The “Fresh Start” of a Personal Insolvency Filing
The Bankruptcy and Insolvency Act provides for an insolvent individual to file a personal assignment in bankruptcy or consumer proposal. Upon filing, unsecured creditors are stayed from taking any further collection proceedings. Garnishments (except for spousal or child support), court proceedings and collection calls cease and the debtor is protected from their creditors. The filing provides relief from creditors but the “fresh start” doesn’t occur [...]
Who files a Consumer Proposal?
A consumer proposal can be filed by a consumer debtor who owes not more than $250,000 (excluding debts secured by the individual’s personal residence). The proposal is an offer to compromise the debt owing over a maximum of five years and usually is comprised of fixed monthly payments. The proposal terms can be as creative as the debtor’s circumstances require, and a majority of the [...]
Budgeting for Seniors Guide
Many seniors who receive limited pension income once per month find it very difficult to budget. These circumstances actually make it more important to budget to ensure sufficient funds for food and other necessities of life for the entire month. Steps to Create a Budget The first step in creating a budget is to make a list of all income received. Most seniors are eligible [...]
How to Deal with Debt After a Loss of Income
When the COVID-19 pandemic shut down Ontario’s economy in March, 2020, no one could have predicted the extent of job losses and business closures. Many Canadians, who were already struggling with significant levels of debt, found themselves unable to pay even their basic living expenses. The government stepped up and provided benefits in the CERB and CRB to supplement a loss of income, and creditors [...]
Filing a Second Bankruptcy
The Office of the Superintendent of Bankruptcy issued its 2019 Canadian Consumer Debtor Profile reporting 22% of consumer insolvency filers had previously filed a bankruptcy. That means that 30,179 of the 137,178 individuals that filed a personal bankruptcy or consumer proposal had been bankrupt previously. With the current COVID-19 pandemic resulting in the closure of many businesses and employee layoffs, insolvency professionals are anticipating a [...]
Tips on How To Manage Your Personal Debt
The first step to manage your personal debt is to make a complete list of everything you owe as follows: ABC visa $5,000.00 29.9% annual interest $200.00 minimum monthly payment Add up the total debt and the minimum monthly payments and add that amount to your budget as a monthly expense. Arrange to pay the monthly payments by pre-authorized payment to ensure the [...]