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This site provides free information about bankruptcy and bankruptcy alternatives to residents of Guelph and the surrounding areas of Ontario.
Bankruptcy Guelph is sponsored by Hoyes Michalos & Associates Inc.. They are licensed by the federal government of Canada to provide personal bankruptcy and consumer proposal services to residents in the Guelph, Ontario area. |
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Recent Bankruptcy Questions:
One common question we receive when we meet with people in our Guelph office is "will I lose my RSP if I file Personal Bankruptcy?" The answer to the question depends on the type of Retirement Savings Plan (RSP) you have, as there are many different types and features available.
First, let's consider if it is in a locked-in account (can also be called Locked In Retirement Accounts or LIRA). This type of RSP is not cashable and can only be drawn from when the person retires. Locked-in RSPs are not cashable by a trustee in bankruptcy. Most locked-in RSPs are created when people leave employers that operate Registered Pension Plans (RPP).
Second, let's discuss what may happen if the RSP is cashable without restrictions by the individual. If it is, we need to look at the underlying investment vehicle for the funds. This is important: if the RSP is invested with a qualified Insurance Company and has a named beneficiary (a grandparent, parent, spouse, child or grandchild), then it may be exempt from seizure in bankruptcy pursuant to the Insurance Act of Ontario.
If the RSP does not fall into one of the above two cases, then it is probably cashable by a trustee in bankruptcy for the general benefit of the creditors. (If a RSP is cashed in by a trustee, then the trustee will prepare a special tax return so that there is not a tax implication to the individual.)
If you are thinking of filing bankruptcy and your RSPs are cashable, you may want to consider filing a consumer proposal (instead of bankruptcy) so that you can keep your RSPs.
If you are experiencing financial difficulty and would like to review your options in greater detail, please call us at 519-823-0330 or e-mail us. We are located at 207 Woolwich Street in Guelph, near the corner of Woolwich and Norfolk.
Ted Michalos and myself had lunch today with the credit counsellors of Family Counselling and Support Services for Guelph-Wellington. As noted on the Family Counselling and Support Services for Guelph-Wellington's web-site, they are a non-profit, community based family service agency dedicated to supporting, strengthening and enriching individual, couple and family life by providing counselling, education, support and advocacy services that meet the needs of the community. The agency is a fully accredited member of the Ontario Association of Credit Counselling Services. They are located at 109 Surrey Street East in Guelph.
The credit counselling team includes Meg, Ingrid and Christina. Their credit counselling services are divided into 4 categories:
Assessment - the assessment is of an individual(s) financial situation and followed by a referral and/or counselling
Creditor - negotiation and the administration of debt management plan
Educational - seminars and training sessions
Prevention - information and workshops
To book an appointment, you can call them at 1-519-824-2431. An appointment will be scheduled and the individual will be asked to bring a completed monthly budget and listing of the debts. We request the same information before a consultation as it is essential to understand the debts and budget prior to discussing options and a future plan. Their assessment is consistent with our approach to reviewing the options, including budgeting, debt consolidation, credit counselling, debt management plans, proposals and bankruptcy.
They receive referrals from many agencies in the Guelph area, including other not-for-profit agencies, hospitals, companies' Employee Assistance Programs, etc. But a referral is not required - you can book a meeting for yourself and family. They are a not-for-profit agency and request a payment for the service be made based on the family income and size of the family unit.
We have always been partial to their non-judgmental approach they take with the individuals; they are professional and work towards a solution for that person and their family.
If you have any questions about credit counselling, please contact Family Counselling and Support Services for Guelph-Wellington at 519-824-2431 or via e-mail or Hoyes, Michalos & Associates Inc. in Guelph at 519-310-PLAN or vial e-mail.
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