Posts Tagged ‘personal bankruptcy’

What is a Deemed Trust?

In a bankruptcy, amounts owing for GST/HST and the employer portion of CPP and EI, and penalties and interest on these amounts are unsecured claims, ranking the same as all other general creditors of a debtor. However, before bankruptcy occurs, CRA may obtain a lien or charge (be filing a memorial judgment) against the real or personal property of a debtor, CRA will be a secured creditor.

Read More

Budgeting 101 – Part 3 of 5

Like monthly expenses, most annual expenses are predictable; at least to the extent that you know they are going to happen.  Sometimes the amount is uncertain or the amount is discretionary (you set it – requires some internal fortitude to manage).

Read More

Budgeting 101 – Part 2 of 5

Monthly expenses should be the most predictable of the expense categories.  They happen every month.  Some are fixed and some are variable.  With your household income, you should be able to comfortably cover these expenses including covering seasonal variations. 

Read More

The Cost of Keeping Up With the Jones

We often see families putting themselves in difficult financial situations because they make purchase decisions based on emotions rather than considering the total cost.  Sometimes, we have to take a step back and ask ourselves a few questions: what are these material things going to add to my overall quality of life?  How are we going to pay for these purchases and what is the overall cost?

Read More

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.

Read More

Budgeting 101 – Part 1 of 5

If you want to make a budget, you need to understand your expenses, short-term, medium-term and long-term. Monthly expenses can be fixed or variable. Annual expenses can be fixed and some variable.

Read More

Financial Math – The 5% House Down-Payment

The reality is that owning a home can be the root of a myriad of problems, one of which is tied to the 5% down-payment. With mortgage insurance, you can buy a house with only a 5% down-payment.  Mortgage insurance is actually required whenever your down-payment is 20% or less of the purchase price.

Read More

Can I Go Bankrupt If My Debts Are The Result of Gambling?

For individuals who are problem gamblers we strongly recommend other counselling to help address the addiction.  Personal bankruptcy may provide short-term financial relief but cannot resolve the issue of gambling unless it is combined with other treatment.

Read More

Will I Lose My Canada Child Benefit (CCB) If I File For Bankruptcy?

The short answer is no, you will not lose your Canada Child Benefit (CCB) if you decide to file personal bankruptcy. While your CCB will not be affected by bankruptcy, you are required to report your CCB when calculating and reporting your household income.  These monthly reports will determine whether or not you have “surplus income”, which in turn will impact how long you are in bankruptcy and how much you will be required to pay.

Read More