Financial Stories Archives - Page 9 of 43

Can I Buy a Car and Then Go Bankrupt?

Posted on October 29, 2016May 3, 2022 by Jordan Rumanek

The short answer is yes. There is always a “But.” The review of the trustee in bankruptcy will take into account the following:

How long before the bankruptcy did you buy the car?

What did you pay for the car?

Did you pay cash? – if so, was any part of the cash from cash advances on your credit cards or from lines of credit?

If you financed all or part of the purchase price of the car, do you still owe money to the finance company? Did the finance company put a lien on your car as security until they were paid? If the answers are yes and you wish to keep the car, you will likely just continue to make the car payments and keep the car

What is the car worth on the day you filed the assignment in bankruptcy?

The answers to all of the above questions determine what action, if any, the trustee will take. Obviously, the length of time between the purchase of the car and the date of filing bankruptcy and the current value of the car are the two most important factors. If this situation applies to you, you would be wise to review the details with your trustee before you file bankruptcy.

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.

Credit Costs you Money

Posted on October 15, 2016April 12, 2016 by Jordan Rumanek

Credit Costs You Money

The benefits of having a credit card include being able to make large purchases if you don’t have immediate cash, a sense of security in case of extreme emergencies and worldwide convenience and acceptance.

The disadvantages include the fact that you pay much more for an item if you can’t pay off your balance immediately. A few tips if you do decide to use your credit cards include using a two card credit system: use the card with the lower interest rate to buy big purchases because it may take you over a month to pay it off. Use the card with the higher interest rates for smaller purchases you know you can pay off. Most importantly, pay the entire bill on every credit card every month.

Student Loan: Bankruptcy Questions

Posted on September 17, 2016April 12, 2016 by Jordan Rumanek

Student Loan: Bankruptcy Questions

Dear Trustee,

I have been researching my options lately because I am considering filing for bankruptcy and have a few questions for you regarding my student loan. I graduated from my undergrad in 2007 and then from my Master’s in October, 2011. I have been applying for the Repayment Assistance Program every 6 months through OSAP which has been very helpful considering I have not been able to make payments for a variety of personal reasons. I am aware that if I file for bankruptcy that I am not able to include my student loan until October, 2016 because The Bankruptcy and Insolvency Act indicates that there needs to be 7 years and sometimes 5 years in between the date that I ceased to be a full or part-time student and the date I file for bankruptcy. So, here are my questions:

If I have been benefiting from the Repayment Assistance Program does this mean that the 5 years changes the age of my loan?

Are there ways to apply to the court to consider my student loan to be discharged by my bankruptcy?

Are you able to meet with me to advise me and give me options?

Thank you

Dear SL,

Yes, if you have been receiving assistance from the repayment program, the age of your loan changes according to the Canada Student Loan Act as well as OSAP (Ontario Student Assistance Program).

There are ways to apply for a Hardship Provision to include your student loan. However, the court needs to have proof of the hardship and the court decides on a case-by-case application process.

Yes, we are able to meet with you to discuss your options and ensure your rights—please give us a call and we can answer your questions and book an appointment for you. There is no charge for the initial meeting. Charges and terms of payment for future work will be discussed at this initial meeting.

Debt Free App

Posted on September 10, 2016April 12, 2016 by Jordan Rumanek

Debt Free App

This user friendly App helps you face the reality of your debts and helps you start the process of becoming debt free. Download and start now with this useful, practical App as a debt reduction strategy. This App not only provides money savings tips but also calculates the best steps to take based on financial goals, organizes debts by category and gives quick summaries. The Debt Free App has a simple interface to help organize and help users decrease debt, displays pie charts to show how long it will take to pay off debt until users are completely debt free.

Category: Financial Stories

Can I Buy a Car and Then Go Bankrupt?