We were asked: What is the difference between debt consolidation and a consumer proposal?
We receive many questions regarding the difference between debt consolidation and a consumer proposal. Debt Consolidation vs. a Consumer Proposal A debt consolidation would require you to get a loan from a financial institution which would allow you to payoff your high interest debts and reduce your monthly payments. Consolidation loans are a popular way…
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Self-employed (sole proprietorship or partnership) and considering bankruptcy?
We recognize that every business is unique with its own issues and complexities. Therefore we recommend that you review your situation with one of our licensed trustees in bankruptcy. Deciding whether or not to continue being self-employed Filing a consumer proposal or personal bankruptcy does not prevent you from continuing to be self-employed or starting a…
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Surrendering A Secured Asset: Your Home
Some people who own their own home can’t or don’t want to keep it. Common reasons why someone might not want to keep their home are: Can’t afford the payments The house value is far less than the mortgage balance owed Marital/relationship breakdown The biggest challenge facing a homeowner who wants to surrender their home is…
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Surrendering A Secured Asset: Your Vehicle
Some people who own a leased or financed vehicle can’t or don’t want to keep their vehicle. Common reasons why someone might not want to keep a vehicle are: Can’t afford the payments The vehicle is worth far less than the total amount owed Lifestyle change When someone doesn’t want to keep their vehicle they…
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Employed And Dealing With Personal Debt
In most cases making a consumer proposal or filing personal bankruptcy will have no impact on your current or future employment. However, as an employee, there are a few things to consider before deciding which option is best for you. Threat of wage garnishment: All employees are vulnerable to creditors garnisheeing their wages. More information about protecting your…
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Cashing In Retirement Savings Is A Poor Debt Settlement Strategy
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,…
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Is a spouse liable for my debt?
Your debts do not affect your spouse’s credit rating! Regardless of your relationship status, whether you are married or common law, you and your spouse are two separate legal entities. Your spouse is not automatically responsible for your debts simply because they are your spouse or may have a spousal card on one of your…
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Repaying Tax Debt
Government debts including income tax, HST and payroll source deductions are no different than any other debts you may owe. The only difference between Canada Revenue Agency and other creditors are their special collection rights. These rights include the ability to: Garnish wages and seize assets without a court order Register an involuntary mortgage on…
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Renting And Dealing With Debt
The majority of people who make consumer proposals or file personal bankruptcy with our office are renters. These are some of the common questions: Will this affect my current rental agreement? Making a consumer proposal or filing personal bankruptcy does not affect your current rental agreement. As long as you are current with your rental payments, and therefore there…
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To Bankrupt Your Company Or Not; That Is The Question
At Welker & Associates we help owners of incorporated companies deal with their debt issues. Should you bankrupt the company? Many people think that if they bankrupt their corporation it will solve their debt issues. Bankrupting the corporation will only end the corporation’s legal obligation to pay its’ debts. It will not affect any personal obligations…
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