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:
Question: Once it is off my Credit Report, will the individual banks that were involved in the consumer proposal lend me money again in the future? Would I have to repay them back what I still owed to be back "in their good books"? Would the answer be any different if I filed bankruptcy in Canada?
Answer: Once you have completed your consumer proposal, you are free to apply for new credit. It will be up to the individual banks to decide whether or not they will lend you money in the future.
You are correct that one factor they will consider will be the fact that they may not have been repaid in full in your consumer proposal. However, they will also consider other factors, such as your current income, and whether or not you have taken steps to repair and rebuild your credit after bankruptcy.
Your goal should be to pay off your consumer proposal as quickly as possible, and then begin saving money and take steps to re-establish credit.Labels: bankruptcy Toronto, consumer proposal
Question: I am a single mother, forced to declare bankruptcy, due to credit card/line of credit debt, and have monthly earnings at or below the monthly excess income limits. I was bankrupt previously, 18 years ago, for a totally different reason, than the current situation.
I will be going to court in February, and have been told that the most likely outcome is to have the bankruptcy discharge deffered 5-6 months.
What happens from the court date till the final discharge ? I have been told that I will no longer have to fill in the monthly income statements. Is this correct. Also, income tax & GST refunds that I would be elegible for in this period. Do they go to me, or to the trustee ?
Answer: Yes, what your trustee has told you appears to be correct. In the case of a second bankruptcy (filed before September 18, 2009) you are required to appear in bankruptcy court in Toronto for a discharge hearing. At that hearing the bankruptcy judge will determine when and how your bankruptcy will end. In the case of a second bankruptcy with no other issues it is common for the Toronto court to grant a "suspended order of discharge", meaning that your official discharge will occur six months in the future. You would not be required to complete further income and expense statements, unless ordered to by the court.
GST refunds continue to be sent by Canada Revenue Agency to the trustee until you are discharged. In most cases you only lose your tax refund up to and including the year of bankruptcy. Your trustee can advise you further, based on your specific circumstances.
NOTE: Under new rules implemented on September 18, 2009, a court hearing is not automatically required if a second bankruptcy is filed after September 18, 2009.Labels: bankruptcy discharge, bankruptcy Toronto
Several months ago, I was asked to speak at a lecture series put on by the Law Society of Upper Canada. The subject of the day was Bankruptcy and Insolvency Law for General Practitioners, and my topic was to be Personal Bankruptcy, as that is what we specialize in at Hoyes Michalos. Well, I gave my presentation today, which I think was amazing for a couple of reasons, and let me tell you why.
A week ago, I had a major fall. I banged my head on some rocks, resulting in 3 sets of stitches, 2 black eyes, a broken nose, and a concussion, along with many other aches and pains. While I lay in the hospital emergency room over night, many thoughts went through my head, including how am I going to be able to make my presentation next week. I should have been worrying about a lot of other things, but I guess that is just my nature. Well, as time went by, I started to heal. The swelling went down (not totally yet), the bruising started to fade and the stitches came out. I went so far as calling one of my colleagues to give them the heads up that I might need him to pinch hit for me. He tentatively rearranged his schedule to help me out, but with 2 days to go before the presentation, I felt well enough and strong enough to go it on my own. And that is amazing, Part 1.
So here I am in Toronto, giving a presentation on Personal Bankruptcy to 100 or so lawyers. These are lawyers, trained professionals, who have gone to law school, and I am filling them in on how bankruptcy works. Then I think to myself, if these people need help in figuring out what I do, how does that average guy or girl on the street with financial difficulties, the type of people I meet everyday in my office, figure it out. Amazing, isn't it? Let's just call that amazing, Part 2.
And what did I have to say to these lawyers? The same message I try to get across to the average person: identify a problem situation early enough, get expert advice, and come up with a plan. When the creditors are calling, the bills are piling up on the kitchen table, sleep is not easy and family ties are strained, it is time to get some expert advice. My job is to help people review their finances, their income, assets and debts, and come up with a plan. That plan may involve filing a consumer proposal, especially in light of the fact the our bankruptcy rules changed last week to make consumer proposals more attractive than filing for bankruptcy, or, if there is no cash flow to offer a settlement to creditors, than a bankruptcy may be the last resort.
If you would like some expert advice, feel free to call us at 310-PLAN, or your can e-mail us a question.
Simply AMAZING.
Question: my husband and i have our personal credit in debt, up to 71K due to a business star up, we're not trying to get on our feet but our debt just seems to be getting all of our funds and we can't make payments on time. we're likely to have $ 300 only after our apt lease, utilities and living essentials, such as gas and food, we own our car. can you tell me what are my options consumer proposal or bankruptcy,how can i pay back, do they reduce my debt fee? Thanks
Answer: In a consumer proposal, a settlement is reached with your creditors. For example, in a proposal you may offer to pay $300 per month for 5 years, or $18,000 in total. If the creditors accept, and you make the payments, the remainder of your debt is eliminated.
If you can't afford a proposal, or if the creditors don't accept the offer, the other alternative is personal bankruptcy. The cost of bankruptcy depends on your family income, the size of your family, and certain expenses.
Each situation is different, so we recommend that you contact a Toronto bankruptcy and proposal trustee to review your specific options.Labels: bankruptcy Toronto, consumer proposal
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
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
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.
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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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