Consumer Proposal: What if I miss payments to my trustee?
Once your consumer proposal has started, if you miss three (3) payments the consumer proposal is annulled and all legal rights of the creditors are restored. The amount that you owe each creditor is the original amount that you started with less any monies that the creditors received during the consumer proposal before you missed the three (3) monthly payments. The 3 payments are cumulative – you can miss 2 payments and make one up. 3 payments refers being behind 3 payments in total at any time.
If you find that your financial situation has changed, contact your trustee immediately. It may be possible to amend your consumer proposal by reducing your monthly payments to fit your new circumstances.
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.
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.
If you are overwhelmed by debt you must stop the stress before it affects your health. Debt problems will often result in lack of sleep, fights with your spouse, poor job performance at work all of which contribute to your stress level. When the collection companies phone and you are afraid to answer the phone or open your mail, your blood pressure will rise and this also contributes to your stress. Before all of this causes health problems like depression please call a professional to help you. When you file a Consumer Proposal, an Assignment in Bankruptcy or other Debt Consolidation Arrangement with your creditors the result is the creditors stop calling and sending you letters, pay garnishees stop, and you will finally get a good night sleep.
It does not cost anything to call as the initial consultation is free. You will feel much better when you are in control of your debts.
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.
Bad Bankruptcy Information
