Tag: About Bankruptcy

Can I buy a car while I am Bankrupt?

Posted on by Jordan Rumanek

Can I Buy a Car While I am Bankrupt?Car

There is nothing that prevents you from buying a car while you are bankrupt. If you are financing the purchase of a car, you must disclose that you are an undischarged bankrupt. This is the period between the date you filed the assignment in bankruptcy and the date that you are discharge from the bankruptcy process.

Even if you do not disclose this, the company financing the car will find out when they get a credit report on you. Now you have lost credibility which may result in a higher interest rate due to the risk factor or they will cut back on the amount they are willing to loan you. You might have to settle for a less expensive car that does not require a lot of financing. In Ontario, a vehicle is exempt up to a value of $6,600. If the vehicle is required as a “Tool of Trade”, the required exemption is increased to $11,300.

It would be wise to discuss your budget with your Licensed Insolvency Trustee (LIT) at the start of your bankruptcy as the Bankruptcy and Insolvency Act (Directive 11 R2) may result in you having to pay part of your income to your creditors. If someone in your family is giving you the money for the car, they should register a lien on the car for the amount of the money that they are giving you. This will make sure there is no equity that will accrue to your creditors. In the same thought, someone may give you a car while you are bankrupt in order to help you. You do not want your trustee to consider this as an asset for your creditors.

Consider the options:

1. Lease the car in their name and add your name to the insurance. Consider increasing the insurance to give the family members maximum protection.

2. If the vehicle is transferred into your name, the donor could put a lien on it for the value of the car.

There are always options for you to consider. Please discuss them with your trustee.

 

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 Stop Collection Calls?

Posted on by Jordan Rumanek

Financial-Planning-And-Analysis-Interview-QuestionsHow Can I Stop Collection Calls?

There are three different situations where an Ontario resident can stop collections calls.

  1. Where you are receiving collection calls concerning monies owing to a bank

In Canada a significant percentage of non-mortgage debt is owed to financial institutions regulated by the federal government. You can stop collection calls in connection with monies owing to a bank provided you do the following:

  • Send the organization calling you a letter by registered mail
  • In which you ask that it only communicate with you in writing,
  • You provide an address where you can be contacted in writing

This federal law gives the consumer receiving collection calls on monies owing to a bank the right to stop calls from not only collection agents but also the original creditor.

  1. Where you are receiving collection calls from a collection agency

An Ontario resident can stop collection calls from a collection agency, regardless of who the money is owed to. You can stop collection calls from a collection agency provided you do the following:

  • Send the collection agency a letter by registered mail
  • In which you dispute owing the alleged debt and you suggest the dispute go to court
  1. Where you are receiving collection calls from a law firm

An Ontario resident can stop collection calls from a law firm. You can stop collection calls from a law firm by hiring a lawyer to send the law firm a letter indicating the lawyer is representing you in this matter.

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.  

Repair Your Credit Score

Posted on by Jordan Rumanek

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.

 

How does the passage of time affect an unpaid account?

Posted on by Jordan Rumanek

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.

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