The federal government provides guidelines to all Licensed Insolvency Trustees to help them determine if an individual or family has surplus income obligations. Your threshold for surplus income is calculated based on the number of dependents in your household and your net family income. Net family income refers to how much you earn after deducting income taxes, payroll deductions, essential medical expenses, alimony, child support, and childcare...

When you file for Bankruptcy, unsecured creditors will be allowed to file a claim with the LIT for the amount they are owed to receive their share of any funds distributed in your Bankruptcy. Your creditors will deal directly with the Licensed Insolvency Trustee and are required by law to stop contacting you regarding collections immediately. If a creditor persists in contacting you, you should notify the Licensed Insolvency Trustee immediately....

If a debt included in your Bankruptcy has been co-signed or guaranteed, the co-signer/guarantor will be responsible for making the payments in full. Filing a Bankruptcy only gets rid of your legal obligation to pay the debt.

The Licensed Insolvency Trustee must file any outstanding income tax returns if they remain unfiled at the date of Bankruptcy, as well as a pre-Bankruptcy income tax return for the period from January 1 to the date of your Bankruptcy. The Licensed Insolvency Trustee will retain any refunds arising from these income tax returns. If a balance is owed on these income tax returns, the amount will be included in your Bankruptcy. The Licensed Insolvency...

A secured credit card is ideal for people with low or no credit. To obtain one, you must provide a deposit to the credit card issuer that serves as collateral. For example, if you deposit $1,000, your credit limit you can charge will also be $1,000. From there, a secured credit card works like a regular credit card, with required minimum monthly payments. You will be able to make purchases online and in-store, plus you’ll be able to use the...

It is a piece of legislation that governs the administration of a Bankruptcy estate and oversees the distribution of its value to the Bankruptcy estate’s creditors, while providing a financial fresh start for individual debtors. Both Bankruptcies and Consumer Proposals are debt solutions under the Bankruptcy and Insolvency Act.

The process starts when you meet with your  Licensed Insolvency Trustee and fill in the appropriate paperwork. Bankruptcy will stop wage garnishments and lawsuits against you by your creditors. Once the filing is complete, you will begin to undertake bankruptcy duties and surrender your assets to your Licensed Insolvency Trustee, who will seek to turn those assets into cash and hold those monies in trust for distribution to your creditors.