The days of buying a vehicle with cash are long behind us. Car loans and leases are now commonplace. It’s feasible to have a 3-5 year car loan, pay it off, then own the car. It’s a reasonable timeframe for the average consumer and also ensures that an affordable loan is borrowed. However, problems … [Read more...]
Dealing with US Debts in a Canadian Bankruptcy
Given the many Canadians who have business, assets, work or winter in the United States (“US”), it is not uncommon for someone in Canada to owe money to a US lender. If you went to school in the US, you may even have US student debt. How US debts are treated in a bankruptcy if you cannot repay those … [Read more...]
Low Income Ontarians More Prone to Debt Problems (Ontario Study)
Over the last two decades, precarious or insecure employment in Canada has increased by almost 50%, as 1 in 7 Canadians lives in poverty. Part-time work is becoming more common. Wages are not increasing fast enough to keep up with rising costs, resulting in higher personal debt levels. All of this … [Read more...]
How To Deal With Bankruptcy as a Small Business Owner
Considering bankruptcy is never easy. It’s one of the most important – and difficult - financial decisions you will ever have to make. An added worry for some indebted Canadians might be what happens to their financial situation if they are self-employed or running a small business. You may be … [Read more...]
Inheritance Issues in Bankruptcy
When someone files for bankruptcy, they surrender all non-exempt assets to the licensed insolvency trustee for the benefit of their creditors. This includes not only assets they have at the time they file for bankruptcy, but also comprises of any assets that “devolve” on the bankrupt prior to … [Read more...]
Bankruptcy Increases Among the Young and Old
A recent bankruptcy study by my firm found that the average person who files for bankruptcy in Canada is 44 years old. He is likely to be married, may have a mortgage, and owes almost $53,000 in unsecured debt. In fact, the clear majority of insolvent debtors, 77%, are between the ages of 30 and … [Read more...]
Bankruptcy Increases Among the Young and Old
A recent bankruptcy study by my firm found that the average person who files for bankruptcy in Canada is 44 years old. He is likely to be married, may have a mortgage, and owes almost $53,000 in unsecured debt. In fact, the clear majority of insolvent debtors, 77%, are between the ages of 30 and … [Read more...]
Student Loans Under the Bankruptcy & Insolvency Act
The Bankruptcy & Insolvency Act of Canada (the Act or BIA) eliminates most unsecured debts like credit card debt, bank loans, lines of credit and payday loans. There are, however, certain debts that are excluded under the Act. Student debts are often confusing because some debts can be … [Read more...]
How the Economy Influences Bankruptcy and Vice Versa
Individuals file for bankruptcy because they are insolvent. Being insolvent means that they owe more than they own, or do not have the ability to repay their debts as they become due. While the underlying factor is debt, what can cause an individual person to become insolvent is often an unexpected … [Read more...]
Divorce and Bankruptcy Law in Canada
Almost one in five insolvencies in Canada (a bankruptcy or consumer proposal) involves someone who has experienced a marital or relationship breakdown. Often the financial problems occurred long before the divorce. Financial pressures often increase after divorce as two households are now trying to … [Read more...]