Category Archives: Personal Bankruptcy

Advice and information on personal bankruptcy in Canada provided by Bankruptcy Canada trustees. Learn important facts about filing bankruptcy then contact one of our local bankruptcy trustees in your province who can help.

Student Loans: The 7-Year Rule Explained

 24 Feb 2014
student loan bankruptcy 7 year rule

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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3 Most Asked Bankruptcy Questions

 17 Feb 2014
personal bankruptcy FAQ

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…

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What is the Credit Reporting Process For A Bankruptcy?

 12 Feb 2014
bankruptcy credit report

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…

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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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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…

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7 Options For Student Loan Debt Reduction

 29 Jan 2014
student loan debt reduction options

Student loans are discharged in a bankruptcy if they are more than 7 years old but what if you don’t want to file bankruptcy or your loans are less than 7 years old.  If you owe money on student loans, you have the following debt reduction options. Option 1 –…

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Can Collection Agencies Call My Work or Employer?

 15 Jan 2014
collection calls to employer

Yes, if you owe money, a collection agent is permitted to call your work, or call your employer. Collection agencies are provincially regulated, so the rules are slightly different in each province in Canada.  For example, you can read the Collection Agencies Act of Ontario here. However the legislation is…

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Are Credit Card Rewards An Asset in Bankruptcy?

 13 Jan 2014
credit card rewards bankruptcy

Many cards come with some sort of “rewards” program attached to them.  There are cards that collect points that you can redeem for products and services, air miles on travel cards, there are even cards that give you a cash rebate once a year.  What happens to these credit card…

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Bankruptcy and Surplus Income Calculation For A Family

 08 Jan 2014
surplus income bankruptcy and family

*Please note this article has been updated with the 2018 numbers When you file for bankruptcy, part of the cost of filing is based on how much income you earn. Depending on your income, you may be required to pay something called Surplus Income. Where it get’s confusing for many…

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3 Things to Know about Surplus Income in Bankruptcy

 06 Jan 2014
understand surplus income threshold

Surplus Income is the name the government has given to the calculation that trustees are required to do when someone files personal bankruptcy to determine what their monthly payments are going to be.  It is a mathematical exercise based on a specific set of rules.  It is not intended to…

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