A popular misconception I often hear is that, in Canada, tax debt is unlike any other debt and cannot be reduced or discharged under any circumstances regardless of the financial situation of an individual or the hardships that a taxpayer may have experienced.

It is likely this misconception exists because of our proximity to the United States and the resulting exposure to American media. The American insolvency system is governed by an arguably more complicated set of rules when it comes to this matter and as result, U.S. government tax debt may not be discharged in many cases.

I just don’t think I can pay what I owe.

It can be hard to put money aside just in case of a serious illness or disability when you’re too busy getting on with life and getting by – especially if you’re usually fit and healthy, but even if you’re not. We very rarely plan for unpredictable things like heart attacks or accidents. But it’s the unpredictability of life that – in an instant – can send you to a place where money and debt worries are now added to the stress of adjusting to any lifestyle changes brought on by the illness or disability.

A bankruptcy discharge is the completion of a process. In almost all cases, the bankruptcy of an individual begins with the filing of an assignment through a Trustee and ends with a formal discharge from bankruptcy by way of a certificate of discharge, issued by the Trustee, or an order of discharge issued by the court. 

Separation and divorce impact a family in many different ways, but the financial impact can be one of the most stressful aspects, as dividing up savings, property, and outstanding debts often leaves both parties worse off, if not heavily in debt.

Separation and divorce bring with them reduced income, increased expenses, and in most cases both.

While reading the news the other day, I came across an article that talked about the fact that Canadians are carrying more debt today than ever before. If this isn’t a concern to Canadians and the Canadian government it should be. History has shown (especially recent history in the United States), that when debt loads rise to unsustainable levels the resulting correction can be devastating on individuals and on the economy as a whole.

There are three things everyone can do to avoid the pitfalls of credit card use:

Have only ONE credit card.

The credit card business is very competitive. Each credit card issuing company wants you to use their credit card over their competitors’. As a result, it’s not uncommon for people to have more than one card and still be receiving offers to take on more.

It has been over 140 years since the Parliament of Canada first enacted bankruptcy and insolvency legislation. Although the current Bankruptcy and Insolvency Act has grown and evolved to reflect changes in society since then, the underlying need for the legislation remains the same even after all these years.

What is the Bankruptcy and Insolvency Act (BIA)?

The Bankruptcy and Insolvency Act (BIA) was established by the federal government to help unfortunate but honest individuals recover from their financial problems and gain a fresh financial start..

If you are in the process of considering options to deal with your debt, you may have come across the idea of a Consumer Proposal. But if you are like most people, you may not know a lot about Consumer Proposals, if anything at all.

At Frendo and Partners it is our business to explain to you not only what a Consumer Proposal is, but also what it’s not.

A Consumer Proposal is not bankruptcy. Although a Consumer Proposal can only be filed through a Licensed Insolvency Trustee, unlike a bankruptcy you are not assigning or surrendering assets to the Trustee. For example, a Consumer Proposal allows you to keep your home.