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.

  • consumer proposal,  covid-19,  personal bankruptcy

    CERB overpayments can be discharged in a bankruptcy or consumer proposal

    The following is a Guidance to Licensed Insolvency Trustees dated March 25th 2022 from the Office of the Superintendent of Bankruptcy’s website: The Government of Canada is beginning to recover Canada Emergency Response Benefit (CERB) where it has been determined that it was paid erroneously or was an overpayment. The Office of the Superintendent of Bankruptcy (OSB) is confirming to Licensed Insolvency Trustees (LIT) that erroneous or overpayment of CERB are provable claims in bankruptcy. Erroneous or overpayment of CERB is a releasable debt in the event of an insolvency given that it is to be treated as a debt owed to the Crown pursuant to subsection 12(2) of the…

  • economics,  budgeting,  consumer proposal,  investing,  personal bankruptcy,  personal finance

    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…

  • consumer proposal

    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…

  • consumer proposal

    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…

  • consumer proposal,  income tax

    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…

  • consumer proposal

    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…

  • consumer proposal,  personal bankruptcy

    Replacing your Licensed Insolvency Trustee

    So you’ve filed your personal bankruptcy or consumer proposal with a Licensed Insolvency Trustee but for whatever reason, you haven’t been happy with the service you’ve received. Is it possible to replace your Trustee? This will depend on the type of engagement you’re currently undergoing. CONSUMER PROPOSAL Your proposal hasn’t yet been approved If you’ve filed a consumer proposal and it’s been deemed approved by your creditors and the bankruptcy court (i.e., it’s been more than 60 days since the day your proposal was filed and no meeting of creditors has been called), then you’re stuck with your Trustee. However, if your consumer proposal has not yet been deemed approved…

  • personal bankruptcy,  consumer proposal

    Who is the Best Licensed Insolvency Trustee in Toronto?

    “Who is the best Licensed Insolvency Trustee in Toronto?” If you came across this blog post after entering this search query into Google, you’re not alone. This is one of the most obvious questions to ask when seeking the services of a Toronto Licensed Insolvency Trustee. To answer this question, let us review some important factors you should take into consideration when choosing the best Trustee for you: Obtaining a Professional Referral Many lawyers and accountants are acquainted with Trustees and are usually familiar with what Trustees do and how they operate. Therefore, if you have a lawyer or accountant, he or she can refer you to a reputable Trustee.…

  • personal bankruptcy,  consumer proposal,  income tax

    How CRA collects income tax debt

    The Canada Revenue Agency (“CRA”) has significant powers under the Income Tax Act (“ITA”) to collect personal income tax debt. This post examines the collection procedures most commonly used. Charge over real property Under Section 223 of the ITA, the CRA can register a lien over a debtors home (or any other real estate owned by the debtor). It does so through the following steps: The Ministry of Revenue issues a certificate which certifies an amount owing by the tax debtor This certificate is registered with the Federal Court and when so registered, it has the same effect as if the certificate were a judgment obtained against the debtor for…

  • consumer proposal

    How creditors collect their debts

    There is a lot of misconception of what creditors can and cannot do to collect their debts. To dispel some myths, this post will walk you through the steps a creditor will typically take in collecting its debt. Please note that the content of this post applies to residents of Ontario and its legislation. Step 1: Dealing with the Creditor If you have fallen behind in your payment to a creditor, it will usually send you a notice of your late payment by mail. If it receives no response, their collection department will start calling you by phone. Step 2: Dealing with a Collection Agency If no satisfactory payment arrangements…