Personal Insolvency Guide ()

Personal Insolvency Guide

May 12th, 2011

The Personal Insolvency Guide is available on BankruptcyCanada.com in EPUB and MOBI format for FREE downloads.

This means the book can be placed on Electronic Readers such as the Kindle, Sony Reader, Stanza, Kobo, the iPad and iPhone; iBooks on the iPad and iPhone, and Android Phones.

This book was first published in 2005 by Self Counsel Press and has been sold in stores across Canada for $12.95.

This book is a “MUST HAVE” for anyone considering bankruptcy or a proposal or considering using a credit counsellor.

The Personal Insolvency Guide has been updated to reflect the new bankruptcy laws and other matters as of May, 2011.

The book is written in clear non-technical English and is the most comprehensive book available on helping individuals deal with a financial crisis. The Personal Insolvency Guide gives the straight facts, in plain English, on all aspects of the insolvency industry so that individuals can make the best decision on how to get a fresh financial start.

Go to this site for more information including download links so you can download the Personal Insolvency Guide.

Posted in Canadian Bankruptcy News | 2 Comments »

Insolvencies decline by 8.7% in January, 2011 compared with January, 2010.

April 21st, 2011

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

Insolvencies decline by 8.7% in January, 2011 compared with January, 2010.

Consumer Bankruptcies were down by 16.2% in January, 2011 compared with January, 2010. (5,864/6,998).

Business Bankruptcies were down by 19.8% in January, 2011 compared with January, 2010. (584/354).

Proposals were up by 9.3% in January, 2011 compared with January, 2010. (3,418/3,128).

The comments by the Office of the Superintendent of Bankruptcy are as follow:

The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 7.6 percent in January 2011 from the previous month. Bankruptcies decreased by 12.9 percent, whereas proposals increased by 3.7 percent. Over the past 10 years, there were only three years when the total number of insolvencies filed in the month of January was lower than the total number filed in December.

The total number of insolvencies in January 2011 was 8.7 percent lower than the total number of insolvencies in January 2010. Consumer insolvencies have decreased by 8.1 percent, while business insolvencies have decreased by 22.1 percent.

For the 12-month period ending January 31, 2011, the total number of insolvencies decreased by 11.9 percent compared with the 12-month period ending January 31, 2010. It is worth noting that the total volume of insolvency still remains 19.8 percent higher than the 12-month period (October 2007 � September 2008) preceding the recession.

For the 12-month period ending January 31, 2011, consumer insolvencies decreased by 11.4 percent compared with the 12-month period ending January 31, 2010. Consumer bankruptcies decreased by 20.7 percent, while consumer proposals increased by 18.1 percent. For the same period, 96.3 percent of total insolvencies were filed by consumers.

Business insolvencies for the 12-month period ending January 31, 2011, fell by 22.6 percent compared with the 12-month period ending January 31, 2010. A reduction in the number of insolvencies among the transportation and warehousing; retail trade; manufacturing; construction; accommodation and food services; and professional, scientific and technical services sectors largely contributed to this decrease.

The proportion of proposals in consumer insolvencies increased to 31.8 percent during the 12-month period ending January 31, 2011, up from 21.6 percent during the 12-month period ending September 30, 2009. This increase may be an indication that consumers are taking advantage of changes to the Bankruptcy and Insolvency Act (BIA). The changes, implemented on September 18, 2009, allow consumers more flexibility in filing proposals.

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Man Charged for Bankruptcy Offences

March 31st, 2011

KITCHENER, ON, March 30 /CNW/ – On Wednesday, March 23rd 2011, the Royal Canadian Mounted Police (RCMP) Kitchener Detachment Commercial Crime Section charged a male in relation to bankruptcy offences.

James Philip George D’HONDT, age 58, of Otterville, Ontario, has been charged with 4 counts of bankruptcy offences, contrary to Section 198(1)(c) of the Bankruptcy and Insolvency Act (BIA). Police allege that D’HONDT made a false entry or knowingly made a material omission in a statement or accounting. If convicted, the accused may be sentenced to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.

The RCMP is responsible for investigating incidents of bankruptcy fraud or bankruptcy offences as received from a separate federal agency. A bankruptcy may result when an individual or company incurs debts and fails to meet the liabilities generally as they become due, thereby putting the creditor’s interests in jeopardy. Although individuals and companies may voluntarily file an assignment in bankruptcy, a creditor may also force a bankruptcy by making an Application for a Bankruptcy Order. When a bankruptcy occurs, the bankrupt person is required by law to comply with numerous duties; failure to comply with duties of a bankruptcy is a chargeable offence under the BIA.

James D’HONDT is scheduled to attend the Provincial Court of Justice in Kitchener, Ontario, on Monday, April 18th 2011.

For further information:

Constable Laurence YIM
RCMP Kitchener Detachment
Media Relations
(519) 896-3542, Extension 235

Posted in Canadian Bankruptcy News | 4 Comments »

B.C. Bankruptcy Exemptions, no more.

March 27th, 2011

B.C. Bankruptcy Exemptions, no more.

By Greg Best: Greg Best is a trustee in bankruptcy located in Vancouver, BC.

It has long been accepted that the exemptions set out in the Court Order Enforcement Act of British Columbia applied to individuals seeking relief from their overwhelming debt by making an assignment in bankruptcy. Often, bankruptcy is a last resort for many hard working British Columbians, who have no other alternative to deal with their creditors. The Court Order Enforcement Act allowed you to keep certain assets to help rebuild your life after bankruptcy.

Bankruptcy trustees have routinely advised individuals in financial difficulty, that if you go bankrupt in B.C, you will be able to protect certain assets from your creditors. It was understood that you could keep up to $12,000 equity in your home and $5,000 equity in your vehicle if you went bankrupt.

That all changed on November 17, 2010 when the B.C. Supreme Court rendered its decision in Thow (Re) (Exemptions from Seizure), 2010 BCSC 1561. Although this decision relates to a bankrupt that cannot be described as honest or unfortunate; it affects all those individuals that I deal with that are honest and unfortunate, and simply looking for a fresh financial start.

The Court found, on a very strict interpretation of the applicable legislation, that the exemptions set out in the Court Order Enforcement Act of British Colombia, only apply if the value of the asset does not exceed the exempt amount. That is: if the value of your home, or car, is greater than the exempt amount (ie: $12,000, or $5,000), you are not entitled to any exemption in a bankruptcy.

Although there are many vehicles worth less than $5,000, I have not been able to find any homes in B.C. worth less than that.

What does all this mean?

If you make an assignment in bankruptcy in B.C., you will lose the right to retain up to $34,000 in equity. This is a significant issue and will affect many honest unfortunate people in financial difficulty trying to get a fresh start.

What can be done?

The appeal periods have expired and this decision is now considered the law in B.C. It is up to the Provincial Government to consider amending the relevant legislation to reflect its true intent and the spirit of the exemptions.

Until the legislation is changed, you must consider how these changes will affect you. You may want to consider making a consumer proposal instead. Although the equity you have in your car and home is a factor in determining the terms of a consumer proposal, you are generally able to retain all of your assets.

Trustees: Publish your Articles on Canada’s #1 Website.

Related Topics:

BC Bankruptcy Exemptions;

Thow Court Decision;

Exemptions, Exemptions, wherefore are Thow?

Posted in Trustee Blogs | 3 Comments »

Canadian Insolvencies decline by 11.5% in 2010.

March 18th, 2011

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

Insolvencies decline by 11.5% in 2010 compared with the previous year.

Consumer Bankruptcies were down by 20.4% in 2010 compared with 2009. (92,691/116,381).

Business Bankruptcies were down by 24.9% in 2010 compared with 2009. (4,072/5,420).

Proposals were up by 18.6% in 2010 compared with 2009. (43,468/36,640).

For the 12 months ended December 31, 2010 insolvencies were down by 11.5% compared with the 12 months ended December 31, 2009. (140,2311/158,441).

The comments by the Office of the Superintendent of Bankruptcy are as follow:

The total number of insolvencies (bankruptcies and proposals) in Canada decreased by 16.7 percent in December 2010 from the previous month. Bankruptcies decreased by 14.2 percent, whereas proposals decreased by 21.5 percent.

The total number of insolvencies in December 2010 was 7.8 percent lower than the total number of insolvencies in December 2009. Consumer insolvencies have decreased by 7.9 percent, while business insolvencies have decreased by 6.7 percent.

For the 12-month period ending December 31, 2010, the total number of insolvencies decreased by 11.5 percent compared with the 12-month period ending December 31, 2009. It is worth noting that the total volume of insolvency still remains 20.6 percent higher than the 12-month period (October 2007 � September 2008) preceding the recession.

For the 12-month period ending December 31, 2010, consumer insolvencies decreased by 11.0 percent compared with the 12-month period ending December 31, 2009. Consumer bankruptcies decreased by 20.4 percent, while consumer proposals increased by 19.8 percent. For the same period, 96.3 percent of total insolvencies were filed by consumers.

Business insolvencies for the 12-month period ending December 31, 2010, fell by 22.3 percent compared with the 12-month period ending December 31, 2009. A reduction in the number of insolvencies among the manufacturing; retail trade; transportation and warehousing; accommodation and food services; and construction sectors largely contributed to this decrease.

The proportion of proposals in consumer insolvencies increased to 31.3 percent during the 12-month period ending December 31, 2010, up from 21.6 percent during the 12-month period ending September 30, 2009. This increase may be an indication that consumers are taking advantage of changes to the Bankruptcy and Insolvency Act. The changes, implemented on September 18, 2009, allow consumers more flexibility in filing proposals.

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New ‘consumer-friendly’ rules announced for banks.

March 8th, 2011

The Honourable Ted Menzies, Minister of State (Finance), today announced the Harper Government is taking decisive action to protect the interests of Canadian consumers of financial products and services.

Minister Menzies said: �We�re protecting Canadian consumers by banning negative option billing for financial products, ensuring greater transparency and making sure consumers have timelier access to their own hard-earned money.�

The Access to Funds Regulations would reduce the maximum cheque hold period for consumers and small- and medium-sized enterprises. The maximum hold period is currently seven business days for all cheque amounts. This would be reduced to four business days for cheques of $1,500 or less. The regulations would also provide consumers with immediate access to the first $100 deposited by cheque.

The Negative Option Billing Regulations would require federally regulated financial institutions to obtain consumers� express consent before providing a new optional product or service. Consumers would receive in advance a summary of key information, including related fees and costs, before granting their express consent. The regulations would also prescribe additional disclosure when a consumer agrees to an optional product or service, and require financial institutions to refund charges on a prorated basis following cancellation.

Lower-income seniors, Canadians without significant balances in their accounts, younger Canadians who do not have a long banking history, and people who receive cheques from newer employers or clients are often subject to longer cheque hold periods. These are often the Canadians who most need quick access to their funds.

Posted in Canadian Bankruptcy News, Uncategorized | No Comments »

Mortgage changes take effect March 18, 2011.

March 8th, 2011

Finance Minister Jim Flaherty recently announced a series of mortgage rule changes aimed at addressing growing concern about increased household debt in Canada:

1. The changes will see Ottawa reducing the maximum amortization period from 35 years to 30 years;

2. Ottawa will also withdraw government insurance backing on lines of credit secured by homes;

3. Canadians will only be able to borrow up to 85 per cent of the value of their homes, down from 90 per cent.

The federal government is attempting to avert a similar path as the American market where people were creating consumer debt by refinancing every one to two years.

Buyers who purchase a home with a down payment less than 20 per cent of the value of the home are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.

The new rules will restrict mortgages with amortized periods past the 30 years brink from qualifying for that insurance. That essentially eliminates the possibility of Canadians getting access to mortgages with a term of more than 30 years.

Flaherty said that the intent is to stem the wave of consumer debt by reducing the total interest payments people with longer amortization on a mortgage would end up paying.

Posted in Canadian Bankruptcy News | 1 Comment »

Canadian retirement savers need “expert, impartial third-party advice” about investments.

March 3rd, 2011

Canadian retirement savers need “expert, impartial third-party advice” about investments.
Work

Saul Schwartz, public policy professor at Carleton University, says financial institutions and the Canadian government are increasingly profiting from the general public's financial ignorance.

Saul Schwartz says Canadian retirement savers need "expert, impartial third-party advice" about investments.

Last month, the Carleton University public policy professor said the task force report submitted to federal Finance Minister Jim Flaherty "reads like the soothing words of the foxes, spoken upon taking command of the chicken coop."

In an interview, he said financial advisors "are not giving you impartial advice. They have a vested interest in part in selling their own proprietary products. It's not necessarily bad advice, but the product may not be exactly what you need."

View Saul Schwartz�s full report: Can Financial Education Improve Financial Literacy and Retirement Planning?

Posted in Canadian Bankruptcy News | No Comments »

Insolvencies decline by 1.6% in November, 2010.

February 14th, 2011

NEWS FLASH! February 14, 2011:

Insolvencies decline by 1.6% in November, 2010.

Consumer Bankruptcies were down by 6.9% in November, 2010 compared with the same month in 2009. (7,893/8,482).

Business Bankruptcies were down by 15.4% in November, 2010 compared with the same month in 2009. (335/396).

Proposals were up by 12.0% in November, 2010 compared with the same month in 2009. (4,199/3,749).

For the 12 months ended November 30, 2010 insolvencies were down by 10.5% compared with the 12 months ended November 30, 2009. (141,111/157,688).

The comments by the Superintendent of Bankruptcy are as follows:
The total number of insolvencies (bankruptcies and proposals) in Canada increased by 5.2 percent in November 2010 from the previous month. Bankruptcies increased by 1.1 percent, whereas proposals increased by 14.2 percent. Over the past 10 years, there were only three years when the total number of insolvencies filed in the month of November was lower than the total number filed in October.

The total number of insolvencies in November 2010 was 1.6 percent lower than the total number of insolvencies in November 2009. Consumer insolvencies have decreased by 0.9 percent, while business insolvencies have decreased by 17.8 percent.

For the 12-month period ending November 30, 2010, total insolvencies decreased by 10.5 percent compared with the 12-month period ending November 30, 2009. It is worth noting that the total volume of insolvency still remains 21.4 percent higher than the
12-month period (October 2007 � September 2008) preceding the recession.

For the 12-month period ending November 30, 2010, consumer insolvencies decreased by 10.0 percent compared with the 12-month period ending November 30, 2009. Consumer bankruptcies decreased by 19.5 percent, while consumer proposals increased by 22.4 percent. For the same period, 96.3 percent of total insolvencies were filed by consumers.

Business insolvencies for the 12-month period ending November 30, 2010, fell by 22.9 percent compared with the 12-month period ending November 30, 2009. A reduction in the number of insolvencies among the retail trade; manufacturing; transportation and warehousing; accommodation and food services; and construction sectors largely contributed to this decrease.

The proportion of proposals in consumer insolvencies increased to 31.0 percent during the 12-month period ending November 30, 2010, up from 22.8 percent during the 12-month period ending November 30, 2009. This increase may be an indication that consumers are taking advantage of changes to the Bankruptcy and Insolvency Act. The changes, implemented on September 18, 2009, allow consumers more flexibility in filing proposals.

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

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Insolvencies decline by 9.1% in October, 2010.

January 8th, 2011

NEWS FLASH! January 7, 2011:

Insolvencies decline by 9.1% in October, 2010.

Consumer Bankruptcies were down by 11.0% in October, 2010 compared with the same month in 2009. (7,844/8,816).

Business Bankruptcies were down by 31.9% in October, 2010 compared with the same month in 2009. (292/429).

Proposals were down by 2.1% in October, 2010 compared with the same month in 2009. (3,677/3,754).

For the 12 months ended October 31, 2010 insolvencies were down by 9.6% compared with the 12 months ended September 30, 2009. (141,311/156,255).

The comments by the Superintendent of Bankruptcy are as follows:

While the number of insolvencies � bankruptcies and proposals � filed during the 12 months ending October 2010 was less than the number filed during the previous 12 months ending October 2009, the number of consumer insolvencies filed in Canada was still 22.5 percent higher than the pre-recession level of 2007�2008.

It�s important for Canadians to be aware of the risks and possible consequences of taking on a large amount of debt. Significant events, such as a change in employment or income, a change in family status or a serious illness, can cause a huge drain on finances. The combination of a large amount of debt and the sudden occurrence of a major life event could lead to the harsh realities of insolvency.

James Callon
Superintendent of Bankruptcy
Highlights

The total number of insolvencies (bankruptcies and proposals) in Canada increased by 0.2 percent in October 2010 from the previous month. Bankruptcies increased by 0.2 percent, whereas proposals increased by 0.1 percent. Over the past 10 years, there were only two years when the total number of insolvencies filed in the month of October was lower than the total number filed in September.

The total number of insolvencies in October 2010 was 9.1 percent lower than the total number of insolvencies in October 2009. Consumer insolvencies have decreased by 8.1 percent, while business insolvencies have decreased by 31.7 percent.

For the 12-month period ending October 31, 2010, total insolvencies decreased by 9.6 percent compared with the 12-month period ending October 31, 2009.

For the 12-month period ending October 31, 2010, consumer insolvencies decreased by 9.0 percent compared with the 12-month period ending October 31, 2009. Consumer bankruptcies decreased by 18.8 percent, while consumer proposals increased by 25.4 percent. For the same period, 96.9 percent of total insolvencies were filed by consumers.

Business insolvencies for the 12-month period ending October 31, 2010, fell by 22.5 percent compared with the 12-month period ending October 31, 2009. A reduction in the number of insolvencies among the manufacturing; transportation and warehousing; retail trade; accommodation and food services; and construction sectors largely contributed to this decrease.

The proportion of proposals in consumer insolvencies increased to 30.4 percent during the 12-month period ending October 31, 2010, up from 22.2 percent during the 12-month period ending October 31, 2009. This increase may be an indication that consumers are taking advantage of changes to the Bankruptcy and Insolvency Act. The changes, implemented on September 18, 2009, allow consumers more flexibility in filing proposals.

In October 2010, two Companies� Creditors Arrangement Act (CCAA) proceedings were filed. Please refer to CCAA Records for additional details. Note: The Insolvency Statistics in Canada � October 2010 Report, which pertains to bankruptcies and proposals filed under the Bankruptcy and Insolvency Act, does not include CCAA filings.

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

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