A Person in Toronto Asks -Should I Go Bankrupt?
In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy 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 in Ontario 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 and debt experts. 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 in Ontario 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 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.
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.
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
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.
How Long Will My Bankruptcy Last in Ontario?
In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto talks about, How long a Bankruptcy lasts.
There tends to be some general misunderstanding about how long a bankruptcy lasts. People hear things about this 7 years business, not being able to obtain credit, and things like that. But, essentially a bankruptcy is a legal process, it has a beginning and it has an end. It begins when you file for bankruptcy. It ends when you are discharged from the bankruptcy and therefore from your debts. So, how long will it last? Well, for the majority of people who have gone bankrupt, it’s their first and hopefully only bankruptcy, they are eligible for the discharge to take place in nine months. If they earn above a certain pre-set amount, an amount the Government sets for your monthly income, then if you earn more than that, bankruptcy might be extended by 12 months, from 9 to 21 months. If you have been bankrupt once before, you are going to be eligible to be discharged automatically in 24 months, not nine. And if you earn again, above that amount, then you will get the 12 months tacked onto that too, so you will end up being bankrupt for 36 months. So, generally speaking, a person goes bankrupt, they are bankrupt either 9 or 24, or 21 or 36 depending on the circumstances. Now, there are other factors that come into play, that could extend the bankruptcy, it would result in a person having to go to court to get their discharge and all that. Now, those are the kinds of things a Trustee needs to explain to you. And there are so many different variables.
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.
Is A Payday Loan A Good Idea?
In this video, Richard Killen, a Licensed Insolvency Trustee in Bankruptcy Scarborough talks about whether a Payday loan is worth considering.
I guess one can say that going into debt, any kind of debt, is hardly ever a good idea. Usually, the cost of the debt outweighs whatever benefits you may get from borrowing the money. However, sometimes debts make a good case for making some worthwhile. For instance, is a mortgage worthwhile? Because you borrow a large amount of money for buying a house, you are going to pay back that money with interest but the house will appreciate in value. And over time that appreciation more than outweighs the cost of the debt. Maybe that kind of debt is a good idea.
Ultimately, it always boils down to whether the cost too much and how much is the cost? Now there is going to be interest on any loan and that is what you must consider. Now, unfortunately, Payday loans are on the high end of all interest calculations so one can say that it is tough to say if a Payday loan is worth it.
If a Payday loan is a part of your coping with bills, you should consider having a consultation with one of our trustees. It may be the most stress relieving call you make this year.
Will I Lose My Home If I Go Bankrupt?
In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto answers the question most homeowners ask, which is “Will I lose my home if I go bankrupt or do a consumer proposal?”
Because you may have debt problems, you may be concerned with losing your home and most people figure that “if they go bankrupt they are never going to keep their house.” And for most people, that is a very traumatic thought, however, it can be avoided.
I found that over the last 10 years, very few people who own a home with equity have to lose the home if they don’t want to. They can find a way to keep it. The only way to keep it is to deal with the matter of equity. The trustee is responsible for obtaining the equity from the property in order to pass the money along to the unsecured creditors. They have the right to their money.
Therefore, if a person or family wants to keep their home, they’re going to need to arrange for financing or to pay the creditors. Of course, it depends on how much equity there is in the home. If you really want to keep your home, generally you can. You can keep it whether it’s a bankruptcy or proposal. In fact, if it’s a consumer proposal your home equity is not up for grabs. This really only applies to a homeowner declaring personal bankruptcy.
If you are a homeowner and considering a debt solution, I encourage you to call our office. Why lose sleep wondering what will happen. Your initial meeting is free, and in that meeting, we will explain all of your options so you may make an educated decision on the best option to obtain debt relief.
