bankruptcy in Ontario and consumer
proposal Ontario licensed insolvency trustees view of filing bankruptcy in
Toronto Ontario Canada bankruptcy is sometimes necessary for the financially
troubled individual or company in Canada in 2017 there were 125 thousand 807
insolvency filings 60,000 669 bankruptcies and 65,000 138 proposals
bankruptcy in Ontario accounted for fifteen thousand nine hundred sixty
eight of the twenty seventeen filings the vast majority of these across Canada
filings were people not companies any debtor with severe monetary troubles
must think about bankruptcy bankruptcy isn’t always the appropriate response
though in my practice we first run through the various options available to
avoid bankruptcy bankruptcy is appropriate only when you have too many
financial obligations that you cannot realistically repay from your future
earnings or from selling your assets this is the meaning of the financial
state of insolvency under the proposal provisions of the
bankruptcy and insolvency act Canada a person or company could take up to five
years to pay off a portion of the debt the balance of the debt not repaid in a
successful proposal is forgiven many creditors will wait if you reveal good
faith and make organized re payments that provide your creditors with a
better result in a bankruptcy I advise every person and company of
need of restructuring that timing is crucial it is human nature for debtors
to regularly wait far too long by waiting too long they shed possible
advantages from an earlier restructuring filing the longer a person or company
waits the less options they have on the less creative I can be to protect your
assets bankruptcy in Ontario and consumer proposal Ontario v general tips
1 collect your tax refunds prior to your filing when you file for bankruptcy and
a tax refund owing to you prior to the date of bankruptcy belong to your
bankruptcy estate and are collected by your licensed insolvency trustee trustee
to the insolvency process is meant to treat all creditors fairly in all
ordinary unsecured creditors equally seek the advice of a trustee prior to
making two specific unsecured creditors prior
to filing your good intentions may prove to have created transactions that the
trustee can attack and therefore recover those funds from those parties three
consider how the causes of your insolvency will look to your creditors
uncontrolled lifestyle spending looks a lot different than ongoing costs due to
a mental or physical illness or an addiction the causes of your insolvency
sometimes dictate whether a proposal or bankruptcy filing is preferable for have
you contributed to an RRSP in the 12 months before filing for bankruptcy that
amount will have to be paid over to your trustee under a bankruptcy or accounted
for in the calculation of what type of proposal can be successful five if you
have student loans was the last time you were either a full or part-time student
more than seven years prior to your filing if no you won’t be able to
eliminate the student loan debt however it may be sufficient to relieve yourself
of your other unsecured debts to have sufficient funds every month to start
repaying the student loans bankruptcy will not eliminate every debt there are
certain debts that cannot be discharged through a bankruptcy check with a
licensed insolvency trustee to see if any affect you many people and companies
facing serious financial issues don’t know where to go for professional help
or are too embarrassed bankruptcy will not eliminate every debt there are
certain debts that cannot be discharged through a bankruptcy examples are
student loans as described above child support and alimony under either a court
order or written separation agreement fines or restitution ordered by a court
debts arising out of fraud embezzlement or misappropriation while acting in a
fiduciary capacity amounts owing to secured creditors registered against
your assets such as a mortgage or car loan any amount still owing after the
asset is sold if any is an unsecured claim which is discharged in a
bankruptcy IRA Smith trustee and receiver Incorporated is here to help
we are federally regulated and subject to a strict code of ethics we offer a
depth of expertise and provide a high quality and cost effective service I
understand your pain and we can end it you will find that we use a friendly
non-judgmental method give IRA Smith trustee and receiver incorporated a call
today and let us help you solve your financial problems
starting over starting now I hope you enjoyed the video the IRA
Smith team is available to help you at anytime
we offer sound advice and a solid plan for starting over starting now so that
it’ll be well on your way to a debt-free life in no time for more information on
a no cost basis please visit our website or call us our website and telephone
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