Ontario is a province in Canada, which is located in east central Canada. Ontario is Canada’s most popular province and second largest city in Canada. Ontario is the home to the most popular cities of Toronto and Ottawa.
According to statistics, about 37000 Ontario residents filed for bankruptcy whereas around 22000 Ontario people have applied for consumer proposal in the year 2010. There is difference between bankruptcy and consumer proposal. All assets can be kept by a person if he or she applies for consumer proposal. This is an advantage of consumer proposal and prompts a lot of people to choose consumer proposal compared to bankruptcy. If a house is finance through a lease or loan, a person will have two choices, either proposal or bankruptcy. The person can make loan payments to keep the house or surrender it to a lender. There is eligibility that needs to be followed if a person wants to apply for consumer proposal. If a person owes more than 1000 Canadian dollar, he or she is eligible to apply for consumer loan. What makes it more easily is that a person doesn’t have to be a Canadian citizen when applying for consumer proposal.
A person in Ontario is allowed to earn around 2000 Canadian dollar per month. Surplus income happens when a Canadian that earn more than what is required, needs to pay half of the amount. A person who wants to go for bankruptcy in Ontario need to prepare the money as bankruptcy cost. A trustee will decide on the monthly contribution that needed to be given by a person when filling a bankruptcy. A person needs to make surplus income payments if the income exceeds the limit which is set by the government. During bankruptcy, a person in Ontario will lose the tax refunds and the HST credits.
Ontario bankruptcy fee needs to be paid to the referred trustee when a person applies for bankruptcy. This is because the Ontario trustee firms are private companies. Therefore, they need a contribution from a bankrupt in order to cover the administration cost of the bankruptcy. Costs of mailing bankrupt documents to the creditors and other duties need to be taken by the trustee. However, most trustees understand the situations of bankruptcy that one face. The trustee will work with the bankrupt to come up with a good payment plan that works best for both side. To avoid the wages from being garnisheed, most of the Ontario people file the bankruptcy. However, an Ontario person no needs to file bankruptcy when he or she is not working, as there is no wages for garnisheeing. Ontario bankruptcy trustee will explain the bankruptcy options, to decide whether it is necessary to declare the bankruptcy during that particular of time.
Bankruptcy has grown at a fast rate. We see a bankrupt firm every second day. The credit market has taken a step forward to deal with such kind of incidences like bankruptcy Ontario.