Category: Bankruptcy Questions

File your tax return! (Online)

Posted on by Jordan Rumanek

File your tax return! (Online)tax

Fight the Fear…File your Income Tax and Benefit Return Online!

As mentioned in our two previous blogs on Income tax and Benefit Return, filing your taxes is a great start to organizing and understanding your financial life. Once you have filed your income tax and benefit return, you can begin to set financial goals, budget more easily and most importantly know where you stand financially. Your income tax and benefit return can be filed online at www.netfile.gc.ca. This is a step-by-step electronic tax-filing option that is safe and secure. Like anything new, it will be challenging at first but that is why you set aside time to work on your taxes. Because you are filing online you can save your work and return the following day to finish. You do not have to file electronically all in one day. To file online you need to follow the steps to filing which include:

  •  Organize all forms/records (get a plastic portable file folder to store all tax papers and receipts and label the file 2013)
  •  Download certified tax software (www.netfile.gc.ca)
  • Research your options, write down questions or concerns then use a help line or CRA website to find answers
  • Get started and refer to the links below if you have any questions about particular lines in your tax return
  • Call an e-Services Help desk line 1-800-714-7257 if you need extra help and answers
  • Send your Income Tax and Benefit Return to CRA & Save your confirmation number you receive

Income Tax and Benefit Return Helpful Links (Click on the links below for extra help)

Guide (General Income Tax and Benefit Return Manual)

Total Income Lines

Deductions Lines (Net income & Taxable Income)

Refund or Balance owing Lines

Federal Tax and Credits

Net Federal Tax (Schedule 1)

Federal Worksheet

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  

Bankruptcy Proposals and Your Life Insurance Policy

Posted on by Jordan Rumanek

Estate PlanBankruptcy Proposals and Your Life Insurance Policy

When you file a Proposal, your Trustee who acts as the Administrator of your proposal will ask you for a copy of your life insurance policy.  He is doing this to determine if the life insurance policy is a term insurance policy (no cash value) or a whole life policy (possible cash value).  It is very unusual for a proponent (the debtor who files the proposal) to offer to the creditors any part of the cash value of an insurance policy.  There is, however, the requirement to inform the creditors if there is any cash value to an insurance policy.  In this way, the creditors have full disclosure of your assets and liabilities when they vote on accepting or refusing your proposal.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Can bankruptcy take life insurance money?

Posted on by Jordan Rumanek

When you initiate a bankruptcy proceeding, your appointed Bankruptcy Trustee will ask you for a copy of your life insurance policy. This is not an invasion of your privacy, but rather a necessary step in the process. They want to ascertain whether it is a term insurance policy or a whole life policy that might possess a cash value. The trustee’s role is to determine if this cash value is part of your insolvent estate without compromising the rights of the beneficiary of your life insurance policy.

Should you nominate your “estate” as the beneficiary, the trustee would normally extract the cash value or propose an option for you to reimburse the amount the trustee would have obtained if they had accessed the cash value. Rest assured, your trustee will not invalidate your life insurance policy. With your cooperation, the insurance provider and your life insurance broker may remain unaware of your bankruptcy filing.

Another aspect of concern for your trustee revolves around the situation if you were to pass away while your bankruptcy is still not discharged and your estate has been designated as the insurance policy beneficiary. In such a case, the policy proceeds would be directed towards your trustee. They would first allocate funds for your funeral and testamentary expenses, following which, the balance would be distributed among your creditors, post the deduction of the trustee’s fees and charges. Any residual funds would be transferred to the executor of your estate.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Life insurance policy bankruptcy

Credit Cards & Students

Posted on by Jordan Rumanek

Credit Cards & StudentsCredit Cards & Students

Credit Cards & Students. University students will often receive unsolicited and/or pre-approved applications for credit cards. Perhaps financial institutions specifically target students to apply for credit cards? It is a tempting offer for someone on a tight budget who needs the extra cash for books, pub night or a pizza delivery. The cards usually have a low limit of about $1000.00 so it is not a “big deal.”

However, banks are not targeting students to be “nice”. They want to be the one of the few credit cards that you have in your wallet because after you graduate, and start your career, the card limit can be increased. In the meantime, financial institutions rely on students only making small or minimum monthly payments on balances. Not only do students usually only pay minimum payments, they also don’t usually think about the extra interest they are paying on top of the original balance. In other words, financial institutions make more money from minimum payments each month. Be cautious, look at the interest rate and look beyond the advertised low introductory rate.

We live in a “plastic society.” There is nothing wrong with having a credit card for emergencies and for large cash purchases. Just make sure that you stay financially responsible, pay off your monthly balance every month and use credit wisely. Be financially responsible now and you will reap the financial rewards in the future.

Stay Financially Savvy

Credit Cards & Students

Carl Rumanek CPA, CA*CIRP is a trustee in bankruptcy with Rumanek & Company Ltd.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.  

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