Posts in Personal Bankruptcy
Consumer Proposals From the Creditor's Perspective; 3 Questions Every Creditor Will Ask Themselves

If one or more of these scenarios apply, you may need to offer your creditors more than normal in order to convince them to say “yes”.

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What Happens To Life Insurance When I Declare Bankruptcy?

In evaluating your assets in a bankruptcy situation the Licensed Insolvency Trustee is determining if there is any equity or value in the asset that is potentially available to your creditors, subject to any exemptions under Provincial or Federal legislation for that type of asset.

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Income Tax Deadlines

For Canadians, April 30 is the official deadline to file your personal income tax return with the Canada Revenue Agency.   If you file your return past the deadline you will be assessed a late filing penalty. The deadline, if you or your spouse or common-law partner carried on a business in 2016, is June 15.

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December 2016 - Personal Bankruptcy & Consumer Proposal Statistics

Canada – Personal bankruptcies were down 0.1% and proposal filings were up 7.4% as compared to the 12-months ended December 31, 2015.

New Brunswick – Personal bankruptcies were up 3.2% and proposal filings were up 1.4% as compared to the 12-months ended December 31, 2015.

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What is a Deemed Trust?

When an employer deducts income tax, CCP, and EI from its employees’ pay, those amounts are deemed to be held in trust for the Crown and to be remitted at a later date. These deemed trusts attach to ALL assets of the employer or vendor and are to be paid to the Crown in priority to all security interests.  This is true regardless of whether or not the funds have been kept apart or commingled with the property of the employer or vendor, and notwithstanding any security interest in the property or proceeds thereof.

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Bankruptcy: My Name is Still On My Ex-Spouse’s Home

To get your name off of the mortgage, your ex-spouse will have to qualify for the mortgage, on his or her own name, when the mortgage comes up for renewal.   Whether or not they qualify is up to their financial institution.

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What Are the Different Types of Bankruptcy Administrations?

Summary administration bankruptcy, there is no notice in the newspaper and no automatic meeting of creditors. Ordinary administration bankruptcy, there is a mandatory meeting of creditors and there is also a requirement for the Trustee to publish a notice of the bankruptcy in the newspaper.

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Why Would My Trustee Oppose My Bankruptcy Discharge

Your Trustee is required to oppose your discharge if you do not complete specific duties or tasks: complete both mandatory counselling sessions, report you monthly income to the Trustee, sessions, make all agreed upon payments, including voluntary, surplus income, and equity payments.  These are only some of the duties that you must complete.

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The Bankruptcy Process in 12 Steps

This article is meant to provide you with a general understanding of the personal bankruptcy process however each individual situation is unique.  Your Trustee will review the details of your particular situation and provide you with information specific to your circumstances so you can make an informed decision.

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Filing Your Income Tax Return After Bankruptcy

As part of the bankruptcy process, your Licensed Insolvency Trustee is required to file your income tax return for the year of bankruptcy and any returns that came due during the calendar year prior to bankruptcy. Any tax refunds for either of these periods will come directly to your bankruptcy estate for the benefit of the unsecured creditors.

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March 2016 - Personal Bankruptcy & Consumer Proposal Statistics

Canada - Personal bankruptcies were down 1.1% and consumer proposal filings were up 8.1% as compared to the 12-months ended March 31, 2015.

New Brunswick - Personal bankruptcies were down 5.6% and consumer proposal filings were up 16.3% as compared to the 12-months ended March 31, 2015.

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Tackling Your Finances Head On

Hiding from the reality of your financial situation will do nothing to improve it. People have a pre-disposition to hide from the truth, particularly when the truth is ugly. Unfortunately, we see this every day.

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What Happens If I Win The Lottery While Bankrupt?

If you win the lottery during your personal bankruptcy, before you are discharged, the lottery winnings are considered “after-acquired property” and forms part of your bankruptcy. After-acquired property can be seized by your Trustee in Bankruptcy for the benefit of your unsecured creditors.

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2016 Surplus Income Standards

When an individual files for personal bankruptcy the trustee will calculate whether or not he will be required to make surplus income payments based on his net household income.

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What Are My Duties In Bankruptcy?

There are several duties that an individual must complete as part of a personal bankruptcy to be eligible to be discharged from bankruptcy. These duties include, but are not limited to; completing two counselling sessions, report your monthly income to the Trustee, assist the Trustee with file your income tax return for the year of bankruptcy.

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What Is A Stay of Proceedings?

A stay of proceedings basically means that creditors must cease all collection or legal proceedings against the debtor, including wage garnishments.   The purpose of the stay is to protect the assets of the bankrupt so the Trustee or Proposal Administrator can deal with them in an orderly fashion.

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Can A Person Have Savings During Bankruptcy?

Yes, you can accumulate savings during a personal bankruptcy or consumer proposal. During a personal bankruptcy provided you are paying your required surplus income payment, if applicable. You can save as much as your budget allows.

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The Difference Between Secured and Unsecured Debt

Secured debts include mortgages, vehicle or investment loans.  The borrower gives the lender a lien or mortgage against assets such as property, vehicles or investments in exchange for the loan.  Unsecured debts typically include personal loans, lines of credit, credit cards, overdraft on bank accounts, and personal income taxes.

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Will I Have To Go Bankrupt Or File A Consumer Proposal If My Spouse Does?

No, if one spouse files personal bankruptcy or a consumer proposal, it may not be necessary for the other spouse to file. This depends on several facts which a Licensed Insolvency Trustee will assist the couple to review. The couple can then make an informed decision as to which option best meets their needs and allows them to achieve their financial goals.

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