Clark Farb Fiksel LLPToronto Commercial & Corporate Law Firm | Clark Farb Fiksel LLP2024-01-17T19:47:17Zhttps://www.cfflaw.com/feed/atom/WordPress/wp-content/uploads/sites/1602026/2020/12/fav-icon.pngOn Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=480032024-01-17T19:47:17Z2024-01-17T19:46:53ZThe purpose of bankruptcy
Bankruptcy is not merely about eliminating debts; it's a structured process that balances the need to provide relief to the debtor with the rights of the creditors. It offers a chance to discharge most unsecured debts and halt the cycle of insolvency, while also ensuring that creditors receive a fair distribution of available assets.
The goal is to allow individuals to emerge from financial turmoil with a clean slate, enabling them to rebuild their financial lives without the burden of insurmountable debt.
Exemptions: What you can keep
The most common concern among those considering bankruptcy is what possessions they might lose. Ontario's bankruptcy laws understand that stripping debtors of all their assets is counterproductive. To support a fresh start, the law provides for certain exemptions (effective Dec 1, 2015):
Personal items: Clothing for you and your dependents is exempt without a dollar limit.
Household goods: Items such as furniture and appliances are exempt up to a value of $14,180.
Tools of the trade: Tools and equipment used in your trade or profession up to a value of $14,405 are exempt.
Motor vehicles: One car or truck up to a value of $7,117 is exempt.
Some homes: A principal residence may be exempt if the equity does not exceed $10,783.
Pensions and certain insurance policies: The laws protect most pension plans and some insurance policies from creditors.
This list is not exhaustive, and the exact amounts may change over time and vary by province, so consulting with a bankruptcy lawyer is crucial to ensure you have current information.
A new beginning
While bankruptcy may seem daunting, it's a lawful and legitimate way to regain control of your financial situation. With the right guidance, you can navigate the bankruptcy process with dignity and emerge on the other side ready to rebuild.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=477932023-12-01T17:17:26Z2023-12-01T17:17:26ZConflicts related to someone's estate plan can quickly go from a disagreement to a full-blown family war when parties cannot agree. Emotions can run high; disputes can push relationships past their breaking points; grudges can arise or reemerge.
One way to minimize the development of these complicated situations is to mediate estate-related disputes.
Benefits to consider
Mediation is an alternative dispute resolution process that requires parties to work together and cooperatively to reach agreements. During mediation, the mediator, who is a neutral third party, will assist by helping participants see other perspectives, keeping conversations balanced and productive, and facilitating settlements.Because parties work together and have more control over the outcome in mediation, this approach has several benefits:
It can keep parties from having to go to court
It is generally quicker and less expensive than litigation
It can preserve the personal relationships of those involved
With these benefits in mind, mediating a dispute regarding estate planning matters can be an option worth pursuing.
What can we mediate?
Several types of arguments can arise when a loved one passes away. Disagreements can be rooted in emotional responses or personal choices; others are more logistical or mathematical. For example, some common estate planning and administration issues people tackle in mediation include:
Concerns about the loved one's mental condition at the time they made or changed a will
Disputes over the actions or decisions of an executor or other substitute decision-maker
Conflicts over the disbursement of gifts
Disagreements on property valuations
Decisions on whether to sell, donate or keep specific property
Arguments over specific clauses in or missing from a will
Verbal promises or statements
These matters can tear people apart when there is a lack of effective communication that helps them resolve them. People can feel unheard, ignored or mistreated, which is likely not what the decedent would have wanted. Mediation can prevent this.
What if it doesn't work?
In many cases, mediation is effective at preventing contentious litigation. However, some issues are too complex or controversial to resolve in this less formal setting. If mediation is not effective or possible, a collaborative approach could work. Otherwise, the matter can go to the courts for resolution.Whichever approach people ultimately take, preparation will be crucial. Understanding how the processes work, what is required of participants and what people can expect as the outcome can be an excellent place to start.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=477902023-07-21T19:18:34Z2023-07-21T19:18:34ZIf there comes a time when you are not able to speak for yourself, someone else will step in to make decisions for you. The decisions will have a very real impact on you and your legacy, so it is crucial that you appoint the right people to step in as your substitute decision-makers.
So, who are the right people?
People who are willing and able
You want to be sure that whomever you choose has the ability and willingness to take on this role.For instance, if they live far away or have serious medical issues, putting them in this type of role could ultimately cause more stress than anything.Instead, you can choose someone you have talked to about your wishes and who has said they are prepared to fulfill the intended role. Other considerations are whether these parties have legal or financial backgrounds, which could make them more than capable of handling related matters.
People you trust
Making decisions on someone else's behalf is a tremendous responsibility. As such, when choosing your executors or trustees, make sure these are people you can trust to fulfil your wishes and make informed decisions.You might want to avoid people you do not know well or someone with a criminal history. And people who gamble or make risky decisions may not be the ones you would trust with your personal care, final arrangements and property distribution.
People who know what you want
Your substitute decision-makers shouldn't have to guess what you would want or do in a specific situation. Thus, the people you choose should be familiar with your:
Financial attitudes
Religious or cultural background
Views on medical care
Attitudes toward family
Charitable aspirations
Knowing how you feel can ensure the people making decisions on your behalf do so according to what you want.No one wants to think about the end of their life or what life would look like if they couldn't express themselves. However, not thinking about these things doesn't make them go away. In fact, ignoring them can mean failing to put a plan in place that provides essential guidance and protection. Appointing effective and trusted decision-makers can be an essential aspect of this plan.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=477882023-04-20T18:58:02Z2023-04-20T18:58:02ZIf you are struggling with debt, a day probably never goes by when you are not thinking about your financial challenges. If you are considering bankruptcy to help you manage your financial situation and have your unsecured debts wiped away, there are some significant numbers to take into account.
$1,000
This is the minimum amount of debt you must have to file for bankruptcy. If you have more debt than this that you cannot repay in a reasonable time, filing for bankruptcy may be an option worth considering.
21 months
Twenty-one months refers to the length of time you may need to pay surplus income payments if this is your first bankruptcy filing. If it is your second or subsequent time filing, you can be paying for longer than 21 months.Surplus income refers to any income in excess of what you need to maintain a reasonable standard of living. If you have surplus income over $200 per month, you will make monthly payments toward paying off part of your debt.
6-7 years
Bankruptcy will stay on your credit report for six years after the discharge for both main credit bureaus. However, if you are in Ontario, TransUnion will remove a bankruptcy from your credit report after seven years.During this time, parties like banks, credit card companies and landlords can refer to the bankruptcy filing when making certain decisions about you. As such, during this time, you could have some difficulty when it comes to borrowing money or renting property.
9 months
After nine months, your bankruptcy trustee can ask the courts to release you from the bankruptcy process if you have completed all the necessary requirements. If you make surplus payments, you can be eligible for this automatic discharge after 21 months.However, if you have filed for bankruptcy before, this timing extends to 24 or 36 months, depending on whether you make surplus income payments.
Around 300
After filing for bankruptcy, your credit rating or score will drop to around 300, which is the lowest possible score. While this might be distressing, there are numerous strategies and tools that can help you increase your score after filing.These numbers can help you assess how bankruptcy might affect you now and in the long run. ]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=477752023-01-24T19:09:06Z2023-01-24T19:09:06ZPeople often make the mistake of thinking they only need an estate plan if they have kids, a sizable estate or are nearing retirement. However, the fact is that every adult can benefit from having this type of protection in place.
If you are a young adult
A survey by the RBC Royal Trust Survey estimated that about 70 percent of Canadians between 18-34 do not have a will.If you are part of this group, you can still have plenty to protect. You can create an estate plan to address issues related to:
Most people would trust their spouse to do things like manage their financial affairs or make personal and medical decisions for them if they cannot do so themselves. If you are not married, the courts could wind up appointing people to these roles.Without direction from you in the form of estate planning documents, someone you would not have chosen could wind up in these positions. Further, you may have a partner or non-relative loved ones to whom you want to leave money or property. Without the appropriate legal documents, these parties may not be in a position to receive anything.
If you don't have kids
You may not have kids, but you can still have loved ones who depend on you. Depending on your circumstances, you might set up a trust or earmark financial gifts for these parties. For instance, you can use an estate plan to donate funds to charity or local non-profit organizations you support. You could leave savings or assets to siblings, parents and others who can benefit from financial gifts of any size.And if you are a pet owner, you can use your estate plan to ensure someone you trust will take over as a caregiver. You can also leave money that this person could use to care for your pet.
Estate planning tools for every person
An estate plan can provide critical guidance and decisions during times of grief and uncertainty. No matter where you are in life, there are planning tools that can help you protect your legacy and the people you love.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=477712022-11-29T16:32:23Z2022-11-29T16:32:23ZThe answer to the question in the headline, perhaps frustratingly, is maybe. Filing for bankruptcy can provide incredible relief to some consumers struggling with debt, but it is not the right solution for everyone. If you are wondering whether you should file for bankruptcy, consider the following questions.
What else have you tried?
Bankruptcy is one way to deal with debt, but it is not the only option. In fact, for most people, bankruptcy becomes their best route only after exhausting all other avenues. Before pursuing bankruptcy, you might also consider the following:
Filing a consumer proposal, which allows you to repay a portion of your debt and keep your assets
Reaching debt settlement plans with creditors
Working with credit counsellors
Making changes to lifestyle and budget
These few options can be effective at helping you get debt under control without filing for bankruptcy. That said, these alternatives may not help you get the fresh financial start you need, in which case, discharge through bankruptcy can be effective.
What are your sources of debt?
Bankruptcy clears many types of debt, but not all of them. Even after filing for bankruptcy, you will likely still be dealing with repaying:
Payments for child or spousal support
Court fines and penalties
Debt related to fraudulent actions
Recent student loans
Secured debts
So, if most or all your debt stems from these sources, bankruptcy may not have a meaningful impact on them. It can be more effective if your debt comes from:
Credit cards
Personal loans
Bank loans
Past due bills
Judgement debts from lawsuits
Under these circumstances, filing for bankruptcy can be far more helpful in clearing debt.
Are you getting help?
If you are struggling with debt, you may feel embarrassed and overwhelmed. These emotions can make it difficult to get help from professionals experienced in helping people manage debt. However, staying silent will not help you move forward or assess your options.Talking to a lawyer, financial advisor or credit counsellor can help you get an accurate picture of your finances and remedies that could help you get back on your feet. These parties can also advise you on whether bankruptcy or other debt-relief options are right for you.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=477652022-07-26T18:32:00Z2022-07-26T18:32:00ZMaking decisions regarding complicated, sensitive topics like end-of-life care and what you want your legacy to me is no easy task. While there are tools out there that can make it easier for you, not all shortcuts help you get where you want to go.
As discussed below, plugging some information into a form may not adequately address your unique needs and wishes.
Preserving your memory
The planning you do or do not do has a tremendous impact on those you leave behind.A templated will or other documents may be satisfactory in the legal aspect, but it may not be the same for your loved ones. A one-size-fits-all approach here can leave your family without explanations, context or instructions that can provide a great deal of comfort and guidance during a difficult time.Your loved ones will already be coping with a loss and struggling with grief; making the legal process of estate administration easier for them can be a valuable legacy.
Protecting property
Specific tools like trusts can protect property and those receiving it. There are generally two types of trusts:
Testamentary trusts, which go into effect after you pass away
Inter-vivos trusts, which allow you to benefit from the trust during your lifetime
Within these categories, there are several specific options to consider, depending on who the beneficiaries are and what you put into the trust.For example, if your loved one is disabled, a qualified disability trust can provide that person with funds without jeopardizing the government benefits they may be receiving.On the other hand, if you plan to put income-generating property into a trust, other trusts can be more appropriate.
Maximizing gifts
Delays, contests and other issues that can disrupt the estate administration process can be costly. And when the estate covers these costs, there is less money for beneficiaries. Thus, utilizing estate planning tools to reduce or prevent conflicts can be critical.Further, some planning strategies can allow you to minimize tax obligations on the estate or your loved ones. Estate planning is not a one-size-fits-all process. You have unique wishes and resources that can require specific attention and protection. Tailoring your plan accordingly can help you accomplish your planning goals.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=476832022-04-12T20:37:40Z2022-04-12T20:37:40ZLosing a parent is painful, even if you were not on the best terms with them or were not as close as you might have liked. And the situation can become even more upsetting if you or someone else in your family suspects your parent was the victim of undue influence before their death.
What is undue influence?
Backing up, we should explain that undue influence refers to coercing or manipulating a person into acting in the influencer's best interests rather than their own.In the context of estate planning, it typically involves someone coercing the testator (the person making a will) into leaving assets or transferring money and property to the influencer. These actions may be financially harmful to the testator or directly contradict their original wishes.
What you should look for
If you or someone else worries that someone exerted undue influence over your parent, there may be some signs present. Look for indications such as:
The influencer isolated your parent
Your parent had unpaid bills, poor medical care or substandard living conditions, despite having adequate finances
Your parent exhibited little or no awareness of financial transactions prior to their death
Your parent left surprising, unusual gifts to the influencer
Your parent was increasingly or entirely dependent on the influencer
There are other signs of abuse or neglect
These could indicate that a person manipulated, tricked or coerced your parent into making decisions that aligned with the best interests of the influencer rather than themselves.
What you can do
If you suspect undue influence of your parent, you might seek legal guidance to explore your legal options. Holding a party accountable for this mistreatment and having the courts set aside an estate planning document that does not reflect your parent's wishes can be crucial.Estate litigation involving undue influence claims may not undo the damage or assuage feelings of sadness or guilt, but it can punish wrongdoing and preserve your parent's legacy.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=474222022-01-20T16:59:15Z2022-01-20T16:59:15ZTrusts are valuable tools for many Canadians. However, people often overlook them when they are making other estate planning decisions.
If you are looking ahead and making plans for your legacy, a trust could be an essential part of your goals.
Do I need a trust?
Trusts are not necessary or appropriate for every individual. That said, you need not be exceptionally wealthy to benefit from a trust. Trusts allow you to give money or property to someone else who manages it for beneficiaries. If you have family members or a business, a trust can make it easier for these parties to receive property before or after you pass away. There are also tax benefits that come with establishing trusts.
Which type of trust should I set up?
There are different types of trusts that serve a variety of specific purposes. The two types of trusts are testamentary and inter vivos. Testamentary trusts take effect when a person passes away; inter vivos trusts are created when a person is alive.Within these two categories are several trusts that serve a specific purpose. In fact, the Canadian Revenue Agency recognizes more than 40 types of trusts.Before setting up a trust, consider the following questions:
Who is the beneficiary?
Are you putting property or money into the trust?
Do you want to control the way beneficiaries receive disbursements?
Do you have a family business?
Will you benefit from the trust while you are alive?
These and other questions can make finding the trust that accomplishes your financial goals easier. And setting up the right type of trust is crucial in ensuring it serves its intended purpose.
Is creating a trust complicated?
Creating a trust involves paperwork and contributing property, which may not seem particularly complex. However, complications can arise that jeopardize the trust's validity and effectiveness. Forgetting to transfer property, selecting the wrong trustees or choosing the wrong type of trust could all be costly mistakes. However, consulting legal or financial professionals can help you avoid these missteps.These considerations can affect your estate planning strategies and legacy, so it is wise not to overlook them.]]>On Behalf of Clark Farb Fiksel LLPhttps://www.cfflaw.com/?p=474042022-01-07T21:33:45Z2022-01-07T21:33:45ZMoney problems are not something Canadians typically advertise. They may not want to talk about their financial troubles or reach out for help, and they may struggle with feelings of embarrassment and desperation. Unfortunately, being in this position makes them targets for debt relief scams.
Scammers use various schemes to get people to give them money or personal information, allowing them to do things like stealing their identities. To protect yourself from these people, it can help to know how to spot a debt relief scam.
Words to watch out for
Scammers use certain words that should set off alarms. However, if you don't know what these are, they can be easy to miss.If someone contacts you about your debt, a loan or other financial matters, pay attention to whether they are using words and making claims such as:
Being able to erase negative information from your credit report
Boosting your credit score
Directions to lie to financial, legal or government institutions
Further, steer clear of anyone demanding payment or threatening to report you to authorities or other agencies for not complying with their requests.These phrases and actions can signify that the party contacting you is not a legitimate enterprise and is not providing lawful debt relief solutions.In general, be wary of anyone making claims that seem too good to be true. The fact is that handling debt takes time and work. Anyone suggesting otherwise should be viewed with suspicion.
Finding legitimate support
While it can be tempting to pursue relief options that seem like they could offer an easy solution, doing so could cost you money and further damage your credit score.Instead, it can be more effective to seek out legitimate means of addressing debt. Some options include:
Restructuring debt
Filing for bankruptcy protection
Negotiating with creditors
Credit counselling
These measures can allow consumers to resolve debt issues properly, put this difficult chapter behind them and make a fresh financial start.]]>