Repair Your Credit Score

debt-septRepair Your Credit Score

A credit score does not fix itself. Your credit score is the sum total of the history reported to the credit bureau (either Equifax Canada or Trans Union of Canada by your creditors. Your credit score is affected by many factors such as your payment history, how much credit you are using of your total limit, enquiries by old and new creditors, etc. You should obtain a copy of your credit report every few years to be certain the information on your file is accurate, current and has no errors. If you find anything wrong in your credit report, notify the reporting agency immediately to correct your report. The last thing that you need when applying for a loan or mortgage is an unexpected problem. It takes time to fix a problem, even if you are not the cause of the problem.

As previously stated, your credit report and credit score is based on your history. Even if a debt that was delinquent is subsequently paid off or made current, the history will stay in your file up to 6 years. If a delinquent account has been sent to a collection agency or has resulted in a lawsuit, the information may show up twice. Once under the name of the creditor and a second time, under the public information section at the end of the credit report.

Your credit report and credit score is very important to you. It affects not only your ability to borrow but also the interest rate that you are charged. Very few people have a perfect credit score. If they had a perfect score, they likely would not need to borrow money anyway. For the rest of us, do your best to present yourself in the best possible way.

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.

 

Does it Cost Money to Go Bankrupt?

Hand holding fanned out Canadian money.

Does it Cost Money to Go Bankrupt?

The answer is yes. It does not make much sense that you have no money and still have to pay to go bankrupt. But a Licensed Insolvency Trustee has to pay his rent, staff and other expenses just like every other business. In some cases, there might be some of your assets that might have to be turned over to your trustee to be liquidated. This might generate enough funds to pay the costs of the trustee. In most cases, the person filing the bankruptcy will have to pay the costs of the bankruptcy which total about $1,800 and includes the trustee’s fee, court filing fee, counselling fees, etc. In cases where the income of the person filing the bankruptcy is very limited, payments of the fee may be payable over a period of time at no interest cost. Please discuss this option with the trustee at the time of the initial interview. On the other hand, high income earners are expected to contribute a portion of their surplus income to their creditors for the term of their bankruptcy (21 months for a first time bankrupt with surplus income). The normal time of the duration of a first time bankruptcy is 9 months – it is extended to 21 months due to the obligation of surplus income

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 does the passage of time affect an unpaid account?

OLYMPUS DIGITAL CAMERAHow does the passage of time affect an unpaid account?

If you do not make a payment to your creditor then there will be consequences—and in some circumstances very quickly. In some situations where you fail to make a payment your creditor might be able to seize monies in your bank account under what is called the right of set-off.

This can happen where you fail to make a payment on a credit card, personal loan, or line of credit and you have a bank account at the same financial institution. Your financial institution can simply take monies out of your bank account at that financial institution to make your overdue payment.

As your account remains unpaid you can anticipate the following: 30 to 60 days overdue: At this point you should anticipate that you will receive collection notices and collection calls from your creditor. Six months overdue: By this stage your account will receive an R9 rating which is the worst possible rating. Typically, at this time your creditor has forwarded your account to a collection agency. Where a creditor chooses to sue a consumer it will likely do so where the account is between six months and two years overdue

Two years overdue: If your creditor does not commence a lawsuit against you within two years of the date of your last payment then it might be difficult for your creditor to recover any monies from you. Seven years overdue: By this time under Ontario law any reference to your unpaid account must be removed from your credit report.

Contact <a href="https://www januvia price.rumanek.com”>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.

Bill Collectors

bankruptcy

Bill Collectors

You may have missed one or more payments on an account such as a credit card, personal loan, student loan, or a line of credit. Consequently, you will likely be receiving collection calls. But who are these people who are calling you?

Most creditors—particularly large creditors—will have their employees call you if your account is less than six months overdue. Many big creditors operate massive call centres, employing hundreds of collectors, calling people who have unpaid accounts. If your account has not been paid for over six months then there is a good chance that your account has been forwarded by your creditor to a collection agency. Under these circumstances, the collection agency is working on a commission or contingency basis. This means that the collection agency does earn a penny in fees unless it recovers monies from you. This might help explain why collectors at collection agencies are often aggressive.

There is also a chance that at some point your original creditor might sell your account to another firm and this firm steps into the shoes of your original creditor. There are two distinct categories of debt buyers. There are traditional collection agencies whose primary source of revenue is collecting unpaid accounts on behalf of others. The second category of debt purchasers are dedicated debt buyers. A dedicated debt buyer is a firm that might employ its own in-house collectors or it may forward its inventory of unpaid accounts to collection agencies.

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.