#6 I will not be able to travel
False. There are no restrictions on passports or travel in a bankruptcy.
#7 It will be published in the newspaper
OK, people like lists and since that’s the thing to do these days on the web, that’s how we’ll work it. So – here are the Top 10 myths about bankruptcy in Canada:
A recent ruling in the Ontario Court of Appeal means that 407 ETR highway debts can now be included in a bankruptcy or a consumer proposal under the Bankruptcy and Insolvency Act (BIA). In the past, people filing either a bankruptcy or a proposal were discharged from all their unsecured debts, but the MTO would withhold a new vehicle permit (“sticker”) when it came time for the person to renew unless payment of 407 debt was made in full. Effectively, this meant that that particular debt had not really been discharged.
In 2008 the Payday Loan Act set out stringent rules for how much payday loan companies such as Money Mart, Cash Money and others can charge in interest rates and fees.
Ever look at your credit card statement? I mean really look at it?
Debt settlement companies are coming under some fire lately in the media. Trustees have been warning government authorities for years now about some of these operations. Manitoba and Alberta have passed legislation dealing with them (up front fees banned etc.). Ontario has yet to act beyond issuing consumer alerts which few will ever see or read.
Possibly! Student loan debt is an eligible debt in either a bankruptcy or a consumer proposal provided it has been 7 years since you’ve been a student. That aspect of the Bankruptcy and Insolvency Act (BIA) was changed by the government in July 2008 (prior to that the law stated it had to be 10 years since a student).
At a presentation we conducted last night on Tackling Personal Debt, we were asked some excellent questions. One of them was to the effect of: will you be discussing “Good debt vs. bad debt”?