Crowe MacKay & Company Blog

After filing for bankruptcy, any garnishments against your salary will stop. Your wages are not affected by personal bankruptcy and you are entitled to collect your income while using the bankruptcy process to eliminate your debts. However, if your income exceeds a certain level, it is considered “surplus income” and you will be required to pay a portion of it during your bankruptcy for distribution to your creditors. It is important to understand how the surplus income rules work so you know what to expect if you declare bankruptcy.

Income tax debt should not be ignored. It can quickly become unmanageable. If you fall behind on payments, interest charges and penalties will be added to your debt. If you do not pay, the Canada Revenue Agency (“CRA”) has broad powers to collect what you owe. The CRA can garnish your wages, seize your assets, freeze your bank accounts, or set off amounts you owe from one year against your tax refund in another year. Unlike other creditors, the CRA can use its authority under the Income tax Act to collect from you without having to get a court order first. The CRA is powerful and notoriously difficult to negotiate with. The good news is that an insolvency trustee has options to help you deal with the CRA and get relief from your tax debt.

Vancouver businesses are struggling financially due to COVID-19. Debt and taxes are piling up. Rent is overdue. Payroll is late. Banks are calling in loans or refusing to provide further funds. If this sounds like your business, it’s time to take stock and get a plan in place to help your business survive. Corporate restructuring may be the best option—but is informal or formal restructuring what your company needs? Vancouver insolvency trustees can review your individual company’s circumstances and help you decide. Here are some of the basics to consider when deciding between informal and formal restructuring to deal with business debt.

COVID-19 has produced waves of financial distress for BC businesses, large and small. Many companies are struggling to rebound in the wake of COVID-19. As time goes on, government measures to ease the financial strain may not be enough to keep a business afloat. If your company is facing financial difficulties due to COVID-19, corporate restructuring can help your business survive.

COVID-19 has caused unprecedented financial hardship for Canadians. Business closures, employee lay-offs, and income loss due to illness have all skyrocketed in 2020. Some COVID-19 relief measures and government assistance programs are ending, making individuals even more vulnerable to financial trouble.

If your debt has become unmanageable, you need a solution. Personal bankruptcy is one way to get debt relief. But how do you know if you are eligible to file for bankruptcy, and what steps do you need to take to file for bankruptcy in BC? Vancouver bankruptcy consultants at Crowe MacKay & Company prepared this step-by-step guide to file for bankruptcy with the help of a Licensed Insolvency Trustee.

Debt can feel overwhelming. If you are having trouble paying credit card debt, payday loans, lines of credit, or personal loans, you may be wondering about options such as bankruptcy, a consolidation loan, or a consumer proposal. Vancouver debt solution professionals can review your financial situation to determine which of the many options is best for you. While bankruptcy can offer a fresh start if you are under a large amount of debt, it is typically used as a last resort due to the damage it causes to your credit rating and the possibility of losing assets. For many people, a consumer proposal is an ideal alternative to bankruptcy that helps eliminate consumer debt while offering some key advantages. Here is how a consumer proposal can help you resolve your debt.

The short answer is filing for personal bankruptcy will not directly affect your spouse or common-law partner. You are responsible for your own debts. There is a common misconception that when you file an assignment in bankruptcy and you are married or living in a common-law relationship, your spouse or common-law partner is automatically responsible for your debts. Often collection agents, when trying to collect from you, tell you that if you don’t pay they will contact and try to collect from your spouse or common-law partner. This is a collection agency scare tactic and as long as your debts are not co-signed, they can only go after you for your debts.

There are many myths related to bankruptcy where the biggest one is that you will lose everything you own. While there is some truth intermingled with the misconceptions, applying for bankruptcy has both benefits and temporary disadvantages. Doubting how bankruptcy will affect the future is a valid concern that many have. With the help of an experienced bankruptcy consultant, you can find out what bankruptcy is going to mean for your future.

In our country, part of the bankruptcy process is paying the creditors in the duration of bankruptcy. The Canadian government has set up many payment regulations known as surplus income limits, given the financial turmoil of individuals who go through the process. The concepts behind it are usually too complex for regular people to understand and that’s where the importance of bankruptcy consultants comes in.

Declaring bankruptcy is an extreme measure, but using it in the right way at the right time can save you money, give you peace of mind and help you get back on your feet financially. It allows businesses or individuals that are unable to pay their debts to settle their financial difficulties. 

One of the first questions that get asked regarding bankruptcy is “Will I lose everything?” People generally fear that a trustee will seize everything and sell it during such times.

Unfortunately, student loans are something that many people have to deal with, and they can keep you in debt for several years. If you’ve recently filed for bankruptcy, you may be left wondering what happens to the student loans you have yet to pay off. The laws vary depending on where you live, so we’re here to offer some clarity on the proceedings in Canada.

If you have a debt, whether small or big, you have to plan your finances to make your payments on time. Without proper management, you lose a major part of your paycheck clearing off credits. You end up borrowing fresh loans to pay off older ones. Managing your bills gets out of your control and you fall into a vicious trap. Crowe MacKay LLP offers debt solutions to clients in Vancouver and the surrounding area.

Have you unwittingly stepped onto the debt treadmill without realizing how fast it goes? Are you saddled with excessive obligations that are creating a financial crisis? In this situation, your first step is to consider debt solutions, such as a consumer proposal or a consolidation loan. This could potentially reduce your overall debt, or consolidate it under a single loan account. However, if your debt is too large, or your assets fall significantly short of your debt value, then you may have no other choice but to consider filing for personal bankruptcy.

Many people run into financial trouble at some point in their lives. Maybe you lost your job in an unstable economy or your debt grew more slowly over time until it became unmanageable. Whatever the case may be, you are not alone and you are not out of options. A Licensed Insolvency Trustee at Vancouver's Crowe MacKay & Company Ltd. can help you get your finances back on track.

A consumer proposal in Vancouver is an effective debt solution for those struggling to pay off the full amounts of the money they owe to creditors, in their currently allotted timeframe. As long as the debt accumulated is under $250,000 without including a mortgage from a primary home, individuals are eligible for this option. A consumer proposal can be customized to your financial situation and help you pay off your debt, either by making smaller payments than what you owe, giving you more time to pay it off, or both.

The most common question we are asked by debtors is how they can recover from their debts and rebuild their credit. Many people, even before meeting with a Licensed Insolvency Trustee, have had their credit ruined by missing payments or collection agencies. At Crowe Mackay & Company in Vancouver, we hope to provide you with the information you need to make smart decisions about your long term credit.

If your monthly debt payments are becoming difficult to manage, then you should consider debt consolidation as a possible solution. Consolidation can make debt easier to manage by combining all of your credit into one single loan. The loan will ideally have a lower interest rate and lower monthly payments than you pay on all of your debts separately. The licensed Vancouver insolvency trustees at Crowe MacKay & Company can help you figure out whether a debt consolidation loan is a good financial choice.

When faced with serious financial trouble, personal bankruptcy is one of the options you can pursue to help deal with your debt. Consult with a Licensed Insolvency Trustee at Crowe MacKay & Company to review the best debt solution in Vancouver for you.

As a debtor you have rights. A creditor may not use threatening, profane, intimidating or coercive language. They may not threaten to publish your failure to pay. This is harassment and harassment is not ok! A creditor is only allowed to contact you Monday to Saturday between 7am and 9pm, on Sunday’s between 1pm and 5pm and never on a statutory holiday.

What is it an LIT?
Licensed insolvency trustees are, in fact, the same roles previously referred to as trustees in bankruptcy. An estimated quarter of Canadians have relied on trustees or know someone who has when it comes to their financial trouble. A Vancouver insolvency trustee can help individuals in the area by explaining what their options are when facing debt, and reviewing what makes the most sense for their unique circumstances. Two of these options include filing for bankruptcy and filing a consumer proposal.

Upon hearing the word “budget” most people begin to frown. This is not surprising as budgeting can be an overwhelming task for some people, but it does not have to be! Preparing a household budget can be simple and exciting. Do not place added pressure on yourself by detailing every tiny expense; rather focus on creating a plan that is reasonable and easy to follow.

So you have prepared a budget, what now? How can you make your budget work? Unfortunately there is no magic formula to making your budget work, rather you need to be diligent in keeping an eye on your daily expenditures and stick to your plan. How you track your expenses is a personal decision and depends on what works best for you.

Your credit rating is a collection of information such as your employment history, details on your bank accounts, outstanding debts, loan payments, and whether or not you have declared bankruptcy or filed a consumer proposal and been discharged.

Unfortunately, it is not uncommon as a business to experience financial hardship. But if you can identify problems early, seeking the help of a business bankruptcy trustee in Vancouver may certainly help you rectify them:

1. Make a plan

Set reminders about when to pay bills to avoid risking late payment and high interest fees, ideally in order of which will rack up the most interest the longer you wait – usually your credit cards. Our Vancouver Licensed Insolvency Trustees can help.