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How do I know if I am in financial trouble?
Is bankruptcy my only option?
Do I qualify for A Consumer Proposal or bankruptcy?
Can I still run my own business?
What about a corporation?
Should I declare bankruptcy?
Should I file a Consumer Proposal?
How much does it cost to declare bankruptcy?
How much money do I pay each month in a Consumer
Proposal?
For how long will I need to make payments in a Consumer
Proposal?
If I go bankrupt, will I lose everything?
Will I lose my assets in a Consumer Proposal?
Will my life insurance be affected?
Once I declare, what happens my debts?
What happens if someone co-signed a loan for me?
What about alimony and maintenance?
What about student loans?
What happens to my wages?
What happens if my Consumer Proposal is rejected?
Will I still owe income taxes?
Will all my debts be gone after I declare bankruptcy
or file a Consumer Proposal?
How long will I be bankrupt?
Who will find out?
How will credit counselling affect my credit rating?
How will bankruptcy affect my credit rating?
How will a consumer proposal affect my credit rating?
What is a Trustee in Bankruptcy?
What is a Proposal Administrator?
What does a Trustee in Bankruptcy do?
How do I choose the right Trustee?
There are certain “warning signs” that may indicate
you are in financial trouble, such as:
• Having no savings
• Receiving frequent calls or letters from creditors or
collection agencies.
• Looking for your next pay cheque, spending all your
money before payday.
• Robbing Peter to Pay Paul, stalling one creditor to
pay another.
• Using your credit cards or other loans to pay for everyday
expenses.
• Having trouble making your minimum payments on your
credit cards
• Having your consolidation loan applications rejected.
• Not knowing what your real monthly expenses are, and
wondering where all your money went?
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If you are in financial trouble, you may believe that bankruptcy is your only option. However, there are many options to help you
solve your money troubles – such as consolidating your loans,
credit counselling or making a Consumer
Proposal. F.J. Zielski & Associates
Inc. can help you decide which option is best for you.
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To qualify for a consumer proposal or bankruptcy, you must:
• Owe at least $1,000.
• Unable to pay your debts on time.
• Owe more than the fair market value of all your assets
(i.e. house, car, etc.)
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Yes! An individual may run or open a business while in bankruptcy.
The individual may be required to disclose that they are bankrupt
to suppliers and others from whom they receive credit.
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A corporation is an entity onto itself. Think of it as a person,
however unlike a personal bankruptcy there are no exemptions for assets
to be kept. A resolution of directors must be made authorizing
the company to declare bankruptcy and the directors of the corporation will work with the trustee.
Unlike a personal bankruptcy a corporation will not receive a
discharge from bankruptcy unless all the debts have been paid
in full.
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Bankruptcy is only one option when
you are having financial trouble. To decide which option is right
for you, you should start by meeting with a F.J.
Zielski & Associates Inc. advisor for a free, no obligation,
and private consultation. During this meeting, we can discuss
your personal situation and explain your options, so you can make
an informed decision.
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To decide which option is right for you, you should start by meeting
with a F.J. Zielski & Associates
Inc. advisor for a free, no obligation, and private consultation.
During this meeting, we can discuss your personal situation and
explain your options, so you can make an informed decision. If
you have stable income sufficient to make payments over a period
of time, and would like to avoid bankruptcy then a Consumer Proposal may be the solution for you.
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In a bankruptcy, the Trustee’s fee is governed by the Bankruptcy
and Insolvency Act. F.J. Zielski &
Associates Inc.’s is a small firm who mission is to
help unfortunate debtor’s obtain a financial fresh start,
we will set up a payment plan you can afford.
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That is where the experience or your administrator and your financial
situation comes into play. Your proposal Administrator will work
with you to develop the best proposal in your exact circumstance.
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The length of your proposal depends on your financial situation.
You may make one lump sum payment or monthly payment up to a maximum
of 60 months.
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No! Although your assets vest with the Trustee, certain assets
are exempt. For instance, in many situations, you can keep your
house and car in a bankruptcy, as long as you continue to pay
your secured creditors. You can also keep your furniture, personal
items, and various equipment you need for your work. For
more details about exempt items click here.
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No. The biggest advantage of a Consumer
Proposal is that you get to keep all of your assets, none
of them form part of the restructuring like in a bankruptcy.
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Certainly you are entitled to continue with your life insurance after bankruptcy, however where
your policy has a cash surrender value and the beneficiary is
your own estate, you would lose the cash value of the policy in
a bankruptcy. The other benefits
of the policy would remain intact.
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Once you declare bankruptcy or file
a consumer proposal, you
will no longer have to deal directly with your creditors, there
is a stay of proceeding in place where by all you creditors must
file a proof of claim with your trustee. That means that lawsuits
and wage garnishments against you
will stop.
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Anyone who has co-signed a loan for you will still be responsible
to make loan payments after you go bankrupt.
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Alimony or maintenance payments are not affected by bankruptcy or a Consumer Proposal. These
payments must be kept up to date. A bankruptcy or Consumer Proposal does
not stop garnishments by FRO for collection. Alimony and maintenance
are provable claims in bankruptcy and which must be included and disclosed to your trustee.
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Student Loans are now dischargeable from Bankruptcy once the student has been out of school for 7 years, effective July 7, 2008. This replaces the previous 10 year rule.
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When you file a consumer proposal or declare bankruptcy, you will
receive your wages as usual form your employer free of any garnishments
except those for child or spousal support. You will be required
to make monthly payments to your trustee depending on your net
monthly income and size of family.
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If your creditors do not accept your Consumer
Proposal, you have one of two options.
1. Amend the terms of the Proposal to those which your creditors
will accept.
2. Reconsider other options for solving your money trouble,
or file bankruptcy. Note that even if the Proposal is rejected,
you will not be automatically bankrupt.
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Like all unsecured debts, taxes will generally be discharged upon
the completion of your consumer proposal bankruptcy,
subject to Section 178 of the BIA.
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Even when you file a Consumer
Proposal or declare bankruptcy,
you will still owe money on certain debts pursuant to Section
178 of the BIA. These include student loans that are less than
ten years old; alimony, child, or spousal support; certain court
fines or penalties; and debts you incurred due to fraudulent misrepresentation.
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First time bankrupts are eligible for an automatic discharge nine
months after the bankruptcy started.
Subsequent bankruptcies require the court to grant the discharge.
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Most bankruptcies are not published in the newspapers. Newspaper
announcements are reserved for corporate and very large personal
bankruptcies. Once you declare bankruptcy,
the Trustee will notify all your creditors, and the Superintendent
of Bankruptcy, your employer will generally only be notified if
the Trustee has to stop a garnishment of your wages. Bankruptcy
is a matter of public record, therefore if someone did a search
they they would learn of your bankruptcy.
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The credit bureau will record any repayment plan, using a non
profit credit counsellor will not give you a better credit
rating. In fact, it will likely take longer to re-establish
a good rating.
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Bankruptcy is usually a last resort
for people experiencing financial difficulties. As such, many
individuals already have a poor credit
rating before they declare bankruptcy.
The credit bureaus will normally keep a record of the bankruptcy for 7 years and will list you as an R9. Bear in mind if you do
not pay your debts you may end up at R9 without a bankruptcy,
and remain there for longer than 7 years.
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The credit bureaus will normally keep a record of the consumer
proposal for a period of 7 years and will list you as an R9
during the proposal. Once the proposal has been completed the
credit bureaus will list you as an R7 for the remainder of the
7 year period. Bear in mind if you do not pay your debts you may
end up at R9, and remain there for longer than 7 years.
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Trustees are the most highly trained and educated Debt Consultants
and Restructuring Professionals in Canada. They are licensed through
Industry Canada and the Office of the Superintendent of Bankruptcy.
Almost all trustees have both a professional designation and a
university degree. Before receiving a license to practice all
trustees must complete and pass an exhaustive bankruptcy and law course, pass the two day National Insolvency Exam, be
investigated by the RCMP, and appear before the oral board of
examiners. Once licensed, trustees must keep up with current case
law BIA amendments through mandatory professional development.
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A Proposal Administrator is a licensed Trustee in Bankruptcy who
has been appointed or designated by the Superintendent to administer
consumer proposals.
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A trustee in Bankruptcy works with
you to understand your financial situation. A Trustee is an officer
of the court licensed to administer the Bankruptcy and Insolvency
Act. They act in a Fiduciary capacity to enforce your rights and
those of your creditors pursuant to the BIA. If you decide to
declare bankruptcy, the Trustee will prepare all the necessary
documents and file them with the Official Receiver. The Trustee
will notify all your creditors of the bankruptcy and will deal directly with your creditors during the bankruptcy.
The Trustee will monitor your income during the bankruptcy and will provide you with two counseling sessions to help you
get a fresh financial start.
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It is important to work with a Trustee that listens to your needs
and understands your concerns. We at F.J.
Zielski & Associates Inc. have been serving the Quinte
region since 1981, we are a small firm who will work with the
individual debtor, we do not have the big firm cookie cutter mentality,
you will meet the people who work on your file, and we are always
accessible.
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Flexible fee arrangements, flexible appointments, whatever you
need we will be there.
Are you a high income earner (MORE INFORMATION HERE) or do you not reside in Canada (MORE INFORMATION HERE)?
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