Bankruptcy Discharge Archives - Page 13 of 33

Debt Collectors are Calling!

Posted on January 7, 2015February 17, 2020 by Jordan Rumanek

ONTARIO MINISTRY OF CONSUMER SERVICES

Have a complaint? Need Help?

Contact the business and explain your specific complaint
Deliver it in writing. Keep proof of that it was received (such as sending it by registered mail), and keep records of all communication with the business.
If you are still not satisfied, file a formal complaint with the Ministry of Consumer Sevices

How to file a complaint with the Ontario Ministry of Consumer Services:

Visit the Ministry’s website at www.ontario.ca/ConsumerServices
Or call, 416-326-8800 or toll-free at 1-800-889-9768

If you’re behind in your payments and debt collectors are calling. Do you know:

What your rights are?
What your responsibilities are?
How to stop collection calls?
How to deal with collection agencies?

Businesses hire collection agencies in Ontario to collect money that is owed, but there are clear rules they have to follow. Find out how the law protects you from harassment and unfair tactics.

REMEMBER:

Ignoring a collection agency’s attempts to contact you will not help solve your problems. It might stop the collection calls but if they cannot reach you, they may proceed with legal action. Sooner or later, you will have to deal with your debt problems.

How can I protect myself?

Dealing with a collection agency in Ontario: when they first contact you a collection agency must send you written notice which includes:

Their name and authority to collect payment from you.
The name of the person or business to whom the debt is owed.
The amount they say you owe (the balance).

The collection agency must also:

Wait six days after mailing this notice before calling you.
Give you notice if they intend to advise the creditor to take legal action against you.
Once they have spoken with you, the agency cannot contact you (including through voicemail or e-mail) more than three times in a seven day period, unless you consent.

The collection agency, in Ontario, cannot contact you:

If you send a registered letter to the agency saying that you dispute the debt and require that the matter be taken to court.
If you or your lawyer notify the agency by registered mail to communicate only with your lawyer. You must provide your lawyer’s name address and phone number

Collection agencies are prohibited from calling:

Before 7 a.m. or after 9 p.m., Monday through Saturday.
On Sunday, except between 1 p.m. and 5 p.m.
On a holiday

The collection agency cannot:

Use threatening language.
Use undue or unreasonable pressure.
Continue to contact you if you have told them you are not the person they are looking for, unless they take reasonable steps to ensure you are that person.
Give false or misleading information to anyone

Did you know? Collection agencies are the most common complaint topic at the Ontario Ministry of Consumer Services. Most complaints relate to agencies that make rude and harassing calls.

Getting out of debt:

Repay any debt that has gone to a collection agency as soon as possible. Negotiate a payment schedule you can live with and stick to it. Ensure this agreement is put in writing.
If you need to borrow to pay off debts, look for the least costly way. Compare rates on credit cards and personal loans.
- Never send cash. Always get a receipt when you make a payment. Keep your receipts or cancelled cheques.
- If you have a lot of debts, you may want to consolidate them into a single loan. Talk to a loan officer at your financial institution.
- Call the Ontario Association of Credit Counselling Services. Their members offer debt management services to help you solve your financial problems. To find the nearest office to you, call toll-free at 1-888-746-3328 (888-71N-DEBT).

If a collection agency violates any of these standards, send them a written complaint by registered mail.

Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Is your credit rating affected?

Posted on January 7, 2015April 16, 2016 by Jordan Rumanek

Is your credit rating affected?

When a consumer debtor files an assignment in bankruptcy, the trustee requests that the consumer debtor turn over all of his or her credit cards. Each holder of the credit card will be notified of the bankruptcy and as a general rule, there will be no further extension of credit. While the consumer debtor is an undischarged bankrupt, the consumer debtor cannot borrow any moneys over $1,000 without revealing that the consumer debtor is an undischarged bankrupt.

Once the consumer bankrupt is discharged, however, the consumer’s credit rating will be returned assuming that the requirements of the holder of the credit card can be met. Usually within one year of a bankrupt’s discharge, one will be able to obtain new credit cards. However, if this is a second bankruptcy or there are special problems arising out of the bankruptcy, there may be some difficulty in re-establishing credit. Credit reporting agencies, such as Equifax, may be consulted by credit card companies before issuing new credit cards. Once discharged, the consumer should contact and advise such credit reporting companies of the particulars of discharge, namely the date, court, judge and any conditions that may have been imposed and satisfied.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Letter from creditors after Bankruptcy?

Posted on January 7, 2015April 16, 2016 by Jordan Rumanek

Letter from creditors after Bankruptcy?

Dear Mr. Rumanek,

I filed for Consumer Proposal in 2008 through Rumanek and Co. and just yesterday my spouse received a letter from one of the creditors that was included in my proposal, for the full amount, with the accumulated interest charges over the 4 years.This creditor was a joint line of credit which I had continued to pay. My spouse applied for bankruptcy in 2006 and received a discharge in 2007. Can you please advise me as to why they are contacting my spouse, since they are already included in my proposal. Thank you. LB

Good morning, LB

If you send me a copy of the letter and your spouse’s discharge I would be happy to send a letter to the creditor on your behalf. The creditor should not be sending either of you any letters as the collection proceedings have been stayed (cancelled) by the filing of the proposal and bankruptcy proceedings.

Jordan Rumanek, B. Comm., CIRP, Trustee. Rumanek & Company Ltd.

Does the consumer debtor have any director’s liabilities?

Posted on January 7, 2015February 17, 2020 by Jordan Rumanek

Does the consumer debtor have any director’s liabilities?

In the case of a corporate bankruptcy in Ontario, many provincial and federal statutes governing taxes make the directors liable for the corporate debt if the corporation failed to deduct and remit the taxes to the proper authority. In Ontario, for example, there are over 100 federal and provincial statutes that have sections dealing with liabilities of an insolvent corporation. These statutes cover retail sales tax, vacation pay, employee wages and related benefits, health tax, the employees’ portion of income tax, Canada pension, employment insurance premiums and the goods and services tax. Taxes owing on income tax, Canada pension and employment insurance are special and virtually, with minor exceptions, have priority over all the consumer debtor’s assets including real estate irrespective of whether the consumer debtor is in receivership or bankruptcy or both.

While these statutes impose liability on directors, many of them give the directors a defense of “due diligence”; that means the directors took every reasonable step to pay the tax but in view of the declining business they were unable to do so. There is much case law in this area of director liability. Each statute must be examined carefully to see whether this defense exists and to see how the case law has developed in determining the nature of the defense.

In addition, to the due diligence defense, directors may also be protected under the general discretionary power to pursue directors. Governments do not necessarily take legal action against the directors of a bankrupt corporation every time there is a bankruptcy in Ontario unless the corporation has flagrantly, negligently or fraudulently disregarded the laws and the enforcement and compliance sections. If the consumer debtor is a director, it is best to:

direct that tax payments be deducted and remitted when required,
verify with the bookkeeper or accountant that the taxes have been done on a regular basis,
set up a special trust,
obtain broad insurance,
obtain an indemnity supported by security against the corporation’s assets, and
be aware of what the other directors are doing.

Category: Bankruptcy Discharge

Debt Collectors are Calling!

Is your credit rating affected?

Is your credit rating affected?

Letter from creditors after Bankruptcy?

Letter from creditors after Bankruptcy?

Does the consumer debtor have any director’s liabilities?

Does the consumer debtor have any director’s liabilities?

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