Bloomberg via Getty Images
Andy Clark / Reuters
Corporations are said to have limited liability. However, that provides less shielding than most people realize.
Andy Clark / Reuters
Shares have lost 80% of their value in the last year.
Devonyu via Getty Images
The company saw 25% of its value wiped out in a morning.
Blend Images - Jose Luis Pelaez Inc via Getty Images
The Ontario government just announced a pilot project to test a basic income for low-income earners in Hamilton, Brantford, Lindsay and Thunder Bay. Will the program be successful? I have no idea. The answer will, in large part, depend on what will be measured.
Wavebreakmedia Ltd via Getty Images
As we start a new year, we have yet another new poll about how Canadians are once again listing paying down debt as their top financial priority for 2017. This survey, from the CIBC, says that for the seventh straight year concerns about debt were a top concern for most Canadians.
Shutterstock / Olivier Le Queinec
It is Saturday night and I am rebounding on my mini trampoline (so good for the body and mind), watching a movie on www.Gaia.com. The main character just broke his neck in a car accident, lost his job...
Wavebreakmedia via Getty Images
Real estate agents can talk about the upside of buying right now, but they don't explain the downside of carrying massive debt. Yes, you may build some equity if you purchase a home, but if you've mortgaged 90 per cent of it, very little of your payments in your first five to 10 years will go towards repaying principal.
Mario Ragma via Getty Images
The Office of the Superintendent of Bankruptcy just released their 2015 Annual Report of bankruptcies and consumer proposals in Canada and from these numbers we can see the impact shifts in the Canadian economy have on indebted Canadians. In 2015, 121,609 Canadians filed for insolvency, an increase of three per cent over the prior year.
Peter Dazeley via Getty Images
I've had a few people say to me recently "If you have debt, just walk away; the banks won't do anything. My friend stopped paying, and nothing happened to him. Don't bother with credit counselling, or a consumer proposal, just walk away". Does that strategy actually work?
JGI/Jamie Grill via Getty Images
Lenders have been using a person's credit report for years to judge their overall creditworthiness and the risk that they might default and become a bad debt. However, financial institutions often use another measure, a bankruptcy score, to refuse a loan application for someone who may otherwise have good credit.
Jupiterimages via Getty Images
To err is human. Mistakes can be a valuable learning opportunity, and sometimes, the bigger the mistake, the bigger your lesson will be. Lucky for us, there are plenty of people out there who made huge personal finance mistakes in 2015, and we have the benefit of being able to sit back and learn from them.
Recently, a friend asked me if I could help a neighbor whose life had fallen apart. I have the bittersweet reputation of being someone who's lived through some soul-shattering events and has managed to stay vertical, so she thought I might be able to offer some comfort and advice.
HARTFORD, Conn. — Rapper 50 Cent's bankruptcy attorney says he'll try again to sell his 50,000-square-foot Connecticut mansion. The Hartford Courant reports (http://cour.at/1hH14pW) Pat Neligan spoke...
Wavebreakmedia Ltd UC6 / Alamy
Here's the bottom line: too many students are burdened with excessive student debt and that hurts all of us, so a solution must be found, and the sooner the better.
Judy Southon never imagined it would come to this. She and her husband Vic had good jobs, raised a son and were homeowners. But after a run of bad luck, the 67-year-old wound up deep in debt and had t...
In Alberta they rose 6.5 per cent, “the worst showing since the recession."
Tom Merton via Getty Images
Consumers who file insolvency are in severe financial distress, but surprisingly this does not mean they are behind on their payments. According to Equifax Canada, about 70 per cent of consumer accounts are paid as agreed at the time the individual files for bankruptcy, and this is definitely consistent with what we see every day. More debtors are turning to subprime debt as a way of balancing payments. While any one payday loan, high cost instalment loan or low credit car loan will not necessarily lead to bankruptcy, it does begin a slippery slope and these loans are a primary indicator of an increasing percentage of insolvencies.
Shutterstock / phloxii
Looking at our study, the percentage of women filing bankruptcy who were living on their own, either because they were single, divorced or widowed, increased over the four year study period. The largest growth occurred in women who were divorced or separated. We also saw an alarming increase in the percentage of female single parents declaring bankruptcy.
Alberto Ruggieri via Getty Images
If you can't afford the monthly mortgage payment (and property taxes, and repairs and maintenance) your mortgage is too big. The "equity" answer is that if you have less than 10 per cent equity in your house, you are at higher risk of financial problems.
Betsie Van Der Meer via Getty Images
Although aging Canadians were typically the most financially stable age group, older Canadians are piling up debt more quickly than other demographics. A recent study by the Vanier Institute of the Family showed that more than 70 percent of those aged 55 to 64 held some form of debt in 2012, up from 61 percent in 1999.
On the road to financial comfort and a history of good investments, it is more than likely that you’ll run into your fair share of bumps and pitfalls. These hard times can be pushed through (and you’l...
Image Source via Getty Images
The government of Ontario has announced that the minimum wage will increase to $11 per hour on June 1, 2014. Putting more money in the pockets of the working man or woman should reduce the bankruptcy rate, right? I doubt it.
With low interest rates our average debt service ratio is at record lows. In 1990 Canadians used over 11 per cent of their disposable income to pay interest on their debt; today we only need 7 per cent of our income to pay interest. All is good. Or is it?
Did you know that not only did the overall number of women (especially single, divorced and widowed) who declared bankruptcy after the 2008 Recession go through the roof both in Canada and the U.S., but it's been on a steady rise ever since?
Over the years I have met with thousands of people who "unexpectedly" lost their job. My advice: assume you might lose your job at some point in the next year, and make a plan now to deal with that job loss.
Are you dealing with overly optimistic assumptions when it comes to your investments? Detroit's pension fund managers had assumed a rate of return on their annual investments of 8 per cent. I do not know about you but I have not seen 8 per cent on any of my investments for a long time.
Conventional wisdom says that debt used to purchase something of lasting value, like an investment, or a house, or a car, is good debt, because you benefit from the purchase. An example of bad debt would be borrowing to go on vacation, because when the vacation is over you have nothing to show for it. In some cases both of these examples are true.
Most people believe that having lots of money and not having to work for a living is a beautiful thing, but we know from studying lottery winners that this is often not the case. In many cases, a large inheritance is no different.
Every two years my bankruptcy firm, Hoyes, Michalos & Associates, analyzes all of the debtors we have helped in order to put a face on the average person who files bankruptcy or a consumer proposal. In what we call our Joe Debtor study we identified five dreams destroyed by debt.
“Pre-retirement” Canadians aged 50 to 59 are taking on an alarming amount of debt and are most at risk of bankruptcy, according to a new study that examined some 7,000 insolvency filings. Bankruptcy t...
Small and medium-sized business owners are risk takers and dreamers. But most small and medium sized business owners are either unfamiliar with, or put off the purchase of Legal Expense Insurance. Though the benefits could mean the difference between success and bankruptcy, few are aware of the many compelling reasons for such a policy. Here are the top five reasons to look into legal expense coverage.
Finance Minister Jim Flaherty has warned that Canada could feel aftershocks from the economic crisis in Europe if the situation there doesn’t come under control soon. Now a new list shows which compan...