Personal Bankruptcy Archives - Page 7 of 82

Bankruptcy in Canada: What you should know

Posted on October 1, 2016May 3, 2022 by Jordan Rumanek

Advantages of filing for personal bankruptcy:

1. Protects from collection agencies harassment

2. Eliminates personal debt

3. Quick financial fresh start

4. Relatively inexpensive

5. Most Provinces provide protection for your clothes, furniture, car, etc. from your creditors

6. All legal actions, wage garnishees, etc. are stopped. No new legal proceedings are allowed to start without the express prior consent of the court.

Disadvantages of filing for personal bankruptcy:

1. Credit history resets to R9

2. Some assets/possessions must be surrendered to your trustee for division among your creditors

3. You will need to rebuild credit. If your credit is bad, you will have to do this regardless whether or not you file an assignment in bankruptcy.

4. Possible future difficulties acquiring loans. Even if you do not get the loan, you will pay higher interest rate due to a higher risk factor.

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.

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.

Start Today! Debt Freedom

Posted on September 3, 2016April 12, 2016 by Jordan Rumanek

Start Today! Debt Freedom

You must take Action and get out of Debt! You know you need to get out of debt. You think about it all the time—you feel you can’t stop worrying. Stop worrying and start taking action! These two baby steps can start to relieve your fear and stress instantly.

Step 1: Make a list your debts you need to pay excluding rent or mortgage. List the name of the creditor, amount of maximum allowed debt, amount of actual debt, interest rate and amount of minimum monthly payment.

Step 2: Know yourself. You can decide to either consolidate/combine the debt into one payment OR start to pay off your smallest debt while paying interest on all other debts. If you have the personality where you need to see results in order to stay motivated then choose the second option. However, if you can consolidate your debt into one easy payment and stay focused—you will be pleased with the results.

One of the factors in the calculation of your credit score is the amount of your total available credit which is currently being used. As you pay down your debt, your credit score will be rising at the same time.

Talk to a trustee in bankruptcy regarding these options and let an expert help you decide what is best for you and your financial situation. The moment you become debt free is the moment you can begin to save for your future and have the life that you deserve.

Debt: Preventative Approach

Posted on August 13, 2016April 12, 2016 by Jordan Rumanek

Debt: Preventative Approach

How do we react to Debt?

People tend to react after the fact to financial problems and debt rather than take preventative measures. For example, people tend to be in denial or avoid their financial problems until the problems are so bad, it is difficult to help solve the problems.

Asking for help could be the first step to financial freedom and uncovering the root of financial woes. Deciding to become financially responsible is not a taboo subject. It shows you want to be in control of your financial future and many people are in your situation or have been at some point in their life—you may be surprised how many people can relate to your situation.

Seeking professional financial help can make a huge difference when dealing with debt problems and achieving a peaceful state of mind. Do not leave financial uncertainty hanging over your head. Take the preventative approach to your financial future today.

Category: Personal Bankruptcy

Bankruptcy in Canada: What you should know

Advantages of filing for personal bankruptcy: