‘Debt consolidation’ can mean many things, but the basics are: any effort by a person to convert multiple debts into one on a monthly basis with a view to eventually paying off those debts.
A common question Licensed Insolvency Trustees field is “How is my credit rating affected if I file a bankruptcy or a proposal?” Generally by ‘debt consolidation’ they are referring to a Consumer Proposal, which is a form of that. But let’s deal with bankruptcy first.
Canadians love their cars.
After lodging (rent or mortgage), cars are usually the average Canadian’s biggest monthly expense. Even in an era of expensive groceries.
This rather broad term can mean many things depending on the situation, the person in question or what the desired outcome is. It also is often misused by people when they are referring to a financial course of action.
As a small business owner you have worked hard to grow your business.
You have concentrated on building a client base by offering excellent services in a timely, reliable manner.
Other than “What if I win the lottery?” and “Will this affect my spouse?”, this is the most frequently-asked question we get from our clients.
“You can’t fight City Hall.”
That’s what they say, isn’t it? And that counts double for the federal government for a lot of people. Canada Revenue Agency (CRA) has long been viewed by Canadians as the ‘godfather’, that enormous, all-powerful entity embodying for many all that is bad in government.
Absolutely you can. About 58,000 people did just that in 2015 in Canada. Income tax arrears are eligible to settle with Canada Revenue Agency (CRA) as a consolidation solution (along with all other unsecured debts such as credit cards and lines of credit) in the form of a proposal. CRA are not only just a likely to reduce the principle (and ALL of the interest) as other creditors, but in most cases they are even MORE likely to participate, since this acts as a form of collection for them in their overworked portfolio.
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.