Frequently Asked Questions
- Is it better to file a bankruptcy or a proposal?
- How much does a bankruptcy cost?
- How much does a consumer proposal cost?
- Will I ever be allowed to get credit again?
- Can I shop online while in a proposal or a bankruptcy?
- Will I lose my car?
- Will I lose my house?
- What happens to my investments, my retirement?
- Do you tell my employer?
- My wages are being garnished; will it stop?
- I owe for child support or spousal support arrears, what do we do?
As cliché as it sounds: it depends! Each person has a different financial situation. Even with a comparable amount of debt, two different people can be faced with different situations and thus need different solutions.
The best way to tackle one’s debt is to seek advice from a licensed insolvency trustee with Beaudin Groupe Conseil. A free, no obligation appointment will help you understand your situation and chose the best solution.
Depending on the solution that you chose, a monthly payment is established. This is done during the free, no obligation meeting. The payment is determined by the licensed insolvency trustee using guidelines mandated by the Bankruptcy and Insolvency Act, your personal family situation, your income and certain expenses.
If you have seizable assets, certain solutions are also possible to allow you to keep them.
A consumer proposal that is made to your creditors must meet two requirements: it must be reasonable, and it must be viable.
To be reasonable, creditors must feel like accepting it. Creditors understand that you will not be able to pay all your debt, but they expect an interesting offer.
To be viable, a proposal must allow you to bring it to full performance. If you offer too large a payment, you risk not being able to pay it.
Like Goldilocks’ porridge, it must be just warm enough.
A licensed insolvency trustee from Beaudin Groupe Conseil will guide you in making a reasonable and viable consumer proposal. A free, no obligation consultation will allow you to understand the process and start tackling your debt.
Everyone can tackle their debt. Once discharge or your proposal is fully performed, you will be free of debt and it will be possible to rebuild your credit worthiness.
There are three keys to this:
1. Patience :
Don’t try going too fast, that way you won’t fall in a credit trap again.
2. Prudence :
Choose credit products that meet your needs and never let anyone pressure you into signing a credit or financing contract.
3. Discipline :
pay your bills on time, make a budget and keep track of your credit report and score.
Thank god for technology, shopping online does not require credit!
Even without a credit card, today’s technology allows for online shopping, buying plane tickets, and reserving hotels. It all comes down to adapting how you shop and discussing options with your financial institution. Many banks offer debit cards compatible with the Visa and Mastercard networks.
A licensed insolvency trustee with Beaudin Groupe Conseil will guide you in finding a financial institution that meets your needs.
If your car is « free and clear » with no more payments, has a modest value, and you use if for basic family needs (work, medical and educational requirements), it is unlikely that it would be seizable. A licensed insolvency trustee from Beaudin Groupe Conseil will be able to review your situation and confirm this with you.
If you still have payments to make on your car, you are not behind on those payments and you want to keep your car, the financing contract is protected by the Bankruptcy and Insolvency Act; you should be able to keep your car.
If you still have a mortgage on your house, the financial institution cannot use your proposal or your bankruptcy to take your house as long as you are compliant with the terms of the mortgage.
However, a licensed insolvency trustee must analyze the value of your property and determine if it has equity. We use this information to make the best recommendation for tackling your debt and most often, keeping your house is possible.
If you chose a consumer proposal
Nothing is seized so you keep your investments. However, we need the information so we can document your situation to make the best possible proposal to your creditors.
If bankruptcy is the best way
If bankruptcy is the best way to tackle your debt, it is important to know that some investments are seizable while others are protected (pension funds are protected as well as most RRSPs). Each investment product must be analyzed by a licensed insolvency trustee who will be able to answer your questions on each investment you may have.
A free, no obligation consultation with Beaudin Groupe Conseil allows you to understand that tackling your debt may be the best option for your investment goals and for retirement.
We do not notify employers unless it is required to stop a wage garnishment or if they are also a creditor.
By telling your employer about your file, your wages will go back to normal and garnishments will stop.
If your wages are being garnished (for something other than child or spousal support), we will notify the garnishing creditor and your employer, and the garnishment will end.
Most tax debt garnishments are not special and can also be suspended.
A support payment debt is not dischargeable in a bankruptcy or a proposal.
However, filing a bankruptcy or a consumer proposal may allow it to be reduced and should allow for a budget surplus which will give you breathing room to pay down your arrears.
A free, no obligation consultation with a licensed insolvency trustee from Beaudin Groupe Conseil will show you how tacking your debt will help you claw your way out of support payment debt.