Frank Fabiano, CPA, CA, CIRP Licensed Insolvency Trustee Partner and Vice President
A strong commitment to quality is core to everything we do at Grant Thornton. It is foundational to our success as a firm.
Frank was recently presented with our National Professional Excellence Award recognizing him as a partner who exemplifies the commitment to professional excellence to which the entire Grant Thornton team aspires.
Frank services Thunder Bay and Northwestern Ontario. If you, your company or your client is experiencing financial difficulty, give Frank a call. Not only is he the right professional to consult, he’s understanding, respectful and here to help.
Learn more about Frank and book your free consultation.
Henry Francheville, LIT
A reasonable amount of debt allows you to make your monthly payments on time and in full while allowing you to maintain your other expenses.
You should be in relatively good shape if:
- you’re able to pay your credit card balance in full each month;
- your housing costs do not exceed 30% of your monthly income;
- you’re not using payday loans or living in your overdraft; and
- you’re able to put some money into your savings account.
For a large number of Canadians this is not always possible due to various reasons such as illness, job loss, separation/divorce, helping family members or simply the lack of a workable income.
We are pleased to offer a free consultation to discuss your situation.
Larry Crandall, Licensed Insolvency Trustee
Larry Crandall, Licensed Insolvency Trustee with our Saint John, New Brunswick office, shares what you should consider before withdrawing money from your RRSP:
- RRSPs are intended to save for retirement. Every dollar you withdraw today is a dollar that won’t be available when you retire.
- Funds taken from an RRSP will be considered income in the year in which it is withdrawn. The institution will withhold income tax based on a sliding scale, but depending on your income, they may not withhold sufficient tax. This could leave you with a large tax bill at the end of the year.
- Depending on the amount that is withdrawn from the RRSP, your increased “income” for the year may bump you into a higher tax bracket, which would increase your overall amount of income tax.
- RRSPs are exempt in a proposal or bankruptcy (except for contributions made in the last 12 months). This means that if you file a proposal or go bankrupt, your RRSP will not be affected. If you have already withdrawn RRSP funds to pay debts and later file a proposal or go bankrupt, those funds are gone – your Trustee cannot get them back. However, the Trustee could help take care of the income tax liability created by the RRSP withdrawal.
Grant Thornton Limited provides advice and solutions to individuals and businesses experiencing financial difficulty.
Given recent news that nearly 1 million Canadians would be unable to keep up with their monthly payments if interest rates increased by only 1%, Freida Richer, Licensed Insolvency Trustee with Grant Thornton’s consumer insolvency team in Edmonton, warns that consumers who are unable to continue their mortgage payments may be facing a housing foreclosure.
She’s worked with consumers in a variety of financial situations and offered her advice for consumers in this situation:
- Approach the situation earlier rather than later: A housing foreclosure can be more damaging to a consumer than filling bankruptcy. While facing financial worries can be daunting, approaching these situations earlier rather than later allows more time to find a solution that works for both the lender and the borrower.
- Work with the bank: Banks don’t want to see a house sitting empty, if you work with your bank you may be able to live in the property until it is sold, granting you much more time to find alternative options.
- Know your equity: More equity in a home often means a longer redemption period for a homeowner. Having more equity in a home could mean the difference between one day and six months in that home.
- Resolving your exposure when foreclosure occurs: A mortgage deficiency judgment obtained against you as a result of the foreclosure is treated as an unsecured claim which can be resolved through a Consumer Proposal or Bankruptcy.
To learn more from Freida, visit www.gt.alger.ca
Blaire MacNeil, Licensed Insolvency Trustee Sydney, Nova Scotia
Filing for bankruptcy creates a “Stay of Proceedings,” which prohibits creditors from taking any collection activity, including phone calls. This “Stay of Proceedings” is sent to all your creditors when you sign your bankruptcy papers.
In our experience, most creditors respect the bankruptcy process and stop calling. But, if you find otherwise, let your Trustee know and they can call the creditor, explain the process to them, and get the calls stopped.
We are pleased to offer a free consultation to discuss your options, what bankruptcy would mean for you and to help you make a fresh start! Grant Thornton Limited provides advice and solutions to individuals and businesses experiencing financial difficulty.
For answers to frequently asked questions about bankruptcy, visit our website.
For a free, no obligation consultation, in person or by phone, contact one of our offices:
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