Tag Archives: debt

407 Debts Are Now Dischargeable by Bankruptcy and Consumer Proposals

Great News: The 407 can no longer prevent you from renewing your plates if your 407 debt was discharged by a consumer proposal or bankruptcy. Both bankruptcy and a consumer proposal are intended to provide a fresh start.  If you can’t renew your license plate after erasing your debt with a consumer proposal or bankruptcy, then your past debts would continue to affect your future; not much of a fresh start in our opinion. While we at Welker and ...

Can you pay off your debt on your own?

Why continue to pay off your debt when there’s no end in sight?  Too many people continue to make debt payments without reducing their debt; something that I refer to as “Treading Water“. If what you own and what you earn isn’t enough to pay off your debts in a reasonable time frame, then it’s important to consider your options. A lot of folks that I meet with have been doing their best to pay their debt without getting results.  They ...

Pay Off Debt

Paying Off Debt

There is no magic pill, despite what the internet may tell you.  Paying off debt is no different then losing weight in that it takes perseverance and time.  In our experience, if a debt solution sounds to good to be true, then it probably is. If you want to lose 10 or 20 pounds then a minor change in your diet or exercising a few times per week may do the trick.  Similarly, If you have a manageable debt problem, which ...

Treading Water - Debt's Vicious Cycle

Treading Water: Debt’s Vicious Cycle

“Treading Water” = Simply keeping your head above water, struggling without progress, or fruitless efforts. For many, making debt payments and then re-borrowing, or “Treading Water”, is a vicious cycle that perpetuates stress and anxiety.  When you aren’t consistently reducing your debt on a monthly basis despite paying what you can afford, then you are “Treading Water” and need to reassess your situation before you drown. It’s important to consider: Is your total debt load decreasing every month? Can you afford ...

Better Business Bureau - Welker and Company

Better Business Bureau

Welker and Company is pleased to announce its membership in the Better Business Bureau! The Better Business Bureau: Sets standards for ethical business behavior and monitors compliance; Helps consumers identify trustworthy businesses, and those that aren’t, through more than 4 million BBB Business Reviews; and Sets standards for and evaluates thousands of advertisements each year to ensure that people can trust what advertisers say. The debt management industry is home to a variety of highly reputable, as well as far ...

High-Personal-Income-Tax-Debt

High Personal Income Tax Debtors and Bankruptcy

Surprise, surprise: The Federal Government’s laws make your life difficult if you don’t pay them.  In this case, its s172.1 of the Bankruptcy and Insolvency Act.  The majority of bankrupts never have to attend court, or appear before a judge, but this isn’t the case for “High Personal Income Tax Debtors” who have more than $200,000 of personal income tax debt that represents more than 75% of their total unsecured debt. (Mortgages, and most car loans are secured debt, not unsecured debt). ...

407-Debt

407 Debt

The Short Story: As of January 27, 2015, people who have completed their bankruptcy or consumer proposal still can’t renew their license plates or obtain new ones until their 407 debt has been paid in full. The Long Story: When the 407 was built, provincial legislation called the “407 Act” was passed by Ontario’s legislature.  This allowed the 407 to report non-payment of tolls to Ontario’s Registrar of Motor Vehicles.  Once reported to the Registrar, individuals with unpaid tolls ...

Transfers-Under-Value

Transfer Under Value

Transfer Under Value A Transfer Under Value occurs when an individual exchanges an asset with another party for less than its true value. Examples include gifting a car to a child, transferring your ownership in your home to your spouse, or selling a property for much less than it is worth. If you’re dealing with an arm’s length party, who is not related to you, then this only becomes an issue if you owed more than you owned at ...

Tax Organization System for the Self Employed

Tax Organization System for the Self-Employed

Tax Organization System for the Self-Employed One of the main disadvantages of being self employed is the necessity to report and remit income taxes yourself.  Employees have it easy.  Their employers withhold taxes from their paycheque before their paycheque hits their bank account, and they receive a T4 at year end.  Things aren’t so easy for the self-employed. A common cause of insolvency is failure to accurately report and remit income taxes and HST to the Canada Revenue Agency ...

Can EI Overpayments Be Erased?

If Service Canada believes that your received more employment insurance (“EI”) benefits than you were entitled to it will attempt to collect that overpayment back from you. Is this overpayment debt payable to Service Canada released by bankruptcy or a consumer proposal?  The answer isn’t entirely clear.  Section 178 of the Bankruptcy and Insolvency Act states that “any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that ...

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