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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Personal Debt In Canada Is Not The Same As In The USA
Personal debt issues are a common concern touching people everywhere. In Ontario, we are seeing a significant increase in both the information available through the media that discusses personal debt action plans and offers advice. As a Canadian, you may not realize that a lot of these articles are coming from U.S.-based sources. This information from…
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Can I go to jail for owing money?
This is a very honest question and we’re grateful that someone asked it so that we could put their mind at ease. Your creditors cannot put you in jail for owing money. Criminals who commit a crime go to jail. Owing money is not a crime. Owing money is a civil matter and is handled in…
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How To Rebuild Your Credit Rating
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. How can I rebuild my credit rating? Your credit rating is like a report card, when you file personal bankruptcy or a consumer proposal, you…
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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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How long does filing a Consumer Proposal affect your credit rating in Canada?
Filing a consumer proposal results in an R7 credit rating. There is no doubt that filing a consumer proposal damages your credit rating. Anything short of paying your creditors in full with interest in the normal course of business will result in a bad mark on your credit bureau report. The R7 credit rating remains on…
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What do I need for a meeting with a Trustee in Bankruptcy?
If you’re considering setting up a meeting to talk about your debts, you probably have an abundance of questions. One thing we are often asked is “What do I need to bring to a meeting?” To make the process run as smoothly as possible, here is a list of items you should compile before meeting…
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The Truth About Licensed Trustees In Bankruptcy
Licensed Trustees in Bankruptcy are officers of the court. I have seen and heard a lot of advertisements from various credit counseling firms warning people against dealing with a licensed trustee in bankruptcy. They make the case that they are working for you, the debtor, whereas a licensed trustee in bankruptcy is working for your…
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