Tag Archives: trustee

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 ...

Bankruptcy-Discharge

Bankruptcy Discharge

After making an assignment in bankruptcy with a licensed Trustee, you must complete a number of duties, including, but not limited to: 1) Attending two credit counselling sessions; 2) Reporting your income on a monthly basis; and 3) Making all required payments. If you are a first or second time bankrupt, and fulfill all of your duties prior to your scheduled discharge then you will receive what is called an Automatic Discharge.  It is at this time that your ...

Bankruptcy-is-Not-Contagious

Bankruptcy Isn’t Contagious…

Bankruptcy isn’t contagious While I’m not a medical doctor there’s one thing I’m sure of: You can’t become bankrupt simply by calling a Trustee. While an overwhelming majority of debtors express their feeling of relief after leaving my office, so many delay asking for help.  So why do so many people delay reaching out for help?  In my experience, there are a number of reasons. Reason #1 – People don’t understand the bankruptcy process Common misconceptions are numerous.  Few people ...

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 ...

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 ...

What is a Trustee in Bankruptcy?

From time to time, and for a variety of reasons, people often become unable to pay their debts.  This has been a long standing issue that the Canadian Government addressed by passing certain laws. Since the laws are complicated, the Government began to train and license specialists in debt management; they call these specialists Trustees in Bankruptcy.  (Not Trustees of Bankruptcy or Trustees and Bankruptcy). A Trustee in Bankruptcy is an officer of the court licensed by the Superintendent ...

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