Licensed Insolvency Trustee
In Canada, one of the most common, if not the most common, debt relief program is a Consumer Proposal.
Other debt relief programs, commonly referred to as Debt Management Programs, (“DMP”) or Debt Consolidation Programs, typically do not reduce debt.
To help understand the difference between the two, Boale Wood has posted detailed information on the differences. See this page for more.
There are three ways that a bankruptcy can be annulled.
Firstly, if you are able to pay your debts in full due to receiving a windfall, then your Licensed Insolvency Trustee can apply to the Court to have the bankruptcy annulled. However, in our view, it is most likely that the bankruptcy would not be annulled but the LIT would apply to Court to have you discharged early.
In either case, you will have to pay enough of the windfall to the LIT to pay your creditors in full, plus the Trustees fees plus 5% interest from the date of bankruptcy. If you don’t have enough to do this, then an annulment would not be granted.
Secondly, if your circumstances have changed for the positive during the bankruptcy, then you can file a proposal to your creditors. Upon approval of the proposal by the Court, the legal effect of an accepted proposal, is to annul the bankruptcy.
Thirdly, the Court can annul a bankruptcy if the assignment or bankruptcy order ought not to have been made. This would be in rare circumstances and where the bankruptcy has become an abuse of process, the debtor was not insolvent, or a fraud was committed against the creditors.
Contact Boale, Wood & Company Ltd. for more information on proposals, bankruptcy and debt solutions.
Boale, Wood & Company Ltd. has helped thousands of individuals and families overcome debt for more than 14 years.
Call us. It’s not too late.
A consumer proposal is often compared and contrasted with a program provided by credit counselling agencies known as a debt management plan. While both alternatives have some similarities and can help you reduce your debts, there are some very significant differences.
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Both processes can give you peace of mind, knowing that your debts are being dealt with, but there are so many more advantages to file a consumer proposal. A consumer proposal works better if your debts are larger or complicated (you have tax debts or several debts).
At Boale, Wood and Company Ltd, we can help you understand the differences so you can make an informed decision. Contact us today to discuss your options.
Call us. Its not too late. (604) 605-3335.
Consumer insolvencies in BC increased overall in February 2017 by 3.5 percent from January 2017. Consumer proposals increased 8.5 percent while bankruptcies decrease 3.0 percent.
The proportion of proposals in consumer insolvencies in BC accounted for 59.25 percent during February while they account for 54.63 percent of all February 2017 insolvencies across Canada.
Consumer insolvencies in BC for the 12-month period ending February, 2017, decreased by 8.5 percent compared with the 12-month period ending February 2016. Consumer bankruptcies decreased by 17.2 percent, while consumer proposals increased by 0.6 percent.
It is not unusual for insolvencies to be down at this time of year, but we expect that the March figures will be higher than the previous.
The consumer proposal filings show the increasing popularity of dealing with debt over bankruptcies and other non-legislated options. It also indicates that consumers are seeing the benefits of using a Licensed Insolvency Trustee over other service providers.
The proportion of proposals in consumer insolvencies in BC was 56.9 percent during the 12-month period ending February 2017, up from 52.4 percent during the 12-month period ending February 2016. Again, it indicates the popularity of consumer proposals as a way for consumers to deal with their debt and with dealing with a Licensed Insolvency Trustee over other unregulated providers.
See this article for other Canadian insolvency stats for February 2017.
Did you know that just by filing your income tax return, you could receive more money from the federal and provincial governments through tax credits and benefits? By simply filing your income tax return, a single person may receive approximately $585 more per year, a single parent with one child could receive $4,700 a year, and a two-parent family with two children may receive up to $8,600 more per year.
By filing your income tax return you could receive:
You may also be eligible for other benefits such as:
Other government departments also rely on your tax assessment to determine whether you qualify for rent or medical service plan premium subsidies. By not filing your return, they typically find it difficult to provide you that assistance.
It is not illegal to owe the government money on your tax return; however, the Income Tax Act requires that you file your return annually and on time.