Bankruptcy Questions Archives - Page 11 of 85

Bankruptcy in Canada: What you should know

Posted on October 1, 2016May 3, 2022 by Jordan Rumanek

Advantages of filing for personal bankruptcy:

1. Protects from collection agencies harassment

2. Eliminates personal debt

3. Quick financial fresh start

4. Relatively inexpensive

5. Most Provinces provide protection for your clothes, furniture, car, etc. from your creditors

6. All legal actions, wage garnishees, etc. are stopped. No new legal proceedings are allowed to start without the express prior consent of the court.

Disadvantages of filing for personal bankruptcy:

1. Credit history resets to R9

2. Some assets/possessions must be surrendered to your trustee for division among your creditors

3. You will need to rebuild credit. If your credit is bad, you will have to do this regardless whether or not you file an assignment in bankruptcy.

4. Possible future difficulties acquiring loans. Even if you do not get the loan, you will pay higher interest rate due to a higher risk factor.

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.

How do I Rebuild Credit?

Posted on September 24, 2016April 12, 2016 by Jordan Rumanek

How do I Rebuild Credit?

After you are discharged from bankruptcy and perhaps even before you are discharged from bankruptcy, it is time to start researching what steps you need to take in order to rebuild your credit. Once you are discharged, you will be essentially starting over at zero in terms of credit history and standing. Step 1: Research all major credit card companies and find out who is willing to give you a credit card. You may have to apply to a few different banks in order to get approved. Each application reduces your credit score. Mastercard has several credit cards such as Capital One, Canadian Tire and Affirm may be a place to start. You may want to research pre-paid secured credit cards as a safe place to start. Once you have been approved, use your card each month but be careful never to exceed the card limit. It is crucial to pay off these cards in full each month to improve your credit history—this is your fresh start and the foundation of good credit history, it will give you more freedom in the future. Good Luck!

Start Today! Debt Freedom

Posted on September 3, 2016April 12, 2016 by Jordan Rumanek

Start Today! Debt Freedom

You must take Action and get out of Debt! You know you need to get out of debt. You think about it all the time—you feel you can’t stop worrying. Stop worrying and start taking action! These two baby steps can start to relieve your fear and stress instantly.

Step 1: Make a list your debts you need to pay excluding rent or mortgage. List the name of the creditor, amount of maximum allowed debt, amount of actual debt, interest rate and amount of minimum monthly payment.

Step 2: Know yourself. You can decide to either consolidate/combine the debt into one payment OR start to pay off your smallest debt while paying interest on all other debts. If you have the personality where you need to see results in order to stay motivated then choose the second option. However, if you can consolidate your debt into one easy payment and stay focused—you will be pleased with the results.

One of the factors in the calculation of your credit score is the amount of your total available credit which is currently being used. As you pay down your debt, your credit score will be rising at the same time.

Talk to a trustee in bankruptcy regarding these options and let an expert help you decide what is best for you and your financial situation. The moment you become debt free is the moment you can begin to save for your future and have the life that you deserve.

Divorce & Bankruptcy

Posted on July 2, 2016April 12, 2016 by Jordan Rumanek

Divorce & Bankruptcy

Dear Trustee,

My husband and I have been separated for close to a year and a half. We will officially be divorced in 6 months if all goes as planned. We had our lawyers file a separation agreement and we have divided all of our assets. The house is now officially in my name but my soon to be ex-husband recently told my lawyer that he has decided to file for bankruptcy. This process confuses me and I am worried this may affect my assets in some way because we are not yet officially divorced. Because the house was put into my name only in the past year, does this mean that half the house could be an asset of his he is required to turn over to a trustee? I fear I will lose my home and I need your advice. LM

Dear LM,

Separation and divorce questions regarding bankruptcy are always case-by-case and it is advised to discuss these questions with a trustee in bankruptcy. It may be important to make sure you are the sole person on the title of the house. You should have your lawyer do a title search to make sure all documents are properly signed and registered. Set up an appointment with your bank to find out what joint accounts you have with your soon to be ex-husband. It is important to have this information for your safety because if your ex does file for bankruptcy and then gets discharged after a period of time, you do not want to end up responsible for any outstanding joint debts. Make a list of all questions that you have and set up an appointment with a trustee in bankruptcy in order to ensure you know and understand your rights. With respect to the house, the trustee will need to know its value on the date of the transfer as well as the amount of the mortgage debt that you assumed. You should also determine if your ex-spouse is still liable on the mortgage.

Category: Bankruptcy Questions

Bankruptcy in Canada: What you should know

Advantages of filing for personal bankruptcy: