NEWS FLASH! June 29, 2007: The bankruptcy statistics for May, 2007 were released on the Internet today.

Insolvencies Rise in May, 2007 by 6.4%,
Year to Date Insolvencies are up by 1.7%.

There is a clear regional disparity, between the East and the West, in the rates of insolvency. The 6 eastern provinces, from Ontario to Newfoundland, had a rise of 10.7% in the total bankruptcy rate; increasing from 7,396 in May, 2006 to 8,186 in May, 2007. The West, with its booming economy, saw insolvencies decline by 9.2%; from 2,011 in May, 2006 to 1,825 in May, 2007.

Current Month:

Consumer Bankruptcies up 6.5% compared with the same month last year.

Business Bankruptcies down 16.5% compared with the same month last year.

Proposals rose 14.6% compared with the same month last year.

Year to Date:

Year to Date Insolvencies rose by 1.7% compared to the same month last year.

Consumer Bankruptcies down 0.4% compared with the same period last year.

Business Bankruptcies down 8.6% compared with the same period last year.

Proposals rose 13.6% compared with the same period last year.

For more information and more detailed analysis please refer to this site.

QUESTIONS? ASK A TRUSTEE.

If you cannot find the answers to your questions on our FAQ page or elsewhere on our site you can click on the map at this link and ask any of the trustees your question.

If you would prefer, you can ask me your question by clicking on “Comments”, below and filling in the comments box. This service is confidential as your email address will NOT be displayed anywhere on your post.

Your question will be answered the same day.
Bookmark this page so you can check back for your answer!

IMPORTANT:
We can answer general bankruptcy questions. Specific questions probably cannot be answered because bankruptcy is complex and many questions cannot be answered without having full financial information. This is the purpose of the initial consultation with a trustee which takes approximately one hour.

A number of people have asked detailed questions on how to get around the fact that they lied on a credit applications or some other form of misrepresentation in order to get credit. We cannot answer these questions as it would not be proper. Trustees are officers of the court and cannot give advice on getting around the law.

Please don’t ask us questions if you already have a trustee. Your trustee knows all your financial information and can give you better answers than I can.

Please keep your questions down to one or two, at the most. If you have more questions than that you probably need an initial consultation with a trustee which takes approximately one hour.

Bill Introduced to Change Student Loan Non-Dischargeability in a Bankruptcy from 10 Years to Two Years.

On May 29, 2007 Senator Yoine Goldstein introduced Bill S-227 in the Senate, entitled An Act to amend the Bankruptcy and Insolvency Act (student loans). The Bill received first reading on that date.

The Bill, if enacted, will amend the student loan provisions, ss. 178(1)(g) and (1.1), so as to provide for:
• a non-dischargeability period of two years from the end of studies (reduced from the current ten years).
• the mercy, or hardship, hearing (in which the court may discharge a student loan despite the bankruptcy having been filed during the non-dischargeability period) may take place at any time, rather than, as at present, only after the expiration of the non-dischargeability period; and
• the court may, at the mercy hearing, fix payment terms and conditions for the student loan, and may discharge part of the debt (rather than all or nothing, as under current jurisprudence:

Senator Goldstein is one of Canada’s leading insolvency lawyers who, before his recent Senate appointment, chaired the Personal Insolvency Task Force and acted as advisor to the Senate Banking Committee’s hearings in 2005 on Bill C-55. Evidently it is his intention to fold this Bill into the Senate hearings that will consider Bill C-62 (the 2007 amending bill) in the autumn, in which he is sure to play a very prominent role.

For more information please refer to Senator Goldstein’s speech to the Senate where he presented background history on student loans and well reasoned arguments for the reduction of the 10 year wait period before student loans can be erased in a bankruptcy.

Thanks to Bob Klotz for bringing this to our attention.

June 13, 2007 - Bankruptcy Reform Back on track. First reading passes in the House. Bill C-62, an Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005 received first reading in the House of Commons this date.

The Bill had been hung up in the House over the issue of exempting RRSPs and RRIFs. The Bloc Québécois refused to approve passing of the Bill as it felt that the wording concerning RRSPs and RRIFs infringed on Quebec’s jurisdiction. In order to get the Bill passed unanimously, the wording concerning RRSPs and RRIFs was changed to make RRSP and RRIF exemptions in accordance with the laws of the province, where the provinces have such exemptions. The provinces that have RRSP and RRIF exemptions are Saskatchewan, Manitoba, Quebec, Prince Edward Island and Newfoundland and Labrador.

This change in RRSP wording will result in the following:

* A one year claw back will only be in effect for RRSPs in provinces without RRSP exemption laws;
* There will be no upper cap on the amount of RRSPs that can be protected;
* There will be no need to set up the RRSPs in a locked in plan to make them eligible for exemption;
* The court will have no jurisdiction to extend the one year claw back period period in an appropriate case.

Insolvency professionals and everyone interested in a fair and just bankruptcy system will be very upset with the proposed change to RRSPs. The change in wording governing the exemption of RRSPs opens the system up to abuse as a person will be able to set aside funds in an RRSP thereby protecting them in a bankruptcy and then once the person is discharge the funds can be used with impunity.

The Bill still has to go to the Senate, probably in the fall. The Senate can be expected to give the bill a thorough review, including hearing expert testimony.

You can Read Bill C-62 online

For more information on bankruptcy reform please refer to this link.

NEWS FLASH! May 31, 2007: The bankruptcy statistics for April 2007 were released on the Internet today.

Insolvencies Rise in April, 2007 by 5.3%,
Year to Date Insolvencies are up by 0.4%.

Current Month:

Consumer Bankruptcies down 2.9% compared with the same month last year.

Business Bankruptcies down 2.0% compared with the same month last year.

Proposals rose 17.6% compared with the same month last year.

Year to Date:

Year to Date Insolvencies rose by 0.4% compared to the same month last year.

Consumer Bankruptcies down 2.2% compared with the same period last year.

Business Bankruptcies down 6.5% compared with the same period last year.

Proposals rose 13.3% compared with the same period last year.

For more information and more detailed analysis please refer to this site.

The Greater Toronto Area Commercial Crime Section, Toronto North Site, recently charged two individuals with the following offences under the Bankruptcy and Insolvency Act (BIA):

1) Muralitharan THIRUCHELVAN of Toronto, Ontario, has been charged with five counts under Section 198 of the BIA, namely: unlawfully refuse to answer fully and truthfully questions at an examination; making a false entry or omission; obtaining of credit by misrepresentations; disposal of property obtained on credit and failing to perform duties as required by a bankrupt.

The offences relate to the purchase and subsequent sale of goods bought on credit and not paid for and the obtaining of credit by false representation to facilitate gambling at a Casino. The total amount of the bankruptcy filing is $280,000.00.

2) Albert Odisho SHAMON of Toronto, Ontario has been charged with six counts under Section 198 of the BIA, namely: fraudulent disposition of property; unlawfully refuse to answer fully and truthfully questions at an examination; making a false entry or omission; obtaining of credit by misrepresentations; fraudulent concealing of property and disposal of property obtained on credit. The total amount of the bankruptcy filing is $135,000.00.

Both THIRUCHELVAN and SHAMON are scheduled for first appearances at the
Old City Hall courthouse on May 11th, 2007. “The investigations resulted from Investigation Orders issued by the Superintendent of Bankruptcy. The Partnership between the RCMP and the Office of the Superintendent of Bankruptcy, continues to be focused on maintaining
confidence in the integrity of the Bankruptcy and Insolvency Process,” stated Inspector Brian Verheul of the RCMP GTA Commercial Crime Section.

For further information: Sgt. Michele Paradis, “O” Division Media
Relations Office, (416) 952-4619 office, (416) 992-4409 mobile

NEWS FLASH! May 1, 2007: The bankruptcy statistics for March 2007 were released on the Internet today.

Insolvencies Decline in March, 2007 by 4.6%,

Year to Date Insolvencies are down by 1.2%.

Current Month:

Consumer Bankruptcies down 7.1% compared with the same month last year.

Business Bankruptcies down 9.3% compared with the same month last year.

Proposals rose 6.6% compared with the same month last year.

Year to Date:

Year to Date Insolvencies dropped by 1.2% compared to the same month last year.

Consumer Bankruptcies down 3.9% compared with the same period last year.

Business Bankruptcies down 7.8% compared with the same period last year.

Proposals rose 12.0% compared with the same period last year.

For more information and more detailed analysis please refer to this site.

The bankruptcy statistics for February 2007 were released on the Internet today.

The insolvency rate (consumer bankruptcies, business bankruptcies and proposals) declined by 0.9%:

Consumer Bankruptcies down 4.0% compared with the same month last year.

Business Bankruptcies up 1.7% compared with the same month last year.

Proposals rose 10.7% compared with the same month last year.

Year to Date Insolvencies rose by 1.0% compared to the same month last year:

Consumer Bankruptcies down 1.8% compared with the same period last year.

Business Bankruptcies down 6.8% compared with the same period last year.

Proposals rose 15.5% compared with the same period last year.

For more information and more detailed analysis please refer to this site.

The latest bankruptcy statistics for January, 2007 were released on the internet by Industry Canada on February 28, 2007.

Insolvencies Rise in January, 2007,
Driven by Ontario with a 15% rise in Insolvencies.

The insolvency rate (consumer bankruptcies, business bankruptces and proposals) rose by 3.1%. All regions in Canada saw a decline in insolvencies except for NB with a 14.7% rise, Quebec with a 4.5% rise and Ontario with a 15.1% rise.

Consumer Bankruptcies up 0.7% compared with the same month last year.

Business Bankruptcies down 15.1% compared with the same month last year.

Proposals rose 20.9% compared with the same month last year.

For more information and more detailed analysis please refer to this site.

The latest bankruptcy statistics for December, 2006 were released on the internet by Industry Canada on February 2, 2007.

The number of personal insolvencies dipped just below 100,000
for the first time in three years.

Once again, as in 2005, there is regional disparity in the rates of insolvency.

Atlantic Canada saw the insolvency rate fall 8.3% from 10,963 in 2005 to 10,057 in 2006.

Ontario and Quebec, saw a small rise in the insolvency rate of 1.2%; rising from 73,547 in 2005 to 74,395 in 2006.

The West, with its booming economy, saw insolvencies decline by a whopping 18.8%; from 27,203 in 2005 to 22,090 in 2006.

Current Month:

Consumer bankruptcies fell 8.7% (5,393/5,905);

Business bankruptcies fell 10.0% (505/561);

Proposals rose 4.3% (1,5391,475);

Overall, Insolvencies fell 6.3% (7,437/7,941).

Year to date:

Consumer bankruptcies were down 6.4%

Business bankruptcy were down 10.1%

Proposals were up 5.1%

Total insolvencies were down 4.6%.

For more information and more detailed analysis please refer to this site.