What Happens To My Co-signor?

 

What Happens To My Co-signor?

 

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Toronto talks about, What Happens To My Co-signor?.

 

When people do a bankruptcy or even a consumer proposal, if they have a co-signor on one of their debts, they are going to be very concerned about what is going to happen in regard to their co-signor. The fact of the matter is that when you do a bankruptcy or consumer proposal, you are just relieving your own responsibility for those debts. You are not able to do anything for the other person. In other words, if I were to co-sign somebody else’s debt, they go bankrupt, they are not responsible for it anymore but now the creditors are going to want me to pay, and that is just a fact of life. That is what co-signing is all about. Now, whether or not that person has to pay the whole thing at once, usually can be worked out with the creditor but a bankruptcy or proposal will not relieve somebody else from their responsibilities.

 

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.

 

Do I Have To Pay a Minimum Portion?

Do I Have To Pay a Minimum Portion?

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Toronto talks about, Do I Have To Pay a Minimum Portion?.

Some people are under the impression that they go bankrupt or for that matter they do a consumer proposal, they are required to pay a certain percentage of what they owe, what their overall debts are. That’s not quite the way it works. In a bankruptcy, it’s not that at all. In a bankruptcy, there is a mechanism that will determine whether or not if you have to make any payments for your creditors into the bankruptcy. It’s based on what you earn, what your monthly salary is. There’s a formula for all that, and a Trustee explains that to you and a Trustee does the calculation and all that. In a proposal, it can be a little bit of a factor trying to determine how much you are going to offer the creditors and all that. But, there is no fixed idea that you have to pay 20% or 10% or 50% of whatever you owe. In a proposal, you offer the best you can, and you try to work out a deal with the creditors that they are willing to accept of what you are going to pay. In a bankruptcy, this formula is applied, if you earn enough money you will pay that money into the bankruptcy in order to obtain your discharge. It doesn’t matter what percentage it is.

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.

How Long Will My Bankruptcy Last in Ontario?

How Long Will My Bankruptcy Last In Ontario?

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto talks about, How long a Bankruptcy lasts.

There tends to be some general misunderstanding about how long a bankruptcy lasts. People hear things about this 7 years business, not being able to obtain credit, and things like that. But, essentially a bankruptcy is a legal process, it has a beginning and it has an end. It begins when you file for bankruptcy. It ends when you are discharged from the bankruptcy and therefore from your debts. So, how long will it last? Well, for the majority of people who have gone bankrupt, it’s their first and hopefully only bankruptcy, they are eligible for the discharge to take place in nine months. If they earn above a certain pre-set amount, an amount the Government sets for your monthly income, then if you earn more than that, bankruptcy might be extended by 12 months, from 9 to 21 months. If you have been bankrupt once before, you are going to be eligible to be discharged automatically in 24 months, not nine. And if you earn again, above that amount, then you will get the 12 months tacked onto that too, so you will end up being bankrupt for 36 months. So, generally speaking, a person goes bankrupt, they are bankrupt either 9 or 24, or 21 or 36 depending on the circumstances. Now, there are other factors that come into play, that could extend the bankruptcy, it would result in a person having to go to court to get their discharge and all that. Now, those are the kinds of things a Trustee needs to explain to you. And there are so many different variables.

If you are uneasy about bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about your bankruptcy problems.

Getting A Mortgage After A Consumer Proposal

Would Services of a Trustee Prevent Me From Getting a Mortgage?

People often wonder about their chances of getting a mortgage after a consumer proposal in Ontario. In the video above, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Toronto talks about “Would Services of a Trustee Prevent Me From Getting a Mortgage after a consumer proposal”.

One of the big ambitions of most people, especially for the family is to ultimately buy a house. People who have debt problems come to see a Trustee and end up do a bankruptcy or perhaps a consumer proposal, are going to be concerned whether this bankruptcy or consumer proposal is going to somehow prevent them from being able to obtain a mortgage at a later date.

The only way that we can really answer this is, nobody can really predict the future, there is a lot of factors that go into why a person can get a mortgage, and why they cannot. Bankruptcy and proposals on your record are just one factor, and also time. The bottom line is, it is impossible to really predict it, but generally speaking, after you have done a bankruptcy or proposal, and have solved all your credit problems, and some time has gone on, most people can and have the other ingredients properly arranged, they can get the mortgage.

An interesting aspect of it though is the mortgage renewal, people are highly concerned that they may lose their house when the renewal time comes. And what we found, I’m not an expert on this practice, but what we found is that renewals, I guess they are automatic, generally they are almost computer generated, and so very few people have this kind of problem renewing their mortgage.

What is a consumer proposal?

It is an option for debt relief which enables you to pay a portion of your debt by developing a “proposal”. You can also extend your payment term for up to five years or less. Once the creditors agree to the settlement, you can make your payments through your Licensed Insolvency Trustee. How will you know that this is the right solution to get out of your debt problem? You can have a thorough discussion with your trustee about your financial situation. Moreover, before making a decision, each of the options and alternatives will be explained to you. Upon making the decision, your licensed insolvency trustee will administer the proposal.

Consumer Proposal Mortgage Vs Bankruptcy

As opposed to bankruptcy, consumer proposals enable debtors to keep their assets such as a home. As long as you are keeping up with the payment and you are showing that you have become financially responsible, you can continue or renew your mortgage, even though a proposal will affect your credit score. In most instances, you can continue your mortgage with your current lender or bank. However, this might not be the case if you choose to switch lenders because your credit score will be taken into consideration.

Getting A Mortgage after Consumer Proposal In Ontario

Getting a mortgage after a consumer proposal is also possible if you have a stable income and you can provide a certain percentage of down payments.

This particular debt relief option enables you to save up because of the lowered monthly payment terms. Moreover, you will be advised by your Licensed Insolvency Trustee on how to manage your finances better and guide you on how to develop an effective budget plan. Always remember to fulfill your end of the proposal by avoiding late payments and paying the required amount every month as this will reflect on your credit record. In this case, your credit score will improve over time after filing the consumer proposal. Going through this will be difficult and needs an extra amount of time and effort but it will all be worth it in the end. After the consumer proposal, you will become eligible for a new mortgage or to purchase the home that you and your family have always been dreaming about.

The process will become easier and less stressful if you seek the services of a well-experienced Licensed Insolvency Trustee. By scheduling a free consultation, you will have a better understanding of getting a mortgage after a consumer proposal in Ontario.

Will My Boss Find Out About My Bankruptcy?

Will My Boss Find Out About My Bankruptcy in Toronto?

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Ontario talks about if the boss can find out about the bankruptcy.

The only time that a person’s employer is officially told, that they have gone bankrupt or that they have done a consumer proposal, if they have been sued and garnished by somebody, and your employer is having to deduct money from your pay to send to the court because of the garnishee. The person going bankrupt is basically going bankrupt or doing a consumer proposal, that’s one of the big thing that they are trying to stop that garnishee. A bankruptcy and consumer proposal will do that but isn’t going to stop if we don’t tell the employer to stop it. Yes, the employer would get notified in that case. The other thing I can think of is offhand, and where we would have this kind of contact with an employer, is if we had to contact an employer to find out some information that is of important to the creditors. Like for instance, say you have a profit sharing plan at work, and your employer is the only one who has the details of it, the profit sharing might be money that belongs to the creditors in a bankruptcy, you see the trustee has to verify this information. Now, there are different ways of verifying it, we might be able to verify it by having you get the information and providing it to us so there is no direct contact with your employer. We prefer to do it that way as long as we can get the facts. Generally speaking, an employer is not, I can’t even remember the last time that we contacted an employer when there was no garnishee involved.

If you are uneasy about your bankruptcy you should definitely visit a licensed insolvency trustee so that you will be given an advice about consumer proposal and debt problems.

What Happens To My Job If I Go Bankrupt In Ontario

What Happens To My Job If I Go Bankrupt In Ontario?

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy in Ontario talks about if your job is affected by a bankruptcy.

Generally speaking, a person’s employment is not affected by a bankruptcy and not affected negatively by a bankruptcy. In fact, in may be affected positively by a bankruptcy. This is because you might be able to focus a lot more on your job if you don’t have to worry about your debts. However, in terms of any legal effects of a bankruptcy or proposal, there are some professions where it is effected, chartered accountants, for instance, lawyers, people who operate trust accounts like real estate brokers, things like that. There would be some negative affect of going bankrupt for people in those positions. But, for the vast majority of us, nope, the main effect is often positive. So, to answer the question, don’t be afraid of your job being affected negatively by either a bankruptcy or consumer proposal.

If you have debt problems and are concerned about how it may affect your job, I encourage you to call our office and talk to a trustee.

Will I Lose My Home If I Go Bankrupt?

Will I Lose My Home If I Go Bankrupt?

In this video, Richard Killen, a Licensed Insolvency Trustee in bankruptcy Toronto answers the question most homeowners ask, which is “Will I lose my home if I go bankrupt or do a consumer proposal?”

Because you may have debt problems, you may be concerned with losing your home and most people figure that “if they go bankrupt they are never going to keep their house.”  And for most people, that is a very traumatic thought, however, it can be avoided.

I found that over the last 10 years, very few people who own a home with equity have to lose the home if they don’t want to. They can find a way to keep it. The only way to keep it is to deal with the matter of equity. The trustee is responsible for obtaining the equity from the property in order to pass the money along to the unsecured creditors. They have the right to their money.

Therefore, if a person or family wants to keep their home, they’re going to need to arrange for financing or to pay the creditors. Of course, it depends on how much equity there is in the home. If you really want to keep your home, generally you can. You can keep it whether it’s a bankruptcy or proposal. In fact, if it’s a consumer proposal your home equity is not up for grabs. This really only applies to a homeowner declaring personal bankruptcy.

If you are a homeowner and considering a debt solution, I encourage you to call our office. Why lose sleep wondering what will happen. Your initial meeting is free, and in that meeting, we will explain all of your options so you may make an educated decision on the best option to obtain debt relief.

What assets are you allowed to keep after you go bankrupt?

Assets Allowed To Keep After Bankruptcy?

In this video, Licensed Insolvency Trustee in the GTA area, Richard Killen, talks about the facts and misconceptions when it comes to losing assets in a bankruptcy procedure. Typically, people are scared to lose their important belongings should they undergo bankruptcy in Toronto. In this video, Richard goes on to clarify that in the most common cases, this is simply not the case.

Here are a few key takeaways from Richard’s informative clip:

  1. There is a great urban myth about losing assets when you go bankrupt.
  2. Most people can keep whatever they want to keep as long as the creditor’s rights are respected, so you may have to pay to keep it.
  3. Basics such as furniture, personal effect, tools of your trade and one vehicle (as long as it isn’t worth too much) are generally never lost.

Should you still feel uneasy about your debt and losing your assets, it’s definitely worth it to give a Licensed Insolvency Trustee a call or a visit so that they can give you all the information you will need to make this important decision and also to alleviate any worry and stress you may have.

There is no cost for your initial meeting and we will explain all of your options to you. We can meet with you during business hours or book after hours appointments if that is more convenient. Richard Killen and Associates is a Licensed Insolvency Trustee in bankruptcy Scarborough and have 10 locations across the Greater Toronto Area. Call us at (416) 285-9511

 

Licensed Insolvency Trustee Advice: 4 Things for Debt Solutions

What Are The 4 Things For A Debt Package?

In this video, Richard Killen, Licensed Insolvency Trustee based in Toronto, Scarborough, and 8 other debt relief locations in Ontario talks about 4 important things to keep in mind before deciding on a Licensed Insolvency Trustee.

When people start looking for insolvency solutions, they are usually operating under a fair amount of stress for quite some time. Which is why you should always keep the following in mind before you go any further in your search.

  1. Always use a Licensed Insolvency Trustee (LIT) – this is one of the best ways to ensure that you’ll be able to handle all the stress associated with bankruptcy procedures. Richard Killen and Associates is licensed by the federal government to administer the processes provided by law which is the quickest way to deal with all the stress and worry you may be experiencing.
  2. LIT will review all your options with you – an LIT is legally obligated to review all your options and help you make the right decision based on your financial situation.
  3. Stress relief happens immediately – some may be reluctant to visit an LIT due to the negative impression of filing for bankruptcy. Fortunately, LIT can offer bankruptcy alternatives and explain to you all of them which alleviates the stress of feeling like you have no other options.
  4. Misinformation – there has been so many myths and false information available today about bankruptcy and the insolvency process that you shouldn’t immediately believe. The Bankruptcy and Insolvency Act – the law that we operate under – provides bonafide solutions to problems that can’t be solved in any ordinary manner. These are solutions that work.

So remember, only a Licensed Insolvency Trustee can work with you and show you all of your options and help you find the right solution for yourself and we can put that solution into effect as soon as possible.

There is no cost for your initial meeting and we will explain all of your options to you. We can meet with you during business hours or book after hours appointments if that is more convenient. Richard Killen and Associates is a Licensed Insolvency Trustee in Scarborough and have 10 locations across the Greater Toronto Area. Call us at (416) 285-9511

Letter from Creditors after Bankruptcy? Call a Licensed Insolvency Trustee

Letter From Creditors After Bankruptcy?

In this video, Licensed Insolvency Trustee in bankruptcy in Toronto, Richard Killen, talks about what you can and should do when you receive a letter from creditors after bankruptcy.

Here’s a few things to keep in mind should this happen to you:

  1.  It sometimes happens that after a bankruptcy is finished and you have been discharged you receive a collection letter from one of the creditors. It usually means their computer hasn’t been re-programmed.
  2. However, there are a few creditors who might not be completely expunged by your discharge, so such letters should not be ignored.
  3. If you had such a creditor the trustee would most likely have explained all this to you at the beginning. The most common one is student loan.
  4. The smart thing is to call your trustee and ask.

If  you are uncertain or starting to worry that you still have existing debt, the best course of action to take is to call your trustee. If you get a letter from a creditor, even if you’ve been discharged, it doesn’t matter, just remember to call a trustee. You will be glad you made the call.

There is no cost for your initial meeting and we will explain all of your options to you. We can meet with you during business hours or book after hours appointments if that is more convenient. Richard Killen and Associates is a Licensed Insolvency Trustee in Scarborough and have 10 locations across the Greater Toronto Area. Call us at (416) 285-9511




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    About Richard Killen & Associates


    Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.


    Serving the GTA for 25 years