Monthly Archives: February 2014

Student Loans: The 5-Year Hardship Provision

26 Feb 2014

As a follow-up to our post about how the 7-Year Student Loan Rule works if you file bankruptcy or a consumer proposal, we thought we would explain in more detail how a student can reduce the waiting period to five (5) years under certain specific conditions. Under the Bankruptcy & Insolvency…

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Student Loans: The 7-Year Rule Explained

24 Feb 2014

One of the most complicated areas of bankruptcy law is the rules surrounding bankruptcy and student loans. Almost everyone by now knows that there is a 7-year bankruptcy rule for student debt. This rule has been around since 2008, but is commonly misunderstood. The Bankruptcy and Insolvency Act, specifically section 178….

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Dealing With Creditors After Your Bankruptcy Is Finished

19 Feb 2014

There are many periods during which you, and your trustee, will need to talk to your creditors about your bankruptcy. Before filing, you may be receiving collection calls and need to take advantage of the Stay of Proceedings offered by filing bankruptcy. Once you have filed bankruptcy or a consumer…

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Should RESP’s be Protected From Creditors?

18 Feb 2014

Recently Alberta added registered education saving plans (RESPs) to their list of assets that are protected from a person’s creditors either through a Writ of Seizure and Execution or an Assignment in Bankruptcy. Immediately the call went out to add RESPs to the exemptions in every province across Canada. The…

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3 Most Asked Bankruptcy Questions

17 Feb 2014

While there are dozens of questions that people may ask when they are thinking of filing personal bankruptcy, the three most common are those that directly affect their day to day lives. Most want to know what happens to their car if they file bankruptcy because they need transportation to…

What is the Credit Reporting Process For A Bankruptcy?

12 Feb 2014

In Canada, credit reports are maintained by two main credit bureaus: Equifax Canada Inc. and TransUnion of Canada. Their objective is to collect information that lenders would consider important in making a decision about whether or not they should grant you a loan. What each credit bureau does is collect…

Bankruptcy Does Not Discharge Support Payments

10 Feb 2014

bankruptcy and support payments | child support | alimony

Filing bankruptcy does not discharge your obligation to pay court ordered alimony, spousal or child support payments. This includes both arrears and on-going payments. Unlike other unsecured debts, arrears for court ordered child support or alimony are not discharged by either a bankruptcy or a consumer proposal in Canada. The…

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Yes Virginia, There Is Life After Bankruptcy

05 Feb 2014

The problem most people have with bankruptcy is that they just don’t know enough about it. They don’t know what is involved, and more importantly, they don’t know how it ends, or if it ever ends… The Bankruptcy and Insolvency Act was created to allow the honest, but unfortunate debtor,…

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Will My Assets Be Sold if I File Personal Bankruptcy?

03 Feb 2014

does bankruptcy trustee sell all my assets

When you file personal bankruptcy in Canada, you are permitted to retain certain assets while others are subject to seizure by your bankruptcy trustee. Your trustee has a responsibility to ‘realize’ on these non-exempt assets, which means that they have to turn the value of these assets into cash to…