Author Archives: Bankruptcy Canada Trustee

About Bankruptcy Canada Trustee

Bankruptcy Canada is a free service provided by bankruptcy trustees in Canada to explain how bankruptcy works, how you can avoid bankruptcy, and helps you decide whether bankruptcy is the right option for you and your family.

Over The Surplus Income Threshold? What Happens.

11 Dec 2013

Surplus Income Limit Threshold in Bankruptcy

The actual cost to file bankruptcy is based on two things – what you own and how much you earn. It doesn’t matter how much you owe – you might owe $10,000 or $10 million. It won’t affect the amount you have to pay in order to be relieved of…

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Calculating Surplus Income Step-by-Step

09 Dec 2013

If you’ve read about what goes into determining the cost of your bankruptcy in Canada, you know that one of the factors is something called Surplus Income. Conceptually surplus income in a bankruptcy says that the amount you pay is more if your income is higher. There is a base amount…

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How Can I Go Bankrupt If I Have No Money?

02 Dec 2013

Question: How much does it cost to go bankrupt? And why? Seems to me if your going bankrupt it’s because you have no money. Bankruptcy Does Cost, But What’s Your Alternative? You are correct; it does cost money to go bankrupt, for two reasons. First, there is a small cost…

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Stop a Wage Garnishment. Bankruptcy or No?

27 Nov 2013

You may have been working to balance your debt payments with your living expenses for the last little while, then the worst happens. You are advised that a creditor has notified your employer to garnish your wages. Now you are facing both the embarrassment of your employer knowing you are…

How To Preserve An RESP In A Bankruptcy

18 Nov 2013

When you file bankruptcy in Canada you sign over the things that you own in exchange for the elimination of your unsecured debts subject to some exemptions. The bad news is that RESPs, or Registered Education Savings Plans, are not on any of the provincial or federal bankruptcy exemption lists. …

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Does Bankruptcy Discharge Payday Loans?

06 Nov 2013

The process of personal bankruptcy in Canada discharges most unsecured debt, including payday loans. If you have payday loans and you are considering claiming bankruptcy, here are the issues to consider: Do you have other debts? The average payday loan is usually $1,000 or less, so if your only debts…

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Your House Or Your Debt, Or Both?

04 Nov 2013

Question: My husband owes about $12,000 in outstanding income tax debts after having to close our business. We had to live on credit card debt for a while and we owe another $40,000 in credit card debt. I work now and my husband is looking for work. We own a…

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Regional Differences In Bankruptcy Rates Continue

31 Oct 2013

While total insolvency filings in Canada declined 1.1% in August 2013 compared to August 2012 and are down 2.7% over the past 12 months, significant regional differences continue. Ontario and Quebec together account for more than 70% of all bankruptcy and consumer proposal filings in Canada. Yet the difference between…

Is an RRSP Withdrawal Surplus Income in a Bankruptcy?

28 Oct 2013

In 2008 the Parliament of Canada amended the Bankruptcy and Insolvency Act to protect your registered retirement savings plan (RRSP) from seizure except for contributions you have made in the last year. This new law was in addition to the protections provided under the Insurance Act of Ontario that protects…

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When Does A Debt Management Plan Work?

23 Oct 2013

We’ll start with a brief definition of what a Debt Management Plan (or DMP) is: “A DMP is a voluntary program whereby some of your unsecured debts are pooled together so that you can make a single monthly payment to a credit counselling agency who will forward your payments to your…