What is the minimum debt required to Declare Bankruptcy in Scarborough Ontario?

What Is The Minimum Debt Required Before You Can Declare Bankruptcy In Scarborough Ontario?

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Scarborough Ontario talks about the minimum requirements for personal bankruptcy in Ontario.

I often am asked by people in Scarborough, what is the minimum debt before I can declare bankruptcy in Ontario? Many people feel that if they do not owe that much, perhaps its too low to get a trustee involved.

Legally, whether it is in Scarborough or anywhere else in Ontario, the minimum you must owe is $1000. Of course there are other qualifications as well. However as far as the actual amount it is only one thousand dollars. Therefore, as long as the amount you owe is greater than the minimum, you qualify to use the bankruptcy act.

We welcome any questions you may have on bankruptcy, debt counselling or consumer proposals in Ontario.

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Can I Cancel My Personal Bankruptcy in Toronto, Ontario?

Can My Bankruptcy Be Cancelled?

Sometimes I get asked by people who have recently filed personal bankruptcy whether or not they can cancel their personal bankruptcy in Ontario. Perhaps they have changed their mind and are wondering if their bankruptcy can be canceled?

The short answer is no, the bankruptcy cannot be canceled once it’s filed in the courts and the federal government has issued a number. It’s an official legal process and it’s not going to be canceled outright.

There are different ways to end a bankruptcy and there are ways that a personal bankruptcy in Ontario can be annulled and canceled in a legal way. However, you cannot just change your mind and decide “I want my bankruptcy canceled”. The legal system in place does not work that way.

One of the main reasons you sit down with a Licensed Insolvency Trustee is to go over all your options for debt relief. Usually, personal bankruptcy is the last option considered for debt relief, however, should bankruptcy option be chosen by the consumer, it was likely the best option at the time considering all factors.

Should your circumstances change after filing and you would like to reconsider your options, one of our Trustees would welcome an opportunity to discuss your options.

We can meet with you during business hours or book after hours appointments if that is more convenient for you. Contact us at (888) 545-5365.

In Toronto Are My Spouse’s Assets Affected By My Bankruptcy?

In Toronto Are My Spouse's Assets Affected By My Bankruptcy?

In this video, Richard Killen, a Bankruptcy Trustee in Toronto talks about, the effect of your bankruptcy or your wife or husband’s assets.

I am often asked is “Are my wife’s or husband’s assets be affected in any way?”

Generally speaking, the way bankruptcy works, the answer is no. Your bankruptcy will not affect your spouse.  If an asset is not commonly owned or jointly owned by both you and your spouse, then their assets are not affected.

Watch The video for more information.

If you are having debt problems and considering bankruptcy or a consumer proposal, you should definitely visit a licensed bankruptcy trustee in Toronto so that you will be provided advice about your options to consider for debt relief.

Contact us for a fresh start 1 (888) 545-5365

It may be the most stress reliving call you make!

Verifying statement of affairs

I mean basically, think of it this way, if you come in to see me, and you are having trouble paying your bills and all that, and it’s been a very rough two years for you and so on, so you come in, and now do I not believe you when you start telling me your situation?

I tell you, I will believe you. I’m going to take you at face value. But, I am still going to have to verify your statement of affairs. Period. Now I can’t pull things out of the air. I can’t assume you had a GIC two years ago.

Remember though, if you read the statement of affairs, on Page 3 of the third section, section c, there are a number of questions there, and one of the question is: Within the last 12 months, have you disposed of any property? Now, they don’t mean real estate, they mean property as defined by the Bankruptcy and Insolvency Act, which is anything you’ve got.

Why a bankruptcy trustee is like a bus driver

Now it is not really an exercise to be all things to all people, or anything like that, it’s not the way the law works, but it is there essentially to protect the rights of people. And when those rights come into conflict, then the court is asked to step in and decide. But administratively, that is what the Bankruptcy Trustee in Toronto focuses on and the Trustee, well I will tell you the way I describe this thing to most people now a days, I started this two or three years ago, and I have fallen in the habit of doing this all the time now, I describe my job as being like a bus driver. And whether I am driving a personal bankruptcy bus or a proposal bus, or a consumer proposal that you hear about now, whichever one I’m driving, it’s going to take everybody to a certain destination. It’s a route and it’s going to get there and there is going to be an end of the line, and all that kind of stuff. So, who’s on the bus? Well, obviously the debtor is. Be he a bankruptcy debtor or a proposal debtor, it doesn’t matter. He’s using this bus to achieve an end to get to a certain location, to get to a stop that he feels he has to get to. But the minute the debtor steps on the bus, guess who is going to be stepping on right behind him? In fact, trotting on his heels probably. Every single creditor he’s got. What does the driver do? Well, the driver drives the bus, doesn’t he? And the driver, in driving the bus, what the driver’s responsibilities are, really is the safe conduct of all these passengers, equally, to whatever destination they choose to be theirs on this route. Whatever their stop is, if you want. So, think of it that way, and you can use that analogy and actually make it work on all the little minutia on how this process works.

Trustees Report

Trustees Report | Richard Killen & Associates

And most often, one of the reasons why I was a little late today, I had to go to my Mississauga office to meet with a person doing a proposal, consumer proposal, and I signed the report before I left, and the main argument is quite simple, the proposal is offering a net dividend, money in your pocket kind of thing, which is going to be twice as much as anything we can foresee out of the bankruptcy, best case scenario. So whether you think that is sufficient reason to accept the terms offered, that is your business. My call is, if the proposal is offering twice as much as the bankruptcy, I see that as a better deal for you guys. Now, you may be using a very different criteria to determine what is a good deal for you. The Administrator’s opinion on that question is not anything other than an opinion. It’s the old thing, where that opinion and a dollar ninety will get me a large coffee at Tim Horton’s.

Richard Killen on Tunedin with Lucy Zilio

Richard Killen on Tunedin with Lucy Zilio

In this video, Lucy Zilio talks with Richard Killen on Richard Killen & Associated 25th Anniversary.

Richard, a Licensed Insolvency Trustee (LIT) talks about more and more people with debt challenges choose a consumer proposal over bankruptcy in Toronto. Watch the video for more information.

What Happens To My Debts If I Go Bankrupt

What Happens To My Debts If I Go Bankrupt?

 

In this video, Richard Killen, a Licensed Insolvency Trustee in Bankruptcy in Toronto talks about, What Happens To My Debts If I Go Bankrupt.

People sometimes ask me what is really happening with regards to my debts if I go bankrupt or if I do a consumer proposal? The first thing that happens with regards to your debt, when a person does a bankruptcy or proposal, the first thing that happens is a Stay Of Proceedings goes into effect. It’s kind of like a wall that goes up and separates them from their debts, from their creditors. This Stay Of Proceedings prevents the creditors from being able to continue to pursue them for the money. So, the first thing that happens is that you get this relief from the creditors who you are delinquent with. But eventually, when you go bankrupt or do a proposal, you are essentially trying to get to debt free land. And, when you get your discharge from the bankruptcy, or when you get the certificate at the end of the proposal, to show that you have paid the proposal in full, essentially you have reached debt-free land. So, what happens at the end is, basically, you are no longer responsible for all the debts you had on the date you went bankrupt. Now there is an exception to that, that exception, of course, is a secured creditor. A secured creditor, if you own a home or a car, and you want to keep the car, then you are going to have to keep paying that creditor throughout the bankruptcy or proposal in order to retain the asset.

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.

What Are The Different Types Of Creditors

What Are The Different Types Of Creditors?

 

In this video, Richard Killen, a Licensed Insolvency Trustee in Bankruptcy Toronto talks about, What Are The Different Types Of Creditors.

In a Trustees world, there are three types of creditors, there are secured creditors, unsecured creditors, and contingent creditors. Contingent creditors are if you have co-signed for someone for instance. You may never be asked to pay that thing because the other person is going to do all the paying. But, who knows. The ones we regularly have to deal with, the ones that matter, are secured and unsecured creditors. The vast majority of the ones that we deal with are the unsecured creditors. The unsecured creditors are the ones who don’t have any particular rights in terms of being able to effect repayment of their debt. They have to go through the courts, get judgments and things like that. A secured creditor is a person who has a contract, you have given that person a contract, that specifically designates that they have a right to come and take a particular thing away from you if you don’t pay them. So, a typical one is a mortgage. If you give a mortgage to the bank because they leaned your money to buy a house, then if you don’t make the payments on that loan, that mortgage allows them to come and repossess the house. Same thing with a car loan and things like that. So a secured creditor is essentially a person who doesn’t have a lot to do with a bankruptcy or proposal. They are kind of outside the bankruptcy and proposal.

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.

Will I Lose My Personal Possessions If I Go Bankrupt

Will I Lose My Personal Possessions If I Go Bankrupt?

 

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Toronto talks about, Will I Lose My Personal Possessions If I Go Bankrupt.

There is a Provincial law that regulates what a person might lose, or can lose, actually let me turn it around, there is a Provincial law that regulates what creditors can take from you. If you are not paying them, and they are trying to recover their debt by seizing things. Furniture and personal effects are essentially off the table. Personal effects are essentially completely protected, and furniture, you would have to have furniture that is worth so much money that before it hit the threshold, where a creditor can take it, frankly, I don’t remember a time when I had something like that. So, essentially, this law regulates that people don’t lose their furniture or personal effects. Now, this law applies to a Trustee in a bankruptcy situation, but like I say, who has stuff that’s worth that much? Most people, let’s face it, if you have a couch that your five-year hold has been bouncing up and down on for the last three years or something like that, it’s not going to be worth very much in terms of resale, is it?

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.




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    About Richard Killen & Associates


    Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.


    Serving the GTA for 25 years