Student Loans Bankruptcy Archives - Page 6 of 42

How are student loans affected by a proposal or a bankruptcy?

Posted on March 1, 2015April 14, 2016 by Jordan Rumanek

How are student loans affected by a proposal or a bankruptcy?

It depends on the age of the student loan.

If the bankruptcy or proposal is filed more than 7 years since the end of your last semester using student loan funds, then the loan is dischargeable. When the process is done, the debt is gone.

If the bankruptcy or proposal is filed more than 7 years since the end of your last semester using student loan funds, the loan is still included in the consumer proposal or bankruptcy. No collection action can be taken against you during the process, but once the bankruptcy is discharged or the consumer proposal is complete, the loan is collectible again. Discuss this with your Trustee, as interest will still accrue, and you should have a plan to address it.

There is a provision in the Bankruptcy Act that if a person demonstrates true financial hardship, and the bankruptcy was file less than 7 years, but more than 5 years, after the last semester, the court may order that the debt does not survive.

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.

Responsibilities For Spouse’s Credit Cards?

Posted on March 1, 2015April 14, 2016 by Jordan Rumanek

Responsibilities for spouse’s credit cards?

– Responsibilities for spouse’s credit cards? If the parties have signed for the credit card or loan as co-applicants or joint account holders, each person is responsible for its payment in full (joint and several liabilities). In these cases, the monthly bill will usually be addressed to both responsible parties.

– The principal card holder is fully responsible for charges against a supplementary (e.g. spouse’s) credit card. In these cases, the bill is addressed to the principal card or account holder.

– Sometimes, creditors will pursue the supplementary account holder for the debts of the principal card holder. In these cases, it would be helpful to be able to prove that the charges were not on the supplementary card.

Debt Help Toronto

Posted on March 1, 2015April 14, 2016 by Jordan Rumanek

Debt Help Toronto

Question: Collectors are calling, threatening to garnish my pay; the statements are piling up and my bills are overdue. My minimum monthly payments don’t cover interest and leave me digging a deeper hole for myself.

Where to turn for advice? Credit and debt management counselors advertise aggressively, so they must be ok. Right?

Answer: Debt management companies are usually not ok.

Their payment agreements are not regulated by the government and are not cast in stone. They can also be difficult to arrange, as it is a voluntary choice by your creditors to accept an overall settlement agreement. A creditor can choose to not accept your settlement, and can opt out at any time. This can bring you back to the original problem, while you have made payments in good faith. Also, upfront costs for services by many “credit counselors” can be quite high, with no guarantee of success.

Speak to a Trustee in Bankruptcy first, before you make any decisions, with no obligation or cost.

Trustees practice in a federally-regulated system that is set out to assist you.

In a FREE initial consultation we will talk about the causes of your money troubles and recommend one of several options to help you resolve them. Every Trustee in Bankruptcy is licensed by the federal government to facilitate a fair and practical solution for an honest debtor who is over her/his head in debt. The Trustee’s job is to deal with your unique situation in a way that is supported and regulated by the federal government to try to ensure your success in a debt-free future.

We can help resolve your financial problems through a variety of options: Consumer Proposal, Assignment in Bankruptcy, other forms of financing, or sale of assets. Our fees are regulated by the government and we must follow a prescribed schedule.

Tax Free Savings Account and Bankruptcy

Posted on March 1, 2015April 14, 2016 by Jordan Rumanek

Tax Free Savings Account and Bankruptcy

I have a Tax Free Savings Account (TFSA) but my debts total more than I have the ability to pay. I do not want to file a bankruptcy and am considering a proposal. Can my creditors force me to cash the TFSA as part of the proposal?

The short answer is “no.” When making a proposal you are offering a settlement to your creditors which they either accept or refuse. In your case if the creditors know you have the TFSA they may refuse to accept your original proposal and ask you to resubmit your proposal with an initial lump sum presumably coming from the TFSA But, once they refuse the original proposal it is your choice if you decide to make a second offer and it is their choice whether or not to accept a second (or third) offer.

Remember the creditors are only trying to recover as much of their debt as is possible. It is all about negotiating the amount that they are willing to settle for. That is the job that the Administrator of your proposal is doing for you.

Category: Student Loans Bankruptcy

How are student loans affected by a proposal or a bankruptcy?

Responsibilities For Spouse’s Credit Cards?

Responsibilities for spouse’s credit cards?

Debt Help Toronto

Debt Help Toronto

Tax Free Savings Account and Bankruptcy

Tax Free Savings Account and Bankruptcy

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Responsibilities for spouse’s credit cards?

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Debt Help Toronto

Tax Free Savings Account and Bankruptcy