A Person in Toronto Asks -Should I Go Bankrupt?

In this video, Richard Killen, a Licensed Insolvency Trustee with offices across Toronto answers the question.
I don’t know how many times I have been asked by somebody during the course of the free consultation we provide to consumers at the beginning. What do you think, should I go bankrupt?

My answer is always the same for people. Its not up to me to tell you to go bankrupt.
Bankruptcy is a personal decision. What might work for one person, might not work for another person. Although what you can get from a trustee is a good idea of what is going to happen if you do a bankruptcy opposed to a consumer proposal.

So to answer the question, should I go bankrupt? My answer is you need to decide that.

What happens to my tax refund in a bankruptcy or consumer proposal in Brampton?

In this video, Richard Killen, a Licensed Insolvency Trustee with offices in Durham region (Pickering & Oshawa) talks about whether a person’s income tax debt can be included in a personal bankruptcy in Ontario.

Something that comes as a big surprise to a lot of people is when they find out an income tax debt, an ordinary income tax debt is something that is dischargeable in a bankruptcy or can be taken care of in a consumer proposal. The people of Durham or people from across the Greater Toronto Area ask me that question numerous times. It is not a strange thing as ordinary income tax debt is treated as a debt.

There is nothing special about the fact it is a debt owed to the government. A debt to the government is not anything special in a bankruptcy situation. Therefore, in a bankruptcy in Durham or anywhere in Ontario, a tax debt is dischargeable.

If you are behind on your taxes or are have other debt problems, consider talking to one of our trustees. We can help you review all your options for debt relief.

Contact our Durham office us for a fresh start at (905) 420-6565

Can I Include Income Tax Debt In My Bankruptcy in Durham, Ontario?

In this video, Richard Killen, a Licensed Insolvency Trustee with offices in Durham region (Pickering & Oshawa) talks about whether a person’s income tax debt can be included in a personal bankruptcy in Ontario.

Something that comes as a big surprise to a lot of people is when they find out an income tax debt, an ordinary income tax debt is something that is dischargeable in a bankruptcy or can be taken care of in a consumer proposal. The people of Durham or people from across the Greater Toronto Area ask me that question numerous times. It is not a strange thing as ordinary income tax debt is treated as a debt.

There is nothing special about the fact it is a debt owed to the government. A debt to the government is not anything special in a bankruptcy situation. Therefore, in a bankruptcy in Durham or anywhere in Ontario, a tax debt is dischargeable.

If you are behind on your taxes or are have other debt problems, consider talking to one of our trustees. We can help you review all your options for debt relief.

Contact our Durham office us for a fresh start at (905) 420-6565

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

In this video, Richard Killen, a Scarborough Ontario based Licensed Insolvency Trustee 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? 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.

Contact us for a fresh start (416) 285-9511

Can I Cancel My Personal Bankruptcy in Toronto, Ontario?

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 this video, Richard Killen, a Toronto-based Bankruptcy Trustee 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 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 Trustee 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 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

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

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. Watch the video for more information.

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.


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