Bankruptcy Terms & Definitions

BankruptcyBankruptcy Terms & Definitions:

Bankruptcy

Bankruptcy is a legal process governed by the Bankruptcy and Insolvency Act for a person who can no longer pay back debt. The person who owes the debt assigns all assets — with some exceptions which are governed by Provincial legislation — to a trustee in bankruptcy who sells the assets that are not exempt to help pay your debt to the creditors.

Consumer Proposal

A Consumer Proposal is a formal offer by a debtor to creditors. This may include an offer to pay a percentage of the debt, pay back the debt over a period of time (maximum of 60 months), or some combination of both.
This option is available to individuals whose total debt does not exceed $250 000, not including debts secured by their principal residence.

Division I (Commercial) Proposal

A Division I (Commercial) Proposal is a formal offer by a debtor to creditors. This may include an offer to pay a percentage of the debt, pay back the debt over a longer period of time, or both. Unlike a consumer proposal there is no limit with respect to how much money is owed, nor is there a limit to the number of months that you may choose to make in your offer to make monthly payments.

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.

We Want Your Debt & Financial Freedom Stories!

We Want Your Debt & Financial Freedom Stories!

Retired couple discussing their financial budget at home
Retired couple discussing financial freedom!

To submit a story go to www.rumanek.com/contact/submit-a-story/

Do you have a story that can help others with their finances? Did your financial decisions lead you to financial freedom? Join us in helping thousands of others attain the financial freedom they have always dreamed of. For over a decade now, Rumanek & Company Ltd. have received positive emails, letters and inspiring stories from people who said: Good Bye to Debt! and started living their financially abundant lives. Rumanek & Company Ltd. have now decided to share these positive financial stories in a 3 Volume Series: Financial Freedom-it Forward.

But they need your help!

This is a call for the opportunity to share your story, help and inspire others. This is your opportunity to share your positive financial stories. How did you get out of debt? What worked for you? What story can you share with others to help them make the right financial choices and steps towards freedom? Are you an RRSP expert? Did you make the right financial choices?

Email us your stories for the chance to be involved in this amazing process to help others attain financial freedom. Your story may be chosen for this 3 Volume Series and you will get the opportunity to: Financial Freedom-it Forward!

We will be accepting inspiring financial freedom stories for the next 3 months so share your story with us and don’t miss the opportunity to help others feel great about their finances. To submit a story go to www.rumanek.com/contact/submit-a-story/

Best Regards,

Rumanek & Company Ltd. – Trustees in Bankruptcy & Administrators of Proposals

To learn more please visit our YouTube channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Bankruptcy Interview

Bankruptcy InterviewBankrupt Interview

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.  

Train Your Children About Money

bankruptcy studentTrain your children about money

I have noticed that people getting into financial difficulty seem to be getting younger than in prior years.  I hope that this is not just myself getting older.  It is an obligation that we have as parents to train our children to understand what it means to earn money and to not foolishly spend it.

Simply giving them an allowance is not good enough.  They should do something simple such as making their bed, cleaning the kitchen table after dinner or cutting the grass in order to earn the allowance.  The concept or work equals money is very important when training young children.  As they grow older and want to play organized sports, go to camp or go on trips, it is wise to have them get a part time job to pay a small portion of the cost.  If they are going to university, there are several months of time off in the summer to find  a part time job which teaches them about money, time management, discipline and much that will help them in school and their future job.  If you decide to introduce your children to a  credit card, consider having a very serious discussion about the credit card being for emergency use only.  The options are to give them their own low limit card (which often requires the parent to guarantee)  or to give them a duplicate card from the parent’s credit card.  The downside to the latter is that they can have access to the entire limit on your credit card.

As a parent, your duty is to properly train your children, have faith that they learned what you taught them and pray they do not abuse the freedom that they have as they grow older.

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.