Posts in Debt Consolidation
Will I Lose My Canada Child Benefit (CCB) If I File For Bankruptcy?

The short answer is no, you will not lose your Canada Child Benefit (CCB) if you decide to file personal bankruptcy. While your CCB will not be affected by bankruptcy, you are required to report your CCB when calculating and reporting your household income.  These monthly reports will determine whether or not you have “surplus income”, which in turn will impact how long you are in bankruptcy and how much you will be required to pay.

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What Happens if I Default on My Consumer Proposal

If a debtor is 3 months in arrears of monthly consumer proposal payments the consumer proposal is deemed annulled, which means that creditors can resume collection actions. There is no automatic bankruptcy if a debtor defaults on a consumer proposal.

that fails to make more than 2 payments cumulative during the Proposal will have their Proposal annulled and creditors can resume collecting their balances plus interest less any payments made. While a default on a Consumer Proposal will not automatically result in a Bankruptcy, however, the debtor cannot file another Proposal.

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Can A Person Have Savings During Bankruptcy?

Yes, you can accumulate savings during a personal bankruptcy or consumer proposal. During a personal bankruptcy provided you are paying your required surplus income payment, if applicable. You can save as much as your budget allows.

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Will I Have To Go Bankrupt Or File A Consumer Proposal If My Spouse Does?

No, if one spouse files personal bankruptcy or a consumer proposal, it may not be necessary for the other spouse to file. This depends on several facts which a Licensed Insolvency Trustee will assist the couple to review. The couple can then make an informed decision as to which option best meets their needs and allows them to achieve their financial goals.

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Understanding Consumer Proposals

A consumer proposal is a settlement arrangement with your unsecured creditors to pay a portion of your debt in monthly payment over a period of up to 5 years.  These payments are the full and final settlement of your debts with these creditors.

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What Assets Can New Brunswick Residents Keep In Bankruptcy?

When an individual files for personal bankruptcy they assign all of their assets to the trustee to be liquidated for the benefit of their unsecured creditors.  That means any assets that have equity above and beyond what is owed against them must be recovered by the trustee. If all or a portion of the asset is not exempt the bankrupt person generally has the option of keeping the asset by repurchasing it from the bankruptcy estate.

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Consumer Proposal vs. Credit Counselling?

With all of the choices facing financially distressed consumers, it’s important to compare your options. The following chart provides you with information to help you choose the debt repayment solution that best meets the needs of you and your family.  

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How Are Secured Debts Treated In Personal Bankruptcy or a Consumer Proposal?

When an individual files personal bankruptcy or a consumer proposal these loans are not always impacted and the assets can usually be kept as long as the loan payments are current and continue to be made in accordance with the credit agreement.

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Using Your Credit Cards Prior To Bankruptcy or Proposal

Borrowing money with the intent of not paying it back may be considered fraud which is a criminal offence.  Debts from fraudulent activities are not dischargeable in a personal bankruptcy or a consumer proposal.  If you are having a difficult time paying your debts, we recommend that you cease using your credit cards and contact a Licensed Insolvency Trustee to review your situation and discuss your options.

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Will Bankruptcy Ruin My Credit?

People often try to avoid bankruptcy at all costs because they are worried about ruining their credit rating.  They pride themselves on paying their bills on time, have always maintained a strong credit score and they thought of doing anything to jeopardize that is unthinkable.

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Personal Bankruptcy and Income Taxes – What You Need to Know

When filing a personal bankruptcy income tax debts are discharged the same as any other unsecured debt, such as credit cards and personal loans. If you are struggling with income tax debt or have had your wages garnished then you should seek the assistance of a professional.

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Which Debt Solutions, is Right for Me?

With consumer debt at an all-time high, the number of companies offering credit counselling or debt settlement services, are multiplying at an alarming rate.   Many of these companies have large advertising budgets and slick websites designed to play on the fears of stressed out consumers who are in need of debt relief.

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