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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When To Open A New Bank Account
Whenever I meet with anyone that is considering making a consumer proposal or filing personal bankruptcy in Ontario, I always recommend that they do their personal banking at a bank where they don’t owe any money. In many cases this means opening a new bank account at a different bank. Why? Because when you make a consumer proposal…
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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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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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Understanding Your Credit Report
Many Canadians request a free copy of their credit report through Equifax or Transunion, but once they receive their report, they have a hard time reading it. If you’re not used to reading credit reports, they can definitely be difficult to understand. Here are some points to remember when reading your credit report: Included Information…
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