include all of your creditors. You cannot purposely omit a creditor from your bankruptcy in order to protect a co-signor. Depending on the amount of the co-signed loan in relation to your total debt, and the ability of the co-signor to pay the debt, a bankruptcy may still be the best solution to provide you debt relief. Our compassionate Licensed Insolvency Trustees understand the delicate nature of this situation and will explain all solutions based on your specific financial circumstances. Reach out to us today. By Kathy Lenart – Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Member... --- - Published: 2022-01-10 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/why-file-for-bankruptcy-with-taylor-leibow-inc/ Making the decision to consult a Licensed Insolvency Trustee to file an assignment in bankruptcy is a difficult first step. Understanding that the Trustee is an Officer of the Court and technically acts in the best interest of your creditors even though you pay their fees may be difficult to comprehend. So, how do you select a Trustee? And why should you choose Taylor Leibow Inc. ? As President, I may be a little biased, but let me give you 4 good reasons: We are here to help you improve your financial situation in a non-judgement manner. Many people are embarrassed that they have found themselves in a situation where they are unable to pay their debt but feel better once we explain that the Bankruptcy and Insolvency Act was established to provide relief to an honest but unfortunate debtor. If life has unfortunately found you unable to pay your creditors, we are here to give you a fresh start. Your initial meeting will be with a Licensed Insolvency Trustee who will be able to answer your questions with the education and experience of a qualified professional. We will fully review your financial situation and explain all solutions. Based on the information you provide, we will also explain any issues that may arise. This isn’t to scare you; it is to ensure that you make an informed decision. We care. We are here to provide you relief from creditor collection proceedings and then to help you through the bankruptcy process. We are proud of the testimonials posted on our website at https://freshstartnow. ca/testimonials/. We have an amazing team. An email from a recent bankrupt stating, “I kind of miss you all. Your staff was always a pleasant visit for me,” is a testament to our compassionate team. They take the... --- - Published: 2021-12-10 - Modified: 2023-01-31 - URL: https://freshstartnow.ca/holiday-spending-tips/ Have you ever calculated exactly how much you spend over the holiday season? It may be easy to add up your gift purchases, but have you considered all the extra expenses for holiday meals and clothing, parties, hostess gifts, cards and gift wrap? If you have never added up all your expenditures in relation to the holiday season, take the time this year to track everything you spend in relation to the holidays so you can work that amount into your budget for 2022. Once you know the total amount – divide by 12 and set that amount aside every month in 2022 so you are prepared next year. Now, before you run out and shop this year, keep these holiday spending tips in mind to minimize any regret when bills need to be paid in the New Year: Make a list of who you would like to buy for and how much you would like to spend. Add up the total for everyone and make adjustments if the total is above your means. Be creative – a homemade gift, baked good, or good deed can save you money while adding a personal touch. Check online for sales – research the cost of items before purchasing to see if on sale at another store. Don’t wait to shop last minute when you may be paying full price. Avoid “buy now and pay later” deals unless you have the money in your account to pay in full when the amount becomes due. Share party cost – don’t feel like you have to do it all. Host a pot luck dinner or ask friends to bring beverages. Look for free, family events over the holiday season – skating, exploring festive light displays, or wrapping presents for a charity. Make the most of... --- - Published: 2021-10-27 - Modified: 2023-08-17 - URL: https://freshstartnow.ca/what-happens-when-you-file-for-bankruptcy/ The majority of personal bankruptcies are voluntarily filed by a debtor (the person who owes money) to provide them relief from overwhelming debt. The debtor contacts a Licensed Insolvency Trustee (found through an internet search, radio advertisement, or a direct referral from a friend or trusted professional) to discuss their financial situation and explore debt relief solutions. The following explains the basics of what happens when you file bankruptcy: You sign statutory documents detailing your financial situation – assets, liabilities, personal information, and monthly income and expenses which the trustee files with the Office of the Superintendent of Bankruptcy. Your unsecured creditors are then stayed from pursuing you for collection - garnishments and collection calls will cease. The trustee must realize on any assets that you own that are not secured nor exempt. Realize means the trustee must sell the asset or you must pay the trustee to keep the asset. An example is RRSP contributions of $600 in the 12 months prior to filing bankruptcy. Your trustee can either contact the financial institution directly to cash your RRSP, less 10% withholding tax, and send the net proceeds of $540 to the trustee or you can pay the trustee $540 to keep the RRSP. In Ontario, household furnishings up to $14,180, a vehicle up to a liquidation value of $7,117, tools of the trade up to $14,405, and your principal residence if the equity is less than $10, 783 are all exempt and protected from your trustee and creditors. Assets that are fully secured by a registered loan can be retained and payments continued or returned to the secured creditor. In many cases, an automobile may be secured by a loan far in excess of the current value of a vehicle. If the car is worth $10,000 and the balance... --- - Published: 2021-10-18 - Modified: 2022-05-24 - URL: https://freshstartnow.ca/where-to-file-for-bankruptcy/ The Bankruptcy and Insolvency Act requires that an insolvency proceeding be filed in the “locality of the debtor. ” The locality of the debtor means the principal place where the debtor has carried on business or resided during the year immediately preceding the bankruptcy filings. Thus, if you live in Hamilton, your personal bankruptcy will be filed with the Office of the Superintendent of Bankruptcy (“OSB”) in Hamilton. The OSB issues Directives that must be followed by Licensed Insolvency Trustees in the administration of bankruptcy and proposal filings. The Assessment of an Individual Debtor directive requires a Licensed Insolvency Trustee to personally meet with each debtor and provide an assessment – explain the merits and consequences of options, the rights and responsibilities of the debtor, effect on garnishments, taxes, possible outcome of discharge, responsibility to contribute surplus income if applicable and required counselling. Due to the COVID-19 pandemic and with the health and safety of debtors in mind, the OSB relaxed the requirement of in-person assessments and has temporarily allowed trustees to perform the assessments virtually. The OSB is currently investigating whether to allow virtual assessments to continue. Pursuant to the BIA, a meeting of creditors and mediation of surplus income may be held at the local OSB office. The meetings and mediation are currently being held virtually, but the debtor and trustee may be required to attend these meetings in person. If there is an opposition to your discharge (by creditors or the trustee if you fail to complete all of your duties), the hearing will be held at the court appointed in your locality. Hamilton discharge matters will be heard at the Hamilton court, London matters are heard in London and Toronto matters are heard in Toronto. The local trustees are comfortable in dealing with their local courts.... --- - Published: 2021-10-08 - Modified: 2022-05-05 - URL: https://freshstartnow.ca/how-much-does-it-cost-to-file-bankruptcy/ 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 factors: if you have been bankrupt previously, your family income and size, any realizable assets and if you complete all your statutory duties on a timely basis. The following summarizes the cost to file bankruptcy: The minimum fee for a first time bankrupt with no assets and no surplus income payments who complies with all their duties is $1,800. We accept nine monthly payments of $200 per month to ensure the payments are completed prior to your eligibility for an automatic discharge. Your income tax refund for the year of bankruptcy (and any prior year not yet received) and three of your GST cheques will also come directly to the trustee. If you have been bankrupt once before, the above minimum fee is increased to $2,400 payable at twenty-four monthly payments of $100. If your income exceeds a threshold set by the Superintendent of Bankruptcy and you are required to make “surplus income” payments, then the bankruptcy fees will likely be paid from these surplus income payments and you will not have to pay the above minimum fees. The trustee is obligated to “realize” on any assets that you own that are not exempt or secured. “Realize” means that the trustee will either sell the asset or you can make an offer to buy the asset back from the trustee. For example, if you have a RESP for your child with a realizable value of... --- - Published: 2021-09-15 - Modified: 2021-10-08 - URL: https://freshstartnow.ca/does-bankruptcy-clear-student-loans/ 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 consider before filing an assignment in bankruptcy to clear student loan debt are: Verify your end of study date to ensure you are past the seven-year discharge threshold. A return to studies may have re-started the clock even if you did not obtain further student loans. Student loans may oppose your discharge from bankruptcy which will result in a hearing being held. The presiding officer can grant you a discharge, delay the effective date of your discharge, or impose conditions (monetary or otherwise) that must be complied with prior to obtaining your discharge. Student loans historically opposed a discharge if the student loan debt was eligible for discharge on the basis that the loan was used to fund an education that will provide future income and thus the capability to repay the debt. More recently, student loans have not been opposing unless the debt is large and the expected future income from the education is significant (ex. Doctor, lawyer). Likely unable to obtain future student loans if student loan discharged in a bankruptcy Likely unable to change courses and receive future student loans if file assignment in bankruptcy Interest will continue to accrue on non-dischargeable student loans. If you are struggling with student loans, contact one of our Licensed Insolvency Trustees for a free, initial assessment to analyze if a bankruptcy will provide you with the relief to move forward with a fresh... --- - Published: 2021-08-24 - Modified: 2023-01-31 - URL: https://freshstartnow.ca/be-cautious-of-scams/ 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 scams I have heard of recently are: Canada Revenue Agency (CRA) scams – these calls can be convincing as most individuals have an inherent fear of receiving a call from CRA. The “representative” claims you owe money to CRA and must arrange payment, or you will be arrested. The warning sign of this scam is the caller wanting to be paid in iTunes cards or Bitcoin. Lottery scams – caller claims you have won a lottery but requests you provide banking information for the deposit. You should never provide banking information over the telephone to an unknown party. Prize winner call – this scam targets seniors and the caller claims to represent “Readers Digest” or “Publishers Clearing House” and requests payment of a small fee to cover taxes, legal fees and delivery costs. The warning sign here is that lottery and prize winnings are not taxable in Canada. Grandchild scam – the caller claims to be a grandchild who is in trouble and needs the grandparent to send them money. Most grandparents would panic and want to immediately help, but calmly hang up and call your grandchild back. CERB claims – somehow, claims were made for CERB payments by third parties who directly received the funds. If you received a T4A for CERB funds that you did not receive, you should contact Canada Revenue Agency immediately. I also recommend against answering those fun Facebook posts... --- - Published: 2021-08-16 - Modified: 2021-08-16 - URL: https://freshstartnow.ca/assets-in-joint-names-in-a-bankruptcy/ 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 for estate planning purposes. Registered Education Savings Plans are normally registered in both parent’s names, although contributions to the fund may be made by grandparents. Although I advise against this, vehicles are sometimes registered entirely in another person’s name for insurance purposes. While the above ownership structures may meet your current objectives, they could have a significant negative impact if one of the owners subsequently finds themselves bankrupt. Upon an assignment or petition into bankruptcy, the bankrupt’s assets vest in the trustee to realize for the general benefit of their creditors. Thus, if the bankrupt is registered as a joint tenant on the matrimonial home, the trustee will be obligated to realize the bankrupt’s 50% interest in any equity (subject to provincial exemptions) in the property. This may seem fair unless the non-bankrupt spouse contributed a larger portion of the down-payment and/or has been fully making the mortgage payments. The bankruptcy trustee will initially look at the registered ownership in determining the value to be realized. Legally, the non-bankrupt spouse may have remedies available, but they will be dealing with the trustee who takes direction from the bankrupt’s creditors. The trustee will look to collapse 50% of the realizable value of an RESP that is registered jointly regardless of contributions that may have been made by other parties. A vehicle that is registered in the name of the bankrupt will be considered an asset even... --- - Published: 2021-07-19 - Modified: 2023-08-17 - URL: https://freshstartnow.ca/when-to-consider-bankruptcy/ 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 yes to the following questions, now is the time to consider if bankruptcy is the right solution for you: Do you borrow from one credit card to pay another? Do you have a garnishment of your wages? Do you continually exceed your limit on credit cards? Are you using credit cards for necessities of life (food, clothing, etc. )? Do you only pay the minimum payment toward your credit card balances? Are you receiving telephone calls from collection agencies? Are you being harassed by creditors for payments? Are you cashing in RRSPs or selling assets to make debt payments? If you were to liquidate your non-exempt assets (i. e. house, savings), would you be unable to pay your debt in full? Making the minimum payments toward debt may maintain your credit rating, but the balance owing will not be reduced and may actually increase depending on the interest rate. Your credit card statement should disclose how long it will take to pay off the debt if the minimum payment is made. You may be shocked to find out your debt will not be reduced in the next ten years even after all the payments you have made. Related Article: What happens if I can no longer pay my consumer proposal? Before you continue to make only minimum payments, struggle through a garnishment, or cash RRSPs to pay debt, contact us for a free, initial assessment... --- - Published: 2021-06-25 - Modified: 2021-08-16 - URL: https://freshstartnow.ca/debt-relief-solutions-in-burlington/ 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 us hope of some return to “normal”. To deal with overwhelming debt and reduce your stress level to normal, contact Taylor Leibow Inc. to discuss the following debt relief solutions: Debt Consolidation Loan – if one monthly payment at a reduced interest rate would ease your cash flow burden, reach out to your bank for a consolidation loan and pay off your debts. If you have equity in your house, inquire if you are eligible for a second mortgage which will then enable you to pay your other creditors. Debt management program through a not-for-profit credit counselling agency – the agency will negotiate with your creditors to accept payment in full over a four-year time period (with interest) and you will then make one monthly payment to the agency who in turn distributes amongst your creditors. If you can afford your monthly payments but struggle juggling payments to multiple creditors, this solution will ease your stress. The agency may also be able to negotiate a reduction in the interest charged. Consumer proposal – offering a settlement to your creditors payable over a maximum of five years. The benefits of a proposal are it includes the trustee’s fees to administer the proposal, allows you to keep your assets and stops all interest and collection proceedings by creditors. You must be insolvent to be eligible to file a proposal. Bankruptcy – an assignment in bankruptcy eliminates the... --- - Published: 2021-05-31 - Modified: 2023-06-14 - URL: https://freshstartnow.ca/how-is-student-loan-debt-treated-in-a-consumer-proposal/ 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, suffered health issues or weren’t able to obtain employment in your career field. You are now left burdened with a student loan debt that you can not pay in full but do not want to file a personal bankruptcy. An alternative is to offer a consumer proposal to your creditors to compromise the debt. Student loans are given special treatment in an insolvency filing and your “end of study date” will determine if the student loan can be compromised in a proposal as follows: If you ceased being a full or part-time student more than 7 years prior to filing a consumer proposal, your student loans will be included in a proposal that is accepted by the required majority of creditors. If you ceased being a full or part-time student less than 7 years prior to filing a consumer proposal, the student loan will remain payable at the completion of your proposal. A proof of claim filed by the lender will allow them to share in the dividends under your proposal which will reduce the balance owing, but they can continue to charge interest during the term of the proposal. Student loans are not able to pursue you for payment during the proposal term. If you ceased being a full or part-time student less than 7 years prior to filing a consumer proposal and your proposal explicitly provides for the compromise of the student loan... --- - Published: 2021-05-07 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/actual-causes-of-financial-difficulty/ 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 causes of financial difficulty noted above are typically at the root of most insolvencies, but the personal circumstances are different for every person and many feel a personal failure in not being able to pay their debt. The reality is most people carry debt that they are able to pay in the normal course until something in their life changes. I thought it might be beneficial for people struggling with debt to be able to relate to the following actual causes of financial difficulty of debtors that obtained debt relief by filing a personal bankruptcy or proposal: Hospitalized for an extended time period and unable to continue with a car loan. Mismanagement of business books and records and Canada Revenue Agency served garnishment on customer. Unable to pay living expenses and debt if income garnished. Left full-time employment for health reasons. Sold assets to get by for a couple of months but unable to pay debts on limited Ontario Works income. Suffer from health issues which resulted in excessive spending. Loss of employment and unable to pay debts. Credit card used by another party, but I am left responsible to pay. Funds seized from bank account and unable to pay debt. Separation of marriage and unable to pay debt and living expenses on one income. I constantly remind debtors that filing a personal bankruptcy or a consumer proposal is not a failure on their part... --- - Published: 2021-04-28 - Modified: 2021-06-15 - URL: https://freshstartnow.ca/do-i-have-to-file-a-personal-bankruptcy-if-my-business-fails/ 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 Canada Emergency Rent Subsidy (CERS) and have been able to cover basic costs. Unfortunately, many businesses were not eligible for all the benefits and have found themselves unable to continue to operate and burdened with debt. The structure of your business and whether you personally guaranteed any of the business debt will determine if you have to consider a personal insolvency as well. Sole proprietorship – you are the business and thus fully responsible for all debts incurred by the business. An analysis of the business and personal assets and liabilities will determine if you can file a personal bankruptcy to relieve you of debt. A proposal may be a viable alternative to allow you to continue to operate the business and compromise all of your unsecured debt. Partnership – the business is owned by two partners who are personally responsible for all the business debt. As in a sole proprietorship, you must analyze the business and personal assets to determine if an insolvency is the correct debt relief solution. Corporation – the business is a separate legal entity from the shareholders who are not personally responsible for the debts of the corporation unless they are guaranteed or co-signed. Directors will have a personal obligation for outstanding wages, vacation pay, source deductions and HST owing to Canada Revenue Agency. The corporation can file a bankruptcy and a shareholder may not be responsible for any of... --- - Published: 2021-04-09 - Modified: 2021-04-09 - URL: https://freshstartnow.ca/debt-help-in-st-catharines/ 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 is poor, new debt likely comes with a high interest rate that will ultimately worsen your future cash flow. The initial assessment for a detailed analysis of your financial situation and possible solutions is free of charge with Taylor Leibow Inc. and most LITs. In a non-judgmental, compassionate manner, we will review your assets, debts, monthly income and expenses and explore the following debt relief solutions: Budget to pay your debt in full. This solution may require you to reduce some discretionary expenses (like entertainment) to enable you to afford monthly payments to pay off your debt. The trustee will advise of two debt payment strategies: pay off the lowest debt first to reduce the number of creditors or pay down the highest interest-bearing debt to minimize total interest costs. Debt Consolidation Loan – borrow an amount to pay all of your debt in full and be left with one monthly payment at a lower interest rate (loans typically bear a lower interest rate than credit cards). Debt management program through a not-for-profit credit counselling agency – agency negotiates with your creditors to accept payment in full over a four-year time period (with interest) and you make one monthly payment to the agency who in turn distributes amongst your creditors. Consumer proposal – an insolvent person can offer a compromise to their creditors payable over a maximum of five years. The proposal includes the trustee’s... --- - Published: 2021-03-26 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/handling-insolvency-of-an-estate/ 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 against the asset to determine the estimated realizable value. Appraisals may be beneficial to estimate the value of an asset. 2. Review assets that may not form part of the deceased estate including, but not limited to: Life insurance policies with a designated beneficiary; RRSPs and pensions with a designated beneficiary; exempt assets under provincial Executions Acts; and real estate that upon death vests with another party outside of the deceased estate. 3. What is owed by the deceased? Compile a list of debt including bank loans, credit cards, taxes owed, personal loans, business debt, and potential shortfall on any secured debt where the value of the asset is less than the balance owed. Consider any contingent debt where the deceased is being sued or co-signed another parties’ debt. Determine if any other party co-signed debt for the deceased and thus will be left responsible if the estate is unable to pay in full. 4. Reasonable funeral expenses which will have a priority for payment. An executor is not automatically liable for the debts of the deceased; however, an executor is liable for ensuring that the debts of the deceased are handled properly. All creditors of the estate must be treated equitably. An executor will be liable if they distribute funds to beneficiaries without first ensuring that all creditors are paid in full. Administering an insolvent estate can be extremely complicated and a costly affair... --- - Published: 2021-03-23 - Modified: 2025-01-24 - URL: https://freshstartnow.ca/i-received-government-benefits-now-what/ 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 to employed and self-employed individuals who met the eligibility requirements and ceased working for reasons related to COVID-19 for at least 14 consecutive days. CERB of $2,000 was paid for four-week periods from March 15, 2020, to October 3, 2020, for a maximum of 38 weeks. If you received CERB payments, no taxes were withheld at source and you will be required to claim the payments as income on your 2020 personal income tax return. There is no clawback of CERB payments based on your annual income, but if you received CERB that you were not entitled to, you will be required to repay any overpayment. CRB CRB is available to employed and self-employed individuals who meet the eligibility criteria and who are not entitled to Employment Insurance (EI) benefits. Applicants must have been seeking work and not turned down reasonable work during the 2-week period they are applying for. If you had a 50% reduction in your average weekly income due to COVID-19 you may be eligible for CRB even though you are still working. CRB of $1,000 ($900 net of 10% taxes withheld at source) is available for a total of 38 weeks from September 27, 2020, to Sept 25, 2021, and you must apply for each 2-week period. CRB payments must be reported as income on your personal income tax return. If you earn more than $38,000 (excluding CRB payment but including... --- - Published: 2021-02-26 - Modified: 2021-02-26 - URL: https://freshstartnow.ca/debt-help-in-hamilton/ 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 the best first step to help you get out of debt. A Licensed Insolvency Trustee will offer a free, initial assessment to review your financial situation in detail. They will perform an in-depth analysis of: Assets – Bank accounts, investments (RRSPs, GICs, etc. ), houses, vehicles and other recreational equipment Liabilities – bank loans, credit card debt, payday loans, student loans, personal income tax, etc. Monthly income and expenses – how much do you have left at the end of the month to support payments to creditors? Status of income tax filings and any potential debt Any transfer of assets that should have been available to pay your creditors Any guarantors or co-signors of your debt Based on the above analysis, the trustee will explore the following debt relief solutions: Debt consolidation loan – refinancing your mortgage or potentially approaching a bank to lend an amount to pay off your debt in full. This will leave you with one monthly payment at a significantly lower interest rate than that charged on credit cards or payday loans. Debt management program through a Hamilton not-for-profit credit counselling agency – they negotiate with your creditors to accept payments over a four-year time period and may be able to reduce the monthly interest. Consumer proposal – an offer to compromise your debt payable over a maximum of five years. The proposal is negotiated through a trustee and must offer... --- - Published: 2021-02-12 - Modified: 2021-02-12 - URL: https://freshstartnow.ca/what-happens-to-my-car-in-a-bankruptcy/ 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 file an assignment in bankruptcy: If your personal automobile is worth less than the Ontario exemption for a vehicle of $7,117, then your trustee will not touch your vehicle. If your vehicle is worth more than the personal exemption, you can pay the trustee the excess over a period of time. So, if your car is worth $8,500, the first $7,117 would be exempt and you could pay the trustee the difference of $1,383 in monthly payments. If you require your vehicle to perform your work (self-employed or your employer provides a letter and a T2200 is issued) there is an additional exemption of $14,405 to cover all your tools of the trade which can include your vehicle. If your vehicle is worth less than a secured loan that is registered against your vehicle (lease or financing) then your trustee will not touch your vehicle. If your payments are current, you can keep your vehicle and continue the payments with the secured lender. If you are in arrears on your payments, it is best to bring the payments current before filing for bankruptcy if you want to retain the vehicle. Alternatively, if the vehicle is worth significantly less than the balance owing or you just can’t afford the payments, you can surrender your vehicle to the secured lender and any shortfall would be discharged in your bankruptcy. You will want to consider the effect on... --- - Published: 2021-01-25 - Modified: 2021-02-12 - URL: https://freshstartnow.ca/filing-an-estate-into-bankruptcy/ 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 deceased is not personally responsible for paying the deceased’s debt if they didn’t co-sign, guarantee, have a supplementary credit card or jointly owe the debt. The fact that you were married does not make you responsible for paying your spouse’s debt. Many executors/family members are hesitant to liquidate assets, pay debts and distribute to beneficiaries as they do not want to put themselves at risk to be personally responsible. The initial consultation with Taylor Leibow Inc. is free of charge. We will complete a detailed assessment of assets (investments, property, vehicles, life insurance, etc. ) and liabilities (bank loans, credit cards, income taxes, any lawsuits, etc. ) to determine if the estate is insolvent (unable to pay debts in full) and thus should consider a bankruptcy. Certain assets will transfer directly to beneficiaries (for example, life insurance or RRSP with a designated beneficiary) and will not be considered in the insolvency analysis. A court order is required to bankrupt the estate, but we will work through the process with you and assist in preparing the necessary documentation. Once the bankruptcy is filed, the trustee will take over and liquidate assets, confirm liabilities and deal with the distribution to creditors. You may want to consult with a lawyer who specializes in estates if you have concerns about your obligations as an executor, but I recommend you contact a Licensed Insolvency Trustee before using your own money... --- - Published: 2021-01-12 - Modified: 2022-05-02 - URL: https://freshstartnow.ca/how-long-do-i-have-to-wait-to-file-a-second-bankruptcy/ 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 and 36 months if you are required to make surplus income payments. You will be obligated to submit Monthly Income and Expense reports to your trustee until you are discharged from bankruptcy. The trustee will average your income over the 22 months following your voluntary assignment in bankruptcy to determine if you are required to make surplus income payments. A single individual with income in excess of $2,442 will be required to make surplus income payments of 50% of the excess. You should consider the likelihood of your income increasing in the next 22 months and the potential impact on surplus income payments. GST credits will be forwarded to your trustee until you are discharged. Your trustee can realize on any assets that you are entitled to receive between the filing for bankruptcy and your discharge. If you win a lottery or become entitled to an inheritance, you are obligated to advise your trustee, who will seize the funds. A second bankruptcy will remain on your credit report for 14 years from your discharge. If minimal time has passed between the filing of your first and second bankruptcy, your creditors or the Office of the Superintendent of Bankruptcy may oppose your discharge. The initial assessment to review your financial situation in detail and explore debt relief solutions is free of charge at Taylor Leibow Inc. The assessment is currently being performed in person (with the... --- - Published: 2021-01-07 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/the-fresh-start-of-a-personal-insolvency-filing/ 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 until the debtor is discharged or completes the terms of their proposal. Monthly Statements During a bankruptcy, the debtor must submit Monthly Income and Expense statements. The purpose of the statements is twofold – to allow the trustee to determine if the bankrupt must make surplus income payments and for the debtor to track their monthly income and expenditures. The debtor will no longer have the benefit of credit to support any shortfall in their budget so they must determine where they are spending their money and what changes can be made to balance their budget. It is sometimes an eye-opening experience when every dollar spent is tracked and added up at the end of the month to see how much is spent on food, gas, entertainment, etc. Counselling Sessions Two counselling sessions are mandatory in a bankruptcy and consumer proposal. The counselling sessions will discuss money management, causes of financial difficulties and rebuilding credit and will require a debtor to prepare a budget and set financial goals. All important steps in obtaining a financial “fresh start”. Discharge/Completion A bankrupt who has completed all their duties and not received an opposition to their discharge will obtain a discharge from their bankruptcy. A debtor who completes the terms of their proposal will obtain a Certificate of Full Performance of Proposal. It is advisable to obtain a credit report from www. transunion. ca and www. equifax. ca... --- - Published: 2020-12-21 - Modified: 2020-12-21 - URL: https://freshstartnow.ca/who-files-a-consumer-proposal/ 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 unsecured creditors must vote to accept the proposal. I wanted to highlight two very different consumer proposals we recently filed. “James” is single, in his fifties and has been receiving disability income of approximately $1,200 per month for years. He has no assets and owes $17,000 on various high-interest credit cards and loans. James’ income is significantly below the threshold set by the Superintendent of Bankruptcy, and thus he would not be required to make surplus income payments if he filed bankruptcy. As a first time bankrupt, James would likely be discharged in nine months and pay minimum trustee’s fees of $1,800. Many may think a bankruptcy would be the best solution for James, but he felt he could keep his living expenses to a minimum to allow him to offer something back to his creditors. He filed a consumer proposal to his creditors offering payments of $100 per month for five years and the creditors have accepted these payment terms. “Emma” is in her sixties, is married with children and runs her own business. She has a couple of cars in her name with minimal value and equipment that is required to operate her business and thus is exempt from seizure. Emma concentrated on the operations of her business and failed to ensure her bookkeeping, tax filings and payments were made on time. She owed in excess of $130,000, with a large portion of... --- - Published: 2020-12-17 - Modified: 2021-06-15 - URL: https://freshstartnow.ca/budgeting-for-seniors-guide/ 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 to collect Old Age Security (OAS) benefits to a maximum monthly amount of $613. 53 in 2020. The benefit is paid the second last banking day of the month, starting the month after a 65th birthday. Many seniors are also eligible to receive Canada Pension Plan (CPP) benefits to a maximum monthly amount of $1,175. 83. The monthly benefit is based on how much and for how long you contributed to CPP, with the average monthly amount seniors received in 2020 being $710. 41. CPP is usually received on the third last business day of the month. Seniors may also be eligible for the Guaranteed Income Supplement depending on the total amount of income claimed on the prior year’s tax return. The monthly supplement benefit maxes out at $916. 38 per month. Most seniors will also be eligible for the Ontario Trillium Benefit, which will be paid once per year or on the 10th day of each month. Ensure you are applying for all benefits that you may be eligible for to maximize your monthly income. The next step in creating a budget is to make a list of all expenses incurred in a month. Fixed expenses like rent, insurance and utilities are easy to list. Track the amount you spend on food, gas, clothing, etc. For a couple of months, calculate the average monthly amount spent. Think of annual expenses like Christmas gifts and... --- - Published: 2020-12-11 - Modified: 2023-10-23 - URL: https://freshstartnow.ca/how-to-deal-with-debt-after-a-loss-of-income/ 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 deferred payments and stopped collection proceedings. Unfortunately, neither of these incentives reduces the amount of debt that is owed. A few options to deal with your debt after a loss of income are: Increase your income from other sources. Part-time employment or a small business venture (shovelling snow, dog walking, etc. ) can provide additional funds to make debt payments. Decrease your expenses. Take a look at your budget and see what expenses can be reduced to enable you to re-allocate funds to debt payments. Contact your cell phone and internet provider to see if services can be reduced or put your gym membership on hold to reduce these expenses. Talk to your bank manager to see if you can obtain a consolidation loan so you can pay off your current debt and be left with one monthly payment at a significantly lower interest rate. If you own your home, talk to your bank to see if you can refinance your mortgage to pay off your current debt. A mortgage payment amortized over a twenty-year period at a significantly lower interest rate is more manageable than a 29% interest-bearing credit card. Contact a local not for profit credit counselling agency to discuss a debt management program. They negotiate with your creditors to accept payments, usually over a four-year time period, and can sometimes reduce the interest charges. Contact a Licensed Insolvency Trustee to discuss filing... --- - Published: 2020-11-30 - Modified: 2020-11-30 - URL: https://freshstartnow.ca/filing-a-second-bankruptcy/ 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 significant increase in insolvency filings in 2021. Based on 2019 filings, many insolvency filers will have been bankrupt once before. An insolvent debtor can file a second bankruptcy as long as they were discharged from their first bankruptcy. The process is similar to a first bankruptcy in that: non-exempt assets will vest in the trustee to realize for the benefit of creditors, tax refunds for the year of filing bankruptcy and any prior years will be sent to the trustee, GST cheques will be sent to the trustee until your discharge from bankruptcy, surplus income payments will be required for a specified time period if your income exceeds a set threshold, your trustee has the ability to recover preferential payments and transfers at undervalue, your trustee can realize on after-acquired property (property acquired between the bankruptcy filing and discharge), and creditors have the right to oppose your discharge. The following will differ from a first bankruptcy: bankrupt is eligible for an automatic discharge in 24 months if not required to make surplus income payments, bankrupt is eligible for an automatic discharge in 36 months if required to make surplus income payments, and the bankruptcy will remain on your credit report for 14 years from discharge. If you find you are struggling to repay your debts, reach out to a Licensed Insolvency Trustee to review your financial situation in detail so you can make an informed... --- - Published: 2020-11-20 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/tips-on-how-to-manage-your-personal-debt/ 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 amount is withdrawn on time every month. If you have excess funds available in your budget, develop a strategy to pay down your debt faster. There are a couple of theories in paying down debt – one is paying the lowest balances first to minimize the number of creditors. A second theory is paying the highest interest-bearing debt first to minimize the total interest you will have to pay on all of your debt. I am a fan of the second theory to minimize the total interest and to pay off your total debt quicker. Another alternative is to reach out to your bank to see if you qualify for a consolidation loan to pay off all of your debts and then only have one monthly payment at an interest rate that is likely considerably lower than a 29% retail credit card. Do not borrow to make minimum payments on your debt as a payday loan can carry an annual interest rate of over 400%. As you pay down your debt in full: Freeze your credit card to deter you from impulse purchases. Keep the majority of your funds in a bank account that you can not access with a debit card. Save your change and any cash gifts and put towards your highest interest-bearing debt. Focus on your “needs” as opposed to “wants. ” Contact service providers (cell phone, cable, etc. ) to... --- - Published: 2020-11-04 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/how-to-budget-while-repaying-a-student-loan/ 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 you complete your studies, although interest may be charged during this period. There are many repayment options you can explore at https://www. canada. ca/en/services/benefits/education/student-aid/grants-loans/repay. html to find the repayment plan best for you. Review and adjust your budget to ensure you can afford the monthly student loan repayment and make sure you are paying on time every month. Creating Your Budget If budgeting is new for you, start by keeping track of every dollar you spend for a couple of months, then create your budget with the following steps: Write down all sources of income and how often you will receive them: Wages – weekly, bi-weekly, bi-monthly or monthly Trillium benefits – monthly GST cheques - quarterly Make a list of your expenses broken out by fixed monthly costs for student loan payment, rent, cell phone bills, insurance, etc. and fluctuating monthly costs for food, gas for your vehicle, clothing, etc. Allocate your fixed expenses to specific income sources (i. e. rent from a first bi-weekly paycheque, student loan payment from a second bi-weekly paycheque, etc. ) You will want to ensure your fixed expenses are paid on time each month to build your credit rating. Write down an estimate of how much you plan to spend on your remaining monthly expenses. Be sure to consider annual expenses that you must budget for monthly (car sticker, gifts) so the funds are available when the amount... --- - Published: 2020-10-09 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/tips-on-how-to-create-a-family-budget/ 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 ensure everyone’s priorities are considered. Starting to create a budget is the hardest part, so here are a few tips to get you going: Make a listing of all sources of income the family receives monthly (wages, pension, Ontario Works, child tax benefit, etc. ). Keep in mind that if you get paid bi-weekly, you will receive an extra paycheque two times a year. You may want to allocate paying periodic expenses (i. e. insurance, clothing) with these extra paycheques. Make a list of additional sources of income that are received periodically (i. e. quarterly GST cheques). Make a list of your expenses broken down by categories that make sense for you. A couple of categories may include: Housing – mortgage payment, property taxes, rent, and utilities Living – food, laundry, grooming, and clothing Personal – entertainment, gifts, and donations Transportation – car payments, gas, repairs and maintenance, and public transportation Write down the best estimate of how much you spend on each item. If your expenses exceed your income, re-evaluate if you can decrease any expenses or need to increase your income (part-time employment, small jobs, etc. ). Consider the difference between “needs” that are necessities and “wants” which are a desire and adjust your plans to spend. If your income exceeds your expenses, then consider how much you want to put aside for savings for future financial goals or if you will allow... --- - Published: 2020-09-22 - Modified: 2024-05-03 - URL: https://freshstartnow.ca/steps-to-filing-bankruptcy/ 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 to familiarize yourself with the trustee or ask a trusted advisor (accountant, mortgage broker, realtor), family or friend for a referral. The initial consultation is normally performed in person, but due to COVID-19, most trustees are offering telephone, video and in-person consultations. The initial assessment is typically free of charge. The trustee will review your financial situation in detail in obtaining personal information (name, address, etc. ), a listing of your assets, liabilities, monthly income, and expenses. In advance of your meeting, gather all of your creditor statements and make a list of your monthly living expenses (rent, heat, telephone, food, etc. ). If you do not have statements from your creditors, make a list of who you owe, the account number and the amount owing. The trustee will review if anyone else guaranteed or co-signed your debts, if you transferred any assets to another party in the last 5 years or if you made large payments to a specific creditor. The trustee will inquire about any garnishments of your income and the status of your tax filings. Be honest with the trustee in responding to their questions to ensure they can properly advise you of any potential issues. The trustee will review possible solutions with you, and if you decide to file an assignment in bankruptcy, they will set up another appointment for you to sign the documents. The trustee will make payment arrangements... --- - Published: 2020-08-21 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/assets-exempt-from-bankruptcy-in-ontario/ 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 from seizure under the Ontario Executions Act. A creditor is unable to seize, and a bankrupt may keep the following assets: All necessary clothing. Household furnishings and appliances up to a liquidation value of $13,150. In all of the years that I have practiced as a Licensed Insolvency Trustee, I have never seized any household furnishings in a personal bankruptcy. Personal vehicle up to a liquidation value of $6,600. The trustee will typically look at the black book liquidation value of your vehicle. If it is worth less than $6,600, then you are able to retain your vehicle in a bankruptcy. If your car is worth more than $6,600, then you must pay the trustee the excess value in order to keep it. Tools that are used for you to earn a living up to a liquidation value of $11,300. This exemption would include tools and equipment (for example, scaffolding, paint brushes, etc. for a painter) for a self-employed or employed individual with a letter from their employer. Livestock, tools and chattels up to $29,100 for a debtor engaged solely in farming. Medical aids and devices that are required to assist with a disability or a medical or dental condition. A principle residence is also exempt from seizure if the equity is $10,000 or less. If the equity exceeds $10,000, then there is no exemption in Ontario. In addition to the above exempt assets under... --- - Published: 2020-08-11 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/how-much-does-it-cost-to-claim-bankruptcy-in-canada/ 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 under the Bankruptcy and Insolvency Act and is thus standard across all trustees. The minimum fee that a trustee charges may fluctuate slightly from the above depending on your locality and the company. The following factors may result in a higher payment to your trustee: You have been bankrupt previously and are filing bankruptcy for a second or third time You do not complete all your statutory duties, and the trustee opposes your discharge. Most trustees will charge an additional fee if they are required to file an opposition and attend a court discharge hearing. You are required to make surplus income payments. The Superintendent of Bankruptcy has issued a directive as to what they feel is necessary to cover your reasonable living expenses based on your family size. If your income exceeds this threshold, you will be obligated to make surplus income payments to the trustee. Please see my blog, “What are Surplus Income Payments in a Bankruptcy? ” for further details. You have a realizable asset that you want to retain and thus make an offer to purchase the asset back from the trustee. For example, you can make an offer to “buy back” a Registered Education Savings Plan that you have contributed to for your children to enable you to keep the asset. Do not let the cost of a bankruptcy deter you from reaching out to Taylor Leibow Inc. for... --- - Published: 2020-07-28 - Modified: 2022-08-31 - URL: https://freshstartnow.ca/how-does-bankruptcy-affect-my-spouse-in-canada/ 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 spouse guaranteed, co-signed or is jointly liable for the debt, they will still be responsible to pay the debt. They will have to deal with the creditor directly to make payment arrangements to ensure that their credit rating is not negatively impacted. Your spouse is not responsible to pay your debts just because you are married; they must have signed on borrowing or obtaining the credit. The Trustee must realize on your assets that are not exempt or fully encumbered. If there are assets that are jointly owned with your spouse (like a house), the trustee has to realize on your share only. Your spouse’s share of any assets will not be touched by the trustee. You are obligated to submit Monthly Income and Expense statements reporting the family income and expenses. Your spouse’s income will be reported on this report and may affect the surplus income payment that you are required to make. If you have transferred assets to your spouse within the last five years, the Trustee may be able to attack and overturn the transfer for the benefit of your creditors. The bankruptcy process is rehabilitative, and you will be required to attend two counselling sessions on budgeting, money management and rebuilding credit. Your spouse is not required to attend these sessions with you, but you might find it beneficial for them to attend so you can both contribute to your financial... --- - Published: 2020-07-16 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/annulling-a-personal-bankruptcy/ 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 lawsuit that would pay their debt in full; they don’t want to complete their duties imposed by the Bankruptcy and Insolvency Act and have regret about filing bankruptcy for maybe a small amount, or their personal situation has changed impacting their decision to have filed a bankruptcy. As per below, these reasons will not likely convince a court to annul a bankruptcy. There are basically two ways to annul a personal bankruptcy filing. The first one is to file a proposal to the creditors which, if accepted, would annul the bankruptcy. The second method is to make an application to the court. If the court believes that an assignment ought not to have been filed as the debtor was not insolvent, abused the process of the court or committed a fraud to their creditors, an order can be made to annul the bankruptcy. The fact that the debtor has paid all of their debts in full is not sufficient reason to annul a bankruptcy. The court considers the circumstances as they existed when the assignment in bankruptcy was filed and the interests of many stakeholders, including the bankrupt, the creditors and the public interest in the insolvency process. It is at the discretion of the court to annul a bankruptcy. Filing an assignment in bankruptcy provides relief from debt and allows a debtor to move forward with a financial fresh start. All debt relief solutions... --- - Published: 2020-07-02 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/best-time-to-file-a-personal-bankruptcy/ The short answer to this question is that you should file a personal assignment in bankruptcy when you feel it is the best solution for you for a financial fresh start. It is a very difficult step for many to take, and you should be ready to complete all of your statutory duties and be ready to rehabilitate yourself financially. A Licensed Insolvency Trustee will review your financial situation in detail, explain possible solutions and the bankruptcy process, but the timing to actually sign and file the bankruptcy documents is in your hands. In order to file a personal bankruptcy, you must owe more than $1,000; be unable to pay your debts as they become due; or be unable to pay your debts in full if all assets are sold. I caution anyone to file an assignment in bankruptcy if they owe less than $6,000. 00, but everyone’s situation is different, and $5,000 in debt to one person can feel like a $100,000. 00 debt to another person. Bankruptcy can provide stress relief on any level of debt. Some debtors will call to file bankruptcy as soon as they miss one debt payment, where other debtors will have their wages garnished for a full year before finally making the decision to file bankruptcy to provide them relief from their debt. Some debtors will have cashed in all their savings hoping their financial situation will improve to enable them to pay their debts, where others are trying to protect and retain exempt RRSPs in a bankruptcy. Let's explore your options The important thing is if you are struggling with debt, make an appointment to see a Licensed Insolvency Trustee to explore solutions. You can then leave that meeting educated on your options and make the decision if and when you want... --- - Published: 2020-06-12 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/understanding-the-process-of-a-consumer-proposal/ A consumer proposal is a formal proceeding under the Bankruptcy and Insolvency Act wherein you offer a compromise to your creditors to settle your debts. A consumer proposal can only be filed with a Licensed Insolvency Trustee (“LIT”) who acts as the administrator of your proposal. A free initial appointment can be scheduled with a LIT who will review your financial situation and explain the following process: A detailed analysis of your assets, liabilities, monthly income and expenses, any transfer or sale of assets, co-signors on debts and garnishments of income will be performed by the LIT The LIT will explore possible solutions with you – debt consolidation loan/mortgage refinance, debt management program through a not for profit credit counselling agency, consumer proposal or bankruptcy The terms of your proposal will be formulated, offering your creditors more than they would receive in a bankruptcy at a payment term you can afford over a maximum of five years. The terms of the proposal can be creative with set monthly amounts, seasonal monthly amounts, lump-sum payments, third party payments or any combination. Statutory documents will be signed by you and filed with the Official Receiver which institutes a “stay of proceedings” stopping most unsecured creditors legal actions to collect their debt (garnishments, etc. ) The creditors have 45 days to vote on the proposal, and the majority of those voting (50. 1% of the dollar value) must vote to accept the terms offered If more than 25% of your creditors are voting against the proposal, then the LIT will call a meeting of creditors The LIT will negotiate with any dissenting creditors to try and amend the proposal to terms agreeable to yourself and your creditors You must attend two counselling sessions on budgeting, money management, and rebuilding credit You are free... --- - Published: 2020-05-27 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/surplus-income-payments-in-a-bankruptcy/ You may be struggling to pay your living expenses and debts and sought the professional advice of a Licensed Insolvency Trustee for solutions. The trustee reviewed your financial situation and advised that based on your income, non-discretionary expenses (child support, medical expenses, etc. ) and family size, you would be required to make a monthly surplus income payment to the trustee. If your actual cash flow budget reports a shortfall every month with just your monthly expenses, you may feel that you do not have any “surplus” to pay to your creditors. Hopefully, the following will help you understand the concept behind “Surplus Income Payments. ” The Bankruptcy and Insolvency Act legislates the requirement to pay an amount to the trustee based on standards set by the Superintendent of Bankruptcy. The Superintendent issued a directive to set the amounts that they feel a family needs for basic living expenses based on their income and family size. The standards are adjusted annually. In layman’s terms, the Superintendent is saying they understand when you can’t pay your debt, but you can’t make $5,000 per month and spend $5,000 per month for expenses and say you can’t pay your creditors. The purpose of the standard is to bring balance between what a bankrupt needs to cover their basic expenses with potentially an adjustment to your lifestyle if you can’t pay your debts, and a creditor’s right to recover a dividend on the amount they are owed. A single individual who is not obligated to pay any non-discretionary expenses can retain the first $2,243 net income that they earn in a month. If their income exceeds this amount, then 50% of the income earned about this amount must be paid into the trustee. The $2,243 seems like a low threshold to cover rent, travel,... --- - Published: 2020-05-08 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/choosing-a-trustee-to-file-a-personal-bankruptcy/ You have finally decided that filing a voluntary assignment into bankruptcy is the only solution for you to eliminate your debts and move forward with a financial fresh start. The next important step is choosing a Licensed Insolvency Trustee (LIT). LITs, who are licensed by the Office of the Superintendent of Bankruptcy, are the only ones who can file a bankruptcy for you. We are all bound by the same legislation, the Bankruptcy and Insolvency Act, and the same professional conduct rules. The minimum fee, surplus income payment, or settlement on assets will be fairly similar amongst all trustees. You will be dealing with the LITs office for a period of nine months to a couple of years, so you want to ensure that you are comfortable with the LIT. Here are a couple of tips to help you choose a LIT: Confide in a close family member or friend that you are considering filing for bankruptcy and ask if they have any recommendations. We have many debtors that file bankruptcy that was referred by a family, friend, or co-worker. Debt is a hard topic to share with others, but you may be relieved to find that others have experienced the same struggles. Ask your accountant, lawyer, realtor, or mortgage broker for a referral Inquire with your Employee Assistance Program if they have a referral Do some research on the internet. Most LITs have websites with blogs, videos, and biographies which will allow you to gain some knowledge and feel a bit more comfortable walking into the trustee’s office. Check the Office of the Superintendent’s website at (https://www. ic. gc. ca/app/scr/tds/web/? lang=eng) for a trustee in your area Meet with the LIT in person. You do not have to file your bankruptcy with the first trustee that you see. If... --- - Published: 2020-04-29 - Modified: 2024-02-15 - URL: https://freshstartnow.ca/mistakes-to-avoid-when-consolidating-your-debt/ Creditors’ collection remedies are currently hindered due to the COVID-19 pandemic and the closure of courts except for urgent matters. If you are carrying significant debt to many different creditors, take this time to investigate if a consolidation loan (borrowing one amount to pay off your various debts and thus consolidating into one monthly payment) can provide you a plan to pay off your debt. You should consider the following before signing for a consolidation loan: Analyze the interest rates on all of your current debts and the interest rate you are being offered on a consolidation loan. You may want to exclude consolidating debt that is currently at a lower interest rate (interest on student loans is typically lower and currently being waived due to COVID-19). Ensure you are not stretching the payments over a significantly longer period of time. The plan should be to pay off your debt in five to seven years. Do not be tempted to borrow additional amounts to cover unexpected future expenses. It is not advisable to increase your debt and incur interest charges to have some savings in your bank account. Analyze why you had to incur your debt to start with. If you are too lenient in helping family or spending too much on entertainment or lottery tickets, now is the time to make changes in your financial decisions. Cutting up credit cards to avoid getting back into debt again. You may want to retain one card to use for groceries and gas and pay it off in full every month. Creating a budget that ensures you can pay the monthly consolidation loan payment in addition to your monthly living expenses. You will want to ensure the consolidation loan payment is paid on time every month. If you are unable to obtain... --- - Published: 2020-04-17 - Modified: 2020-04-30 - URL: https://freshstartnow.ca/budgeting-in-covid-19-days/ We are now in week 5 of living/working in a pandemic world. The Ontario government has currently extended the Declaration of Emergency until May 12th, which means many people continue to be unable to earn their regular income. The government has provided income relief through several programs such as the Canada Emergency Response Benefit, increased Canada Child Benefit and a special GST/HST credit payment. To some families, this may result in a net increase to their family income, to others, a substantial decrease. Monthly expenses have changed Monthly expenses have also changed significantly for many families. Many children are not going to daycare, sports and extra-curricular events have ceased, hair is not being cut, and day-time hydro costs are reduced. Alternatively, some essential workers are incurring additional daycare costs due to children not being in school, and all families have probably noticed some extra expenses for their children to learn at home. If your monthly budget has changed significantly, try not to be discouraged. You can only do your best. Here are a couple of tips to try and help: Continue to keep track of every penny you receive and spend in a day. You can’t make changes to where your money is being spent if you do not know where your money is going. Make sure you are receiving all the additional benefits that you are entitled to. Even though Canada Revenue Agency extended the filing deadline, try to file on time to ensure you continue to receive benefits. Save extra benefits received from the government for future expenses if not currently needed. Contact telephone, cable and internet providers to see if you can reduce your monthly bill by reducing any services. Avoid online shopping for unnecessary items. Utilize the internet for free activities for your children and yourself.... --- - Published: 2020-04-09 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/bankruptcy-and-tax-debt-during-the-covid-19-pandemic/ We are in uncertain times with the COVID-19 pandemic and the significant financial burden it is placing on many Canadian households. Our government has stepped up with benefit programs to assist with cash flow, and Canada Revenue Agency (CRA) is refraining from new collection proceedings to collect tax debt. The tax filing deadline and payment due date have also been extended. If your wages or pension is currently being garnished for a prior CRA tax debt, this relief will not assist you in meeting your monthly living expenses. You may need to look at filing a personal assignment in bankruptcy or a consumer proposal in order to stop the garnishment. Many debtors mistakenly believe that tax debt cannot be included in a bankruptcy or consumer proposal. I spoke with a taxpayer yesterday that personally owes significant HST and source deductions due to a director’s liability for a failed corporation that was unable to pay the debts. He was pleasantly surprised that a personal bankruptcy can give him a fresh start from traditional bank debt, suppliers and his director’s liability for HST and source deductions. Some things to know about bankruptcy and tax debt: Filing a personal bankruptcy will stop a garnishment of wages and pension CRA doesn’t take it personally that you included them as a creditor in your bankruptcy (many people are afraid of including tax debt) CRA has the right to set-off refunds/quarterly GST rebates against prior tax debt. A bankruptcy will provide a cut-off date and you will be entitled to tax refunds and GST in the future. If CRA has registered a lien on any of your assets – the lien will remain (which is why it is always best to address the issue before it gets to this stage) Personal income tax, HST, and source... --- - Published: 2020-03-27 - Modified: 2022-08-30 - URL: https://freshstartnow.ca/debt-relief-solutions-in-covid-19-environment/ I am having a hard time comprehending the magnitude of the COVID-19 virus and the effect on people’s lives around the world. Businesses have voluntarily and mandatorily closed to allow people to self-distance, thousands are losing their jobs, and Lysol wipes are a hot commodity. Many creditors have refrained from enforcement proceedings at this time, but that does not relieve the stress of knowing you have debts that you can’t pay. Financial Consumer Agency of Canada has provided some guidance at the following website: https://www. canada. ca/en/financial-consumer-agency/services/covid-19-managing-financial-health. html If you need to discuss filing a personal bankruptcy or consumer proposal today, our Licensed Insolvency Trustees are still available to assist via telephone and email. We will still provide the same detailed analysis of your assets, liabilities, income, and expenses and review solutions that can provide you with debt relief. Please reach out to Julie Savage or myself, Kathy Lenart at 905-523-0003 or klenart@taylorleibow. com and jsavage@taylorleibow. com. Please stay safe and well. By Kathy Lenart - Insolvency Partner, Licensed Insolvency Trustee CPA, CA, CIRP Member and Secretary of the Ontario Association of Insolvency and Restructuring Professionals (OAIRP) Canadian Association of Insolvency and Restructuring Professionals (CAIRP) --- - Published: 2020-02-26 - Modified: 2022-09-15 - URL: https://freshstartnow.ca/circumstances-change-after-filing-consumer-proposal/ A consumer proposal is a formal filing under the Bankruptcy and Insolvency Act that offers a compromise to your creditors. The terms of the proposal can be creative, but they must offer a higher distribution to your creditors than would be available in a bankruptcy and must be completed within 5 years. A proposal enables you to retain assets, keep any increase in income or subsequent inheritance or lottery win and is less derogatory on your credit rating. Many people fear filing a consumer proposal in case their circumstances change for the negative. A loss of a job, separation of marriage or health issues can all result in lower income and higher expenses which will impact the ability to continue a consumer proposal. There are options available if your financial situation changes: You will be in default of your proposal terms and your administrator will notify your creditors of their revived right to pursue you for payment if you miss three payments in total. If you have not previously missed a payment under your proposal you may have a bit of breathing room in that you can miss two payments without affecting the proposal. Talk to your administrator about the status of your payments and potentially delaying a payment. Amend your proposal – if you find your financial circumstances have permanently changed resulting in a negative impact on your cash flow, contact your Licensed Insolvency Trustee to discuss the possibility of amending your proposal. They will re-evaluate your assets, surplus income payments and cash flow to determine if the payments offered in your proposal can be lowered to a more affordable amount. File an assignment in bankruptcy. A person who has filed a consumer proposal to their creditors is able to subsequently file an assignment in bankruptcy if they find... --- --- > **Office Locations & Service Areas:** * **[Downtown Hamilton Office](https://freshstartnow.ca/downtown-hamilton/):** * *Address:* 8th Floor, 105 Main St. E., Hamilton, ON (Effort Square) * *Phone:* 905-523-0003 * *Serving:* Downtown core, Westdale, Dundas, Ancaster, and East Hamilton. * **[Hamilton Mountain Office](https://freshstartnow.ca/hamilton-mountain/):** * *Address:* 775 Upper Wentworth St., Office 16, Hamilton, ON L9A 4V7 * *Phone:* 905-523-0003 * *Serving:* West Mountain, East Mountain, Stoney Creek, and surrounding mountain neighborhoods. * **[Burlington Office](https://freshstartnow.ca/fresh-start-now-burlington/):** * *Address:* 3310 S. Service Rd #202, Burlington, ON L7N 3M6 * *Phone:* 905-637-0071 * *Serving:* Aldershot, Alton Village, Burlington Mall area, and Spencer Smith Park neighborhoods. * **[St. Catharines Office](https://freshstartnow.ca/st-catharines/):** * *Address:* 43 Church St, Suite 604, St. Catharines, ON L2R 7E1 * *Phone:* 905-680-4728 * *Serving:* Port Dalhousie, Merritton, Grantham, Glenridge, and the Niagara region. **General Contact:** * **Toll-Free:** 1-888-287-2525 * **Main Website:** [freshstartnow.ca](https://freshstartnow.ca/) * **Trustee:** Operated by Taylor Leibow Inc. Licensed Insolvency Trustees. *Disclaimer: The information provided in this file is for general guidance on insolvency options in Ontario, Canada. It does not constitute legal advice. Please consult a Licensed Insolvency Trustee for a formal assessment.* ---