FAQ
How do I get out of debt? We can help! Call us today to book your free person-to-person consultation! 250-999-2836
Why do I need an independent debt counsellor
In brief, a debt counsellor:
- give you the information you need and guides you through whatever solution you choose
- helps you gather and present the information you need
- helps you hang on to the assets that you are legally allowed to protect
A GOOD debt counsellor will work with you throughout your process to ensure that your obligations are met. Failing to meet your obligations can result in a cancelling of the process (if you’re working with a consumer proposal, or have selected credit counselling) or a prolong the process (if you’re in bankruptcy). And where both trustees and not-for-profit credit counsellors generate income by how much they can wring from your wallet, a good debt counsellor will help you choose the solution that benefits you best.
An EXCELLENT debt counsellor will also
- know the Bankruptcy and Insolvency Act
- help you understand and interpret your obligations
- help you present yourself to the trustee
- be there for you through your rough patches, and listen without judgement
- prepare you for, and get you over, any hurdles that might get tossed your way (such as a meeting with the creditors, or an interview with the Office of the Superintendent)
- offer the support and wise counsel that will get you through this hump in life
- get you up-and-running when you get to the other side.
While we recommend our services, we ultimate hope you seek someone to fulfil this role for you, and travel your journey by your side. Which is why we will refer you to our competition. You need not travel this hard journey alone.
How much does it cost to file for bankruptcy?
How much does it cost to file a consumer proposal?
What if I simply cannot afford to pay anything?
- intend to file for personal bankruptcy
- have more personal debts than commercial debts
- have made at least two attempts at finding a trustee
- not be involved in commercial activities
- not be incarcerated
Other criteria may apply.
If I ignore this, will it go away? If you are unemployed and have no assets, or if you are retired and on a small pension, and you simply cannot find the money to repay your debts, you could simply open a new bank account at a new bank and then stop paying your debts. Your creditors will call you. They may even take you to court. Creditors have legal means to collect what they are owed, but if you have no assets and earn little, there is nothing they can do. Except of course to continue with the harrassing phone calls and letters. And even those end. Doing nothing leaves you exposed until the statute of limitations for debts have expire. In BC (Section 3 (5)), it’s six (6) years. But if you have no property to seize and no wages to garnishee, there is probably not a whole lot they can do. The harassing phone calls can be stressful, but they may be less stressful than fretting about debts you simply cannot pay. If you do have assets and/or are employed, you might want to consider your other options.
If I ignore this even though I do have the money to pay, what can happen?
How long will I be in bankruptcy?
What are the alternatives to bankruptcy?
Keep in mind that a trustee only earns an income if you opt to go through them. Typically, they earn more when you file a “Consumer Proposal” and less when you file for bankruptcy. In rare cases, they might recommend debt consolidation or credit counselling — because there’s nothing in it for them if you choose other alternatives.
What stays longer on my credit rating, a consumer proposal or bankruptcy?
- R1 – You pay that creditor’s loan on time.
- R2 – Your payments are 30 days late.
- R3 – Your payments are 60 days late.
- R4 – Your payments are 90 days late.
- R5 – Your payments are 120 days late.
- R6 – Typically not used.
- R7 – You are in a consumer proposal, consolidation order, or debt management plan (offered through a non-profit credit counselor).
- R8 – It is used to show that a secured creditor has taken steps to realize on their secrity (e.g. repossessed your car). It rarely appears on a credit bureau report as after they take your car they generally commence legal or collection action which is rated R9.
- R9 – A bad debt placed for collection or considered uncollectible, or you are bankrupt.
What am I required to do while I'm in bankruptcy?
Can I file for bankruptcy with someone other than a trustee?
Who does the trustee work for?
How does a trustee earn their money?
Is there anything I can keep in bankruptcy?
I owe $50,000. What are my options?