Category: Consumer Proposal

Top 5 Bankruptcy & Consumer Proposal Questions

Posted on by Jordan Rumanek

Top 5 Bankruptcy/Consumer Proposal Q&A's

Top 5 Bankruptcy and Consumer Proposal Questions and Answers

Bankruptcy Consumer Proposal

1. What does Bankruptcy cost? This varies and it is important to do your research. There is a fee you will pay your trustee and filing for bankruptcy will cost you particular financial freedoms. This is in addition to the fact that you need to declare all of your creditors, assets, income etc.

2. Will I lose my house? Not necessarily.

3. Do I have options other than Bankruptcy? Yes, you have the option to file a consumer proposal.

4. Will my bankruptcy affect my spouse? In most cases, a personal bankruptcy does not affect your spouse from a financial standpoint. However, you have to make adjustments in your life and this will affect your spouse.

5. Will I lose everything? No, you will not lose everything. But, you will make financial changes that may involve selling assets you have.

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. 

Consumer Proposal: An Alternative to Bankruptcy

Posted on by Jordan Rumanek

Bankruptcy PeopleConsumer Proposal: An Alternative to Bankruptcy

Consumer proposal (“proposal”) is the main alternative to filing an assignment in bankruptcy.  A consumer proposal is an offer made by you to your creditors which may enable you to pay a portion of your debts over an extended period of time.  The amount that you pay and the length of time you are given to pay is determined in a consultation with a trustee in bankruptcy-a trustee acts as the Administrator. Consumer proposal is based on the amount of your income, living expenses and any other financial responsibilities.  A consumer proposal is sometimes called a “Debt Consolidation Arrangement”.

This action stops creditors from taking legal action to recover their debts from you.  It also stops public utility companies from discontinuing services.  It is important to note that this option does negatively impact your credit rating.  Talk to your trustee about this impact.  Consumer Proposals are only available to individuals (not businesses) and the debt can not exceed $250 000.  You also retain all of your assets unless they are pledged as security to a debt in which case the agreement has to be read.

Process:

1. Seek the help of a bankruptcy trustee who will act as the administrator of your proposal not as a trustee in bankruptcy

2. A trustee will assist in preparing all documents and will file them in the court as required

3. Creditors are given 45 days to accept or reject the offer

4. Once the creditors approve the proposal the trustee will then obtain court approval

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.  

 

Bankruptcy Story #413: Threatened with Bankruptcy

Posted on by Jordan Rumanek

Bankruptcy Story #413: Threatened with BankruptcyBankruptcy Story #413: Threatened with Bankruptcy

Kara was threatened with bankruptcy and it scared her to act. She was very vulnerable after her husband passed away. She had two children to take care of and if her home was taken away they would have no place to go. She attempted to solve her problems by taking out money from her retirement funds. Kara felt desperate. This action helped for six months but she then was forced to start taking cash advances on her credit card.

These actions, even though she had good intentions, were mistakes. If you feel threatened or desperate you need to contact a trustee in bankruptcy. Sometimes having a discussion of options will empower you more than you realize. Do not allow yourself to get overrun by your creditors. Talk to a professional and get the help you need.

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.  

Bankruptcy or Consumer Proposal

Posted on by Jordan Rumanek

Bankruptcy or Consumer ProposalConsumer Debt

Dear Trustee,

I have had financial difficulties for the past two years. I have tried to earn extra income, cut expenses and sell items from my home that have some value. However, I have had several incidents in the past 3 months that have forced me to consider my options. I have also noticed that there are many commercials talking about the benefits of a Consumer Proposal. What are the differences between filing for Bankruptcy and filing for a Consumer Proposal? Will it cost me to talk to a Trustee? Do I need to make an appointment? Can I have this conversation on the telephone? Thanks PB

Dear PB,

Thank you for your message. Yes, you have options and it is best to talk to a trustee. A Consumer Proposal is a legal process that is organized and filed by a trustee in bankruptcy. A proposal is essentially an offer to pay a percentage of your debt to your creditors. There is a chance that after your trustee submits the proposal, your proposal will not be accepted. If this happens, you have the option to either make changes to the original proposal or declare bankruptcy. It is important to know that once you file a Consumer Proposal, you are assigned the lowest credit score. In time, you will be able to work towards improving your score and your trustee will give you tips on how to accomplish this process. It is best to call and make an appointment and we can discuss your situation and needs over the phone. We hope to hear from you so we can help you with the first steps you need to take to improve your financial situation.

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.  

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