A debt management program helps you consolidate your debt into one package, allowing you to make one monthly payment and reduce interest rates. It is also a step in the right direction in terms of personal financial planning. It is important to research your options, and begin to make the right choices for you. Any sort of credit counselling and debt management is the first step to solving your financial difficulties.
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.
There is much information that people hear concerning bankruptcy, some of it good, some bad. This article will focus on the bad bankruptcy information.
Bankruptcy clears your credit rating
No it does not. Both Equifax and Trans Union of Canada keep a record of your bankruptcy for six (6) years. The six (6) years starts at the end of your bankruptcy. A first time bankrupt with no surplus income or other problems will take nine (9) months to be completed. Once your bankruptcy is over
(i.e. – after 9 months), you must be pro active in rebuilding your credit score. If you do nothing, than nothing will happen.
You can never get credit again
This might have been true 30 years ago but it is certainly not true today. With proper guidance from your trustee at either of the two (2) counselling sessions that take place during the bankruptcy, there is no reason why you should not be able to get credit within a few months after being discharged from your bankruptcy.
Nobody will give me a loan
Banks and financial institutions are in business to make money. They seem to make a lot of money. They can only make money by loaning money to buy a car or house, special loans for education or medical or other personal needs. And yes, also for credit cards, which are really a short-term loan at an interest rate from 18% to 29%. The banks need to loan out money almost as much as you need to borrow it. The key is for you to give them the information that will result in the bank approving your loan.
Bankruptcy will affect your job
As long as you are not in a job that requires you to be bonded or requires a high security clearance, bankruptcy will have no effect on your employment. Most employers (e.g. banks for bank tellers) will simply transfer you to a non-cash function while you are bankrupt. Once you are discharged from bankruptcy and back on your feet, you should meet with Human Resources about getting your old position back. I have not heard of any loss of seniority or reduction in income in this situation. Your trustee will not notify your employer that you are bankrupt unless requested to do so to stop a payroll garnishee.
Bankruptcy will affect your relationship with family and friends
Never has, never will. There is no stigma about filing an assignment in bankruptcy. It is a practical business matter that you have to deal with when you are over your head in debt and need to make a fresh start in your life. As part of the bankruptcy process, you must turn in your credit cards and re-establish your credit and get new credit cards. You will also be given information on budgeting and finance by your trustee. This is all being done to improve your financial health. Your relationship with other people can only improve.
If you are not sure, discuss your concerns with your Trustee.
Contact Rumanek & Company Ltd. for more information. Or please fill out the form on the contact us page for additional information. Or if you would like a free evaluation please fill out the FRRE 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.
Each province and territory in Canada allows an exemption for certain assets to be kept by a consumer debtor. In Ontario, you can keep your car if it is valued at $ 5,650.00 or less. If the vehicle is used for business purposes, it is called a “tool of trade” and the exemption doubles to $ 11,300.00. If the vehicle is valued at more than the exempt value, the consumer debtor (i.e. the person who is bankrupt) has options to consider. If you do not wish to keep your car, you can turn it over to the trustee as an asset of your bankruptcy in Ontario. The trustee will sell the vehicle and, after deducting expenses of the sale, will pay to you the lesser of the amount of the exemption or the net proceeds of the sale. If you want to keep your car, you will have to make arrangements with your trustee to pay the bankrupt estate the difference between the value of the vehicle and the amount of the exemption.
If the car is leased, bankruptcy in Ontario generally terminates all contracts between the consumer debtor and third parties. The leasing company will, in most cases under its lease, have the right to repossess the car, sell it and then claim any deficiency balance in the bankrupt estate. However, if the bankrupt is not in arrears, the bankrupt may be able to continue making payments under the lease and keep the lease in good standing. Such payments will depend upon the size of the payments and cash flow. The trustee on behalf of the creditors may object to these payments if they are sizeable in relation to the bankrupt’s income and expenses.
If you are not sure, discuss your concerns with your Trustee.
Contact Rumanek & Company Ltd. for more information. Please fill out the form on the contact us page for additional information and if you would like an evaluation please fill out the Evaluation Form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt and bankruptcy in Ontario for more than 25 years.
For most people, the value of furniture, personal property and household goods are well within the exemption levels permitted by each province. In other words, the Trustee will not seize your assets, unless the resale value (usually close to the garage sale or online classifieds value) is above these thresholds:
In Ontario, the following values apply:
• Household Furniture valued to a maximum of $11,300.00
• Personal possessions (clothing etc.) to a maximum value of $5,650.00
• Tools of Trade to a maximum value of $11,300.00
• A car or truck to a maximum value of $5,650.00
• Certain life insurance policies and pensions
• Farmers tools to a maximum of $28,300.00
If the value of your property is higher than the exemptions given, most commonly with a car or truck, you will be required to pay the difference, not the full value, to the Trustee.
Please note that if you are self-employed in Ontario, your car or truck can sometimes also be considered as a Tool of Trade, which increases their exemption from $5,650.00 to $11,300.00. It is also possible to keep two vehicles – the first vehicle exempt, as a personal vehicle, the second exempt as a business vehicle.
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 and bankruptcy in Ontaio for more than 25 years.
Will a Debt Management Program Help?
Will a Debt Management Program Help?
Bad Bankruptcy Information
Can You Keep Your Car After Filing Bankruptcy