The escalation of consumer fraud involving the Credit Card Consolidation Company industry in the United States does not bode well for the same industry in Canada, says the FCAC. A few years back, the Financial Consumer Agency of Canada initiated a study that forecast the same effects here as the credit consolidation industry grows. Those thinking of obtaining assistance with credit debt reduction from these companies should educate themselves about the industry and its practices so they can avoid becoming victims of consumer fraud. Here are some things you should know about the Credit Card Consolidation Company industry: Unlike bankruptcy trustees who are bound by the Bankruptcy and Insolvency Act regulations that supervise their practice and guarantee their expertise, there are no such federal regulations on the credit consolidation industry and its practitioners. No regulations mean that no standards are implemented on the industry, and that there are no guarantees as to the qualifications of these advisors or limits to what they can charge for their work. Consumers who wish to enlist their aid in credit consolidation, therefore, may not always get the results they need or know exactly how much they would have to pay for a debt resolution plan. To optimize your debt reduction efforts, here are steps you should take towards finding a reputable consolidation company: Shop around for companies you could potentially work with. Make a list containing the names of these companies, and refine your search as you go along. Start by looking up different local consolidation companies that have brick-and-mortar offices, and have been in operation for at least five years. Stay away from companies that have existed for less than that period, as well as groups that seem to only exist online. Keep in mind that it is important for you to work with an established company and actually meet with an advisor before you decide to collaborate on your credit debt relief strategy – you will be in a better position to gauge your prospective consolidator’s competence than if you were to talk to him or her over the phone. Read up on how these companies operate, and obtain information on the rates charged for professional services. How much of a commission do these consolidators charge on the amount of debt they have reduced? What are their sign-up fees and fees for monthly maintenance? Once you’ve identified and okayed these figures, have them put into writing for your protection. Also, ensure that you wholly understand the documents surrounding your credit debt management plan, as you wouldn’t want extra charges to occur because you were unable to decode the fine print and legalese contained within the said documents. After you’ve obtained your shortlist of candidates, talk over your choices with a trusted individual so you can get a better vantage point of your situation and make an informed choice. These are some of the things you can do to choose the best Credit Card Consolidation Company and attain financial stability after the resolution of your credit debt. Add Comment While insolvency is on the rise, there is some good news: it seems that many of today’s debtors who can no longer manage their debts are making better, more informed choices for debt resolution. If you are considering a legal debt relief option such as bankruptcy, you can start your research with the bankruptcy FAQ Ontario filers ask. Are all debts eliminated in an Ontario bankruptcy filing? Filing for bankruptcy only eliminates your unsecured debt. As such, car loans and mortgage payments still remain after a declaration. After you file for bankruptcy, you will continue to pay alimony, child support, and student loans less than seven years old. If you have been obliged by the courts to pay criminal penalties for fraud, these obligations will also remain. Why should I hire a trustee? Canada bankruptcy law requires anyone filing for bankruptcy to work with a licensed bankruptcy trustee. You’ll find this mandate in the Bankruptcy and Insolvency Act, implemented by the Office of the Superintendent of Bankruptcy, obliging those filing for bankruptcy to work with a trustee from filing to discharge. Bankruptcy trustees are trained, certified, and supervised by the OSB and provide assistance on all debt relief options, not only bankruptcy. As a highly trained financial advisor and debt specialist, your trustee can establish a debt relief action plan that does not involve bankruptcy if your financial situation allows for it. How much of my assets will I lose in a bankruptcy declaration? This depends on many factors, including bankruptcy laws governing exemptions in your province or territory of residence and the overall amount of unsecured debt you have. Thanks to the BIA, asset exemptions permit the filer to retain ownership of possessions essential to a decent standard of living, but vary from one area to another. What you can retain in bankruptcy proceedings depends on equity limits and the regulations set by the province in which you live. A trustee in your area can help you determine which assets you will need to surrender and which assets you will be able to keep in an Ontario bankruptcy filing. What will bankruptcy cost me? Again, this depends on your own financial circumstances, but expect to spend on court costs and trustee fees, in addition to the surrender of non-exempt assets. Ask your trustee for a more accurate estimate of what bankruptcy will cost you. People today are making better, more informed decisions regarding their staggering debt problems, in no small thanks to the wealth of information on the Internet. Keep in mind though, there is no comparison to the expert advice you will receive from a licensed bankruptcy trustee. To improve your financial circumstances and learn more about what you Alberta bankruptcy trustees have helped thousands of residents regain their financial footing and resolve their debt issues for the long-term with bankruptcy filings and other debt relief methods. However, not many of those who would benefit from consulting with these certified bankruptcy professionals know exactly what these experts do. If you’re a debtor thinking of filing for bankruptcy or seeking some much-needed debt relief, here are a few items of information you should know so you can make the most out of the expertise of Alberta bankruptcy trustees. Trustees work for your creditors and you. There are many things an Alberta trustee does, such as the appraisal of a debtor’s situation to determine the right kind of debt management solution, the facilitation of bankruptcy proceedings if the filer can benefit from bankruptcy, and the liquidation of assets needed to pay off a filer’s debts. Your filer will advocate your cause and work towards fair and efficient bankruptcy proceedings however, he or she will also ensure the payment of as much of your overall debt as possible. In this vein, a trustee may also be considered as working for one’s creditors, too. Trustees do more than provide counsel and information about bankruptcy. An initial consultation may be obtained from many licensed trustees across the country. In this meeting, your trustee will examine the state of your finances and compare aspects such as your assets versus overall debt to identify a means of debt resolution that is best for you and your financial goals. In some cases, bankruptcy might not be the most practical solution. Cases that do not require bankruptcy may be resolved by any of a number of debt relief alternatives. Your trustee may advise you to sell off some assets and use the proceeds to reduce your debt, renegotiate debt payment terms, rates or payment durations with your creditors, or help you apply for a consumer proposal. A consumer proposal is an effective means of debt relief, although it does hit your credit hard - somewhat like a bankruptcy declaration would. However, this creditor-borrower agreement allows you to clear up your debt by paying a portion of the original amount over a pre-set period. A proposal needs to be approved by a majority of your creditors in order to become legally binding. One benefit of a consumer proposal, this method does not force you into giving up your non-exempt assets as a bankruptcy declaration does. Trustees are also qualified financial advisors. What good is the clean slate a bankruptcy declaration provides if freedom from staggering debt cannot be sustained? Not much. This is why your trustee is also well-equipped to provide you with all sorts of qualified financial advice, such as how to properly use credit and save money so you won’t have to deal with unmanageable debt again (or at least minimize the chances of its recurrence). Trustees are mainly known for facilitating bankruptcy proceedings and providing the filer with legal counsel. However, there are many other related things Alberta bankruptcy trustees are good at – know what these are to make the most out of your time with these versatile and highly-trained bankruptcy professionals. The decision to file for bankruptcy should not be taken lightly, and should be made after exhausting all other legal debt relief options, as a bankruptcy filing or declaration comes with serious effects on the debtor’s finances and assets. With the wealth of information on the subject, one considering bankruptcy should start learning as much as he or she can, beginning with the top FAQ bankruptcy trustees discuss with the debtors these professionals counsel. Will I have to give up my home when I file for bankruptcy? Your home may be taken in bankruptcy if its equity value goes beyond the set limits within certain provinces and territories. If this is the case, you may be able to pay the difference between the limit and your home equity value so you can keep your home in bankruptcy. A bankruptcy trustee in your area will be able to determine if you can retain your home in a Canada bankruptcy. It’s important to know that these regulations vary from province to province. What other assets will be taken in bankruptcy? Much like retaining home ownership, the retention of certain assets depends on local bankruptcy law. Local legislation protects filers and their chances at regaining financial stability by exempting essential assets from the turnover and liquidation that can happen during proceedings. Your trustee will ask for complete financial and asset information from you, document the findings and submit to the courts, who will then determine what assets you can keep in bankruptcy. Why is it important to work with a licensed bankruptcy trustee? It is important (and mandated by Canadian bankruptcy legislation) to work with a trustee when preparing for bankruptcy proceedings as this professional is an expert on various aspects of bankruptcy. Your trustee is licensed and trained by the Office of the Superintendent of Bankruptcy to facilitate bankruptcy proceedings and provide counsel, as well as give you access to qualified information on alternative means of bankruptcy if your situation merits it. Overall, you will improve your chances at attaining and maintaining financial stability after resolving your debt with the expertise this financial professional has. When will I receive my bankruptcy discharge? The time you spend in bankruptcy after a declaration depends on a number of factors. These factors include how many times you have filed for bankruptcy, your earnings, and any amendments to bankruptcy legislation at the time of filing. Typically, people who have filed for the first time receive their discharge nine months after declaration. On the other hand, repeat filers and those who are required to make payments to the bankruptcy estate due to surplus will usually be in bankruptcy for longer. Again, a trustee will be able to determine how long you will remain in bankruptcy. Bankruptcy is not an easy thing to undergo – it often takes up a lot of the debtor’s time, effort, and resources in exchange for the debt relief the legal action provides. Learn as much as you can about the topic before you decide to file; start with the FAQ bankruptcy filers ask. Canada bankruptcy exemption laws give the beleaguered debtor a better chance at reestablishing financial stability and recovering from the negative effects of a bankruptcy declaration. However, many people who can benefit from the debt relief that bankruptcy provides may veer towards less effective means of debt management as a result of misconceptions about asset liquidation in bankruptcy proceedings. Complete knowledge of Canada bankruptcy exemption laws can dispel these misconceptions and allow the filer to make more effective preparations for bankruptcy proceedings and life after declaring bankruptcy. Losing Your Home Asset exemptions for qualified bankruptcy filers were put in place so that the bankrupt individual can retain essentials that can help him or her live and work well and improve life after bankruptcy. One of these essentials is the filer’s home. The prospect of losing your home can be downright frightening. The good thing is that a person who has declared bankruptcy may still retain his or her home as long as certain requirements are met. Guidelines regarding the value of equity you have in your home have been put into place and if the amount of equity you have in your home falls below these thresholds, you may be able to keep your home during bankruptcy. These equity value ceilings vary from province to province. If the equity value in your home exceeds the local threshold, you may still be able to retain your home. Speak to a local trustee to find out how. Losing Everything You Own In addition to the filer’s place of residence, other asset exemptions exist to ensure that the individual maintains a decent standard of living with all the essentials he or she needs. These exemptions include furniture, clothing, food, cars and other vehicles, work equipment, and family mementos. Much like the home exemption, the exemption of these assets and items in bankruptcy depends on their equity value. In addition, value limits can also vary from one area to another – your local bankruptcy office or a bankruptcy trustee licensed in your area will be able to tell you what these limits are and what you may be able to retain in bankruptcy. A bankruptcy declaration can be a desirable means of debt relief for individuals who have exhausted all other legal options. To make the most out of your bankruptcy preparations, consult with a licensed bankruptcy trustee on Canada bankruptcy exemption law. Worried about overwhelming debt and how it can affect your financial plans? You may already need an Edmonton Canada bankruptcy trustee (even if you are not thinking of applying for a consumer proposal or working towards a bankruptcy declaration) as one can also allow you to establish a debt relief strategy to reduce how much you owe your creditors. It’s safe to say that the outcome of your filing, proposal, or debt relief strategy depends on the qualifications of your trustee. The big question is, how do you choose an Edmonton Canada bankruptcy trustee? If you choose a licensed bankruptcy trustee to handle your bankruptcy case or for help with debt relief, you are assured of the highest degree of professional competence and ethical standards in the bankruptcy industry. After all, the intensive coursework and exams these experts undergo prior to their certification is set by the Office of the Superintendent of Bankruptcy, the foremost authority on debt management and bankruptcy matters in Canada. The arduous process these experts have to go through under the wing of the OSB exacts a degree of expertise unseen in for-profit credit advisors and debt relief counselors – trustees are the only debt consultants bound by stringent government regulations and are the most capable when it comes to debt resolution strategies and the legalities of bankruptcy proceedings and law. In addition to the training licensed trustees undergo via OSB supervision, trustees also need to pass a strict background check facilitated by the Royal Canadian Mounted Police. The matter of competence is settled – there are no better allies in your fight against debt than the licensed bankruptcy trustee. But what of cost? Compared to for-profit advisors, trustees charge relatively lower rates for commissions because the government regulates these fees. . This ensures that you not only obtain the best bankruptcy and debt relief aid available, but also get it at the lowest possible price. So it’s settled – you cannot go wrong with a licensed bankruptcy trustee because you receive the most efficient assistance in terms of cost and competence. What you need to do when choosing a licensed trustee is ensure compatibility. What this basically means is that you should be comfortable talking to and working with your trustee, as the quality of your interaction can influence the outcome of your debt relief action plan, proposal, or declaration. Again, cost should not be a much of a concern here – many trustees provide initial consultations free of charge, so you can go from one trustee to another to find one that’s a good fit. No matter how simple or complex your financial problems are or how easy or difficult the solutions may be, the results generated depends on the pro you collaborate with. Hire a licensed Edmonton Canada bankruptcy trustee and you can be sure that the journey towards financial stability, however long or short it takes, will be smoother and easier than you expect. What is Bankruptcy Furniture Exemption? 02/03/2012
In your preparation for bankruptcy proceedings and the effects that this legal action may have on your finances and future, it is important to have a basic understanding of aspects such as asset and furniture exemption. Not only does adequate knowledge about the subject of bankruptcy exemptions allow you to go through preparations and proceedings with more ease, it also gives you a bit more breathing room with which to live well and recover from the impact a bankruptcy declaration can have. What exactly is a furniture exemption and how does it affect the preparations for and aftermath of a bankruptcy filing? Bankruptcy Exemption Allowances There are many exemptions that the bankruptcy filer can benefit from – furniture exemptions are just one of these. Exemption allowances permit the filer to keep items that fall under certain categories and values. Furniture exemptions permit the bankrupt individual to retain the furniture he or she needs, as long as the value of the items fall within the limits set by provincial or territorial insolvency law. Here are some exemptions that apply in many of the provinces across the country:
Limits to Exemptions Knowing what the limits to bankruptcy exemptions are will better prepare you for bankruptcy filing and the possible impact of bankruptcy on your future (specifically, your assets and finances). Exemptions are regulated by your own local insolvency office, and may vary from province to province and territory to territory. To obtain a good idea of what the limits are in your area of residence, talk to a licensed bankruptcy trustee in your area or go to your local government office. Determining Item Value You should know what your stuff is worth, as well as what the limits are for exemptions in your province or territory of residence, to identify what things you may keep and what may be liquidated in bankruptcy. You can start with a list of all the things you own and their corresponding values. Keep in mind that you should document the current value of your furniture (taking appreciation or depreciation into account), and not the value at purchase. You should also consider what equity value means, and include this in your calculations. For more information on furniture exemption regulations, talk to a local bankruptcy trustee licensed by the OSB that can help with your calculations and determine what assets you’ll be allowed to keep during bankruptcy. How Does a Canada Wage Levy Work? 01/27/2012
Are you wondering about the differences between a wage levy and a wage garnishment after encountering these terms in your research about financial difficulties in Canada? Practically speaking, there is not much of a difference between these two if you look at how these affect the state of your finances. When a wage garnishment or levy is ordered by the courts, your employer is legally obliged to withhold a portion of your monthly paycheck, with the deduction made to repay debts. A garnishment order is a legally binding action. Levies are typically used as governmental applications. In the case of your financial difficulty, the Canada Revenue Agency and similar government bodies may use levies as a method of collecting unpaid taxes. You should know the CRA needs no aid from the judiciary system to initiate these proceedings and can act on their own authority. Regular creditors cannot implement these garnishments on their own, but instead need to obtain the courts’ approval for these deductions if a certain debt is deemed valid by the same courts. Some debtors may let their creditors’ collection activity go by without action, believing that no concrete actions concerning collection will occur after numerous creditor calls and letters demanding payment. Some of these individuals may also ignore similar activity from the CRA. While both the CRA and regular creditors may take some time before actually getting around to initiating a garnishment order, they will do so eventually. The CRA can be slow to move because of the nature of the tax system, while regular creditors want to exhaust more conventional means of debt collection because of the effort and costs associated with having a debt validated and obtaining such an order. Keep in mind that just because garnishments are not implemented soon after conventional collection activity does not mean they will go away – they can and will act eventually. If a debtor is threatened with possible garnishment or already has such deductions being taken from his or her paycheck, the individual should find legal means to relieve debt and eliminate these garnishments. There are three legal debt relief options available to the average debtor – these include a bankruptcy filing, a consumer proposal, and the Orderly Payment of Debts. For those thinking of filing for bankruptcy or making use of a consumer proposal, the aid of licensed bankruptcy trustees equipped to handle cases all across the country can be invaluable. The Orderly Payment of Debts program is open to Prince Edward Island, Nova Scotia, Alberta, and Saskatchewan residents, and may be applied for with the assistance of an approved credit counselor from a non-profit debt relief organization. Talk to a trustee or credit counselor certified to facilitate these debt management options to avoid the effects of a wage levy on your income as soon as possible. The Internet has a wealth of information on various bankruptcy topics, making it a valuable tool that can bolster personal economic stability and allow you to achieve your financial goals. However, potential bankruptcy filers seeking professional assistance on the matter of credit counseling and related debt relief options may be puzzled by what they stumble on (or rather, what they don’t). While many websites set up by Canada bankruptcy trustees discuss how prospective filers are required to meet with a credit counselor twice while bankruptcy proceedings are ongoing, there is little information on pre-bankruptcy credit counseling services. The lack of adequate data on the subject can cause debtors to miss the chance at resolving their debt problems earlier, thus allowing them to mitigate the effects of overwhelming debt early on to perhaps even avoid a bankruptcy filing – this is why obtaining expert advice on the subject of debt management from credit counselors before entering bankruptcy is important. Here are some of the things you need to know about pre-bankruptcy credit counseling: Knowing what the differences are between bankruptcy information for US filers and Canadian debtors allows you to focus on practical information that you can use in your debt management efforts and overall financial plans. Unfortunately, you may have already found that the search engines may generate results that are not applicable to you because these tools also show results for United States bankruptcy. What are the basic differences these countries have involving pre-bankruptcy credit counseling?
Canadian bankruptcy trustees licensed by The Office of the Superintendent for Bankruptcy may be able to facilitate an initial consultation at no cost to the potential filer. These sessions allow the trustee to assess your financial situation and develop accurate solutions for an effective action plan. For instance, a free consultation may end with a trustee suggesting changes to your budget and tips on curbing your everyday expenditures while giving you specific and formal counsel regarding your use of credit cards. Pre-bankruptcy credit counseling services can offer you many benefits. The key is to reach out for help before it’s too late. Bankruptcy can be a difficult thing to prepare for, as there are many factors you’ll need to take into account before you decide to file. Prior to filing, you’ll have to ensure that you have a solid financial plan that takes the effects of bankruptcy into consideration; effects such as a poor credit rating, unstable finances, and the procurement of assets you’ve lost to liquidation in bankruptcy proceedings. There’s a lot of information you need to absorb before you file so you can be in a better position to manage what may happen after a bankruptcy declaration. Start your education by asking these Canada bankruptcy questions: Will I lose everything I own when I file for bankruptcy? Fortunately, you won’t lose all of your assets when you file for bankruptcy. On the other hand, you may have to give up some to the bankruptcy estate to pay off your creditors. You won’t lose all of your assets when you enter into bankruptcy though because of exemptions allowances set forth in the Bankruptcy and Insolvency Act (BIA). While these exemption allowances do vary from province to province, if you meet the criteria set forth by your provincial government, these assets may be exempted from liquidation:
Who will know about my bankruptcy declaration and financial status? By law, bankruptcy declarations and consumer proposals are legal agreements that are maintained in a public database. In theory, anyone can access this information because of its public nature – a searcher only has to open an account with the OSB, pay a certain fee, and input data to find bankruptcy info on the person or party he or she is looking for. This procedure, known as an insolvency name search or bankruptcy name search, is typically used only by credit agencies, creditors, and related entities to gauge the financial health of a business or individual for professional purposes. If there is no good reason for them to do so, your friends and family won’t know about your financial status unless you inform them outright. When will I obtain my bankruptcy discharge? The length of time it takes for a debtor to obtain a bankruptcy discharge depends on the findings of the court on the filer’s financial and personal circumstances. First-time filers may be discharged in as few as nine months, while repeat filers and those whose surplus income merit payment to a bankruptcy estate may have to wait longer. Do you want to know more about bankruptcy and how it can affect your finances and your future? Ask your licensed bankruptcy trustee these Canada bankruptcy questions once you’ve set up a consultation. | AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesApril 2012 CategoriesAll |
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