Bankruptcy Canada Trustee Blog

Second Time Bankruptcy. What Rules Apply?

18 Sep 2013

In Canada, about 15% of people that have filed for bankruptcy end up declaring bankruptcy a second time. Since approximately 60,000 Canadians will be declaring bankruptcy this year that means 9,000 of them likely have done so before. The number of people filing second bankruptcies is large enough that in…

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Bankruptcy and Payday Loans

16 Sep 2013

I want to start with a disclaimer – I really hate these guys. When we opened our bankruptcy practice in 1999 we saw very few payday loan companies. Then, within a couple of years, they started appearing on every file we saw. In 2005 we published a composite of the…

How Does A Joint Bankruptcy Filing Work?

11 Sep 2013

One of the most common questions posted to the internet chat groups about filing for personal bankruptcy in Canada has to do with spouses and whether or not if one files for bankruptcy, do they both have to. The short answer is no, each spouse is free to decide what…

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Do I Have To Disclose My Spouse’s Salary For Surplus Income?

04 Sep 2013

*Please note that this article has been updated with the 2017 surplus income limits Surplus income is calculated based on family income, so all members of the family disclose their income. If the husband is declaring bankruptcy but the wife is not going bankrupt, the husband is still supposed to…

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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…