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By Darry B. Taylor
| Q: |
I live in Ontario, Canada. I have a Canadian Tire credit card $7400, TD Canada Trust $5600, Sears Card $600, Leon's card $3400, Mortgage $1200 a month. Should I see a credit counselor and get the interest removed from the credit cards or is there another option? I don't want to go bankrupt and my wife is presently bringing in $400 a month and I am bringing in $1900 a month. |
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If you are unable to refinance to consolidate your debts, then you may wish to seek the assistance of:
Credit Counselling Canada / Conseil de Credit du Canada (CCC), is a national association of not-for-profit credit counselling agencies and Orderly Payment of Debt programs from all across Canada. The website link is www.creditcounsellingcanada.ca. You can put in the province in which you are residing.
Trusting this will put you on the right track and help solve your financial problems. Should you have further questions, please contact the writer.
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| Q: |
My mother-in-law died recently and left debts of about $5,500. Her assets are only $3,500 after all her OAS/CPP comes in. She left no will and named no executor. She also left a life insurance policy for $10,000 to one of her sons. Can this policy be considered part of my mother-in-law's estate? Her son thinks he has to use it to pay off her remaining credit card bills once her assets are used up. I don't think he has to do that. What is your opinion? |
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We referred your question to a lawyer and his reply was as follows:
In answer to the question, based on the information given, the recipient of the
life insurance does not have to pay his Mum's debts. The proceeds of life insurance are not part of the Mum's estate.
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| Q: |
If a person files personal bankruptcy, and has shares in a corporation. If that person controls 100% of the shares in the corporation who would be responsible for the source deductions outstanding for the corporation, if at the same time the corporation was sold? Also in a case of personal bankruptcy, how many years of property taxes can be deducted from the proceeds of the bankruptcy? Example value of property sold is $210,000, a mortgage of $110,000 and back taxes of $55,000 (approx. 8 yrs of taxes). |
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You must seek legal advice on this matter since we are unable to provide legal advice.
Having said that, we relayed your question to a leading Bankruptcy Trustee and we were advised that the directors are responsible for unpaid employee remittances. So, if the director goes into bankruptcy, it is the policy of Revenue Canada CCRA to include the amount of employee remittances in the bankruptcy. If he does not go into bankruptcy, then he would be responsible for the full amount outstanding to CCRA.
Property taxes cannot be included in a bankruptcy. Due to amendments made to the Municipal Act long ago, property taxes are a charge against the land that must be paid before any ownership transfer can take place. Property taxes also rank in priority to any mortgages on title.
We trust this information is of benefit to you.
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