Archive for September, 2006

A Chatham debtor recently asked this question. The simple answer is that you can take as much time as you need to decide what option is best for you. Sometimes a bankruptcy is a better option and sometimes a consumer proposal is better.

We will review your options and which might be better for you. It is important to remember that until the documents are signed, you are not protected from your creditors, they can continue to call you for payment, and they can take you to court and garnishee your wages. The phone calls and garnishment will stop once a bankruptcy or consumer proposal is file.

Email me a question and together we can develop a plan that is right for you.

As a Chatham trustee, I frequently have debtors ask how long bankruptcy remains on the credit rating.

According to equifax.ca, a first time bankruptcy stays on the record for 6 years after discharge and 14 years for a multiple bankruptcy. A consumer proposal is on the record for 3 years after completion.

Chances are you are overwhelmed with debt. If you need to talk to someone about your financial difficulties, email a question or call me at 519-351-2323 or 310-PLAN.

I recently received a call from a creditor in Chatham . She was concerned because she gave credit in the amount of $400 to someone who had filed for bankruptcy, but the debtor did not diclose she had filed for bankruptcy. The creditor wanted to know what she could do. The bankruptcy occured in January and the loan in May.

Under the Bankruptcy and Insolvency Act, undischarged bankrupts can obtain credit less than $500 without diclosing it to the creditor. If the amount is more, the bankruptcy court can issue a fine.

In this case, the creditor is free to pursue her debt under the normal collection methods.