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Bankruptcy

When life throws you a curve ball and knocks you off your feet it’s good to know there is a way to regain your footing and restore your peace of mind.


 

When a person files an assignment in bankruptcy, they are immediately protected from their creditors.

Collection calls will stop.

Any ongoing Court actions to recover money owed by a you will stop.Creditors will not be able to proceed even if they have judgment against you.

Wage garnishees will cease.

We will notify your payroll department along with anyone who has a wage garnishment in place to stop immediately.

What about my Assets?

When thinking about filing for bankruptcy it’s good to know that certain assets do not have to be turned over to the Trustee. These assets could include normal household furniture, personal effects, including clothes and jewellery, one automobile of modest value , RRSPs and insurance policies which meet specified conditions, pension funds and, with limitations, tools of the trade.

What about debts owed to 407? Can they still deny my plate renewal even after bankruptcy?


On November 13th, 2015 the Supreme Court of Canada dismissed the appeal of the 407 in the matter of the 407 ETR Concession Company Limited v. Superintendent of Bankruptcy.

The Supreme Court of Canada’s decision upheld the earlier decision of the Ontario Court of Appeal which found that the discharge provisions of the BIA (The Bankruptcy and Insolvency Act) override the plate denial provisions of the Highway 407 Act.

Please click here to refer to the 407 website for all the information and instructions on what to do if you filed for bankruptcy prior to November 13th, 2015.

Don’t be fooled!

Credit counsellors are different than debt settlement services. Debt settlement services will charge you a fee to help you negotiate a plan to repay your debts. Credit counsellors are often not-for-profit organizations.

Watch out for debt settlement companies that:

  • say they can reduce your debt by 50% or more
  • charge large, upfront fees
  • claim that if you work with them there will be no negative effect on your credit report
  • claim that their program is approved by the government
  • say they can get collection agencies to stop calling you

Always take the time to understand your contract. Remember that some of these companies will charge a cancellation fee if you want to end your contract before the end of its term. They may also not refund any money that you paid them.

If you don’t understand what you’re signing ask them to clarify, or call us for a second opinion.

Remember it doesn’t cost anything to talk.


When you’re ready to talk give us and call to schedule a free consultation at one of our three locations in Mississauga, Brampton or Grimsby.

 

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