Vehicle Loans And Consumer Proposal
If you make a consumer proposal the rights of your secured creditors are unaffected. This doesn’t meant that you can’t deal with your secured creditors by making a consumer proposal, it means that your secured creditor’s right to either be paid or to repossess your vehicle is unaffected. The reality is secured creditors don’t want to repossess your vehicle. They…
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Cost Of Making A Consumer Proposal In Ontario
A consumer proposal features one reasonable monthly payment against your debt over a period of no more than 5 years. The amount of the payment is based on your financial situation – it’s what you can afford! Try our Debt Options Calculator to see your options. The professional fees associated with filing a consumer proposal…
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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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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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Which creditors can be included in a consumer proposal?
Creditors are a big part of the consumer proposal process. Proposals deal with all of your unsecured creditors (creditors that do not hold any assets as collateral for your debts) including: Credit cards Lines of credit Personal loans Payday loans Government debts Income taxes When filing, it is important to list all of your creditors. One…
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Is it better to make a consumer proposal or file bankruptcy when it comes to affecting credit rating?
We were asked: What’s the difference between a consumer proposal and filing bankruptcy when it comes to affecting your credit rating? My wife and I both have ratings in the mid to low 600s but payments are tight with a combined balance of approximately $50,000. Answer: Consumer proposal results in a R7 (bad) credit rating, which…
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Is it a good idea to consider filing a consumer proposal if you have surplus income?
Yes! If you have surplus income and you file personal bankruptcy your process will be longer and you will be required to submit monthly surplus income reports. A first-time bankrupt with surplus income is not eligible for an automatic discharge for 24 months and a second-time bankrupt with surplus income is not eligible for an…
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Getting Out Of Credit Card Debt
KIM ASKED: What’s the best way to deal with huge credit card debt? I want to pay it off but with three maxed out credit cards, the interest alone is killing us. Answer: There is no doubt that the interest on credit card debt can be a killer. Most credit cards have interest rates in excess of…
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Why is it a good idea to consider filing a consumer proposal if you own your home?
If you file personal bankruptcy any equity that you have in your home becomes property of your bankrupt estate. When you make a consumer proposal, your home and related equity is unaffected. 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….
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