Toronto Ontario Personal Bankruptcy Blog
Toronto Ontario Personal Bankruptcy Blog provides free personal bankruptcy information and helps Toronto residents dealing with their debt.
Below are the most recent personal bankruptcy questions. Be sure to check out our Frequently Asked Questions page for answers to more common questions about personal bankruptcy in Toronto. Remember, you can always post an anonymous question, as well as arrange for a free consultation with a personal bankruptcy expert near you.
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Recent Bankruptcy Questions:
2 New Bankruptcy Rules in Effect Starting July 7, 2008:
Student loans now discharged after 7 years
If you have been out of school for 7 years and are still struggling with your student loans, they can now be included in a bankruptcy or a proposal. This rule was amended from the 10 year waiting period.
Your RRSP is now protected
Under the new rules, RRSPs are exempt from seizure; this means you can keep them (except for contributions made in the 12 months prior; this prevents people from abusing the system). Under the old rules most RRSPs would have been seized by the trustee in a bankruptcy.
Questions?
These rule changes are dramatic. If you would like more information on how they impact you, contact one of our offices to schedule a consultation.
Question: Can a person who recently filed consumer proposal or bankruptcy in Toronto travel out of country on his passport or travel documents like USA on business trips?
Answer: Yes. The filing of a consumer proposal or a personal bankruptcy does not prevent you from being able to travel outside of Canada.Labels: bankruptcy Toronto, consumer proposal
The number of consumer proposals and bankruptcies filed in Toronto increased by 6% in the first six months of 2007, according to statistics just released by the Office of the Superintendent of Bankruptcy. Toronto fared better than the rest of Ontario, where personal insolvency filings increased by 9%. Most surprising is the increase in consumer proposals, which are fast becoming the leading alternative to bankruptcy in Toronto. Consumer proposals increased by 22% across the GTA. In the first six months of last year 2,275 residents of Toronto filed a consumer proposal. In the first six months of this year that number has increased to 2,768. A consumer proposal is a legally binding deal we negotiate with your creditors. Instead of going filing for bankruptcy, you make payments over a period of time (no more than five years), usually for less than the full amount you owe. You avoid bankruptcy, and make one monthly payment, and the creditors get more money than if you went bankrupt, so everyone wins. If you would like more information about consumer proposals or bankruptcy, call our Toronto team at 310-PLAN (310-7526, no area code required) or E-mail us to arrange a free initial consultation. There is help available, so give us a call, and let's get started. Labels: bankruptcy Toronto, consumer proposal
Question: I have a personal vehicle "86 Pontiac" value $2000, basic transportation.
Through a serious family illness, I have become the primary care giver for a parent. Left work and have not been employed for 4+ years. Through the years debt has accumulated. The family purchased a physically challanged adapted vehicle to use for the parent, the vehicle was registered in my personal name as I am the only driver in the family, I pay the insurance through funds given by the family account.
How does this vehicle fit in my personal bankruptcy in Toronto? Thanks Answer: If you file for personal bankruptcy in Toronto, or anywhere in Ontario, you are permitted to keep one motor vehicle worth up to $5,650. If you own more than that, you would be required to either surrender the vehicle to the trustee, or pay to your bankruptcy estate the difference. For example, if you own a $2,000 vehicle and a vehicle worth $8,650, you would declare that the first $5,650 of the $8,650 vehicle was exempt, and you would pay the trustee $3,000 to keep the vehicle. Since you are only permitted to declare one vehicle as exempt, you would also be required to pay the $2,000 value of the other vehicle if you wanted to keep it. If there are liens or loans against any of these vehicles, the answer would change. These rules can get complicated, so I suggest you call us at 310-PLAN, or e-mail us for further information. Labels: bankruptcy Toronto
If I file for a consumer proposal, will I have to leave my home if I am in default with my mortgage?
Do consumer proposals cover debt owing for income taxes?
The Toronto Star ran an interesting article today (you can see it on their web site) where they described the most obvious way to deal with credit card debt:cut up your credit cards. The article quotes Jean-Guy St-Amore, a spokesperson for the Financial Consumer Agency of Canada, who says that: "The average person has three credit cards, we question that." The article goes on to state that if you are carrying a balance on more than one credit card, the best solution is to cut up all but one of your credit cards, then call the credit card company and cancel them so you don't incur any more debt. Then, make a budget and start working to repay your credit cards. If your credit is still in good shape, consider getting a debt consolidation loan to reduce the interest you are paying. The article doesn't go on to discuss what to do if you have bad credit and can't get a debt consolidation loan, but the obvious next steps would be to consider filing a consumer proposal, or a bankruptcy.
Feel free to contact us at 310-PLAN or e-mail us for more on your options to avoid bankruptcy in Toronto.
An interesting article appeared in today's Toronto Star. The article was titled Housing Market to Cool, and it quoted experts as saying that after the record sales in 2005, the number of sales in Toronto will probably fall by 1% in all of 2006.
In September 2005 there were 7,326 sales in Toronto, but in 2006 that number fell to 6,622, a drop of almost 11%, indicating perhaps an even steeper decline than many experts expected.
As interest rates increase, monthly mortgage payments increase, making it more difficult for homeowners to make their monthly payments. If incomes also start to decline as the economy slows, some homeowners and real estate investors get caught in the squeeze, and are forced to sell their homes. With more sellers, prices drop further, squeezing even more people.
I have seen many people over the last few years who have re-financed their houses as interest rates dropped and house prices increased, and they have used the money to pay off other debts, but many of those people find themselves in debt again as prices and incomes decrease, and that can ultimately lead to a higher rate of bankruptcy in Toronto.
If you have more debt than you can handle, and you are worried it may get worse, please e-mail us or call us at 310-PLAN (no area code required) to discuss your options. Be sure to ask us about a consumer proposal, which is a great option for dealing with your debts and allowing you to keep your house in Toronto.
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This website is sponsored by:
Hoyes Michalos & Associates Inc.
Hoyes Michalos and Associates have offices in Toronto, Ontario to help residents understand bankruptcy and alternatives to bankruptcy in Toronto.
To arrange for a no charge and no obligation initial consultation call them today at 310-PLAN. |
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