Tag Archives: ontario

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 ...

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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