Debt Help Toronto

 Debt Help TorontoDebt Help

Question: Collectors are calling, threatening to garnish my pay; the statements are piling up and my bills are overdue. My minimum monthly payments don’t cover interest and leave me digging a deeper hole for myself.

Where to turn for advice? Credit and debt management counselors advertise aggressively, so they must be ok.  Right?

Answer: Debt management companies are usually not ok.

Their payment agreements are not regulated by the government and are not cast in stone. They can also be difficult to arrange, as it is a voluntary choice by your creditors to accept an overall settlement agreement. A creditor can choose to not accept your settlement, and can opt out at any time. This can bring you back to the original problem, while you have made payments in good faith. Also, upfront costs for services by many “credit counselors” can be quite high, with no guarantee of success.

Speak to a Trustee in Bankruptcy first, before you make any decisions, with no obligation or cost.

Trustees practice in a federally-regulated system that is set out to assist you.

In a FREE initial consultation we will talk about the causes of your money troubles and recommend one of several options to help you resolve them. Every Trustee in Bankruptcy is licensed by the federal government to facilitate a fair and practical solution for an honest debtor who is over her/his head in debt. The Trustee’s job is to deal with your unique situation in a way that is supported and regulated by the federal government to try to ensure your success in a debt-free future.

We can help resolve your financial problems through a variety of options: Consumer Proposal, Assignment in Bankruptcy, other forms of financing, or sale of assets. Our fees are regulated by the government and we must follow a prescribed schedule.

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.  

Consumer Proposal: An Alternative to Bankruptcy

Bankruptcy PeopleConsumer Proposal: An Alternative to Bankruptcy

Consumer proposal (“proposal”) is the main alternative to filing an assignment in bankruptcy.  A consumer proposal is an offer made by you to your creditors which may enable you to pay a portion of your debts over an extended period of time.  The amount that you pay and the length of time you are given to pay is determined in a consultation with a trustee in bankruptcy-a trustee acts as the Administrator. Consumer proposal is based on the amount of your income, living expenses and any other financial responsibilities.  A consumer proposal is sometimes called a “Debt Consolidation Arrangement”.

This action stops creditors from taking legal action to recover their debts from you.  It also stops public utility companies from discontinuing services.  It is important to note that this option does negatively impact your credit rating.  Talk to your trustee about this impact.  Consumer Proposals are only available to individuals (not businesses) and the debt can not exceed $250 000.  You also retain all of your assets unless they are pledged as security to a debt in which case the agreement has to be read.

Process:

1. Seek the help of a bankruptcy trustee who will act as the administrator of your proposal not as a trustee in bankruptcy

2. A trustee will assist in preparing all documents and will file them in the court as required

3. Creditors are given 45 days to accept or reject the offer

4. Once the creditors approve the proposal the trustee will then obtain court approval

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.  

 

Bankruptcy Story #413: Threatened with Bankruptcy

Bankruptcy Story #413: Threatened with BankruptcyBankruptcy Story #413: Threatened with Bankruptcy

Kara was threatened with bankruptcy and it scared her to act. She was very vulnerable after her husband passed away. She had two children to take care of and if her home was taken away they would have no place to go. She attempted to solve her problems by taking out money from her retirement funds. Kara felt desperate. This action helped for six months but she then was forced to start taking cash advances on her credit card.

These actions, even though she had good intentions, were mistakes. If you feel threatened or desperate you need to contact a trustee in bankruptcy. Sometimes having a discussion of options will empower you more than you realize. Do not allow yourself to get overrun by your creditors. Talk to a professional and get the help you need.

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 my creditors take legal action, such as seizing property or garnishing wages, while a consumer proposal is pending?

Can my creditors take legal action, such as seizing property or garnishing wages, while a consumer proposal is pending?

Can my creditors take legal action, such as seizing property or garnishing wages, while a consumer proposal is pending?

The filing of a Consumer Proposal imposes a powerful Stay of Proceedings which prevents creditors from taking action in order to recover their debts.  If there is already a garnishment on your wages, the Stay requires that it be removed and that you receive your full pay.

While the proposal is pending, and if it is accepted by the creditors, the Stay of Proceedings remains in place. However, if the creditors reject the proposal, the Stay of Proceedings is lifted right away, and the creditors can begin to take action again.

Finally, if you have secured debts, such as a mortgage or a car loan, you must continue to pay them in a proposal, whether it has been accepted or not.

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.