Bankruptcy Debt Problems Canada

Bankruptcy, Debt and Credit Issues

What is Credit Counselling?

Credit Counselling is counselling that is set up to help place your finances under control while assisting you in getting rid of your debt. In Canada this is done through non-profit credit counselling services that are provided by credit counsellors who are accredited debt management consultants. This type of service helps you develop a personal budget plan to assist you in avoiding future problems. They also assist in placing you into a debt management plan when already in debt.

Credit counselling has four steps one can take to receive counselling. The first step is to call and set up an appointment. The second step is to gather your records and meet with a counsellor to review your financial situation. The third step is where the credit counsellor will recommend a plan to help you and explain all the details based on your personal needs. The fourth step is following your plan and becoming debt free. The final step is a very important step because in order to see success you need to follow the plan and budget laid out to help you.

Credit counsellors develop their solution through giving you some personal finance and budgeting tips that will help you see where you can cut expenses to pay off more debt. This can be the solution, however if it is not, they will then look into involving a debt management plan. This is where your counsellor contacts the creditors and negotiates a debt settlement on your behalf where you agree to repay your debts in full over a period of 3-5 years. It is at this point where your creditors usually agrees to stop all collection activity and cancel all future interest.

Credit counselling can be as simple as providing you with the budgeting and financial tools you need to manage your finances in a way that meets not only your needs, but the needs of becoming debt free. It also can be as simple as developing a debt management plan to assist you in a settlement with your debts, if you are unable to budget yourself enough to solve your money problems.

Credit counselling Ontario works to assist in finding financial solutions for an individual who wants to become debt free. It also provides you with the money management skills you need to succeed. Credit Counselling strives to equip you with a fresh financial start to living your life again debt and hopefully stress free.

How to File and Claim Bankruptcy

Do you have to file and claim bankruptcy? There is two ways a person can go into bankruptcy in Canada. The first way is the person makes an assignment in bankruptcy; and the second way is the creditors ask the court to make an order that the person is bankrupt. The second way is rarely used, only in dire situation is it considered, in both circumstances a trustee is require to administer the process of their claim.

There are six steps you need to take in order to claim bankruptcy efficiently, the first step is to recognize you are having financial problems and believe that you can’t work them out on your own. The second is to contact a licensed trustee to review your situation. During this time your situation is assessed briefly by phone, where you are given some advice and a no charge appointment. You will then be asked to bring specific details of your financial situation to the first meeting. You will need to include in these details your income, expenses, assets and debts.

The third step is during your first meeting; the trustee will review the details and outline your alternatives that can also be chosen in your case including the bankruptcy process. You are then given the time and information required to make your decision on whether to claim bankruptcy. The fourth step is you will decide whether or not to file for bankruptcy, this is a decision that is up to you, if you decide to go bankrupt your trustee will give you an information form to complete. In this will be a form to fill out on your personal information, a list of your creditors and a list of your assets.

The fifth step is to complete the form and the trustee will prepare the paperwork, your sixth and last step is your second appointment. Here you will review the paper work and process the claim and sign the papers for claiming bankruptcy. During your bankruptcy you have duties and responsibilities to fulfil and you will be bankrupt for a period of time depending on various factors but will be for a minimum of 9 months.

Overall there are steps, decisions and paper work in this process that you need to administer and take into consideration when having to claim bankruptcy.

The Advantages and Disadvantages of a Debt Consolidation Program

Debt consolidation is a process where you receive one big loan from a financial institute and pay off all your other debts in hope to reduce your debt in the long run and your interest rates to hopefully help you get out of debt in an efficient way. It is important when looking into using a debt consolidation program that you weigh out the advantages and disadvantages of this process. Hopefully by doing this you will be able to weigh out the best option for your personal financial situation.

There are five advantages to a debt consolidation program; the first one is that it can reduce your monthly payments. This helps you in the long run because it lets you make payments that you hopefully can afford while getting ahead. The second is that it can give you a head start on credit repair. Many times individuals who use this program do so because they are in so much debt that they can’t make all there payments, by doing this it allows you the ability to help you repair your credit. The third is that it can prevent you from making late payments. This helps you as well in the long run by reducing your late fee payments. The fourth advantage is that it can help you get help from experts who can help you get your finances back on tract. The fifth advantage is that it will prevent creditors from harassing you and pursuing legal actions, which in the long run is worth it if you’re in too deep of debt.

With every decision in finances there are always disadvantages and risks involved, with an Ontario debt consolidation program there is four risk factors that can pose as issues. The first risk is that it will not automatically rid you of your debt, it will only transfer all your debts into one and you will still need to pay back the same amount of money at the end. The second risk is that it can cause you to fall deeper into debt. This can be done through maxing out credit cards again if not careful. The third risk is that there is a possibility that you end up paying more for interest. This is because it may take you longer to pay it off in which it results in a longer interest cost down the road. The fourth risk is that some people use collateral like a home equity loan, if you are unable to make payment its can put you at risk to potentially lose your home.  A debt consolidation program may help you in the long run but it is important to ensure you can make the payments to provide you with the best help down the road.

For more information on credit and debt issues, see debt consolidation Ontario.

Ways to Solve your Money Problems

When faced with money problems they are very scary, you don’t know what to do, where to turn and you feel embarrassed.  You fear discussing it with your family or friends because you feel like you are admitting that you have failed. It is important to know that many people who are having money problems do because of a life changing event. These life changing events can be things like losing their job, having their hour at work cut; going through a separation or divorce, or you may have been in accident or suffered from an illness that has stopped you from working.

There are ways to solve your money problems on your own without needing to seek financial help. The first way is to take stock by finding and laying out the most recent statement from everyone you owe. This can be things like a credit card statement, bank loan, car loan, mortgage or even a family loan. It is important you make a list of everyone and everything you owe and how much so that you can find out how much total you owe out.

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The second way is to make a budget, this can be scary but it’s actually simple, all you need to do is make a list of everything you spend each month. Essentially a budget is a projection on how much money you expect to spend, that allows you to view what you made, what you spent, what you have left over, and what you can cut back on to put towards debt. A budget does require you to stick to it, which can be difficult because we want more than we can afford but the reward at the end of it is worth it when you stick to it.

Overall, by allowing yourself to personally view your own money problems you can then decide to seek help if unable to get out of the mess alone. By doing an inventory and budget it gives you a lifelong tool that you can carry on and adjust throughout life. In return it allows you the confidence to learn how to deal with your money problems and gives you an open outlet to still seek help. It is important to remain as honest as you can with yourself so you are able to see all of your money problems, which in turn will have you solve those problems. For more information on how to solve your money issues, visit money problems Barrie.


Signs of Financial Problems

Financial problems are typical in a person’s life at some point. It is a common experience that most people are faced with at least once in their lives. It is important that you recognize when you are in financial trouble. Admitting you are in trouble can help you seek assistance to get out of financial danger. This is where you are required to take action in one way, shape or form. It is also important to recognize that every situation is individual so what is danger for one may not be for another.

In Canada some of the financial signs to look for to warn you when to take action are as followed. If you have failed to make one or more payments on a mortgage or a loan, if your credit cards are constantly at their limit, if you are paying bills by taking credit card cash advances, if your creditors have passed your account to collection agencies or if you have receive a notice of legal action being taken. You are experiencing a warning and it is telling you that are in a dangerous place financially.

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It is at this point that you must decide to take action, whether this means seeking professional help, or learning better techniques to keep up with your payments it is important you address the issue that you are facing. By facing this issue square on, you are dealing with your troubles which will assist you in getting back on tract, so that you don’t end up in too deep of trouble.

It is also important to recognize that every situation is different; being late on a payment is a lot different than taking cash advances that are getting you further in debt to pay off a bill. It is also important to recognize that sometimes events beyond your control require the hardship you have to face in your finances. Some of these hardships may be things like losing your job, experiencing a death in the family, going through a divorce or even a natural disaster. This is where you can seek professional advice to assist you in getting your life back on tract.

Overall, financial problems arise in people’s lives and it is important to not make excuses but rather seek help as soon as possible. This will make you aware of the options and methods of support that are available for you to make the right choice.  For more help with personal financial issues, visit financial problems Ontario.


What is Debt Consolidation?

Debt consolidation is a single loan that is generally from a financial institute that allows you to repay your debts to several or all of your creditors at once. You are then left with only one outstanding loan to pay off. The purpose of this is that it reduces the amount of interest you must pay out and has you only paying one loan at once. In most cases the financial institute will settle all your debts for you at once and leave you only having to owe one debt at a time.

There are a few reasons why people like debt consolidation better than just paying it all separately. This is because it is easier for cash budgeting with one predictable monthly payment instead of others. It lowers payments, because it usually has a lower interest rate, and it may have extended terms. It also reduces the risk of being late on monthly payments. With multiple places to make payments the debtors often rack up the interest when you may be unable to pay off each debt, thus making you further in debt in the long run. Another great benefit of this is it doesn’t affect your credit rating, like other financial alternatives such as bankruptcy.

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There are also some disadvantages of debt consolidation loans. One of these is that you may be required to give some form of collateral for this loan. This may mean a second mortgage on your house or a lien against your car or household furnishings. A lien is collateral against something like a car. If unable to pay off loan payments you are putting yourself at risk for losing your car, home, or household goods. Since you are getting one big loan you will still have a large monthly payment to make, so if you had trouble making other payments you could potentially have trouble making this one too. As well if you continue to have access to old credit cards etc. you may fall deeper into debt.

Overall if you are in a financial situation where you are struggling to pay off numerous amounts of debt payments and it is more than you handle, a debt consolidation loan is an option that is worth considering. But it also very important to review all your options before a final decision is made to ensure that this option is right for you.


How Credit Counselling Services Work

Credit counselling is set up to help you with solving debt problems no matter how troubling the financial situation is. Some reasons individuals may seek credit counselling is they are behind in paying bills, they have had money emergencies such as losing their job, or feel like they are not making enough money to get by. By seeking professional help an individual can find solutions for managing their debts and day to day living in an efficient way.

Credit counselling is done by providing you with help from highly qualified credit counsellors. These are individuals who are experts in finding debt solutions and who will help put a person on a path to debt payments that they can afford. Credit counsellors will design a debt management program that help control finances through a monthly payment process. They will work with the creditors to help individuals make debts smaller and more practical based on what they can afford. They also teach lifelong finance skills, such as how to fix credit, how to rebuild credit and how to manage a budget so that an individual can live a life free of bad credit.

Credit counselling is also done through teaching individual’s money management skills and how to create a budget. This is a great benefit that is a lifelong skill that can be brought into a home to help reduce and eliminate debt. This is done through developing a workable personalized budget, eliminating debts, building good money habits, learning how to regain financial stability, and by learning confidence in dealing with a budget. This is a huge advantage to credit counselling because the counsellor is not only looking to get rid of debt but rather teaching the stepping stones to remain out of debt. By teaching stepping stones of how to build a budget it allows the means to live a stable financial life with confidence.

Overall, credit counselling is beneficial to a family, individual or anyone who is experiencing debt problems. It works for you and not against you by helping eliminate debt, and regain the budget and money management needed to stay out of debt and in return builds financial stability. When looking into this program it is important to realize that they cannot fix all financial problems but can help to control debt and eliminate it so it does not happen in the future.

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