Bankruptcy Filing Archives - Page 3 of 15

Reverse Mortgages

Posted on June 25, 2016May 3, 2022 by Jordan Rumanek

Reverse Mortgages

A reverse mortgage is a home loan for individuals or couples 55+ years or older. You borrow from the value of your home and does not require monthly mortgage payments. However, interest is added to the loan’s balance and if no payments are made the interest can eventually exceed the value of the home. Reverse mortgages are risky and you need legal advice before considering this even as an option.

Advertising makes a reverse mortgage sound attractive because they push 4 points of interest:

1. You don’t have a monthly payment until you move.

2. You can receive a lump sum of money if you’ve paid off your home—sometimes 50% of the value of your home.

3. If you are house poor, you have extra cash money—you can use the money for healthcare needs or home repair and living expenses.

4. Tax-free source of income

However…

Interest on the reverse mortgage increases which in turn decreases the equity you have in your home. The interest can sometimes increase to more than the house is worth and there are higher interest rates than most mortgages.

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.

Financing a Consumer Proposal

Posted on June 9, 2016 by Jordan Rumanek

Financing a Consumer Proposal

Well, it happened. You racked up a lot of debt and you now have to deal with it. You have decided that you are capable of making a settlement with your creditors by offering to pay a portion of your total debt over a period of time (usually 60 months with no interest) using a Consumer Proposal. At least, you can avoid bankruptcy.

Setting up the Consumer Proposal is done with the assistance of a Licensed Insolvency Trustee (formally called a Trustee in Bankruptcy) or some other qualified person. They will review your assets, liabilities, income and expenses to come up with a plan that your creditors will be likely to accept. Beware of anyone who advertises that they can reduce your debts by “up to 80%” before they meet with you and review your specific situation. Sometimes, you might be able to make a small down payment using money in an RRSP, cash surrender value of life insurance, etc. Sometimes, your budget is not stable because you only have full time seasonal work. Construction workers, roofers, road pavers, usually only work 8 or 9 months per year and it is common to structure their Consumer Proposals over a 60-calendar month period (the maximum allowed by law) but only require that monthly payments only be made in 8 specific months each calendar year. You might also have a steady job and be able to make payments for all 12 months each year. You might want to pay off the Consumer Proposal faster than the 60 months in order to assist you in rebuilding your credit faster and cleaning up your credit report. No problem – simply put a clause into your proposal that allows you to do this at your option at any time with no advance notice or penalty of any kind. The creditor will always agree as they may get their money sooner than they expected.

A Consumer Proposal is not for everyone. But if you wish to customize it to meet your specific situation, if can be done.

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.

Do People Know if I Filed Bankruptcy

Posted on May 13, 2016May 3, 2022 by Jordan Rumanek

Do People Know if I Filed Bankruptcy

Who will know that I have filed an Assignment in Bankruptcy? We have all seen the notices in the legal section of newspapers notifying creditors about a bankruptcy and notifying everyone about an upcoming meeting of the creditors. The reality is that this only happens in corporate bankruptcies or very large personal bankruptcies usually which have a business background to the bankruptcy. A bankruptcy of an individual is known as a summary administration. The creditors are notified by regular mail. Assets under a summary administration are minimal and notices in a newspaper and meetings with creditors are rare. A bankruptcy is, of course, filed in court but nobody spends their time searching court files and public records to find out information about you. The exception, of course, is the credit bureau (Equifax or Trans Union of Canada) which keep a record of the bankruptcy on their system for a period of six years. Friends and family are unlikely to find out that you filed bankruptcy – unless they need to know. Your employer is only informed if a creditor attempts to garnishee your payroll. Your trustee can usually stop the garnishee but that involves sending a letter to the creditor, the court and someone in the payroll department of your employer. You can keep the notice to your employer confidential by providing your trustee with the private email of someone in authority in the payroll department or by delivering the trustee’s notice by yourself.

What should you do if a bill collector calls you?

Posted on May 6, 2016April 12, 2016 by Jordan Rumanek

What should you do if a bill collector calls you?

If you do not wish to speak to a bill collector you have every right to hang up at any time. You might want to ask the bill collector the name of the creditor on whose behalf he is calling. It might also be a good idea to request the name of the bill collector’s employer. Furthermore, you can also ask the collector for his or her name. If you believe that the bill collector calling you has got the wrong person then you should inform him of that fact.

Tag: Bankruptcy Filing

Reverse Mortgages

Reverse Mortgages

Financing a Consumer Proposal

Do People Know if I Filed Bankruptcy

Do People Know if I Filed Bankruptcy

What should you do if a bill collector calls you?

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