Tag: Bankruptcy News

How Can I Stop a Wage Garnishment?

Posted on by Jordan Rumanek

couple_bankruptcyHow Can I Stop a Wage Garnishment?

It is payday and you look at your paystub. There must be some mistake because your paycheque is significantly smaller than usual. You speak to the person responsible for payroll at your firm. That is when you learn, to your embarrassment, that your paycheque is now subject to a wage garnishment from one of your creditors.

All is not lost. There are four things you can do to stop a wage garnishment:

1. Quit your job

If you quit your job it will stop the current wage garnishment. If you get a job with a new employer then you run the risk that your creditor will simply arrange to obtain a wage garnishment against you with your new employer. In some instances, however, quitting one’s job may be a successful long-terms strategy for stopping a wage garnishment.

2. Negotiate a settlement with your creditor

There is nothing stopping you from negotiating a settlement with your creditor. Under this settlement agreement your creditor agrees to lift the current garnishment. In return you will either provide your creditor with a one-time lump sum payment—potentially for less than the current amount owing—or provide your creditor with installment payments.

3. Make a consumer proposal

You can stop a wage garnishment if you meet with a bankruptcy trustee and arrange to make a consumer proposal to your creditors.

4. File for personal bankruptcy

You can also stop a wage garnishment by arranging –through a bankruptcy trustee—to file for personal bankruptcy.

 

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.

Can I Buy a Car and Then Go Bankrupt?

Posted on by Jordan Rumanek

Bankruptcy People

The short answer is yes. There is always a “But.” The review of the trustee in bankruptcy will take into account the following:

  • How long before the bankruptcy did you buy the car?
  • What did you pay for the car?
  • Did you pay cash? – if so, was any part of the cash from cash advances on your credit cards or from lines of credit?
  • If you financed all or part of the purchase price of the car, do you still owe money to the finance company? Did the finance company put a lien on your car as security until they were paid? If the answers are yes and you wish to keep the car, you will likely just continue to make the car payments and keep the car
  • What is the car worth on the day you filed the assignment in bankruptcy?

The answers to all of the above questions determine what action, if any, the trustee will take. Obviously, the length of time between the purchase of the car and the date of filing bankruptcy and the current value of the car are the two most important factors. If this situation applies to you, you would be wise to review the details with your trustee before you file bankruptcy.

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?

Posted on by Jordan Rumanek

bankruptcyHow 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.

 

RRSPs: What you should know!

Posted on by Jordan Rumanek

RRSPs: What you should know!RRSP

A Registered Retirement Savings Plan (RRSP) provides annual tax benefits for saving for retirement. It is often suggested that couples set up an RRSP together: a spousal/common law RRSP, however, this type of investment assumes that partners will be together forever. The higher income earner (in this situation) benefits in the short term due to tax breaks. The lower income earner is supposed to benefit when they reach retirement. When setting up a plan such as this, make sure the plan actually benefits both parties in both the long and short term. If in fact this is uncertain (and most financial circumstances are difficult to determine), it may be best to set up a Tax Free Savings Account (TFSA) as a couple, this way both parties benefit equally.

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.  

 

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