Category: Corporate Bankruptcy

Paying Your Bills on Time

Posted on by Jordan Rumanek

Screen-shot-2012-01-28-at-11.20.47-PM-150x150Paying Your Bills on Time

Why You Should Pay Your Bills on Time!  If you are a type of person who waits until the last minute (“the deadline”) paying your bills, I would bet that you believe that you think you are making a “profit” by having the money in your bank account for a short period of time until the bill is due to be paid.  Reality check!  Interest rates are so low that anything you think you are earning is offset by missing a deadline, misplacing a bill, whatever.  When you miss a payment deadline, there can be a late payment charge and/or interest charge on the amount due.  Do it more that once and the credit card company may increase the interest rate on the card or reduce the allowable credit limit on the card.  Miss the deadline often and this information will be reported to the credit bureau which will lower your credit score.  Then when you apply for a car loan, new credit card or just renew your mortgage  on your house, watch the interest rate – it will be higher than you expected due to the “higher risk factor” of a bad credit history.

Please contact us or view our videos for additional information regarding bankruptcy or credit counselling. Thank You

Is there a minimum debt before I can declare Bankruptcy?

Posted on by Jordan Rumanek

minimum debtIs there a minimum debt before I can declare Bankruptcy?

Yes. You can only file for a voluntary bankrupt if your total debts owing are over $1,000 and be unable to pay your debts. A creditor will not force you into bankruptcy unless the debtor owed is $1,000 or more. However, you are advised to discuss your financial difficulties and schedule a consultation or credit counselling to get the proper information and discuss your options. Bankruptcy should be a last resort and it is important to know your rights and responsibilities.

Contact the Office of the Superintendent for more information. Or if you like a free evaluation please fill out the evaluation form.

What happens to secured debts e.g. My Car Loan or House?

Posted on by Jordan Rumanek

secured debtsWhat happens to secured debts e.g. My Car Loan or House?

Car loans, mortgages, and furniture credit cards are loans which are taken in order to purchase an asset. That asset is given as security for the loan, so that if payments are not made, the lender can retrieve the asset for which you borrowed the money in the first place.

In general, creditors are more interested in receiving payments than in dealing with the used asset. If your payments are up to date, and you keep them current, it is unlikely (though not guaranteed, depending on the situation)  that the creditor would take your house, your car, or your furniture.

If, on the other hand, you can no longer afford the payments on the car, furniture or house loan, you may be able to include those debts in a bankruptcy or a proposal, in exchange for returning the asset you borrowed the money to buy. Before taking this step, speak to a Trustee in Bankruptcy to make sure the decision to keep or return the asset is the right one for you.

For more information on your Secured Debts Contact Us or Industry Canada

Can I operate a business while I am bankrupt?

Posted on by Jordan Rumanek

operate a business while I am bankruptCan I operate a business while I am bankrupt?

That depends on what type of business you are operating. If you are self-employed in Ontario and your business is a sole proprietorship, you can operate as usual. Any business-related debts in your bankruptcy are also personal debts, so suppliers that were included in your bankruptcy may be cautious about extending credit to you while in bankruptcy. You may need to re-negotiate payment terms with them.

If your business is a corporation in Ontario, you must first take steps to remove yourself as a director, as an undischarged bankrupt cannot be a director of a corporation in Ontario.  Your suppliers would not necessarily be aware of your bankruptcy, but you should not sign personally for any credit, business or otherwise, while undischarged.  Otherwise, you may run your business as usual.

If you like an evaluation please fill out the evaluation form. Contact Rumanek and Company or the Office of the Superintendent for more information.

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