Yes, if your child is earning an income, there are advantages. First, they begin to accumulate RRSP space and this space can be carried forward allowing them to use it in later years.
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.
What are the disadvantages of hiring a debt settlement firm?
Anyone searching for debt relief options on the internet will likely see ads for firms offering debt settlement services to Ontario residents. These firms might be traditional debt settlement firms—which are supposed to hold the necessary license issued by the Ontario
Government—or they might be a firm exempt from this requirement. This latter group includes law firms, credit counselling agencies, and bankruptcy trustees. Debt settlement involves an informal agreement between a creditor and a consumer under which the creditor agrees to accept a one-time lump sum payment for less than one hundred percent of the outstanding balance as settlement in full. This is an alternative to a consumer proposal which is only available through a bankruptcy trustee.
No creditor will agree to an informal proposal unless your account is a minimum of six months overdue. In contrast, there is no such requirement for making a consumer proposal. Compared with a consumer proposal, debt settlement—or an informal proposal—has a number of disadvantages.
You will receive collection calls
You might be sued
Results are not guaranteed
It may be expensive
If you are an Ontario resident and you hire a traditional debt settlement firm then the fee they can charge you for settling a particular account is capped at ten percent of the amount of the debt on the date you signed a debt settlement agreement. If, however, you hire a law firm, you might pay substantially more in fees.
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.
Happy New Year!! What an amazing idea to make a decision or joint decision this January to spend close to nothing—preferably nothing. This time of year is difficult financially for almost everybody and it will be easier than you think to stop spending altogether—for the time being. Get your family and friends involved! Make your priority spending only groceries and cut that grocery list. You have many items in your cupboard, freezer and fridge to plan ahead every week and spend the bare minimum. Make a meal plan every week, freeze soup, casseroles and vegetable dishes. Try and organize potlucks with other people or another family. When considering entertainment, get dressed warm and get outside, go skating, sliding, hiking —there are dozens of free, fun outdoor activities. If the cold outdoors is not your thing, research free indoor events or invite people over to your home. Use up your gift cards, if needed, this month and make sure you return all items you do not need or want—it’s amazing how much money we get back when we remember to return items we do not need. You have 31 days in January to make the most of each day and challenge yourself to not spend money. The less you spend, the more you save for bills and hopefully savings for the rest of the year. Practice positive money spending habits now and you will feel empowered to make this year your best financial year to date. Good Luck! Spend Less! Feel Great!!
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.
How can I avoid paying a debt due to the passage of time?
In Ontario, where a consumer has an unsecured consumer debt, the creditor must sue the consumer within two years of the date of last payment, otherwise the creditor might find it very difficult, if not impossible, to recover any monies from the consumer. An Ontario resident can only take advantage of Ontario’s two year statute of limitations to avoid paying a debt to a creditor on unsecured consumer debts. This protection is not available for the following types of debts:
Secured debt
Monies owing to the government
Spousal support and child support obligations
The clock on Ontario’s two-year statute of limitations begins to run on the date of last payment. A consumer can restart the clock during this two-year window by either making a partial payment or making a written acknowledgement of the debt. On the date that the two-year statute of limitations expires the consumer’s financial obligation does not magically disappear. The expiry of the two-year limitation period, however, does provide the consumer with an affirmative defence in the event that the creditor were to sue the consumer.
If a creditor were to sue a consumer after the expiry of Ontario’s two-year statute of limitations the consumer simply has to file a defence pleading the expiry of Ontario’s two-year limitation period and the creditor would lose its lawsuit. Creditors rarely sue consumers on unsecured consumer accounts more than two years after the date of last payment.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the <a href="https://www.rumanek their explanation.com/contact/free-evaluation-form/”>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.
Should your child file a tax return?
Should your child file a tax return?
What are the disadvantages of hiring a debt settlement firm?
New Year: Debt Solutions
How can I avoid paying a debt due to the passage of time?