In Tough Economic Conditions, Canadians Have Financial Help!
With uncertain financial times just around the corner, many Canadians will be faced with difficult challenges. The economic picture is simply not pretty with Canadians being laid off at an alarming rate, the real estate market crashing, and the stock markets losing ground daily, many Canadians are on the financial brink. If you are being forced to answer some tough finanical questions then we might be able to help. Are you in danger of losing your home? Are you having difficulty making your car payment? Is your credit card debt becoming a problem? Are you struggling with a heavy debt load, with barely enough money to live on? You are not alone! Many Canadians are facing similar situations and with the professional help of a trustee in bankruptcy, this doesn't have to be a life shattering event!
Economic challenges are causing nations, corporations, and individuals to go bankrupt. There are any number of reasons for why Canadian citizens might run into financial difficulties - medical bills, mortgage payments, or unemployment. Many people are still very hard-working, responsible, and honest; they simply need assistance to repair their financial affairs so they can get their budgets back in order.
"Canadians Dealing with Debt and the Risk of Bankruptcy: Challenging Economic Times Strain Budgets"
All people have financial challenges from time-to-time. Many retain solid financial fundamentals, but have run into a temporary money problem. Others are already on the brink and are worried that one single straw will break the camel's back.
When people have financial problems they usually turn to their friends and family for money, first. After that, people may consider payday or personal loans. After those resources have been depleted, many people feel helpless. They are overwhelmed by debt and don't know whom they can trust.
Tricky mortgages, hidden credit card charges, and other financial complexities have made it very difficult for consumers to even track how much they owe. Even people with jobs are struggling because of complicated financial arrangements. Many fraud artists have developed scams to take advantage of the vulnerable. It is difficult to know whom you can trust.
Many people don't understand how quickly compound interest can accumulate and overwhelm a person's financial well-being. No one wants to go bankrupt; yet, many people are uncertain of what personal debt management plans work the best for their circumstances.
"Don't Worry! You Are Not Alone!"
We, at "CanadaDebt" have the bankruptcy advisors, trustees, lawyers, and credit counsellors that will help you review all of your options. We specialize in helping Canadians dealing with debt and the risk of bankruptcy. Educate yourself by reviewing our Web pages defining key debt terms, providing articles on credit cards, and discussing all of the options available to you: financial rearrangement, "Consumer Proposals", or debt consolidation.
If you have questions about whether a debt consolidation loan will work for you or what services are being offered by debt assistance companies; then we can help with the answers. We will help explain how the different Canadian bankruptcy laws - federal, provincial, and territorial - affect debtors. The most important law for Canada is called the "Bankruptcy and Insolvency Act (BIA)." We will help end your confusion concerning the various financial options available. We have experienced, qualified professionals that will give you the advice you need to make informed decisions to prevent bankruptcy.
"What is Bankruptcy?"
Once debtors realize that they are financially unable to continue to make their debt payments, having accumulated debts that exceed $1,000, they qualify to file for bankruptcy. Bankruptcy is a legal proceeding whereby debtors admit that they are incapable of repaying their debts and need the courts to help them rearrange their contracts. The goal of bankruptcy is to preserve financial assets and rehabilitate debtors so they can find an orderly repayment schedule that they can handle.
"Canadian Bankruptcy Law: The "Bankruptcy and Insolvency Act (BIA)"
The Bankruptcy and Insolvency Act applies to individuals and businesses; it defines the roles, rights, responsibilities, and duties of all parties: debtors, creditors, trustees, court officials, and the court. This act establishes the Office of the Superintendent of Bankruptcy, which manages "Consumer Proposals", administers estates (money, property, and assets), and provides helpful information on bankruptcy alternatives.
One of the reasons why people attempt to avoid bankruptcy is the loss of freedom over their financial well-being. The Bankruptcy Court establishes strict guidelines that include something called the "surplus income" payment. Once the Bankruptcy Court determines the threshold amount of income needed for basic family necessities each month, they require debtors to pay off their debts with any "surplus income."
"How Can I Avoid Bankruptcy?"
Everyone has a different financial position. Some can still extricate themselves with debt counselling, debt assistance, or debt consolidation. Avoiding bankruptcy requires a "major adjustment" in current financial arrangements in order to find a proper balance. Others must turn to more extreme measures, like Consumer Proposals. Debtors can carefully consider their options by viewing debt information on our Web site.
"Debt Information Categories"
Before you make a serious decision about repairing your finances, learn as much as you can through our financial definition, articles, and credit card sections. Simply select the "Debt Information" subject category that interests you most:
* Credit & Credit Repair
There are many financial instruments that can lead to debt problems:
- Car loan
- Credit card
- Payday loan
- Registered Retirement Savings Plan (RRSP).
There are many tricky mortgages with payments that have suddenly ballooned to unmanageable levels. Learn more about the characterstics of these different financial instruments.
"Credit Cards and You"
High credit card debt has overburdened many Canadian consumers. CanadaDebt has provided sections for learning more about credit card debt (interest rates, conditions, and money-saving tips). Find out how you can repair your credit score with real answers.
"Canada Debt Bankruptcy Terms"
Are you confused by the complicated terminology used in financial circles? Just click on one of our links to view financial definitions.
In the Bankruptcy Section, you can learn about the differences between personal and corporate bankruptcies. Consider whether a "Consumer Proposal," "Division 1 Proposal," or "Consolidation Order" is best for dealing with your financial difficulties.
Debt counselling consists of information, education, and classes for learning how to manage debt to avoid bankruptcy. As ominous as the process of bankruptcy seems, debtors must realize that recovery, rehabilitation, and restoration of financial stability requires a long-term dedication to changing bad habits. Financial counsellors can provide the information to help debtors understand how to better balance their budgets.
"What Debt Assistance Programs are Available?"
Debt assistance companies help consumers reduce debt, find lower interest rates and develop a debt management plan.
"Debt Consolidation Loan"
A debt consolidation loan is a large, lump-sum amount that covers the total payments for debt. Usually, debtors try to use a debt consolidation loan with a lower interest rate to replace debt with higher interest rates.
"What is a Consumer Proposal?"
If you owe between $1,000 and $75,000 to creditors (not including your mortgage), then you might qualify for a consumer proposal. When your debts are too high for a debt consolidation loan, you are still employed and can make some payments; then a consumer proposal may be a better option. The consumer proposal covers "unsecured loans," like the following:
What is a Consumer Proposal?
A Consumer Proposal gives you a way to adjust payments to your creditors, by either reducing the amount you must pay back or extending the time you have to pay them back. Consumer Proposals can cut the debt you pay back in half!
Not only do you settle your debts and avoid bankruptcy, but all other actions from creditors are stopped once the Consumer Proposal is filed. Imagine no more harassing phone calls and no more wage garnishment.
Do you qualify for a Consumer Proposal?
Do you owe between $1,000 and $75,000 to your creditors, not including your mortgage? Are you able to repay a portion of your debt? Then a Consumer Proposal may be right for you.
Advantages of Consumer Proposals
Thousands of Canadians like you have avoided bankruptcy with Consumer Proposals. Here is why:
- You only have to repay a portion of the debt you owe.
- Once you file, your interest rate freezes. No more unexpected interest rate increases.
- You gain more time to pay off creditors.
- One monthly payment means you don’t have to deal with multiple creditors.
- If the majority of your creditors accept your Consumer Proposal, all your creditors must accept it.
- Creditors are stopped from taking legal action against you
- Protection of certain assets
- Protection against "surplus income" penalties.
How does a Consumer Proposal work?
A Consumer Proposal begins when you contact a trustee in bankruptcy and file the necessary paperwork. A bankruptcy trustee will meet with you to discuss your financial situation, assess your debt, and advise on the best options available to you.
What are the major steps in a Consumer Proposal?
The major steps in a consumer proposal:
What debts are covered by a Consumer Proposal?
Consumer Proposals only cover unsecured debt, which is a debt that isn’t tied to any asset. Unsecured debts include:
- Credit Cards
- Utility Bills
- Cell Phone Bills
- Lines of Credit
- Personal Loans
- Department Store Cards
Here is the step-by-step process for creating a consumer proposal:
1) Assess debt
2) Work with Trustee to establish a repayment plan
3) Fill out paperwork
4) Contact Bankruptcy Court Trustee
5) File proposal with Official Receiver
6) Meeting of creditors
7) Creditors vote to "Accept" or "Reject"
8) Court confirms plan when majority of creditors accept
9) Make payments to Trustee.
"What is the difference between a Consumer Proposal and a Division 1 Proposal?"
A "Division 1 Proposal" (also known as a "Proposal to Creditors") is similar to "Consumer Proposal," but is targeted towards individuals and businesses with debts of more than $250,000.
"Qualified Financial Professionals"
We, at "CanadaDebt" have many different professionals - qualified Canadian bankruptcy trustees, lawyers, and credit counsellors - in each province and city who are prepared to assist you in rebuilding your financial foundation. We realize that it is a difficult financial landscape, many people are simply thankful for having a job. No matter what your circumstance, we have the financial expertise to help anyone recover from their financial problems.
Our goal is to help responsible debtors who need a hand to help them regain financial solvency. We will help you understand what bankruptcy can and can't do, so that you can make the most informed decision. Our professionals can help you escape your financial struggles.
Get your life back! CanadaDebt has the qualified professionals, programs, and resources to help you become debt-free. No matter how high your mountain of debt is - you are not alone. We are dedicated to helping Canadians dealing with debt and the risk of bankruptcy so they can make the best choice. Our experts at "CanadaDebt" will help you consider all of the options available to prevent you from going bankrupt.
How You can Avoid Bankruptcy
Are you struggling to pay off your debts in time? You know you can pay them off, but you just need more time? Don’t want to declare bankruptcy? Consider a Consumer Proposal, Debt Counseling or a Debt Consolidation Loan and avoid bankruptcy.
What is Debt Assistance?
Ongoing budget counseling, classes and educational materials about managing debt. Often debt assistance companies can help you to reduce your overall debt load, work with your creditors to cut the interest you are paying and help you create a personal debt management plan.
- Meet with bankruptcy trustee to review your financial position and receive counseling prior to filing a proposal. Counseling ensures that a consumer proposal is the right course of action.
- Once the proposal has been completed it is filed with the Official Receiver.
- Attend a meeting of creditors, if requested by the Official Receiver or at least 25% in dollar amount of your creditors.
- Make payments to the Trustee or Administrator, who distributes funds to the creditors.
- If the proposal is not accepted, or if you default on the proposal, there is no automatic bankruptcy, but all creditors are then allowed to take action against you.