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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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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Opening January 1, 2015 – Our new Hamilton office!
Effective January 1, 2015 Welker & Associates will be opening a new location in Hamilton, Ontario. Although we won’t “officially” be open until January 1, if you would like to book an appointment before then, we will be happy to meet with you. We will be using space at the Financial Wellness Centre located at 236 Pritchard Road,…
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