Consumer Proposal & Administrator’s Report

Consumer Proposal & Administrator’s Reportshopping_cart

I filed a Consumer Proposal and my trustee tells me that he has to file an Administrator’s Report. What is this?

Your trustee is acting in this situation as the Administrator of your proposal. As such, there is a requirement under the legislation that he submits a report to your creditors:

  • The proposal was filed with the Officer Receiver who represents the Office of the Superintendent of Bankruptcy
  • Your financial situation and assets listed on your documents are reasonable
  • Your list of creditors (with balances higher than $250) is reasonably accurate
  • Explains what is the cause of your financial problems
  • A brief summary of your net income per month, type of employment, the fact that you do not wish to file a bankruptcy and the amount that the creditors will receive in the proposal. If you and your partner are filing individual proposals at the same time, the joint creditors will be notified of the concurrent proposal so that they realize that they receive payments from both proposals. If the administrator has determined that the payment in the proposal is lower than the creditors would receive in a bankruptcy, there is an obligation to disclose that fact but add any mitigating factors for the creditors to consider before deciding whether or not to vote for or against your offer.

In many cases, the creditors start reviewing your proposal by reading the Report of the Administrator. It is a very important document.

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.  

 

You Need a Good Credit Score

Why do you need a good credit score?

You have decided to buy a house (mortgage), buy a car (car loan) or go into business Can I keep my credit cards if I go Bankrupt?(operating line of credit to finance inventory, accounts receivable, etc.). You go to your bank and they look at your credit score. The credit score is a number (from 300 to 850) that is based on a number of factors such as your payment history (35% of total), how much of your available credit have you already used (30% of the total), what type of credit you have and how long have you had the credit, as well as how many creditors that you have in total.

Before you start the loan application for that big purchase, consider ordering a copy of your credit report yourself. They are available free by regular mail from both Equifax Canada and Trans Union of Canada. Read the report carefully so that you know what the bank will be looking at. If you spot a mistake, notify the credit bureau immediately to correct their report. The notification is by filling out the Consumer Update Form that the credit bureau will send you with your credit report. It is always advisable to attach any proof or documents that you might have to prove what you are saying is correct. Unless the error is self-evident, please allow time for the credit bureau to investigate your report of the error and correct their records. Always ask the credit bureau to confirm to you that they have updated your credit report.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation formTo learn more please visit our YouTube  Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

 

Who can Garnish my Wages?

Who Can Garnish My Wages?writ of garnishment

Anyone you owe money to can garnishee your wages. The real question to be asked is how they are able to garnish your wages. For Canada Revenue Agency, it is easy. They just issue a Third party demand and your employer is obligated to follow the instructions from CRA. It is a great world when you can issue the Third Party collection demand without bothering to go to court. All you have to do is pass a law that benefits only you. For the rest of your creditors to garnishee your wages, they must first sue you in court, obtain a judgement against you from the court and then obtain permission from the court to garnish your wages. You are notified at each stage of the process and are given the ability to attend court and convince the court that you do not owe the debt or that the court should refuse the judgment or refuse to give permission to garnish your wages.

If you do nothing, you will lose by default.

If you are contacted by a collection company who threatens to garnishee your wages, treat what they saying as just a threat. They are required to follow the same rules and procedures as everyone else. The original creditor (that hired the collection agent) could sue you themselves but everyone else must hire a lawyer or paralegal who is licensed by the Law Sociey of Upper Canada (L.S.U.C). If a collection agency threatens a lawsuit or a garnishee, simply ask them to make sure that they send you a copy of the legal papers which MUST show the court file number on the upper right corner of the first page. Without this number, it is just a bluff.

If you decide to file an Assignment in Bankruptcy or a Consumer Proposal. All lawsuits, garnishee orders and judgements are immediately stopped regardless of what stage the legal proceedings are at. If you are at the stage of having collection companies threaten to do all of these nasty things to you, perhaps, you must take action to stop everything and put your life back together.

 

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

Consumer Proposal – Administrators Report

Financial-Planning-And-Analysis-Interview-QuestionsI filed a Consumer Proposal and my trustee tells me that he has to file an Administrator’s Report. I am frightened – what is this?

Your trustee is acting in this situation as the Administrator of your proposal. As such, there is a requirement under the legislation that he submits a report to your creditors that:

1. The proposal was filed with the Officer Receiver who represents the Office of the Superintendent of Bankruptcy

2. Your financial situation and assets listed on your documents are reasonable

3. Your list of creditors (with balances higher than $250) is reasonably accurate

4. Explains what is the cause of your financial problems

5. A brief summary of your net income per month, type of employment, the fact that you do not wish to file a bankruptcy and the amount that the creditors will receive in the proposal. If you and your partner are filing individual proposals at the same time, the joint creditors will be notified of the concurrent proposal so that they realize that they receive payments from both proposals. If the administrator has determined that the payment in the proposal is lower than the creditors would receive in a bankruptcy, there is an obligation to disclose that fact but add any mitigating factors for the creditors to consider before deciding whether or not to vote for or against your offer.

In many cases, the creditors start reviewing your proposal by reading the Report of the Administrator. It is a very important document.

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.