personal bankruptcy 10 - Consumer Proposal & Bankruptcy

Dealing With Debt – Understanding the Two Types of Proposals

June 21, 2016

Division 1 Proposal Is when a consumer debtor owes more than $250,000 in debts, excluding the mortgage on their principal residence. If creditors don’t accept this proposal there is a deemed personal bankruptcy.

A consumer proposal is when a consumer debtor owes less than $250,000 in debts, excluding the mortgage on their principal residence. There is no deemed personal bankruptcy if the creditors reject the consumer proposal.

Filing Your Income Tax Return After Bankruptcy

June 14, 2016

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.

Dealing With Increasing Insolvency Rates

May 17, 2016

There are lots of factors but, I think the greatest single contributor is the proliferation of easy credit combined with low levels of financial literacy. High debt levels limit financial flexibility and the ability to weather and recover from financial setbacks resulting from job loss, reduced income, illness, separation/divorce, and other life events.

The Real Cost of Vehicle Ownership

May 4, 2016

Think about the cost of ownership before you buy and then think about the cost of use and think ahead to consolidate trips, skip the trip, or car pool with friends and co-workers. The cost of vehicle ownership also needs to be considered when you choose where you live. While the cost of housing may be cheaper here in rural New Brunswick, the cost of the travel can offset the housing cost savings.

Struggling With Debt Tackle Your Finances Head On

April 19, 2016

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.

Announcement – New Designation for Insolvency Professionals

April 12, 2016

The Office of the Superintendent of Bankruptcy Canada released Directive 33, Trustee Designation and Advertising, updating the designation to be used by Licensed Trustees with regards to the advertisement, promotion, and communications related to their services. All trustees will now adopt the professional designation “Licensed Insolvency Trustee”.

What Is the Bankruptcy and Insolvency Act (“BIA)

March 29, 2016

Generally speaking, the BIA is a federal statute that governs bankruptcy, proposal and receiverships in Canada. It provides relief to the honest, but unfortunate debtor from the crushing burden of debt so they can get a fresh start.

What Happens If I Win The Lottery While Bankrupt?

March 22, 2016

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.

2016 Surplus Income Standards

March 15, 2016

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.

What Are My Duties In Bankruptcy?

March 1, 2016

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.