Debt Archives - Page 14 of 17 - Rumanek & Company Ltd

Help for Debt Problems

Posted on June 23, 2017April 12, 2016 by Jordan Rumanek

Help for Debt Problems

debt-free-for-life-2 Overdue payments, calls from collection companies, NSF cheques, bank overdraft. The list goes on and on. You feel stressed out just thinking about your debts. Want some peace of mind? Stop the madness and take control. Start by making a list of your debts showing the name, amount owing, interest rate, and minimum monthly payment that is due. I note that many credit cards now show how long it will take to pay off the balance owing if all you pay is the minimum payment and of course, if you do not make any new charges. Focusing on the 20 or 30 years will just increase your stress, not reduce it. Focus instead on which debts have high interest and which have the lower rates. You should be directing whatever money you have to those debts with a high interest rate.

The next thing you have to do is to track your spending for a few weeks (longer if possible). You will then need to prepare a budget for yourself to determine how much money you have each month to service your debts and allow you to live. Note that the budget is an average for a month (not 4 weeks) and you should allow for emergencies and debts like car insurance that are not necessarily paid on a monthly basis. If you need help, Trustees in Bankruptcy (soon to be called Licensed Insolvency Trustee), credit counselors, financial planners, etc. are usually willing to help you in assessing your budget and putting together a plan of action to pay off your debts. If you spend the time to put together the basic information, their fees will be nominal, their expertise invaluable.

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.

Can I Max Out My Credit Cards and Then Go Bankrupt

Posted on June 16, 2017June 20, 2023 by Jordan Rumanek

Navigating the Consequences of Maxing Out Credit Cards Prior to Bankruptcy

Declaring bankruptcy post maxing out your credit cards may seem like a tempting route for some. However, this action could potentially disrupt the smooth processing of your bankruptcy claim. Both your trustee and creditors are obligated to examine your spending behavior during the period leading up to your bankruptcy filing.

Typically, a period of 90 days prior to the bankruptcy filing is scrutinized, but this can extend up to a year, or even five years if real estate assets are involved. This extension is especially possible if there’s a suspicion of any misconduct. Making a large purchase or taking out a significant cash withdrawal just before filing bankruptcy is deemed an offence under the Bankruptcy and Insolvency Act.

When this happens, several parties including the trustee, a creditor, or the Office of the Superintendent of Bankruptcy could file an opposition to your discharge from bankruptcy. You might be compelled to attend an examination under oath, explaining your actions and motivations. Consequently, your bankruptcy process may get prolonged as you may need to attend a court hearing to secure your discharge from bankruptcy.

Furthermore, you’ll likely be required to pay the trustee an amount equal to the value of the purchase or cash advance you made. The trustee will then distribute these funds amongst your creditors. In extreme cases, if there’s evidence of fraudulent behavior, the case could be forwarded to the police for criminal investigation, potentially leading to charges of fraud. A finding of fraud could mean that the implicated debt will survive even after a bankruptcy or a proposal.

That 60” TV or the financial aid you sent to your financially-struggling family members may not seem worth the trouble when faced with these potential outcomes.

Hence, in response to the question, “Can I Max Out My Credit Cards and Then Go Bankrupt?” – the answer is a resounding NO. Doing so could lead to serious consequences, far outweighing the short-term benefits of those credit card purchases.

Contact Rumanek & Company. 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.

Older Canadians and Future Housing

Posted on June 9, 2017April 12, 2016 by Jordan Rumanek

Older Canadians and Future Housing

It is important to think about your future housing needs as you get older. There are several different kinds of seniors’ housing so you can find out what types of home support are available in your neighbourhood. At the same time, consider your current home to see if there are things you can do to make it easier and safer, as you get older. If you have a disability, you might be eligible for government assistance to pay for home renovations. You should also find out what kind of services are available in your community such as home support—you may want to ask your family doctor and/or someone you trust for any advice or guidance regarding support services. Researching and understanding your options will help you make future decisions about your housing. There are several different types of seniors housing and access to subsidized units for low-income seniors. You will have the option between independent living, retirement homes and assisted living, nursing homes or long-term care. You should compare costs and services offered in each setting.

Joint Loans

Posted on April 21, 2017April 12, 2016 by Jordan Rumanek

Joint Loans

If you are considering co-signing for a loan, credit card or line of credit with another person, it is imperative to research your responsibilities. If you co-sign, the lender will consider you to be a joint borrower, and you become equally responsible for repaying any balances owing on the loan. If the primary borrower is unable to pay the debt, the bank or lender can demand that any borrower and or co-signer listed on the loan or credit agreement pay the entire amount. Also, keep in mind, for certain credit cards, the terms may state that authorized users such as, for example, secondary cardholders can be held responsible for any outstanding balances, even if they did not sign the credit card application. Be sure to read the credit agreement carefully and make sure that you fully understand who is responsible. If you aren’t sure, ask.

If you decide to co-sign for a loan, credit card or line of credit from a federally regulated financial institution, you also have the right to receive the same information about the loan from the lender. For example, if you co-sign for a credit card with another person, the lender must give each of you copies of the credit agreement and the monthly statements, unless you consent to waive this right. This, in turn, allows you to keep track of the status of the loan—whether the other borrower is making payments or if the terms and conditions have changed. In order to guarantee you protect yourself as a co-signer, ask the primary borrower to purchase insurance to pay back the debt in the unfortunate circumstance they pass away. In this circumstance, the primary borrower can name you as the beneficiary on a life insurance policy for an amount that will allow you to pay back the loan. In sum, understand your rights and responsibilities before you co-sign and be certain you read the loan agreement carefully to protect yourself from financial disaster.

Category: Debt

Help for Debt Problems

Help for Debt Problems

Can I Max Out My Credit Cards and Then Go Bankrupt

Navigating the Consequences of Maxing Out Credit Cards Prior to Bankruptcy

Older Canadians and Future Housing

Older Canadians and Future Housing

Joint Loans

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