Bankruptcy Questions Archives - Page 13 of 85

What Happens to My Credit Score if I file for Bankruptcy?

Posted on May 20, 2016May 26, 2022 by Jordan Rumanek

What Happens to My Credit Score if I file for Bankruptcy?

The filing of an assignment in bankruptcy, by itself, does not ruin your credit score. In most cases, you will already have destroyed your credit score by not paying your creditors, being very far behind in making payments, or by not even making the minimum monthly payments on your debts. The credit reporting agencies in Canada (Equifax and Trans Union of Canada) accumulate information from your creditors on a regular basis and based on a 6 year history period, calculate your credit score. When you file an assignment in bankruptcy, your credit rating is moved to R9 and stays there for a period of 6 years – the start of the 6 year period is the date of your discharge from your bankruptcy, which could be as fast as 9 months after the date that you filed the bankruptcy. You can start rebuilding your credit score as soon as you obtain your discharge from your bankruptcy. Do not confuse your credit rating with your credit score. You should receive information from your trustee at the time of your second counselling meeting (or at least before your discharge from bankruptcy) on how to obtain credit after bankruptcy and how to rebuild your credit score.

If you are not filing a bankruptcy, please refer to the article on our website – What happens to My Credit Score if I File a Proposal.

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.

Do People Know if I Filed Bankruptcy

Posted on May 13, 2016May 3, 2022 by Jordan Rumanek

Do People Know if I Filed Bankruptcy

Who will know that I have filed an Assignment in Bankruptcy? We have all seen the notices in the legal section of newspapers notifying creditors about a bankruptcy and notifying everyone about an upcoming meeting of the creditors. The reality is that this only happens in corporate bankruptcies or very large personal bankruptcies usually which have a business background to the bankruptcy. A bankruptcy of an individual is known as a summary administration. The creditors are notified by regular mail. Assets under a summary administration are minimal and notices in a newspaper and meetings with creditors are rare. A bankruptcy is, of course, filed in court but nobody spends their time searching court files and public records to find out information about you. The exception, of course, is the credit bureau (Equifax or Trans Union of Canada) which keep a record of the bankruptcy on their system for a period of six years. Friends and family are unlikely to find out that you filed bankruptcy – unless they need to know. Your employer is only informed if a creditor attempts to garnishee your payroll. Your trustee can usually stop the garnishee but that involves sending a letter to the creditor, the court and someone in the payroll department of your employer. You can keep the notice to your employer confidential by providing your trustee with the private email of someone in authority in the payroll department or by delivering the trustee’s notice by yourself.

Retirement Plans

Posted on April 29, 2016April 12, 2016 by Jordan Rumanek

Retirement Plans

Times have changed over the past few decades and now our life expectancy is late 70s on average. This statement should make us all re-think our retirement plans and put money into proper perspective. You need to think about a realistic retirement plan because it is possible that if you don’t plan for retirement, you are setting yourself up for a difficult 30 years of your life. If you have zero money put away for retirement because you are waiting to win the lottery…change your ways today! Let’s be honest, being realistic for retirement does not mean saving every extra dollar you make today—but it does encourage you to be realistic about your future goals, needs and wants and then plan ahead. Ask yourself: What are my needs/wants and goals besides a nest egg for the future? Most people will answer with these top 5 answers: Family, Friends, Purpose, Health and Creative/Artistic/Adventure/Fun pursuit. Thus, several of these needs are free and your retirement funds can help with your pursuits in life. If you have your mortgage paid off by the time you retire and you have savings set aside, you can use your retirement money to be productive with your time, figure out who you are again without work, get involved in activities and retirement could essentially set you free. It does not matter how old you are today—talk to family, friends, financial advisors, teachers, debt councilors and anyone else willing to help you come up with a financial plan that will optimize your life in the future—allow yourself to be curious, exercise and be healthy and the world is your oyster.

Bankruptcy: To File or not to File

Posted on April 8, 2016April 13, 2016 by Jordan Rumanek

Bankruptcy: To File or not to File

The decision to file for bankruptcy is a difficult one and it is advised to talk to someone about all of your options before you decide to file. There are many reasons people decide to file for bankruptcy such as a costly divorce settlement, medical bills that have piled up to failed small business. It is best to ask yourself several questions before making a firm decision. For instance, do I or we have large-scale debt? Do our monthly minimums take up all of our living expenses and more? If we do decide to file for bankruptcy, will we promise ourselves to change our spending actions? Do we want to buy a home in the near future?

If your debt in indeed out of control then it is important to be honest with yourself because the decision to file could, in fact, be a move towards integrity and a positive life change for you and your family. Filing bankruptcy is not for everyone and you do have options, so make sure you know all of your options in order to make an informed decision.

Category: Bankruptcy Questions

What Happens to My Credit Score if I file for Bankruptcy?

Do People Know if I Filed Bankruptcy

Do People Know if I Filed Bankruptcy

Retirement Plans

Retirement Plans

Bankruptcy: To File or not to File

Bankruptcy: To File or not to File

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