Decreasing independence is not something that anyone likes to think about, but needing help making legal and financial decisions can happen at any time and for a wide range of reasons. If you’re a senior citizen, you should begin planning ahead for your future. If you get ill, have an accident or even if you are just away for a period of time, having someone you trust who is ready and able to help you can save time and trouble.
In other words, plan ahead, appoint a power of attorney and sign a power of attorney document. This is a legal document in which you name one or more people to be your attorney (decision-maker) to manage your financial affairs.
This is an important plan because you need someone you can trust to look after your affairs if you can no longer look after them yourself.
There are three different situations where an Ontario resident can stop collections calls.
Where you are receiving collection calls concerning monies owing to a bank
In Canada a significant percentage of non-mortgage debt is owed to financial institutions regulated by the federal government. You can stop collection calls in connection with monies owing to a bank provided you do the following:
Send the organization calling you a letter by registered mail
In which you ask that it only communicate with you in writing,
You provide an address where you can be contacted in writing
This federal law gives the consumer receiving collection calls on monies owing to a bank the right to stop calls from not only collection agents but also the original creditor.
Where you are receiving collection calls from a collection agency
An Ontario resident can stop collection calls from a collection agency, regardless of who the money is owed to. You can stop collection calls from a collection agency provided you do the following:
Send the collection agency a letter by registered mail
In which you dispute owing the alleged debt and you suggest the dispute go to court
Where you are receiving collection calls from a law firm
An Ontario resident can stop collection calls from a law firm. You can stop collection calls from a law firm by hiring a lawyer to send the law firm a letter indicating the lawyer is representing you in this matter.
A credit score does not fix itself. Your credit score is the sum total of the history reported to the credit bureau (either Equifax Canada or Trans Union of Canada by your creditors. Your credit score is affected by many factors such as your payment history, how much credit you are using of your total limit, enquiries by old and new creditors, etc. You should obtain a copy of your credit report every few years to be certain the information on your file is accurate, current and has no errors. If you find anything wrong in your credit report, notify the reporting agency immediately to correct your report. The last thing that you need when applying for a loan or mortgage is an unexpected problem. It takes time to fix a problem, even if you are not the cause of the problem.
As previously stated, your credit report and credit score is based on your history. Even if a debt that was delinquent is subsequently paid off or made current, the history will stay in your file up to 6 years. If a delinquent account has been sent to a collection agency or has resulted in a lawsuit, the information may show up twice. Once under the name of the creditor and a second time, under the public information section at the end of the credit report.
Your credit report and credit score is very important to you. It affects not only your ability to borrow but also the interest rate that you are charged. Very few people have a perfect credit score. If they had a perfect score, they likely would not need to borrow money anyway. For the rest of us, do your best to present yourself in the best possible way.
The answer is yes. It does not make much sense that you have no money and still have to pay to go bankrupt. But a Licensed Insolvency Trustee has to pay his rent, staff and other expenses just like every other business. In some cases, there might be some of your assets that might have to be turned over to your trustee to be liquidated. This might generate enough funds to pay the costs of the trustee. In most cases, the person filing the bankruptcy will have to pay the costs of the bankruptcy which total about $1,800 and includes the trustee’s fee, court filing fee, counselling fees, etc. In cases where the income of the person filing the bankruptcy is very limited, payments of the fee may be payable over a period of time at no interest cost. Please discuss this option with the trustee at the time of the initial interview. On the other hand, high income earners are expected to contribute a portion of their surplus income to their creditors for the term of their bankruptcy (21 months for a first time bankrupt with surplus income). The normal time of the duration of a first time bankruptcy is 9 months – it is extended to 21 months due to the obligation of surplus income