Tag Archives: canada

Bankruptcy and Insurance

Bankruptcy and Insurance

Under the Insurance Act of Ontario if your insurance policy’s beneficiary is your spouse, child, parent, or grand child then the value of the policy is exempt from seizure and unaffected by making an assignment in bankruptcy. Term life insurance policies, meaning those that have no value unless the insured individual becomes deceased, are always unaffected by the bankruptcy process. There are two caveats. 1) If an un-discharged bankrupt receives life insurance proceeds before completing their bankruptcy process then those ...

Purposes of the Bankruptcy System

Purposes of the Bankruptcy System

What are the Purposes of the Bankruptcy System in Canada? While it’s not something anyone wants to be involved in, Canada’s bankruptcy and insolvency system is an important aspect of our strong economy.  The system is often misunderstood so we’ve highlighted the main purposes of the Bankruptcy and Insolvency Act for your review below. 1) Provide a Fresh Start A main aim of the bankruptcy system is to allow an “honest but unfortunate debtor to obtain a discharge from his ...

Duties of a Bankrupt

Duties of a Bankrupt

When considering making an assignment in bankruptcy it is important to understand the duties that you may be required to perform in accordance with Canada’s Bankruptcy and Insolvency Act. These duties include: o   Delivering all non-exempt property to the Trustee o   Delivering all credit cards to the Trustee o   Delivering pertinent books and records to the Trustee o   Submitting to examination.  (This is a very uncommonly enforced duty that is typically only required where the Trustee, Official Receiver, or ...

How Do Trustees Get Paid

How do Trustees get Paid?

How do Trustees get Paid? This is a common question that Trustees in Bankruptcy receive from friends, family, fellow professionals, and clients alike. “But Steve, if the debtor can’t afford to pay their creditors, how can they afford to pay you?” It’s a logical question with a simple answer: The debtor pays a fraction of what they owe on a monthly basis and our fee is included in those payments.  Funds received by us are placed into a trust account that ...

RRSPs and Bankruptcy

RRSPs and Bankruptcy or Proposals

RRSPs Did you know that when declaring bankruptcy in Ontario that RRSP contributions made more than 12 months ago are exempt from seizure?  That’s right, even after declaring bankruptcy you get to keep all of your RRSPs except those contributions made in the 12 months preceding your bankruptcy.  Even then, you can opt to keep all of your RRSPs by paying your Trustee the amount that you contributed in the last 12 months. None of your assets are surrendered when ...

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