Over the years we have helped thousands of people solve their money problems. No matter how bad your situation, we can help.
A consumer proposal is a formal debt settlement option legislated under the Bankruptcy and Insolvency Act and is filed with a licensed trustee in bankruptcy. This option stops further creditor action and allows your debts to be compromised.
Filing personal bankruptcy allows you to be released from most of your debts. It is a formal process under the Bankruptcy and Insolvency Act and is filed by a licensed trustee in bankruptcy.
Debt Consolidation Loans are a popular debt management option for people who are experiencing money problems. Consolidation Loans consolidate your personal debts into one monthly payment, reduce interest charges and will not damage your credit rating.
Credit Counsellors can help you with budgeting and money management, filing a Debt Management Plan or by helping you communicate with your creditors. It typically makes sense to use a credit counsellor if you have a relatively small amount of debt.
Collection Agencies may take legal action against you if you owe money to your creditors and do not make payments. Collection Agencies must follow rules outlined in the Collection Agencies Act, which is regulated by the government.
Credit rating is a fluid concept and is always changing. No matter what you do, including filing personal bankruptcy or a consumer proposal, you can always rebuild your credit rating.
A consumer proposal:
It is the right option if you:
Advantages to you:
Advantages of filing bankruptcy:
Disadvantages of filing bankruptcy:
May be the right option if you:
Want to avoid filing bankruptcy?
If you need help dealing with your creditors, but don’t want to file personal bankruptcy we may be able to help you avoid bankruptcy by making a consumer proposal.
Cost to go bankrupt?
There is no set cost or fee for filing personal bankruptcy, though the typical minimum fee is $1,800 paid in nine monthly installments of $200 each. The maximum amount you pay is based upon your income and ability to pay. The surplus income formula used to calculate these payments is legislated under the Bankruptcy Insolvency Act and therefore the calculated payment amounts will be the same for all trustees.
How long is the bankruptcy process?
The length of the bankruptcy process is legislated under the Bankruptcy and Insolvency Act, and is determined by two factors:
Based on your answers to these questions the length of your bankruptcy process would be as follows:
Consolidation loans aren’t a solution for everyone as they are:
Difficult to qualify for
Not always a complete solution
Not always affordable
So, when is a Debt Consolidation Loan a good option?
Welker & Associates Inc. provides two credit counselling sessions, as required under the Bankruptcy Insolvency Act, to aid in the financial rebuilding process, for everyone filing personal bankruptcy or making a consumer proposal.
Be wary of fraudulent credit counsellors.
Although some credit counselling companies are legitimate, there are many fraudulent credit counsellors who charge high fees, provide little or no service and warn against discussing your money problems with a licensed trustee in bankruptcy.
A credit counsellor has no greater ability to negotiate with your creditors than you do. The credit counselling industry is unregulated and anyone can claim to be a credit counsellor.
How to spot a legitimate credit counsellor:
Over the years, we have developed relationships with credit counsellors across Ontario. Find a trusted credit counsellor in your area.
Credit counsellors CAN help you by:
Credit counsellors CANNOT help you to:
File a consumer proposal
Once you’ve been contacted by a collection agency, it’s hard to get them to stop calling. In order to stop them from calling, you need to do one of the following:
What are the rules collection agencies must follow?
The Collection Agencies Act outlines rules collection agencies must follow and is regulated by the Ontario Ministry of Consumer and Commercial Relations.
A collection agency:
A collection agency cannot contact you:
What is wage garnishment?
If you owe money to your creditors and do not make payments your creditors may take legal action against you. The result of this legal action is something called a judgment. A judgment is a court order that allows your creditors to deduct payments directly from your wages and to seize assets.
How do I prevent or stop creditors from garnisheeing my wages?
Filing a Debt Management Plan with a credit counsellor does not stop wage garnishment. However, the following actions stop wage garnishment even if the process has already begun:
Who is vulnerable to wage garnishment?
Anyone that receives employment income and/or owns property.
Who is not vulnerable to wage garnishment?
Anyone that doesn’t receive employment income and doesn’t own property. E.g.:
people receiving pension income (disability, CPP, OAS etc.). These people are often referred to as being “creditor proof” or “judgment proof”. Just because creditors may not be able to garnishee your wages does not mean you’re free of creditor harassment, it simply means that your creditors cannot collect money from you by legal means at this time.
Why is credit rating a poor indicator of financial health?
Credit rating only focuses on payment history and is not related to your net worth. Many people borrow from one creditor to pay another which allows them to temporarily maintain their “excellent” credit rating, however their financial health is actually getting worse and they end up going further and further into debt.
How can I find out what is listed on my credit report?
How do you read your credit report?
Your credit report is like a report card and each creditor assigns a mark.
How do I get a free credit report?
Complete the relevant form to receive your free credit report by mail:
How can I improve my credit?
Your credit rating is like a report card. Having money problems, filing personal bankruptcy or making a consumer proposal will result in a bad mark on your credit report card. Therefore to rebuild your credit rating you have to get as many good marks as possible. The only way to get a good mark is to borrow money and pay it back within the time restrictions. The way to get a bank or credit card company to lend you money despite your poor credit rating is to:
What are the risks of using a co-signer?
You and the co-signer become jointly liable for 100% of the debt. If you are unable to make payments, the co-signer will have to maintain the payments or his/her credit rating will be affected.
What are the differences between a cash card and a secured credit card?
Cash cards/pre-paid credit cards:
Secured credit cards:
Do you get a sense of dread whenever your phone rings because it is just as likely to be an aggressive collection agent as it is to be your loved one or friend? If so, it’s time to start looking for a solution to the problem. Hiding from it can only last for so long.
If your student loan is causing you financial hardship, it is a good idea to have an in-depth discussion with a bankruptcy trustee.