How can I tell that I need help managing my debt?
There are a handful of red flags indicating that your debt has spiraled out of control, such as frequent calls from debt collectors, wage garnishments, creditors threatening law suits or repossessions, living pay check to pay check, having to borrow money from family or friends to meet your obligations, and missing your bill payments or only making partial payments.
Every situation is unique, but generally, a debt crisis can feel overwhelming and stressful. If you think you need help, contact us to schedule a free consultation. The sooner you address your financial problems, the more likely you are to avoid drastic measures such as Bankruptcy.
Will I lose my house, car, or other possessions if I file a Consumer Proposal?
No. One major advantage that Consumer Proposals have over Bankruptcies is that they do not normally involve the disbursement of your assets.
A Consumer Proposal is ‘legally binding’. Does that mean I can get into legal trouble if I don’t make my payments?
No. Non-compliance does, however, release your creditors from their agreement to reduce your outstanding balance and interest. It also leaves you exposed to collection agencies, and can very easily result in Bankruptcy.
If you willfully mislead your trustees or your creditors when filing your Consumer Proposal, you can be found guilty of committing fraud; however, if you were honest about your ability to pay – to the best of your knowledge – there will be no legal consequences of missed payments.
How can I rebuild my credit rating after Bankruptcy, Consumer Proposal, or seeking any other sort of debt relief?
The more serious forms of debt relief, such as Bankruptcy or Consumer Proposals, will remain on your record for several years, but that doesn’t mean you’ll never have good credit again. Generally, the mark of a Consumer Proposal or Bankruptcy will be removed from your record after seven to ten years of good standing.
In fact, we have found that most clients are able to rebuild good credit after Bankruptcy has ended. For more information on rebuilding your credit, see our How My Credit Is Affected page, or contact us to book a free credit counselling session.
Does my employer have to be notified that I’ve filed for Bankruptcy?
No. We value your privacy, and handle each case with the utmost discretion.
Does Bankruptcy cover my income tax arrears?
Yes. Income tax debt is treated as ordinary debt, and is usually discharged by Bankruptcy.
Does Bankruptcy cover my student loans?
Sometimes. There is specific legislation that excludes some student loans from Bankruptcy. The team at Fuller Landau will be happy to explain the details to you. If you have issues paying off your student loans, contact us to consult with a trustee.
Can I keep my cell phone, Internet, and other services if I declare Bankruptcy or file a Consumer Proposal?
Your current service provider may discontinue service if they are among the creditors in your proposal, but you will likely be able to sign up with a different provider.
Can I rent an apartment if I’m under Bankruptcy or Consumer proposal?
Yes. While landlords are allowed to ask you for a credit check, there are no legal restrictions to prevent you from renting an apartment from a willing landlord.
What is a secured debt?
Secured debts are not covered by Bankruptcy and Consumer Proposals because the debtor has pledged an asset against the loan. For example, a mortgage is borrowing money ‘against your house’, meaning if you cannot pay, the house can be reclaimed as payment. This applies to many vehicle loans, boats, RVs, equipment, and so forth.
An unsecured debt is any loan against which no assets have been pledged, such as credit cards, income tax, utility bills, and lines of credit.
What do I do if I have a question that isn’t on this page?
We’re always happy to answer any questions related to debt relief solutions. Contact us today.