What is Surplus Income in Personal Bankruptcy?

What is Surplus Income in Personal Bankruptcy?

When I talk to people about the potential costs of personal bankruptcy in Kitchener, they often laugh when I mention surplus income. Surplus? Not me, I’ve got nothing left over at the end of the month. That’s not exactly how it works. Bankruptcy is a legal means for individuals to obtain a fresh financial start…

How to File for Bankruptcy in Kitchener-Waterloo

How to File for Bankruptcy in Kitchener-Waterloo

I spend a lot of time talking to people about their money problems. Often times, the conversation starts with a comment like, “I’m looking for information about how to claim bankruptcy.” We all like lists. Here is a concise list of the 10 key steps in filing for bankruptcy. Asset your debt. Gather information about who you…

Debts Can Make Strange Bedfellows – Know Who You Are Getting Into Bed With

Debts Can Make Strange Bedfellows – Know Who You Are Getting Into Bed With

Ever heard of a debt consultant?  Referring to me, your quick answer might be a skeptical, “Aren’t you a debt consultant?  What’s the difference?” For people struggling to pay their debts, it is a very confusing time.  The internet, radio and TV are covered with ads, everyone claiming to be able to help you.  How…

Where Has All the Fun Gone?

Where Has All the Fun Gone?

Struggling with a heavy debt load can impact all areas of your life: your relationships with family and friends, your performance at work, your sleep and overall health, etc.  It can be a dark cloud hanging over everything you do. Somebody told me a very telling anecdote recently.  She said that she and her husband,…

Understanding Writs and Liens in Personal Bankruptcy

Understanding Writs and Liens in Personal Bankruptcy

I get a lot of questions from people about what their creditors can do if they are unable to pay their debts.  Can they take this?  Get to I get to keep that? To take anything from you, most creditors have to first go to court and receive a judgment against you.  Canada Revenue Agency…

Is a Consolidation Loan a Good Choice for Me?

Is a Consolidation Loan a Good Choice for Me?

The answer to that question is:  Well, that depends on your circumstances. The concept behind a consolidation loan is great.  You have a wallet full of high interest credit cards (or other high interest debts).  A bank gives you a loan to pay off all those debts.  Now you have a new loan.   It’s good…

Who is Joe Debtor?

Who is Joe Debtor?

Every two years, Hoyes, Michalos & Associates Inc. reveals the results of its study into what the typical insolvent person looks like.  They term this theoretical person “Joe Debtor.”   At first glance, Joe Debtor does not look that different than the average Canadian: similar family profile, similar income levels, etc.  “Where “Joe Debtor” differs from…

Beware the Debt Consultant

Beware the Debt Consultant

You may have heard advertisements for companies who claim to be able to reduce your credit card bills by up to 70%.  Good deal right? What they are referring to is arrangement called a consumer proposal.  With a consumer proposal, your creditors allow you to repay a portion of your debts.  They agree to the arrangement…

What Happens to my RRSP if I File for Personal Bankruptcy?

What Happens to my RRSP if I File for Personal Bankruptcy?

Most people have heard that filing for bankruptcy could mean that they aren’t able to keep all of their assets.  I want to focus today on one specific question:  What happens to my RRSP if I file for bankruptcy? For most people, the answer is that nothing happens.  The bottom line is that most people are…

Tax Refunds and Personal Bankruptcy

Tax Refunds and Personal Bankruptcy

I get asked all the time about whether or not filing for personal bankruptcy means losing tax refunds. Here’s the answer in a nutshell:  you would lose tax refunds related to the calendar year in which you file for bankruptcy, as well as refunds from any earlier years that had not yet been processed by…