Posts Tagged ‘Consumer Proposal’
Budgeting 101 – Part 1 of 5
If you want to make a budget, you need to understand your expenses, short-term, medium-term and long-term. Monthly expenses can be fixed or variable. Annual expenses can be fixed and some variable.
Read MoreFinancial Math – The 5% House Down-Payment
The reality is that owning a home can be the root of a myriad of problems, one of which is tied to the 5% down-payment. With mortgage insurance, you can buy a house with only a 5% down-payment. Mortgage insurance is actually required whenever your down-payment is 20% or less of the purchase price.
Read MoreCan I Go Bankrupt If My Debts Are The Result of Gambling?
For individuals who are problem gamblers we strongly recommend other counselling to help address the addiction. Personal bankruptcy may provide short-term financial relief but cannot resolve the issue of gambling unless it is combined with other treatment.
Read MoreWill 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.
Read MoreYour Credit Report After a Bankruptcy or Consumer Proposal
Debts included in a bankruptcy should be rated as R-9 or I-9, indicating written-off, and the outstanding balance should be reported as zero. There should also be a note indicating “included in bankruptcy” below the trade line for the corresponding creditor. Debts included in a consumer proposal should be rated as R-7 or I-7 and the outstanding balance should also be reported as zero.
Read MoreDebts Owing to the Canada Revenue Agency
Many people believe that debts owing to CRA will never go away. That is not necessarily the case, particularly when an individual goes bankrupt or files a proposal under the provisions of the Bankruptcy and Insolvency Act (“BIA”). However, prior to file personal bankruptcy or a consumer proposal, CRA has some significant legislated powers to collect debts.; including garnishing paycheques, seizing bank accounts.
Read MoreWhat Is The New Brunswick Personal Property Security Act (PPSA)?
PPSA legislation provides a central registry for filing notices of security interests in personal property, allows both individuals and institutions to record their financial interest in personal property (cars, boats, appliances, etc.). Bankruptcy eliminates all of your unsecured debt such as credit cards, bank loans, tax debts, unpaid bills and payday loans. However, secured debts such as vehicle loans, mortgages and home equity lines of credit are typically not included in a bankruptcy.
Read MoreGuaranteed, Co-Signed and Joint Loans
Generally, a co-signor is usually jointly and severally liable for 100% of the debt. This means that, if there is a default, the lender will pursue the primary debtor and the co-signer at the same time and will be happy to collect their entire debt out of whomever they can recover from first.
Read MoreWhy Would My Trustee Oppose My Bankruptcy Discharge
Your Trustee is required to oppose your discharge if you do not complete specific duties or tasks: complete both mandatory counselling sessions, report you monthly income to the Trustee, sessions, make all agreed upon payments, including voluntary, surplus income, and equity payments. These are only some of the duties that you must complete.
Read MoreHow to Avoid Bankruptcy
You can’t go bankrupt if you have no debt! Bankruptcy is a relief valve for people and companies who find themselves unable to cope with overwhelming debts. Bankruptcy is not necessarily the only option for resolving debts, but the availability of other options depends on individual circumstances. The sooner you identify and get assistance with your debts, the more options you have.
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