consumer proposal
Consumer proposal related posts. A consumer proposal is a legal settlement with your creditors administered under the Bankruptcy & Insolvency Act by a Licensed Insolvency Trustee.
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Is There A Hidden Real Estate Bubble in Canada?
Is there a “hidden” real estate bubble in Canada? This is a question I asked myself since last week when I started receiving panicked phone calls from people that purchased real estate during the height of the Toronto real estate market. Specifically, they purchased properties prior to April 21 2017 before the Non-Resident Speculation Tax came into force. There are two phone conversations that stand out in my mind which I’ll discuss… Investment Property Purchase Last week I received a call from a real estate investor who also happens to be a mortgage broker. He purchased a rental property just north of Toronto on Steeles Avenue in early 2017. It was financed…
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Why Consumer Insolvencies in Canada Are Increasing (Despite A Strong Economy)
Why Are Consumer Insolvencies Increasing Among Responsible Canadians? I am what is called a Licensed Insolvency Trustee. People come to me when they need help with debt relief, in particular Canadian consumer insolvencies proceedings under the Bankruptcy and Insolvency Act. If they have little in assets or income, they’ll usually file for personal bankruptcy. If they have significant assets or income, they’ll usually settle with their creditors by a legal proceeding called a consumer proposal. Regardless of the proceeding chosen, a debtor is required to undergo something called Insolvency Counselling. So what is it? In colloquial terms, Insolvency Counselling is when the LIT sits down with a debtor and examines…
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Preparing for the Next Recession – A Guide For The Canadian Middle Class
As a CPA and Licensed Insolvency Trustee, I had a front row seat during the Great Recession of 2009 – 2011. I saw the devastating impact it had on the lives of ordinary Canadians. These were everyday people who were for the most part honest, hard working, and played by the rules. Yet they found themselves on the short end of the stick when the Great Recession started 10 years ago: some lost their jobs, some had their financial portfolios decimated, some lost their homes and quite a few experienced losing all three. It’s been over 10 years since the onset of the Great Recession and Canadians are more indebted…
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Meeting of Creditors Requested for Consumer Proposal
A reader asks: I filed a consumer proposal back in August and a meeting was just called with my creditors. I only have BMO (majority holder) and RBC to deal with. They rejected my first offer and we are counter-proposing with another amount. I feel like we should just accept the amount that they want at this point. But I know that I am being helped so I pay the least in the end. I don’t want the proposal to be rejected. It sounds like it’s only a difference of $50 from what I could gather. How likely is it to be rejected? Or does this meeting just serve as…
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I’m Behind in My Consumer Proposal Payments!
A reader asks I filed a Consumer Proposal back in April where I’ve been paying $175 biweekly. However, I ended up losing my job back in July and the payments after that were coming out of my savings. I am now down to the last $100 to my name, literally. The next $175 payment is scheduled to be paid in a week’s time, and needless to say, that ain’t going to happen thanks to my broke ass. I filed for Employment Insurance yesterday (I’m stupid and don’t know why I didn’t think of doing it sooner), so there is a possibility it may be approved and I’d get some funds…
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My Husband Lied About $350,000 of CRA Debt. What Now?
A READER ASKS: Hello, we are 37 F+M married in Ontario for 17 years. Teenage kids. I make $70k in a government job with pension. He owns a contracting business that he opened about 15 years ago. We are well known. He is very successful with several great employees and we get a lot of business. After expenses and wages he might clear $100k. We have $109,000 in the bank combined, today. Through our entire relationship he has paid for everything in cash. Even multiple vehicles. Trips. He saves for what he wants and buys it. He has never had a credit card. All our finances are separate and we…
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Consumer Proposal Car Ownership Problem
A READER ASKS: My wife is exploring filing a consumer proposal. We have checked with four insolvency trustee offices. We’re confused on vehicle ownership, and we are getting different answers. 3 years ago, we bought our second car (currently worth 28k). For insurance purposes, I was already the primary driver on the first car, so I was advised that to make her primary, the car should be in her name. At that time, I went ahead and purchased the vehicle and put it in her name. However, I used MY line of credit and MY account to issue the bank draft. Our mutual understanding was that the vehicle is MINE…
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My Wife Has Made a Huge Mistake
A READER ASKS: I’ve always been a debt averse person and very conservative with my money. I don’t make a substantial income I grossed $57,000 in 2018 and support my children (1 year and 5 years) and my wife who is currently a stay at home ma, and a great one at that. When my wife and I were married in 2014 we made a joint bank account (added her to my account) and we share our income and expenses freely and equitably. Since then (with a few minor setbacks) we have been able to accumulate $10,000 in savings in our RBC e-savings account, its not much but it took…
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Submitting a consumer proposal to your creditors (Video)
Summary A Licensed Insolvency Trustee explains to Mary and Paul that a consumer proposal might be the way to resolve their financial situation. The trustee tells them how a consumer proposal is different from bankruptcy and what they need to do. Meet Mary. Mary took a job right out of college but recently she has had to take a lot of time off to care for her sick husband, Paul. With reduced income and their debts mounting, they are now considering bankruptcy. Their first step was to visit a Licensed Insolvency Trustee, a professional who is licensed by the Office of the Superintendent of Bankruptcy Canada. To their surprise, the…
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Discussing your options with a Licensed Insolvency Trustee (Video)
Summary Richard is unable to pay his bills and unsure what to do. He talks to a Licensed Insolvency Trustee to explore the different ways he can deal with his debt. This is Richard. Unable to pay his bills, he is unsure what to do. On the advice of a close friend, he contacts a Licensed Insolvency Trustee, a professional who is licensed by the Office of the Superintendent of Bankruptcy Canada. While Licensed Insolvency Trustees can and do handle bankruptcies, they can also offer information about other possible options. These might include reworking his budget, consolidating his debts, selling his assets, or offering a proposal to his creditors. Whatever…
