What is debt exclusion from bankruptcy? A bankruptcy or proposal will get rid of most of your debts, but not necessary all of them. This is because certain debts are secured to your assets. The most common being a mortgage on your home or a loan on your car. If you want to keep the house or car, you must continue to pay the debt secured to the asset. In addition, other debts listed in Section 178 of the Bankruptcy and Insolvency Act specifically exclude certain debts from being included in bankruptcy as a matter of public policy.
These debts include spousal support, child support, debts originating in fraud, debts incurred while acting in a fiduciary capacity. These also include debts resulting from an assault, fines and penalties awarded by a court (income tax, traffic and criminal). Finally, student loans are not included in your bankruptcy unless you have not been a student for seven years. However, in cases of severe hardship, a court can reduce the seven year limit to five years.
It happens to all of us at one time or another. You were on a vacation, did not have enough money or just simply forgot to make a payment (or two). There are three things that you must consider:
1. What is the effect on your credit score?
2. Will there be a penalty for a late payment?
3. Will the bank raise the interest rate on my credit card?
As a general rule, if you have always paid your credit card in full and on time, being late one time will have no effect on your credit score or credit rating. However, if you have a history of late payments, no payments, bounced cheques or paying less than the minimum amount due, you already have a reputation with the credit card company as a delinquent credit card holder. Missing or late payments will just continue to reduce your credit score. The only way to get back your old “good” score is to start making all of your minimum monthly payments on or before the date they are due. If you have any extra money, review your credit card statements and look for interest being charged and make the extra payment to those cards that charge the highest interest rate.
The computers of all credit card companies are programmed to charge a penalty if you are late in a payment. If you regularly pay your bill on time each month, consider calling the credit card company (the number is on the monthly statement) and explain what happened that caused you to be late in your payment and ask them to consider reversing the late fee. The person that you will be speaking to may be sympathetic to you and just might have the authority to reverse the late payment charge. Nothing ventured, nothing gained!
The credit card companies will rarely raise the interest rate on your credit card just because you were late on one payment. Being late on many payments or several payments in a short period of time will almost certainly downgrade your credit standing
Ontario Drug Benefit Programs:Each year, millions of Ontario residents receive drug benefits from Ontario’s drug programs. The province has five different programs seniors can apply for depending on needs: Ontario Drug Benefit Program (ODB), if eligible, may pay for the majority of cost of your prescription drugs, New Drugs Funding Program for Cancer Care (NDFP) may cover the costs of newer intravenous cancer drugs. Third, the Special Drugs Program (SDP) may provide funding for specific drugs used for certain diseases and conditions. Fourth, inherited metabolic diseases program (IMD) may pay for certain drugs, appropriate supplements and specialized food to treat metabolic disorders. Finally, the government offers the Visudyne Program, this program may pay for the specific drug that slows the eye disease called age related macular degeneration. It is important to find out if you are eligible and apply to these programs because the cost of your prescription drugs may be covered by the province of Ontario.
Trillium Drug Program: This program helps people who have high prescription drug costs relative to their household income. You will however have to pay a small amount 4 times per year and this is called a deductible. The amount of your deductible is based on your household income. For most people, the deductible equals about 4% of your household’s combined net income. In addition, if you have high prescription drug costs and a low household income you may be eligible to pay $2 or less for every prescription. The pharmacist will charge you this fee and the fee is called a co-payment. You need to download: Application for Ontario Drug Benefits and the information package: A Guide to your Application: Ontario Drug Benefit (ODB).
Reduced Co-Payment for Lower Income Seniors: It is important to research all possibilities for tax credits and benefits—particularly when you are a senior.Depending on your annual income, you may be able to have the ODB $100 annual deductible waived and have your co-payment reduced per prescription.
Ontario Guaranteed Annual Income System (GAINS): If you are 65 years old or older and receive the federal Old Age Security pension and the Guaranteed Income Supplement payments, you could get up to a maximum of $83 per month to ensure your income stays above a certain amount. GAINS ensures a guaranteed minimum income for Ontario seniors by providing monthly payments to individuals who qualify. The monthly GAINS payments are on top of the federal Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) payments you may receive.
Strong Communities Rent Supplement Program: Low to moderate income households, including those requiring support services, can apply for a rent-geared-to-income subsidy to help make housing affordable.
Healthy Homes Renovation Tax Credit: If you are 65 years old, and over you could get up to $1,500 to help with the cost of making your home safer and more accessible. The Healthy Homes Renovation Tax Credit is a permanent, refundable personal income tax credit for seniors and family members who live with them. If you qualify, you can claim up to $10,000 worth of eligible home improvements on your tax return. The amount of money you get back for these expenses is calculated as 15 per cent of the eligible expenses you claim. For example, if you spend and then claim $10,000 worth of eligible expenses, you could be eligible to receive $1,500. The Healthy Homes Renovation Tax Credit can help with the costs of improving safety and accessibility in your home. Explore the interactive house below for examples of changes you could make. Seniors and their family members at all income levels are eligible.
Home and Vehicle Modification Program: It is possible to receive money to help with the cost of making your home and vehicle more accessible if you have a disability that restricts mobility. This money is a last resort option due to the minimum amount of cash in this program. However, the maximum government contribution for home and vehicle modifications is $15,000 per client for home modifications and/or $15,000 per client for vehicle modifications. The government contribution may be spent on the following goods and/or services: design schematics and professional fees of contractors, architects or other professionals needed to plan construction or installation. In addition, the equipment and supplies needed for the approved modifications, the cost of any warranties and the installation of any equipment, the approved structural alteration of the home and/or vehicle, including labour and/or training on the use of equipment, provided by the contractor/ supplier/ vendor.
Ontario Senior Homeowners’ Property Tax Grant: If you are 64 years old and over and own your own home, you are eligible to receive up to $500 to help with the cost of property taxes each year. You are eligibleif your family net income for the previous year was $35,000 or less. The amount you receive is adjusted if you make between 35,000-50,000 and you are not eligible if you make over $50,000 per year. Here is how you apply for the grant: You complete the application for the Ontario Trillium Benefit and Senior Homeowners’ Property Tax Grant, which is part of your personal income tax and benefit return. You have to report the amount of property tax you paid on line 6112 on the ON-BEN application. Remember to use total property taxes paid including the municipal and education property taxes.