If my ex-spouse files bankruptcy, will it affect our joint mortgage?
If you file for bankruptcy your ex-spouse may be affected if you have a joint mortgage. Your bankruptcy will remove you from your responsibility to pay that debt, however, it does not: a) require your mortgage lender to take your name off of the mortgage; or b) take your name off of the deed/title. When you file for bankruptcy, all of your non-exempt…
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How does Credit Counselling differ from a consumer proposal?
Credit counseling agencies cannot provide a guarantee that the amount you owe will be reduced, interest will be stopped or creditors will stop calling or continuing legal actions. Arrangements with credit counseling agencies are not legally binding and will appear on your credit report for three years upon completion of the counseling program. Credit counseling…
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Should I use my RRSP savings to pay off debt?
We understand that most people who are in debt want to deal with their obligations, and don’t want to see a trustee in bankruptcy, make a consumer proposal or file personal bankruptcy. As a result they do what they can to attempt to deal with their debts on their own. Often this includes cashing-in retirement savings. Unfortunately, in…
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Saving or Paying – Which is better?
As a rule of thumb, I always say that having an emergency savings with three months of expenses (at least) can protect you from relying on credit during a financial bind. But, I understand that in many cases, it’s hard to grow that fund. So, it makes sense that many clients ask me if they…
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Bankruptcy: Will I lose my home?
People have many concerns when they come into my office, but a few concerns seem to come up more often than not. One concern that is in the forefront of many minds is the fear of losing their home if they file bankruptcy. The answer depends on whether or not there is any net equity…
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Consumer Proposal: Will I lose my home?
When you make a consumer proposal, your home and related equity is unaffected. You retain possession and control of your assets. The trustee and creditors will not take possession of your property and you will be able to keep any house equity that you have accumulated. They have no interest in any of your property. When you make a consumer proposal, what you are essentially…
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So what exactly is a consumer proposal?
A consumer proposal is a formal debt settlement option legislated under the Bankruptcy and Insolvency Act and filed with a licensed insolvency trustee. It allows you to compromise your personal debts by making an offer to your creditors to modify your payments (for a maximum of five years). For example, you may propose that you…
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Preserve Your Rebuilt Credit
After being discharged from bankruptcy, most people work very hard to rebuild their credit. It’s awesome hearing stories of people who have learned from their past mistakes. It’s important to be vigilant when trying to rebuild your credit. Just one NSF (non-sufficient funds) cheque or automated withdrawal or a late/missed payment could be disastrous to…
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Bankruptcy and Gambling Debt
There are a variety of reasons why consumers get into financial trouble, none of which will exclude them from filing a bankruptcy and subsequently obtaining a discharge. So, if you’re in debt because of gambling, you are still able to file bankruptcy. For a first-time bankrupt with no surplus income, they will automatically receive a…
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More Seniors Are Filing Bankruptcy
Would you be surprised if I told you that the fastest growing demographic group of bankruptcy filers is those over 65? It’s sad, but true. The reasons for this are diverse: fewer traditional pensions; increases in the cost of medical care; availability of easy credit before the Great Recession; and efforts to help younger family…
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