I met with a couple today who were filing a consumer proposal.
We were talking about how they got into this financial mess when it came out that they read about bankruptcy and consumer proposal a while ago but did nothing.
I asked why they did nothing and they said they did not believe it was true that debts can be wiped out. They thought it was a scam. So I then asked what changed your mind. The answer was they were speaking with a family member who dealt with us in the past and they verified that debts in Canada can be wiped out. This resulted in a telephone call and a subsequent proposal.
The most difficult part of filing for a bankruptcy or proposal is calling a trustee and meeting with someone to have a conversation about your options.
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.
It is most often true that the higher your level of education is the higher your income will be in the future. The trouble is that education in Ontario takes time and costs money. If your family pays the education costs, wonderful, but that is not the case for most students. For the student that has to pay for all or part of their education costs in Ontario and do not want to have a significant debt load on graduation there is help available. Prepare a budget showing what your tuition, books and living costs are for the year and then look how to pay for it. Help can be obtained from the school’s financial aid office/the internet or the personal banker at your local bank. If you do get a student loan do not treat it as a piggy bank for vacations, clothes or partying. It was borrowed for education- use it for that purpose. Consider getting a part-time job. Just make sure that you balance the working hours and school hours so that one does not affect the other. Before borrowing the student loan see if there are any grants, bursaries or prizes available for your course. Some companies in Ontario will sponsor you at university and provide summer jobs if you agree to work for them after graduation for a couple of years.
Beware of the credit cards that are mailed to students during the year. They usually have an attractive low introductory interest rate but they also have to be paid each month.
After you graduate the student loans need to be repaid. In Ontario, OSAP loans are repayable starting six months after graduation (12 months if you are working in a not-for-profit job). If it has taken too long to get a job or if you are only able to find a low paying job it is likely you will get into trouble and not be able to make you payments. ASK FOR HELP! Whether you owe student loans, credit cards or bank loans, if you have a problem making the monthly payments, phone the institution involved, explain what is going on and ask if they can help you. In most cases you will be pleasantly surprised that they will set up a reduced repayment plan with you which may even allow for a grace period of “interest only” if you have not yet, reached your income potential.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt in Ontario for more than 25 years.
I filed for Consumer Proposal in 2008 through Rumanek and Co. and just yesterday my spouse received a letter from one of the creditors that was included in my proposal, for the full amount, with the accumulated interest charges over the 4 years.This creditor was a joint line of credit which I had continued to pay. My spouse applied for bankruptcy in 2006 and received a discharge in 2007. Can you please advise me as to why they are contacting my spouse, since they are already included in my proposal. Thank you. LB
Good morning, LB
If you send me a copy of the letter and your spouse’s discharge I would be happy to send a letter to the creditor on your behalf. The creditor should not be sending either of you any letters as the collection proceedings have been stayed (cancelled) by the filing of the proposal and bankruptcy proceedings.
Jordan Rumanek, B. Comm., CIRP, Trustee. Rumanek & Company Ltd.
Division I Proposal: A formal procedure available to individuals and businesses. A debtor works with a trustee in bankruptcy to offer to pay your creditors a percentage of what you owe them over a period of time, extend the time you have to pay off the debt or a combination of these options. There is no limit with respect to how much money is owed-this differs from Consumer Proposal. Consumer Proposals are only available to individuals and do not exceed $250 000. It is important to note here that you retain all of your assets with both Division I and Consumer proposals.
First Steps:
1. Contact a trustee in bankruptcy
2. The trustee files the proposal and you stop making payments to your creditors
3. Creditors then vote to accept or reject the proposal. Rejection means bankruptcy only in a Division I Proposal.
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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