Should you switch banks if you file bankruptcy or make a consumer proposal?
We often times recommend that if you file bankruptcy or make a consumer proposal that you get a new bank account at a new bank. Why do we suggest that? If you owe money where you bank, we recommend that you open a new bank account at a new bank. When you file bankruptcy or…
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When should you consider a consumer proposal instead of a bankruptcy?
When you make a consumer proposal, you compromise your total debt. That means that you pay a portion of your debt that you and your creditors agree upon. Therefore your payments are higher than a bankruptcy. In terms of time, consumer proposals last 60 months, while bankruptcies last nine months (if you don’t have surplus…
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Planning on maxing your credit cards before filing bankruptcy? Think again.
Running up your credit card balances when you intend to file bankruptcy is a fairly clear case of intent to defraud your creditors. If you do so, your trustee, creditors or the Office of the Superintendent of Bankruptcy have the ability to discharge you from bankruptcy and you could be ordered to pay back a…
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Will bankruptcy eliminate all my debts?
If you are facing serious debt problems, bankruptcy may be a powerful remedy. In most situations, all debts are included in a bankruptcy. Some of the most common debts that can be included in a bankruptcy are: Tax debt Car loan debt Cell phone debt Credit card debt Payday loans Student loans (if you have ceased…
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Why do people say that going bankrupt is a bad thing?
For many people, the thought of filing bankruptcy is intimidating. It conjures up all sorts of horrible images of people losing their home, losing their car and destroying their credit rating forever. The reality is, people are usually misinformed when it comes to bankruptcy. The reality is that the Bankruptcy and Insolvency Act (BIA) was…
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If it sounds too good to be true, it probably is!
You may have seen the ads before, all with slightly different promises, such as: “Credit card debt over $8,000? Qualify to reduce your debt by up to 60%” “Canadian banks forced to forgive up to 75% of consumer credit card debt” “New Canadian Debt Program allows Canada residents with over $10,000 in debt to eliminate…
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What should you ask a Licensed Insolvency Trustee?
Before you meet with a Licensed Insolvency Trustee, I’m sure you will have many questions in your head. My suggestion is, make sure you write those questions down. You can never have too many questions. I never want a client to leave my office with more questions. Our goal is to give you as much…
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Student Loan Debt Solutions
Each year, thousands of Canadians rely on student loans to help fund their continuing education. Getting a student loan is an investment in your future as it helps you to get an education which in turn, will help create better job and career opportunities. Unfortunately, once you graduate from post-secondary school, life gets in the…
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If I am unable to pay the mortgage on my home, may I simply give it back to the bank?
A mortgage is a loan agreement which requires you to repay the loan with interest and which also gives the lender (the mortgagee) a claim on your house if you don’t repay. If you miss a mortgage payment, that’s a default under your mortgage. When you default, the full amount of your mortgage becomes payable…
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Bankruptcy: Fact or Fiction?
Many people have an idea of what bankruptcy is and what it involves, but there are a lot of myths that people believe to be true. Make sure you are properly educated on all of your debt options before making a decision. If everything you know about bankruptcy has been through the grapevine, I have…
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