Toronto Ontario Personal Bankruptcy Blog: Experts Answer Personal Bankruptcy Questions

Posted on Monday, October 27, 2008

Will consumer proposal cost my job?

Question: I am currently work for a bank, if i file a consumer proposal and R7 will be on my record, will my employer fire me for this?

Answer: Over the years we have assisted many residents of Toronto who work for a bank file a consumer proposal. Unless you have a specific clause in your employment agreement preventing you from filing a consumer proposal, it would be very unusual for an employer to fire you for filing a consumer proposal. In most cases your employer will be pleased that you are finally dealing with your debt issues.

However, if you are worried about it, you should talk to someone in your Human Resources department first to determine whether or not a proposal would have any impact on your job.

Labels: consumer proposal

Posted on Thursday, August 21, 2008

Is your score affected by credit counselling?

Here's an e-mailed question I just received: Is your score lowered by going for credit counselling?

The answer depends on your credit score before you go for credit counselling. If you already have a bad score because you have defaulted on payments, your score will probably be no worse for attending credit counselling. According to Equifax, credit counselling will remain on your credit report for three years after your program is completed.

While credit counselling is the correct option for many, a consumer proposal is often a better option. It has the same impact on your credit report, and in most cases we can work out a plan to repay less than the full amount of your debt, allowing you to get out of debt quicker.

Labels: consumer proposal, credit counselling

Posted on Wednesday, July 09, 2008

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.

Posted on Thursday, January 17, 2008

Travelling Abroad after filing bankruptcy

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

Posted on Thursday, August 02, 2007

Consumer Proposals: Significant Increase in Consumer Proposals Filed in Toronto in the First Half of 2007

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

Posted on Thursday, February 15, 2007

Personal Vehicle & Family Vehicle and Bankruptcy in Toronto

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

Posted on Sunday, October 22, 2006

Mortgage Payments and Income Taxes Under Consumer Proposals

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?

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