Q: I co-signed a debt for my friend on a car loan which he is not paying and the bank is calling me to pay off that debt. What are my options?
A: First of all you have to understand that whenever you sign a guarantee on a loan or co-sign somebody you have same liability& responsibility as the main applicant has. So in your case if your friend is no more making payments on car loan which you co-signed you are responsible to pay off that debt.
Q: What happens to my job if I go bankrupt?
A: The simple answer is – nothing. Bankruptcy and proposals should not affect your employment. In fact, you cannot be fired simply because you filed an assignment in bankruptcy or a proposal. If you are bonded, there may be restrictions from the bonding company if you are in bankruptcy, but this applies to very few people.
Q: Do you take in government debt? I have student loans and debt with Revenue Canada
A:The short answer is yes.
If the school years for which you borrowed the money ended more than 7 years ago, the loan is discharged when the bankruptcy or the proposal are completed. If it has been less than 7 years, the student loan is included, but will become due again when the files are closed.
Income tax debts are also included in a bankruptcy or proposal. You should be aware, though, that if the tax debt is significant, and especially if you have a history of non-filing, the tax department may become involved in your administration to ensure things are current and unlikely to fall behind again.
Q:Will Bankruptcy affect my Citizenship process?
A:No. Filing bankruptcy is not a crime. It is not considered failure in fulfilling your legal civic duties. It is a perfectly legal way to deal with overwhelming debt.
It will not disrupt your citizenship process or put your bid for citizenship at risk, so long as you abide by all bankruptcy laws truthfully and honestly. Citizenship and Immigration Canada website is a great resource for all your citizenship process questions and answers.
Q:Will my creditors stop harassing me?
A:Yes. By law, all actions against a person filing a bankruptcy or a proposal must cease once the documents are filed. However, this does not apply to secured creditors such as car loan or a mortgage on a house.
Q:I have been informed by my friends that If I do get my debt reduced by program you offer we will stop getting child tax.is it true?
A: Child tax credit can only be stopped if your income is high or you or your spouse got over payment for child tax credit. Your child tax cannot be stopped for the reason you file consumer proposal or bankruptcy.
Q: I pay minimum payment on all of my bills but I do not see any significant difference in amount owing. Why is that?
A: Answer to your question lies in your question. When you only pay minimum payment on your debt a big portion of that payment goes to interest payment and very little amount of your payment goes towards principle amount owed. But when you get next bill you are charged interest again on whole balance owing. That is the main reason why you do not see significant difference in amount owing.Secondly it is a by law in Canada now that all credit card company have to mention it on monthly invoice how much time it would take you to pay off your debt.Please look that part for example if you are owing about 16000 debt on a credit card with interest rate of 17 % with minimum payment of $ 238 it will take you approximately 50 years and 4 months to pay off your debt which mean you would pay back your creditor about $145000.
Q: What steps should I take if I want to get out of debt?
A: First of all we have to admit that we have financial issue to resolve.Then take following steps.
Use your line of credit to pay off your credit card debt because credit card debt interest rate is usually 19% whereas line of credit has less interest rate depending on your credit.
If first option is not applicable to you then you can go to your bank and ask for debt consolidation loan.Bank would give you a loan to pay off your debt and then you only make one monthly payment for all of your debt.
If second option is not available or your get denied you can get your mortgage renewed or get a secured line of credit so that you can pay your high interest rate credit.
If you do not have a house or do not have enough equity in your property then you can contact us so that we can help you in filling consumer proposal. In consumer proposal you can get your debt reduced up to 75 % and pay rest of the balance in easy monthly interest free installments.
If you do not have enough capability to pay consumer proposal monthly payment you can also file a bankruptcy.
Q: Where is your Office located?
A: We provide services all over Canada. For British Columbia our offices are located at 208-9200 Scott Road (92/120) Surrey & unit 200A 2451 Clearbrook Road in Abbotsford. Whereas we also provide services in Calgary, Edmonton, Winnipeg, Mississauga, Toronto, Scarborough & Montreal. We can be reached at 604-909-2277 or 1-866-210-9262 or you can contact me at [email protected]
