Yearly Archives: 2013

Balancing Debt Repayment With Living Expenses

02 Sep 2013

Question: Recently my husband and I applied for a second mortgage to pay off some credit card debt and outstanding bills and we were declined. Within the past year he lost his job and was on EI. With only my income (about $1,800 a month after tax) coming in our…

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Big Drop In Consumer Insolvencies In June

29 Aug 2013

Consumer insolvencies in Canada have fallen to almost pre-recession levels as the Canadian economy continues to improve and interest rates remain at historical lows. Total consumer insolvencies (both bankruptcies and consumer proposals) fell to 9,528 files in June, 2013, almost a third lower than the previous June peak of 13,792…

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Do I Have To File My Tax Returns Before Filing Bankruptcy?

28 Aug 2013

Most trustees in bankruptcy, myself included, will tell you that you should file all of your outstanding tax returns before filing bankruptcy in Canada – but do you really have to? The filing of income tax returns is required under the Income Tax Act. There is actually no requirement under…

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Personal bankruptcy and property taxes. Are they discharged?

26 Aug 2013

Property taxes are one of the least understood obligations that home owners have – people recognize they have to be paid, but most people don’t realize the special rights that property taxes have been granted under Canadian law. Let’s start with the fundamentals – property taxes represent a charge on…

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Cancelling Contracts As Part Of Your Bankruptcy

21 Aug 2013

One of the least known aspects of bankruptcy law in Canada is that when you file bankruptcy you may break any contract you have as part of the restructuring of your financial situation. The most common contracts that are terminated relate to cell phones and cable services, but it is…

How To Avoid A Second Bankruptcy

14 Aug 2013

Here is a chilling statistic: somewhere in excess of 10% of the adult Canadian population will file for bankruptcy at some point in their life. Of those, 15% will have to file a second bankruptcy. The reasons people file for bankruptcy range from poor financial management, a relationship breakdown, a…

CRA Has Frozen Your Bank Account. What To Do.

12 Aug 2013

You’ve discovered that the Canada Revenue Agency has obtained a court order to seize your assets in payment of overdue taxes and the first step they took was to freeze your bank account. In most cases, CRA freezes your bank account for one simple reason: to get your attention. In…

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6 Advantages Of Filing Bankruptcy in Canada

07 Aug 2013

One of the first things I am asked by just about everyone I see professionally is: “Is filing bankruptcy the right thing for me to do?” Since every person’s situation is unique, this is not a question that can be easily answered, but what I can do is provide you…

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Fastest Way To Rebuild Credit During and After A Consumer Proposal

05 Aug 2013

Question: If I file a consumer proposal what is the quickest way to rebuild my credit? Should I save up for a secured credit card or just pay off the proposal as fast as possible first? Also, during a consumer proposal, is it possible to get a loan for a…

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Avoid Bankruptcy By Filing A Consumer Proposal

31 Jul 2013

If you find yourself completely buried in debt and you don’t think you have any choice but to file for bankruptcy, you may be able to avoid bankruptcy by filing a consumer proposal. I have to be honest with you – our firm has been a big proponent of consumer…