Tag Archives: debt

Am I eligible for OSAP if I declare bankruptcy?

Can I get OSAP if I file for bankruptcy?

When weighing your options to deal with your debt, its important to consider the implications of your potential decision.  Many debtors seek the help of a Trustee in Bankruptcy to get a fresh start, and that fresh start often involves more education to increase their income and overall financial stability. As such, Welker and Company has provided a synopsis of OSAP’s eligibility criteria as it relates to bankruptcy and consumer proposals below.  You can find the application instructions in their entirety ...

Stay of Proceedings

What is a Stay of Proceedings?

Stay of Proceedings When a “Stay of Proceedings” is in effect, creditors cannot “commence or continue any action, execution, or other proceedings, for the recovery of a claim provable in bankruptcy.”  In other words, all creditor action is paused. Making an assignment in bankruptcy or consumer proposal creates a “Stay of Proceedings” in accordance with section 69 of the Bankruptcy and Insolvency Act.  Only a licensed Trustee in Bankruptcy, like Welker and Company, can help you obtain this legal protection. ...

Senior Citizens and Debt

Senior Citizens and Debt

Senior Citizens and Debt I wish that it wasn’t the case, but I am seeing Senior Citizens in my office more often every month.  As noted in the recent 680News article entitled “Seniors increasingly struggling with debt, bankruptcy: report“, it’s becoming a trend. When managing a fixed income, budgeting becomes especially important.    It’s all too easy for Seniors to supplement their monthly income with credit without even realizing it.  Income usually falls after the passing of a spouse, ...

Can A Permanent Resident File For Bankruptcy or A Consumer Proposal?

Can A Permanent Resident File For Bankruptcy?

Can A Permanent Resident File For Bankruptcy? Yes.  As a permanent resident of Canada, you are able to make an assignment in bankruptcy or consumer proposal.  In fact, even if you are not a permanent resident, but have lived in Canada for more than a year, then you too can make an assignment in bankruptcy or consumer proposal. Will an assignment in bankruptcy affect my application for citizenship? No.  At present, filing an assignment in bankruptcy does not affect your ...

Exempt vs. Non-Exempt

Exempt vs. Non-Exempt Assets

Exempt vs. Non-Exempt; What the heck does that mean?  In Ontario, certain assets are exempt from seizure or judgment proof.  Ontario is an organized place.  We have a system for people to collect their debts.  The first step is for a creditor to seek a judgement from a, you guessed it, judge.  Once the judgment is obtained, the next step is to enforce it and turn that legal piece of paper into money.  The most common ways to enforce ...

Credit Cards

Credit Cards

What happens to my credit cards when I file a consumer proposal or assignment in bankruptcy? Upon making an assignment in bankruptcy or consumer proposal, the bankrupt or debtor is required to surrender all of their credit cards to their Trustee in Bankruptcy who will destroy them. However, you may continue to use supplementary cards provided by your spouse, or employer as long as you are in no way responsible for the account itself. Can pre-paid Visas be used ...

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 ...

Consumer-Proposal-How-Much-do-I-need-to-Offer

Consumer Proposals: How Much Do I Need To Offer?

“How much?”.  It’s one of the most important questions that people want answered when considering a consumer proposal. Unfortunately, there is no “one size fits all” answer.  While a number of factors can affect the amount that you need to offer your creditors through a consumer proposal, the most important factor is: What would they receive if you declared bankruptcy?  Federal law requires that every proposal is better for the creditors then a bankruptcy. That’s why Trustees always consider ...

Consumer Proposals and the CRA

Consumer Proposals and the CRA

Consumer Proposals and the CRA You may be able to settle your tax debt with the Canada Revenue Agency (“CRA”) by filing a Consumer Proposal; However Consumer Proposals and the CRA make for some unique requirements when combined.  For your consumer proposal to be accepted by the CRA you’ll need address the following issues. File All Outstanding Returns The first thing that you’ll need to do is file any outstanding returns.  This includes personal income tax as well as HST ...

Car Loan After Bankruptcy

Car Loan After Bankruptcy

Many people considering bankruptcy wonder if they’ll be able to get a car loan after bankruptcy.  After-all, many people need a car just to get to work and earn a living. The good news is that many lenders do provide financing to bankrupts.  Financing isn’t typically provided by the big banks but by generally by smaller lenders or the dealership themselves. Rates are often high; anywhere from 10%-50%.  When considering a car loan after bankruptcy make sure that you ...

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