Myth Vs. Fact: Credit And Rebuilding
Myth: By filing personal bankruptcy, I will destroy my credit forever. Fact: Filing .personal bankruptcy results in a R9 credit rating which, for a first time bankrupt, will remain on your credit report for 6 years after discharge. You do not have to wait 6 years to rebuild your credit rating. Myth: By filing a…
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When one spouse files for bankruptcy – what happens to the family budget?
ADAM ASKED: I am married but I am declaring bankruptcy by myself. My wife pays the rent and I pay everything else. Do I still have to declare rent? ANSWER: You are required to prepare a monthly budget detailing all of your family income and expenses when you file personal bankruptcy or make a consumer proposal. Even…
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My relationship break-up has put me into debt – what can I do?
BONNIE ASKED: I am getting out of an abusive relationship. I don’t have money to pay any of the collection notices I have gotten. What should I do? ANSWER: I have no doubt that getting out of an abusive relationship is difficult enough without having to struggle with personal debt issues. Receiving collection notices and knowing that you…
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Is a Debt Management Plan better than a Consumer Proposal?
Debt Management Plans vs. Consumer Proposals Filing a debt management plan and filing a consumer proposal both result in the same “R7 credit rating” which will remain on your credit report for 3 years after either is paid in full. The major disadvantages of filing a debt management plan are that it is an informal…
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We were asked: Are there different types of proposals?
The answer is yes. There are two types of proposals that can be filed under the Bankruptcy and Insolvency Act: a consumer proposal a division 1 proposal What determines which type of proposal you file is the amount of personal debt that you have. If your personal debts are less than $250,000, excluding the mortgage on…
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When is a meeting of creditors required in a consumer proposal?
When you file a consumer proposal you are asking your creditors to settle the amount of debt you owe. Since you are attempting to compromise your debt you need your creditors to accept or agree with the terms of your proposal. In many cases creditors will accept it as filed however sometimes creditors are not satisfied…
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Key Differences: Trustee In Bankruptcy vs. Debt Settlement Companies
There are important reasons why using a Trustee in Bankruptcy, like Welker & Associates, will always be a better choice. These are the critical differences between a Trustee in Bankruptcy, like us, and Debt Settlement companies. A Trustee in Bankruptcy: Is Licensed by the federal government Office of the Superintendent of Bankruptcy, a division of…
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Is it possible to consolidate different types of debt into one payment?
CAMERON ASKED: I was just wondering if I could consolidate credit cards and a line of credit as one payment? ANSWER: There are a couple of ways to consolidate your credit card debts and line of credit into one monthly payment. You could talk to your bank about getting a consolidation loan. The goal of…
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Stop Paying Your Creditors
People are always surprised when I tell them to stop paying their creditors. In many cases it’s the best advice. Once you’ve determined that you can’t dig yourself out of your personal debt issues on your own, you should stop paying the creditors that will be included in your consumer proposal or personal bankruptcy filing. Making…
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What happens when negotiating a consumer proposal?
When you meet with us, we will help you decide if this is the best option for you. The next step is negotiating the consumer proposal. When negotiating a consumer proposal, here are a few things you can expect: Help from your trustee. From the very beginning, your trustee will be there to guide and…
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