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"Thank you for all your help and understanding. It is a great feeling being free from the noose of debt."

~CE

"Thank you! We so appreciate that you have helped us through this crisis. We are starting to feel whole again and looking forward to spending our retirement in peace. Thanks again"

~R & M M

"Just a little note to say thanks so much for everything. Because of you all I have no more stress due to finances. You took away that big black cloud."

~JJ

"I’d like to take the time to thank you very much for all your help your staff and Mr. Beverley have given me to help make this as painless as possible."

~DH

"A very kind and friendly voice……..I was already feeling very bad about my situation and she was very comforting. Thank you. "

~SD

"Thank you so much for helping me out here, from the bottom of my heart."

~SN

"Thank you for helping us through a difficult financial time and also a difficult personal time in our lives. It was nice to deal with people who have integrity."

~TM

"We want to take this opportunity to Thank You and all your staff for your exceptional, competent, and so friendly service that you rendered to us. We will gratefully remember the experience and remain at your service."

~HC

"We appreciate the counselling and all the advice on our 2nd chance. Thanks for being there and giving us our “kick in the butt” when we needed it the most."

~LB

"It was all worth it, everything is going good now and I’ve already recommended you guys to a couple different people."

~W

"I have learned to budget better and make my dollar go further. I admit that I still need and have room for improvement, however you and your staff have helped me considerably."

~AV

"Bankruptcy is a difficult thing for anyone to experience, there is shame, fear and financial hardship to endure. I would like to take this opportunity to applaud you all on making this process so much easier for us."

~MD

"Thank you for all your help. I really appreciate it."

~LS

"To all the staff thank you very much for all your help and friendliness."

~LC

"Thank you for making a difficult situation not so difficult."

~KR

"Thanks very much, I appreciate all you and your company have put into my file."

~TJ

"Thanking you so much for your excellent service and making a pretty difficult year less difficult. Want to say all the best to you and your Company."

~LN

"Thank you for all your team’s hard work!!!!!!!!"

~JNP

"I would like to thank you and your staff for making a situation that was personally uncomfortable better. Thanks a Million!!!!!!!"

~C

"Thank you all very much for everything."

~DKW

"Thank you for your assistance and professionalism, it has been greatly appreciated."

~TC

"You people are so very, very nice. You have helped me more than words can say. You are all totally appreciated!"

~JH

"Thanks for all your assistance over the past year."

~JM

"To all the AMAZING staff at John S. Beverley & Associates!!! Thank you for your support, understanding, patience, and education you have given me this year. You are all truly special people who have been a positive influence in my life. Thank you!"

~CF

"Thanks for your help and guidance during the black times of our bankruptcy. You brought peace and a ray of color in a dark time."

~LS

"I just want to thank you again for your prompt attention to my situation. It was very much appreciated. Your efforts helped ease some of the stress of this difficult time."

~CE

"What you do in regard to helping people to maintain self respect while learning to cope and face the realities of their financial situation, goes beyond mere words. We have learned so much and our future will be better for those reasons."

~KT

"Just a note of thank you and appreciation for your time and helpful information."

~PSR

"Thanks for all your assistance over the past year and being helpful, this is a hard thing for me. Your telephone manner is so helpful in easing my concern. Thank You!!!!!!!!!!!!"

~G

"Thank you very much for being so kind and so generous. You people have all made my life so much easier even when I thought I was guilty, you saw me as a victim which I really didn’t realize I was until I came to your business. I now feel like a butterfly set free. Thanks for everything."

~ST

"Thanks to Mr. Beverley and his staff for all your help."

~JS

"We would like to thank John S Beverley & Associates Inc. for giving us our lives back. The phone does not ring day and night and when it does ring there is a friendly voice on the other end. "

~WS

" I just want to wish Thank You for a job well done!!!!!"

~MP

"I have definitely benefited in the last year. I have been taught money management, patience and discipline. Thank you so much for making me debt free!"

~JH

"Thank you for all the “hand holding” over the past year."

~LP

"I am back in control of my finances with your assistance. Your help made all the difference. Thank you!"

~T

"I met with you last week in regards to my financial situation. Though you were really unable to assist me you did give me some great advice."

~JS

"Thank you very much for pulling me out of the hole in 2007. My life is back on track…You’re a godsend."

~GC

"I would like to Thank You and your staff very much for helping me through one more very difficult time of my life."

~SG

"We appreciate everything that you have done for us and we are enjoying life so much more now. Everyone in your office has been so nice and helpful. Thanks for helping us to understand each step of our bankruptcy."

~SR

"This comes with appreciation for the thoughtfulness you’ve shown."

~RO

"Thank you all for helping guide us through our financial difficulties. The care and respect shown to us by all your staff was greatly appreciated."

~W&C M.

"Thanks a million. You have been very kind, and I am most grateful."

~BB

"Thanks for all your help, it’s a big weight off my shoulders."

~CP

"Thank you for all your kind help."

~BA

"I want to thank John and his staff, and in particular, Melody, for being especially understanding during an extremely difficult time for me. Without judgment and with a lot of caring, compassion and hand holding, they were able to see me through the entire process in a very stress free manner. I will forever be grateful."

~MF

"Thank you all for the help in the past, you are very nice people."

~JB

"Mr. Beverley and Staff: Thank you so much everyone for your help in the past year. I was treated with compassion, kindness and understanding. I was reluctant to seek help, but in the future I would recommend your services to anyone. You were professional, yet explained things in a clear and simple manner. I am grateful to you all!"

~MA

"Your kindness was appreciated more than words can say…..Thank you very much…….I will never forget your kindness and competence in serving me."

~S.

"We want to Thank You and your team at Beverley & Associates for successfully negotiating our proposal"

~VM

"Thank you for your wonderful support, guidance, patience, understanding and kindness. I am on the right path now with a fresh start. My son and I have a much brighter future and words could not express how thankful I am."

~FL

"I want to “Thank You” for all your help and more."

~TJ

"I appreciate everything you’ve done and taught me."

~J

"I truly would like to thank you for all the help and wonderful service you have provided us. Thank you so much."

~CW

"Thank you so very much for all that you have done for us. You have given us a new start and we appreciate it very much."

~P&S D

"A simple Thanks to everyone for all your help and support. You have changed by life from worse to a better one."

~WG

"Thank you...for your kindness, help and respect, and for removing many stresses from my life, thus allowing me to begin again. You are so much appreciated."

~SD

"When I think of all the things you’ve done, I simply can’t just stop with one……So Thank You again and again to Mr. Beverley and staff who helped us through a very difficult time of our life. We truly appreciate your extreme kindness."

~MZA

"Thank you all for your caring and kindness during a difficult time. I feel like I have my life back. Thank you...thank you!"

~

"Thank you for your patience and help this past year."

~JK

"Thank you for all your help during this past year. It has restored my faith and hope for a better future."

~

Glossary

Bankrupt

This is the legal status of a person who declares bankruptcy.

Bankruptcy and Insolvency Act (the Act)

This is the federal law which regulates business and consumer proposals and bankruptcies in Canada.  It falls under the responsibility of the Office of the Superintendent of Bankruptcy at Industry Canada.

Bankruptcy Court

This is a court in which a judge or registrar will decide on the bankrupt's application for discharge and other insolvency matters.

Co-signers

Your bankruptcy does not cancel the responsibility of anyone who has guaranteed or co-signed a loan on your behalf.  For example, if your parent co-signed a loan for you, that parent would be liable to pay the loan in full even if you decide to file for bankruptcy.

Counselling

Counselling is a process in which we will help you to evaluate your income and expenses with a view to ensuring that you are making the best use of your money.  We will point out the pitfalls of various types of borrowing and suggest cost cutting ideas.  We will also provide you with some sound ideas for rebuilding your credit rating.

Creditors

A creditor is a person, institution or business to whom money is owed.  Secured creditors are creditors who have taken some measure to protect themselves and hold a mortgage, pledge, lien or similar instrument on, or against, the property of the debtor.  If they are not paid, they can enforce their claims by recovering the assets on which they hold security.

Unsecured creditors are creditors who do not have any security for the debt owing to them.

Creditors' Meeting

A creditors' meeting is a process where creditors are given an opportunity to meet with a debtor and the Trustee in order for them to ask questions.  It is a formal legal process, but is rarely used in the vast majority of bankruptcy and proposal filings.

If you are asked to attend a creditors' meeting, you are required to attend.  You will generally be asked questions relating to:

  • Your assets
  • Your debts
  • Your family income
  • Assets you may have previously owned
  • Recent disposition of assets
  • Your future prospects
  • Your business, if you were or are self-employed

The meeting is designed to provide an opportunity for a creditor to gather information.

It is not the opportunity for a creditor to harass a bankrupt.

See also  “What Happens at a Creditors' Meeting” on our Facts, Q's and A's page.

Credit Rating

Your bankruptcy is a matter of public record and is available to any interested party (such as a credit reporting agency).  To obtain credit after your discharge you may have to demonstrate to the potential lender that you have sufficient income and the ability to handle a reasonable level of debt.

Debtor

A debtor is a person who receives a loan or an advance of goods and services in exchange for a promise to pay at a later date.

Examination Under Oath

An examination is a very rarely used formal process whereby the Official Receiver poses a series of questions to a bankrupt.  The need for an examination is decided by the official receiver and is often random.  It is far more likely in cases of repeat bankruptcy, where creditors are alleging dishonesty or if a bankrupt’s debt load is unusually high.

The process is designed to maintain the integrity of the bankruptcy system.  Information gathered from the examination will be made available to the Trustee and the Court and is considered by the Court if dishonesty is established.  See also “What does an examination with the 'Official Receiver' involve”?, on our Facts, Q's and A's page.

Guidelines

The Superintendent of Bankruptcy provides a guideline as to what income a person or family requires in order to cover their basic spending requirements such as food, clothing, shelter and transportation costs.  The guideline is adjusted annually.  The 2016 figures are as follows:

Number of people in the Household Guideline
1 $2,089.00
2 $2,601.00
3 $3,197.00
4 $3,882.00
5 $4,403.00
6 $4,965.00
7 or more $5,528.00

The income of all members of the family are considered.  Extra ordinary expenses would be added to those figures for expenses such as Child Support/Alimony, Child Care or expenses for a Medical Condition (net of any reimbursements).

If your income is below these guidelines it is generally believed that bankruptcy would be your best option, except in situations of low expenses or perhaps if your debt load is low.

Payments to creditors in a bankruptcy are calculated utilizing these guidelines.  Any income you have above the guidelines is called “surplus” and half of this amount must be provided to the Trustee each month during your bankruptcy.  The amount is pro-rated for each person in the household who contributes to the total income.

Large amounts of surplus extend the duration of a bankruptcy by 12 months.

The amount which represents one half of the surplus will be the starting point to consider if a proposal to creditors is viable.  This amount over a period of 36 – 60 months will often form the basis for a proposal.  If this amount represents an adequate percentage of the amount of your unsecured debts, a proposal will likely be your best option.

Harassment

One of the objectives of the Act is to relieve you of pressure from your creditors.  If you receive phone calls or letters from creditors, tell them that you are bankrupt, or have made a proposal, and refer them to your trustee or administrator.

Income Tax Returns

Two income tax returns must be completed for the calendar year in which you become bankrupt.  The pre-bankruptcy return covers the period from the beginning of the year to the date of your bankruptcy. You will be required to provide details and documentation to support this return to your trustee. The post-bankruptcy return covers the period from the date of bankruptcy to the end of the calendar year.

Inspector

Inspectors are appointed by creditors to represent them before the trustee during the administration of proposals and bankruptcies.  They are expected to assist the trustee by virtue of their experience and are required to supervise certain aspects of the trustee's administration.

Insolvent Person

A person who is unable to meet financial obligations as they become due is insolvent.

Legal Action

Although legal actions or most garnishments against you stop on the date you declare bankruptcy or file a proposal, criminal actions and some civil matters, such as actions in matrimonial matters, are not affected by the bankruptcy or proposal.  In a proposal, no creditor can, without permission of the court, start or continue any legal action until the proposal is either withdrawn, refused, annulled or until the administrator has been discharged.  In the case of a bankruptcy, no creditor may, without permission of the court, start or continue any legal action until the trustee has been discharged.

Licensed Insolvency Trustee

A Licensed Insolvency Trustee is a person licensed by the Superintendent of Bankruptcy to administer proposals and bankruptcies.  The trustee represents your creditors and is an officer of the court.  However, the trustee can give you information and advice about both the proposal and bankruptcy processes and make sure that your rights, as well as those of the creditors, are respected.

Official Receiver

The Official Receiver is a federal government employee in the Office of the Superintendent of Bankruptcy and an officer of the court with specific duties under the Bankruptcy and Insolvency Act.  The Official Receiver, among other things, accepts the documents that are filed in proposals and bankruptcies, examines bankrupts under oath and chairs meetings of creditors.

Payments

Immediately after becoming bankrupt, you should no longer be required to make payments to your creditors.  However, while you are an undischarged bankrupt, you are expected to deposit a portion of your income with your trustee for distribution to your creditors.  These payments are made according to guidelines issued by the Superintendent of Bankruptcy.  If you fail to make these payments voluntarily, the court may order you to do so, or your discharge may be affected.

Statement of Affairs

A “Statement of Affairs” is a document required in Bankruptcies and Proposals which discloses the following details to the creditors and other relevant parties:

  • A complete list of a debtor’s assets, their declared values and whether they are secured by a creditor.
  • A complete list of creditors including names, addresses and amounts owed along with details of whether they are secured, unsecured or preferred creditors.
  • Personal details about the debtor such as his employment details, marital status, number of dependants, etc.
  • The debtor’s responses to specific questions dealing with recent relevant sales of assets, seizures, etc.

  This is a document which must be sworn under oath to be true and correct.

Superintendent of Bankruptcy

The Superintendent of Bankruptcy is a federally appointed official who oversees the administration of the Bankruptcy and Insolvency Act in Canada.

Tax Debtor

An individual is considered to be a tax debtor if they owe over $200,000 of income tax debt representing at least 75% of total unsecured debts.

The calculation of income tax debt includes penalties and interest owing, but does not include any liability assessed for unpaid corporate obligations to a person who acted as a director of a company.