Bankruptcy Information

Once you decide to become bankrupt the Toronto bankruptcy trustee completes the paperwork with you and files it with the federal government. Your creditors are then advised by mail and are to deal with the bankruptcy trustee from then on. For secure debts such as car loans and mortgages, you continue to deal with those creditors under the original agreement you made. If you want to end a secured debt and have that creditors’ loss included in the bankruptcy, you must turn the secured asset over to the bankruptcy trustee when you become bankrupt.

The payments in a bankruptcy consist of the trustee’s basic fee and any requirements to pay surplus income as required by the federal government income rules. If you are receiving GST cheques every 3 months, these will be sent to the Toronto bankruptcy trustee until the trustee is discharged. Also, outstanding income tax and those for the year of bankruptcy will be done by the trustee. Any refunds will be sent to the Toronto bankruptcy trustee for those years, however debts up to the bankruptcy date are wiped out. Read full post…

Tags: Toronto, Toronto Areas

Sometimes non profit debt consolidation can save your life. One problem with taking credit is that the borrowed money plus interest must be repaid on a monthly basis – which can be difficult if you fall into financial difficulties. While it is easy enough to pay off debts while you are financially stable, things change if you suffer any financial setbacks. Unfortunately, there are more people today who find they are unable to make their repayments on their credit commitments. Over time this situation became much worse and this will ultimately affect credit rating of a person without a good credit score credit securing the future is virtually impossible. It is at this point where the debt consolidation can come very useful for people with bad credit.

Bad credit debt consolidation is primarily for people who have fallen behind on monthly payments of such a stage that has affected their credit history. These are people who are normally unable to secure any future debt due to the fact that they have bad credit and can not afford to make their monthly repayments. Read full post…

Tags: non profit debt consolidation

Question by AHG: Is my money any safer in a credit union than a regular bank given the current economic problems?
My husband and I have accounts in “regular” banks and a credit union. Is my credit union a safer place for money now than the regular banks given the bankruptcies and buyouts of those banks?

As long as the credit union or the bank is a member of FDIC, you should be ok, with amounts up to $ 100,000

Tags: Current Economic, Current Economic Problems, Economic Problems, Problems

If you are considering bankruptcy, you’ll need to know what to expect during each phase of the process after filing.

Here’s a basic overview of what to expect during the entire process:

First, you must decide which type of bankruptcy you want to file. Chapter 7 will free you of all of your debt, and allow you to begin rebuilding your credit after a few years. Many people do not qualify for this type of bankruptcy under new government guidelines established in 2005, however, which allow the court to determine if you indeed do qualify. Basically, the law requires you make less than the medium income in your state to file for Chapter 7 bankruptcy.

Chapter 13 bankruptcy requires you to pay back all of your debt within a specific timeframe in accordance to a schedule set by the court. While this may sound like a good solution, after all it’s allowing you to pay back everyone you owe, it can be difficult since the court decides how much of your income is used for debt payments, and how much you are able to keep to live on. Read full post…

Tags: Overview

Chapter 13 bankruptcy is sometimes considered “famous” for helping people avoid or delay foreclosure. But it’s important to understand that filing for Chapter 13 (or even Chapter 7 bankruptcy) does not guarantee that you will avoid foreclosure.

Here’s a look at why that is and how foreclosure after bankruptcy works.

Filing for bankruptcy temporarily stops foreclosure in most cases. Here’s why:

• A legal protection called the automatic stay takes effect as soon as the bankruptcy case is filed. The automatic stay halts all collection actions, including creditor calls, repossession and foreclosure.
• This protection typically stays in effect for the duration of the bankruptcy case. That could be as little as four to six months for a Chapter 7 case and as long as three to five years for a Chapter 13 case.

But the protection of the automatic stay only lasts as long as a filer sticks to the terms outlined by the bankruptcy agreement. In Chapte

Read full post…

Tags: Bankruptcy, Foreclosure Bankruptcy