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,  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…

  • consumer proposal,  income tax

    What is a Division I Proposal?

    What is the difference between a Division 1 proposal and a consumer proposal? Consumer Proposal Vs Division I Proposal The consumer proposal process is used where a debtor’s liabilities do not exceed $250,000 (this threshold excludes mortgage debt on a residential home). In summary, the process in such circumstances is as follows: The proposal is filed with the Office of the Superintendent of Bankruptcy (“OSB”). Upon filing, a stay of proceedings is immediately in effect whereby the debtor becomes creditor-proof. The proposal is sent to creditors for review. The creditors are deemed to have accepted the proposal if no objections are received from them within 45 days after the filing…

  • consumer proposal,  personal bankruptcy,  personal finance

    Creditor Proofing Tips for Business Owners

    The failure of a prospective business owner to employ creditor proofing techniques before starting a business is a frequent cause of personal financial difficulties due to the failure of a business and the attendant business-related liabilities personally owed by the company owner. These individuals must often file for personal bankruptcy or make a consumer proposal to their creditors as result of business-related debts. Debtors completing their bankruptcy/ proposal often wish to start up another business sometime in the near future. The expected question then arises: how can they creditor-proof themselves in the event that their new business fails? Here are some ideas: Creditor proofing techniques 1. Consider incorporating the business.…