Posted on Thursday, April 20, 2006Questions to ask your Trustee at your first meetingWhen you see a trustee for the first time, many people come in thinking that the only option available is bankruptcy. Depending on your financial situation, that is, who you owe money too and how much, what you own and what your household budget is like, there maybe other options available to you to deal with your debts, like a proposal. You will also want to know about each of the options and how they will affect the debts you have and also the things you own or assets Are all debts included and will all the debts go away? A garnishment for instance stops in a bankruptcy or proposal situation. There are also debts that although included do not go away or get discharged. An example would be student loans that are less then 10 years old. Pease see the Student Loans in Bankruptcy section of our website for more information on this subject. On the other side are the things you own. You will want to know how each option affects the things you own for example a house where you have equity or a car. What happens to this equity and how can I keep it in each of the options? You may also want to know if all assets are included. Can they take everything I own? Some assets, depending on what province you live in, are exempt from seizure up to certain values. In Ontario, a car worth less then $5,630 will be exempt from seizure. Many people want to know how each option affects their credit rating or credit report and how do they rebuild their credit. Because after all you want a fresh start Posted by Sandra Sykora, Trustee @ 3:35 PM
Posted on Monday, April 17, 2006Payday LoansPayday loan places are popping up everywhere and are characterized by their bright signage and the words "money" or "cash" in their titles. They loan you money in advance of your pay cheque and on payday, you are required to pay the loan back plus interest. Most of their profit is made from the processing costs they charge you to pay back your loan.An example: Borrow $325.00 $325.00 - Repay Principal 11.15 - Interest 62.16 - Cheque Cashing Charge $397.31 - Total to Repay And if you are late in repaying, there will be interest charges at 40% plus per annum, default charges, item charges and further cheque cashing charges in addition to the one mentioned above. The NSF charges are $35.00 per item. If partial payments are made, the funds go first towards interest and charges and then to the principal amount of the loan. It becomes hard to take money from your pay cheque (which is probably already earmarked for regular household expenses) and pay them back. Again you will likely have to borrow to meet your regular expenses and the cycle will continue. They also become very aggressive when the loan is not paid back as employees are often held personally accountable for the outstanding debts. Think twice before using this type of credit. It is usually easier to borrow from these places, but the costs can be overwhelming and if you do not have money from your next pay cheque to pay them back, it may become a debt that is almost unable to be repaid in a short period of time. If you are in a situation where you are thinking of borrowing from these places, it may be time to find out your options from a trustee. Contact us at 310-PLAN to discuss your situation. Posted by Norma Yau, Trustee @ 1:36 PM
Posted on Friday, April 07, 2006My hours have been cut back.I was recently asked the question, "my hours have been cut back because overtime is gone, what can I do"?For many years a company offered its employees overtime so it became a way of life. Now, many of these same companies can no longer offer the hours they did before. The first step is to do a budget with your new income and your regular household debts including things like rent or mortgage and car payments. Then look at how much money you have left over for your debt payments such as loans and credit cards. 4 options may be available, credit counselling, debt consolidation, consumer proposal or personal bankruptcy. To determine which option is best for you, gather your bills and your budget and give us a call at 310-PLAN to develop a plan that is right for you. Posted by Rebecca Martyn, CGA, CIRP, Trustee @ 4:45 PM
Posted on Monday, April 03, 2006How Can I Stop a "Voluntary Wage Assignment"?Some lenders require thier borrowers to sign a form called a "Voluntary Wage Assignment", which allows the borrower's wages to be garnisheed if they do not repay the loan as agreed upon. Pay day loan companies and Credit Unions commonly ask borrowers to sign these types of forms. In the event that the loan is not repaid, the form is sent to the borrower's employer.I am often asked if it is possible to stop a voluntary wage assignment without declaring personal bankruptcy. Here are the facts: In order to garnishee your wages in Ontario, a creditor must take you to court and sue you, and then obtain a Garnishment Order from the court. The only exceptions are a Credit Union to whom you have given an assignment of wages, or Canada Revenue Agency. If the creditor has not taken you to court, and has not obtained a Garnishment Order, the only way that the voluntary wage assignment can be enforced is if you consent to the employer garnisheeing your wages. Said another way, even though you have signed the voluntary wage assignment form, the form is not legally binding in Ontario; you can instruct your employer to not enforce it, and your employer is required to do as you ask. While generally, you can ask your employer to stop a voluntary wage assignment, the wage assignment may be a symptom of a greater financial problem. If you are having problems meeting your financial obligations, please contact us to arrange a no charge consultation with one of our professionals. Posted by Susan Jung, MBA @ 9:32 AM
Posted on Saturday, April 01, 2006Should I file for Bankruptcy?As a trustee in bankruptcy, I meet with many people who ask me the same question: should I file for bankruptcy? And the answer is always the same: tell me a little bit more about your situation. Are you single or married? How many dependants do you have? Are you working? How much money do you make? Are your wages being garnisheed? What assets do you own? House? Car? RRSP? Who are your creditors? Finance company? Student loan? What about your spouse?Are you starting to see my point? Everyone’s situation is different. That is why I meet with each person personally, ask the right questions, and then develop a plan that’s suited to that person’s specific fact situation. What worked for your brother-in-law might not be right for you. The answer might be bankruptcy, or it might be a consumer proposal. The best thing you can do right now is contact one of our professionals at 310-PLAN to schedule a personal consultation; we can work out a plan that’s right for you and your family. Posted by Benny Mendlowitz, CA CIRP, Trustee @ 8:58 PM
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