An RESP is set up usually by a parent or other family member by way of a contract with an institution (the scholarship fund) for the benefit of their child. The standard wording in the contract results in the RESP being considered an asset of the parent or other person that is divisible among their creditors in the bankruptcy. If you are in this situation, speak to your Licensed Insolvency Trustee about buying the RESP back from the bankruptcy so that it can continue to be of benefit to your child when he or she starts their post-secondary level of education. The purchase price and terms of payment can be negotiated but generally start at the dollar amount that the trustee would get if the RESP plan was collapsed. The usual payment terms are that you must pay the settlement amount for the RESP before you are discharged.
Please see related article – Will I Lose my RESP in a Consumer Proposal?
You have decided to buy a house (mortgage), buy a car (car loan) or go into business (operating line of credit to finance inventory, accounts receivable, etc.). You go to your bank and they look at your credit score. The credit score is a number (from 300 to 850) that is based on a number of factors such as your payment history (35% of total), how much of your available credit have you already used (30% of the total), what type of credit you have and how long have you had the credit, as well as how many creditors that you have in total.
Before you start the loan application for that big purchase, consider ordering a copy of your credit report yourself. They are available free by regular mail from both Equifax Canada and Trans Union of Canada. Read the report carefully so that you know what the bank will be looking at. If you spot a mistake, notify the credit bureau immediately to correct their report. The notification is by filling out the Consumer Update Form that the credit bureau will send you with your credit report. It is always advisable to attach any proof or documents that you might have to prove what you are saying is correct. Unless the error is self-evident, please allow time for the credit bureau to investigate your report of the error and correct their records. Always ask the credit bureau to confirm to you that they have updated your credit report.
God put us on the earth for a limited amount of time. Why then does he make us sleep for about 8 hours each day? We could be producing something of value for 24 hours each day. The answer of the sages is profound. We have all heard the phrase “I am having a bad day” which really means “leave me alone.” God decided to give us a fresh start every 24 hours. A new day begins with a fresh attitude and renewed energy.
This same fresh start is a basic principle of The Bankruptcy and Insolvency Act. If you are an honest but unfortunate individual who is overwhelmed by your debts, the legislation is there to help you get rid of your debts, teach you how to budget properly and train you on moving forward without the mental stress and burden of debt. This applies whether you file an Assignment in Bankruptcy or a Consumer Proposal.
What went wrong yesterday is in the past, today we start anew.
There are three different situations where an Ontario resident can stop collections calls.
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.
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
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.