Support payments received as a result of COVID-19 measures are meant to be used by individuals and their families, not their creditors.
Tag: debt relief
How to Access Needed Money: Canada’s COVID-19 Economic Response Plan for Consumers
These are stressful times but no one should feel alone with these challenges.
6 Options To Help Decide How to Spend Your Tax Refund
Your income tax refund is not new-found money. It is money that you have been lending to the government for the past 12-16 months. Make sure this money works for you and improves your life.
Are your finances getting off track and out of control?
The earlier you identify warning signs of financial challenges and recognize the driving factors, the easier it will be to address those factors and get back on track.
The New Debtor Prison
We have found that a new form of debtor prison exists and this is due to excessive phone calls, emails, text messages and mail from creditors and collection agencies. These tactics can leave a person feeling afraid to answer their own phone and for some, it can cause undue stress and anxiety which can negatively affect their everyday life and ability to function at work.
Income Tax Deadlines
For Canadians, April 30 is the official deadline to file your personal income tax return with the Canada Revenue Agency. If you file your return past the deadline you will be assessed a late filing penalty. The deadline, if you or your spouse or common-law partner carried on a business in 2016, is June 15.
August 2016 – Personal Bankruptcy & Consumer Proposal Statistics
Canada – There was no increase in personal bankruptcies and consumer proposal filings were up 7.2% as compared to the 12-months ended August 31, 2015.
New Brunswick – Personal bankruptcies were down 2.9% and consumer proposal filings were up 1.7% as compared to the 12-months ended August 31, 2015.
Guaranteed, Co-Signed and Joint Loans
Generally, a co-signor is usually jointly and severally liable for 100% of the debt. This means that, if there is a default, the lender will pursue the primary debtor and the co-signer at the same time and will be happy to collect their entire debt out of whomever they can recover from first.
Advantages of Filing a Consumer Proposal vs. a Bankruptcy
A consumer proposal can be creative and involve the sale, over time, of assets and payment of all or a portion of the equity in those assets to your creditors. This would allow you to settle your debts through a lump-sum payment instead of having to make monthly payments.
Dealing With Debt – Understanding the Two Types of Proposals
Division 1 Proposal Is when a consumer debtor owes more than $250,000 in debts, excluding the mortgage on their principal residence. If creditors don’t accept this proposal there is a deemed personal bankruptcy.
A consumer proposal is when a consumer debtor owes less than $250,000 in debts, excluding the mortgage on their principal residence. There is no deemed personal bankruptcy if the creditors reject the consumer proposal.