A common concern I hear from individuals contemplating filing for bankruptcy or a consumer proposal is, "Can I keep my car"? In most cases, yes. Watch my latest video to learn more.
Sometimes - even for the nicest people - nothing can stop the constant stream of bad news. A client I helped recently dealt with divorce, a custody battle and cancer within a short period of time. Find out how I helped her resolve her financial difficulties, so she could focus on her health and her future.
View more client stories here.
Individuals going through bankruptcy in Canada are required to pay a portion of their earnings to the bankruptcy estate if they earn more than guideline amount set by the federal government. We refer to this payment as "surplus income" and I explain the concept in this video.
Filing for bankruptcy provides you with immediate protection from virtually all unsecured creditors and any collections or legal action by creditors is immediately stopped. You no longer have to pay or deal with your creditors during bankruptcy. This protection lasts during your bankruptcy and until you are discharged - or released - from bankruptcy.
After filing for bankruptcy you are required to fulfill some duties and obligations. I provide some common examples in my latest video.
In Canada, bankruptcy must be filed through a Licensed Insolvency Trustee, who is responsible for administering the bankruptcy estate.
Before filing for bankruptcy, you must meet with a Licensed Insolvency Trustee who will assess your situation to ensure you qualify to file for bankruptcy. You qualify to file bankruptcy provided that you owe at least $1,000 and cannot meet your debt obligations as they generally fall due. The Licensed Insolvency Trustee will also explore whether you qualify for other options, such as a consumer proposal or debt management plan.
If you decide that bankruptcy is the right option for you, the Licensed Insolvency Trustee will collect financial information from you and prepare legal bankruptcy papers, which you must sign.
Once the legal paperwork has been signed, the Licensed Insolvency Trustee will file the papers with the Office of the Superintendent of Bankruptcy. Your bankruptcy process begins when the paperwork is filed.
In my latest video I address the question, "How Long Will I be Bankrupt in Canada?"
Have ever you wondered what is a Licensed Insolvency Trustee? Or, perhaps you've never heard the term. In this video I explain how a Licensed Insolvency Trustee can help individuals, families and small business owners deal with debt problems.
Lana Gilbertson, Licensed Insolvency Trustee with MNP Debt in Vancouver, discusses why an individual should file a consumer proposal versus a bankruptcy, when a consumer proposal is a viable option.
In this video, Lana highlights three reasons why a consumer proposal should be filed instead of bankruptcy. First, if a consumer proposal is a viable option and the debtor files for bankruptcy, the bankruptcy trustee must report this fact to the creditors who may then request an extension of the bankruptcy. Second, a consumer proposal provides certainty while bankruptcy does not. For example, if you come into money or property or have an increase in income after a consumer proposal is filed, the proposal terms do not change. By contrast, if you come into money or property or have an increase in income during bankruptcy, more money is paid to the bankruptcy estate. Last, bankruptcy should be a last resort. If you a consumer proposal is a viable option, why would you want to go bankrupt?