Debt consolidation loans and debt settlement plans are among the most popular options in Canada’s financial services industry today. Even as the economy slowly regains stability, the demand for these and similar services still grows as many Canadians struggle to find ways to clear up large debt loads and meet various financial obligations, one of which is credit card debt. As you may already know, falling behind in your payments to creditors can bring down your credit rating. If things worsen, Lethbridge creditors may withhold credit by lowering credit card limits or closing accounts altogether. You are also bound to contend with higher interest, and the possibility of being unable to borrow money to pay for a car, home, or large home appliance. These repercussions make it necessary for you to rebuild your credit as soon as possible. In addition to finding ways to eliminate debt, reestablishing credit should also be of high priority. Here are some things you should know to improve your chances at fixing credit, fast:

• You must eliminate current debts prior to fixing your credit.
• If you are insolvent, you may be unable to obtain approval for a debt consolidation loan.
• You cannot get credit until the completion of your debt settlement plan.
• Personal bankruptcy helps you fix debt and reestablish credit quickly.
• You must be gainfully employed and have enough savings to fix your credit score.

You cannot do much to start fixing your credit until you’ve paid all current debts. Also, a low credit score will remain where it is until you’ve cleared up your debts, or at least enrolled in a program that reduces debt towards eventual elimination over time.

Debt consolidation loans, which are widely promoted both online and offline, are popular among many Canadians who can no longer deal with their debts. This debt management method can be attractive to some as it preserves the individual’s credit score. However, you will need to be in good standing credit-rating wise and have valuable assets with which to secure said loan. If, for example, you owe $20,000 to a few creditors and have been unable to make your payments, it is unlikely that you will qualify for a debt consolidation loan.

The promise of debt slashed by half or more entices many debtors into applying for debt settlement plans. These plans also claim that they do less damage to your credit compared to a personal bankruptcy filing. This may be true, but the fact is that both the R7 rating you receive with a debt settlement plan – one that indicates repayment of debt in alternative ways – and the R9 notation you get with personal bankruptcy has the same effect: no creditors will work with you until the completion of whatever means of debt resolution you have chosen. You will need to deposit enough money to cover the settlement amount and your provider’s commission to complete a debt settlement plan, while you will only need to wait for a bankruptcy discharge when you file.

Although there are some good reasons why you should try to avoid bankruptcy if your situation merits it, those who absolutely must file should know that they can fast-track rebuilding their credit with this legal action. Bankruptcy can generate disposable income that you can channel towards fixing credit faster than you would with debt settlement plans. Why? It usually takes three to five years to complete said plan, while first-time bankruptcy filers can be discharged from bankruptcy in nine months to less than two years.

The money you place in a savings account and the secured credit cards you use can go a long way in rebuilding your credit. However, you should know that reestablishing credit with these two tools requires regular employment and a steady income. Creditors will not work with you if you don’t have the resources with which to make debt payments.

Essential Information on Reestablishing Credit in Lethbridge is a post from: Personal Bankruptcy Lethbridge

In recent years, Student consolidations loans have become an essential tool for hundreds of Lethbridge residents making their way in the post-university world. The financial pressure that many recent graduates experience has made this type of loan a necessity, mainly due to the rising costs of schooling and the lack of job prospects some students bear. What these loans do is merge the multiple loans a student incurs in college or university for easier repayment after graduation. Here is some basic information about student loans and student consolidation loans that may help your financial planning for university a little bit easier.

Loans from Federal Sources

Government-backed student loans should be the individual’s first option for financial aid. These loans are backed by the provincial, territorial, or federal government, and are often easier to repay because they do not have interest rates as high as those associated with private student loans.  In addition, these loans have more flexible payment terms that allow loan payment adjustments, among other benefits. Your local high school or student loan office is the starting point for your application, which can give you access to both loans and grants in one application.

Loans from Private Creditors

If your application for a federal student loan has been denied or you need additional funding, you can visit a local bank or other financial institution to apply for a credit line or private student loan. Qualifications, of course, have to be met. The process is similar to applying for loans for cars or homes, and may require the presence of a co-signer for application.

Paying Your Student Loan

You must pay your government-funded student loan six months after obtaining your degree or certificate from your university or college. This is also a good time to look at student loan consolidation. If you cannot seem to manage the necessary repayments, you may be able to have your payments reduced and/or the loan payment term extended.

Student loans or credit facilitated by private lenders typically begin accruing interest and some even require repayment right after disbursement. Consider the various aspects of loans – including repayment rates and interest – from different providers prior to choosing one.

Some Tips

In some cases, even with a good loan with decent terms you might have difficulty repaying your student loan debt. To reduce the amount of money you need to borrow, it is critical to start a college savings fund early on. Start by setting one up with your parents or on your own, and try to find a part-time job before college and in college to help you boost your savings account balance.

With higher education comes more responsibility than homework. It also necessitates that you have adequate monetary resources with which to fund your stay. Aside from building a college fund as soon as you decide to go to university and getting a part-time job for extra cash, you may need to consider student loans to help you get by.  Just keep in mind that student consolidation loans can help you better manage your post-graduate finances. Contact your local loan office or financial institutions for more details.

What You Need to Know about Lethbridge Student Consolidation Loans is a post from: Personal Bankruptcy Lethbridge

The average Lethbridge debtor has access to many structured programs that can help clear up debt, but it is important to note that only two of these provide legal protection from collection activity and creditors. These two debt relief options are the consumer proposal and personal bankruptcy filing, which are facilitated by licensed bankruptcy trustees. Both options require the completion of a statement of financial affairs.

A Statement of Financial Affairs is necessary because it helps to prove the debtor is indeed insolvent, or incapable of addressing debt payments and other financial obligations with the money and assets he or she currently possesses. If you have savings tucked away or assets that can be sold off for money to make payments to your creditors, you are not considered insolvent.

Some debtors choose to try to renegotiate the payment terms of their debts with various creditors to avoid more the drastic solutions of proposals and bankruptcy. These debtors need to supply their creditors with the same information as contained in the Statement of Financial Affairs to prove they can no longer meet the terms of their agreement.  Completing a Statement of Financial Affairs may also help you see some of your spending habits for what they really are and make some changes.

The Statement of Financial Affairs contains five sections of information that you need to complete.

Step 1: Assets

The form requires the debtor to list all of his or her assets and each item’s description and estimated current market value. The trustee will then determine which assets are subject to surrender for liquidation, in addition to noting the proceeds that can be made from the sale of each one, and which assets are exempt from sale. Determining the value of assets may be accomplished by estimating how much it would fetch at a garage sale. Since the amounts these items sell for second-hand can be low, the debtor may see how generous the exemption allowances for some assets are in his or her area of residence.

Step 2: Liabilities

The next area of the form calls for all that owed, also known as liabilities. These liabilities should include both secured (i.e. mortgage) and unsecured (i.e. credit cards) debt.

Step 3: Personal Information

In this section, it’s personal information that’s required.  This would include occupation, family size, and the like. It also requires the disclosure of current employment, although neither the trustee nor the courts will inform the employer about the person’s consumer proposal or bankruptcy filing.

Step 4: Budget Information

The fourth portion of the document asks for data on the individual’s budget, and should comprise all income streams and expenditures. This section will also ask if the debtor has filed for bankruptcy previously, and offers the individual the chance to explain the cause of his or her financial instability.

Step 5: Recent Transactions

The last section will question transactions made by the debtor in the recent past. Has the debtor given any large cash gifts to friends or family within the past five years? Has any property been sold? Were there any large payments made to any creditors? This part of the statement of financial affairs guards against debtors circumventing the bankruptcy system by hiding their assets or money to avoid surrender to the courts or trustee for debt payment.

What is a Statement of Financial Affairs In Lethbridge is a post from: Personal Bankruptcy Lethbridge

The average Lethbridge debtor has access to many structured programs that can help clear up debt, but it is important to note that only two of these provide legal protection from collection activity and creditors. These two debt relief options are the consumer proposal and personal bankruptcy filing, which are facilitated by licensed bankruptcy trustees. Both options require the completion of a statement of financial affairs.

A Statement of Financial Affairs is necessary because it helps to prove the debtor is indeed insolvent, or incapable of addressing debt payments and other financial obligations with the money and assets he or she currently possesses. If you have savings tucked away or assets that can be sold off for money to make payments to your creditors, you are not considered insolvent.

Some debtors choose to try to renegotiate the payment terms of their debts with various creditors to avoid more the drastic solutions of proposals and bankruptcy. These debtors need to supply their creditors with the same information as contained in the Statement of Financial Affairs to prove they can no longer meet the terms of their agreement.  Completing a Statement of Financial Affairs may also help you see some of your spending habits for what they really are and make some changes.

The Statement of Financial Affairs contains five sections of information that you need to complete.

Step 1: Assets

The form requires the debtor to list all of his or her assets and each item’s description and estimated current market value. The trustee will then determine which assets are subject to surrender for liquidation, in addition to noting the proceeds that can be made from the sale of each one, and which assets are exempt from sale. Determining the value of assets may be accomplished by estimating how much it would fetch at a garage sale. Since the amounts these items sell for second-hand can be low, the debtor may see how generous the exemption allowances for some assets are in his or her area of residence.

Step 2: Liabilities

The next area of the form calls for all that owed, also known as liabilities. These liabilities should include both secured (i.e. mortgage) and unsecured (i.e. credit cards) debt.

Step 3: Personal Information

In this section, it’s personal information that’s required.  This would include occupation, family size, and the like. It also requires the disclosure of current employment, although neither the trustee nor the courts will inform the employer about the person’s consumer proposal or bankruptcy filing.

Step 4: Budget Information

The fourth portion of the document asks for data on the individual’s budget, and should comprise all income streams and expenditures. This section will also ask if the debtor has filed for bankruptcy previously, and offers the individual the chance to explain the cause of his or her financial instability.

Step 5: Recent Transactions

The last section will question transactions made by the debtor in the recent past. Has the debtor given any large cash gifts to friends or family within the past five years? Has any property been sold? Were there any large payments made to any creditors? This part of the statement of financial affairs guards against debtors circumventing the bankruptcy system by hiding their assets or money to avoid surrender to the courts or trustee for debt payment.

What is a Statement of Financial Affairs In Lethbridge is a post from: Personal Bankruptcy Lethbridge

Filing for bankruptcy is not always an option for many Canadians because the truth is, few Canadians really understand the bankruptcy process. More often than not, Canadian debtors who would benefit from the debt relief provided by bankruptcy protection will pursue less effective debt management methods because of the inaccurate and misleading information they’ve come across about bankruptcy. It’s critical that anyone struggling with debt get the right answers to bankruptcy questions and bankruptcy trustees are the most reliable source of that information.

Some of those who have been misled by incorrect bankruptcy information have gotten their information from the Internet. While there is a wealth of information to be found on the web, it’s usually general in nature and it’s difficult to apply to your own personal situation. Canadian bankruptcy law mandates that anyone filing for bankruptcy consult with a licensed bankruptcy trustee.

Trustees are the only debt relief professionals supervised, trained, and certified by the federal government.

Trustees must undergo rigorous training in order to become licensed by the Office of the Superintendent of Bankruptcy.  They are held to the highest of standards and are the most trustworthy and knowledgeable debt advisors in the industry.

Trustees can do much more than assist debtors in bankruptcy preparation and proceedings.

The Bankruptcy and Insolvency Act (BIA) requires trustees to counsel those who come to them on all available debt solutions. They can recommend options other than bankruptcy if your finances warrant it, including, but not limited to budgeting, credit counselling, debt consolidation, consumer proposals and more.

Trustees are experts at diagnosing your situation and recommending the best debt management methods.

Most trustees, aside from having received training and certification from the Office of the Superintendent of Bankruptcy, also have educational and professional experience in accounting and related fields, adding to their expertise and experience in debt management.  A trustee will conduct a complete assessment of your finances and create a tailored solution to fit your unique needs.

A trustee is not only a source for accurate and reliable answers to bankruptcy questions – a trustee can provide you with a solid plan to get out of debt, rebuild your finances and get back on your way to financial solvency.

Who Can Provide Answers to Bankruptcy Questions in Lethbridge is a post from: Personal Bankruptcy Lethbridge

If you are like one of thousands of debtors in the country, you may be considering debt relief methods such as debt consolidation. Credit counseling experts find that these and other options for debt relief are becoming more popular as the economy continues to struggle and people make do with less and less. No matter how large or small your financial problems may be credit counseling can help. Unfortunately, most people who need the help do not seek it.  If you are thinking about debt consolidation, credit counseling can help.

Debt consolidation is one of the most simple means of debt management.  If you have equity in your home or another significant asset and good credit, it’s likely you’ll be approved for a debt consolidation loan.  That’s the easy part.  The hard part is changing the spending habits that got you into financial difficulty in the first place.  That’s where the expertise of a credit counselor can come in handy.

Here’s an example:  An individual accumulates credit card and loan debt worth $25,000, overall. He has built up a considerable amount of equity in his home, which he can use to borrow money against. He has, at the moment, a decent credit rating, and with it no trouble in finding a creditor to lend him money he can use to pay off his credit card bills. Problem solved, right?

Realistically speaking, the person has not reduced his debt at all – what he has done is lowered the monthly payments he needs to make towards his overall debt with cash borrowed against his home equity. Prior to the loan, his overall debt was comprised of credit card and installment loan payments.  After debt consolidation, he now has a loan against his home equity requiring the monthly payments to satisfy the terms of the loan, but his credit card debt has been cleared. Important to note, his credit card balances now read zero, which could very easily push him back to the brink of financial disaster if he doesn’t change his spending habits. In no time at all, his credit card balances will build up once again, only now he also has the debt consolidation loan to content with, possibly putting his home at risk if he cannot make all of the payments.

Because not many lenders require credit counseling or the closure of credit card accounts, people often borrow money to clear some debts, only to build new debt or accumulate larger debts than they had in the first place. When it comes to government supported debt relief solutions such as the Orderly Payment of Debts, bankruptcy filings, and consumer proposals, at least two credit counseling sessions are required. These sessions lower the likelihood of a relapse into debt by giving the debtor the education he or she needs to understand how to manage debt better. Within these sessions, discussion is not solely limited to information about debt consolidation – credit counseling can teach an individual to curb debt by lessening spending, increasing income, budgeting and making the most out of what you currently have.

Why is Debt Consolidation Credit Counseling Necessary is a post from: Personal Bankruptcy Lethbridge

Are you faced with overwhelming debt that you can no longer manage by conventional means such as reducing spending, selling off some things you own, or renegotiating the terms of your debt payments? Debt that can no longer be managed by means such as reducing household expenditures, selling belongings for extra cash, or restructuring the way you pay your debts for improved liquidity may need a Lethbridge consumer proposal. How do you know if this legal debt relief method is right for you? Here is some consumer debt proposal information for Canadians to help you decide:

What is a Consumer Proposal?

A consumer proposal is an agreement between you and your creditors regarding the payment and settlement of your debts. This agreement is a legally binding one drafted by a bankruptcy trustee and agreed to by a majority of your creditors that allows you to pay a portion of your total debt over a pre-determined period of time. Because it can be a complicated process, the Bankruptcy and Insolvency Law requires that you work with a licensed bankruptcy trustee. Prior to the consumer proposal taking effect, a majority of the creditors involved need to approve it.

What are the Advantages of a Consumer Proposal?

There are many advantages to a consumer proposal as a means of debt relief. These are:

• An immediate halt to any and all collection activity, including phone calls and letters from creditors and wage garnishments. A consumer proposal affords the you legal protection against these actions.
• The retention of your home and various valuable assets, which may otherwise be taken away for liquidation in bankruptcy.
• No more accumulation of interest and other peripheral fees on your debts.

What are the Qualifications for a Consumer Proposal?

There are certain criteria for the approval of a consumer proposal application, such as:

• A debt amount in the range of $5,000 to $250,000. This amount excludes home mortgages.
• Current employment and the ability to generate enough income so that you can pay the agreed amount towards your debt every month.

There are many things you should consider before you talk to your licensed bankruptcy trustee and apply for a consumer proposal. This legal agreement and debt relief action also comes with disadvantages such as a credit score downgrade, the repayment of all debts contained in the proposal, and the continued obligation to pay other debts (child support, alimony, car loan payments, and mortgage payments) in their entirety. Set up a meeting with a bankruptcy trustee in Lethbridge so you can appraise your circumstances and discuss consumer debt proposal information for Canadians prior to developing your financial strategy.

Essential Consumer Debt Proposal Information for Canadians is a post from: Personal Bankruptcy Lethbridge

Bankruptcy paperwork can be daunting, to say the least, but you will have to accomplish it to the satisfaction of the courts if you want to obtain the debt relief that comes with filing for bankruptcy in Lethbridge. It’s good to know that Canadian laws mandate the collaboration between a filer and a licensed bankruptcy trustee, not just in facilitating bankruptcy proceedings but in the various tasks that are required in bankruptcy preparations as well. Here are a few things you should know about bankruptcy paperwork, and why its proper execution is essential when filing for bankruptcy.

The Required Bankruptcy Paperwork

Four documents are essential to the proper filing for bankruptcy. You have to complete these documents in order for your filing to be approved:

• Statement of Affairs
• Assessment Certificate
• Monthly Statement of Income and Expenses
• Assignment of General Benefits of Creditors

All of these documents, which you will sign after your trustee prepares them, will then be submitted to the Office of the Superintendent of Bankruptcy. Since these are legally binding papers, the information found in these documents needs to be truthful and comprehensive.

Gathering the Required Information 

The OSB uses the information in these papers to complete your bankruptcy filing and inform your creditors about your current financial wherewithal. Your Monthly Statement of Income and Expenses along with your Assessment Certificate comprise facts that give your trustee and the courts details about your financial circumstances. You will have to provide the following:

• Your name, birth date, and place of birth
• Your address
• The names of family members and each person’s status
• A complete and precise list of all debts and other fiscal obligations
• Your employment status at present
• Your overall income per month
• Other sources of irregular or regular income
• A list comprising all assets you own

After completing these documents, your trustee will have a better idea of your situation. The remaining documents will be used to determine if you make surplus income, and if you have to pay towards a bankruptcy estate while you are still in bankruptcy.

Bankruptcy is, by no means, an easy task. Even with the aid of a qualified expert such as a licensed bankruptcy trustee, you will still have to spend a lot of time and effort if you want a bankruptcy declaration that clears up your debts. Fortunately, your trustee will guide you through proceedings and help you with preparations, including the completion of bankruptcy paperwork to the satisfaction of the court, your creditors, and the Office of the Superintendent of Bankruptcy.

Bankruptcy Paperwork You Need to File in Lethbridge is a post from: Personal Bankruptcy Lethbridge

The potential impact of an emergency filing on some debtors in the United States can offer Lethbridge residents better insight into the Canadian bankruptcy system. Both countries obligate debtors that seek debt relief via bankruptcy to attend a minimum of two formal meetings with a credit counselor, but the timing of these sessions is different – the US requires the prospective filer to meet with a counselor once before filing for bankruptcy, in Canada they meet twice during bankruptcy.

United States bankruptcy law mandates one session before the filing occurs so that debtors will be well-equipped in the understanding of what to expect from bankruptcy proceedings. This pre-bankruptcy counseling can also allow American debtors to learn about and explore any other possible solutions for debt relief with the help of their advisors.  As a result, some Canadians feel the US process is better, but what they fail to understand is that their initial consultation with a bankruptcy trustee will produce the same results.

When does the difference in timing become problematic? When Americans faced with debt they cannot manage are pressed into action. When notices of asset seizure or wage garnishments come, these people are likely to submit petitions for filing, only now, they are unlikely to complete the said requirements in time to halt collections. For wage garnishment scenarios, the situation and its repercussions may be much less severe, as a stay of proceedings will eventually occur to stop garnishments from being implemented on a debtor’s wages, but property foreclosures or the repossession of vehicles necessitate quicker action and resolution. What the debtor can do here is talk to an attorney specializing in bankruptcy as soon as possible, after which one has a higher chance of completing the requirements of emergency filings so that asset seizure can be stopped until the issue is formally resolved by a bankruptcy declaration. The paperwork needed for emergency filings should be submitted within one to two weeks.

Bankruptcy filings that are incorrect or incomplete are yet another concern US bankruptcy filers face. This scenario is a non-issue in Canada, mostly because licensed bankruptcy trustees trained and certified by the Office of the Superintendent of Bankruptcy are there to file bankruptcy and help the debtor prepare for proceedings. These professionals are the best resources for bankruptcy counsel and debt relief assistance – they also make sure that the filer fully understands what he or she should expect from bankruptcy. In the US, the phenomenon of DIY or Do-It-Yourself filing is widespread, causing many to overlook the details necessary for a proper bankruptcy filing. US debtors should seek assistance in an emergency filing as failing to complete the proper paperwork and satisfy the requirement could result in more financial difficulty for the would-be American filer.

The Bankruptcy Process in Lethbridge As It Compares to US Emergency Filings is a post from: Personal Bankruptcy Lethbridge

There are a lot of questions the average debtor considering bankruptcy has, some of which can be answered by these FAQ bankruptcy filers have asked in Lethbridge. This information is essential to the individual, as it can help preparations for bankruptcy proceedings and life after bankruptcy. Here’s a closer look at the top FAQ bankruptcy filers discuss with their trustees:

Will I have to give up my home in bankruptcy?

Giving up your home during bankruptcy is possible – there are no concrete rules as to who can and cannot keep their places of residence in a bankruptcy filing. The factors that can effect whether or not you keep your home depend on the equity accumulated in your home and the regulations surrounding the retention of this asset in your own province or territory. Most provinces have equity allowances, while a few do not. In areas where there is no such allowance, people with homes that have even low equity value may have to turn these assets over to the bankruptcy estate for liquidation. In other areas, homes with values higher than the established exemption limits may also have to surrender their homes. A bankruptcy trustee licensed in your area is the best source of information about exemption regulations in your province.  It may be possible to pay the bankruptcy estate the difference between your actually equity value and the provincial limit, but only a trustee can let you know for sure.

What else will I lose when I declare bankruptcy?

The answer to this question depends on the exemption laws in your own territory or province. However, for the most part, many provinces allow debtors to keep some assets that can help them live productive lives and bounce back from the financial effects of bankruptcy. The information you will be required to provide to your trustee during preparation for bankruptcy will allow the courts to determine what assets you can and cannot keep.

Is it important to work with a licensed bankruptcy trustee?

The government mandates that bankruptcy filers work with licensed bankruptcy trustees.  Trustees help the filer prepare for bankruptcy as well as facilitate the bankruptcy proceedings, but that’s not all they do. These bankruptcy professionals are also debt relief experts who are qualified to recommend other forms of debt resolution as alternatives to bankruptcy should your situation merit those options.  You can review all of your options with a trustee at your initial consultation, which in many cases, is free.

Will the people I know learn about my financial situation?

Unless they have good reason to do so, your friends and family aren’t likely to request an insolvency name search and find out about your filing or declaration, although your creditors will be actively notified.

When will I obtain a discharge from bankruptcy?

First-time bankruptcy filers may receive their discharge nine months after a declaration, providing they have no surplus income. Repeat filers and those who are required to pay surplus income to the bankruptcy estate will be in active bankruptcy for a longer period of time.  Again, your trustee is the best source of information about how long your bankruptcy will last.

There are many things on the mind of the debtor and potential bankruptcy filer. For more information such as the answers to these and other FAQ, bankruptcy trustees and the Office of the Superintendent of Bankruptcy are the best resources for counsel and assistance.

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Top FAQ Bankruptcy Asked by Filers in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Declaring bankruptcy in Lethbridge can be an effective means of debt relief.  While it has its advantages, a bankruptcy declaration does have negative effects on a filer’s finances, which is one reason why those who may benefit from it do not even bother to educate themselves on what bankruptcy actually does. This lack of information pushes many debtors into believing whatever they hear about bankruptcy, no matter how false. One misconception that causes these individuals to think twice about bankruptcy, even if it is the best debt management solution for them ,is that this legal action will result in trouble opening bank accounts.

The government began implementing the Access to Basic Banking Services Regulations in 2003. Since then, banks regulated by the federal government have been prohibited to deny applicants access to basic banking services like bank accounts if they have not committed fraud or crimes against banks or bank personnel, and have not provided false identification. Bankrupt individuals or those who have obtained bankruptcy discharges are among the individuals whose rights to basic bank services are protected by the aforementioned regulations.

Access to Basic Banking Services Regulations does not apply to bank applications over the Internet or by telephone – you must be there in person and provide the bank with original documentation. The ID required in cases like these are the usual; your passport, driver’s license, SIN card, naturalization certificate, Canadian birth certificate, or health card will do.

Those who are waiting for a bankruptcy discharge, have declared bankruptcy, or lost their jobs should not be denied bank accounts and other basic services. These regulations that protect the debtor/filer’s rights are enforced by the Financial Consumer Agency of Canada. You may go to the FCAC to file a complaint if these services are withheld by a federally-regulated bank due to a past bankruptcy filing or job loss. The forms necessary to making said complaints may be found on the website of the FCAC.

Bankruptcy is already an arduous ordeal for many debtors, even if these individuals know all that they need to know regarding the matter – it can be even more difficult if the person thinking of filing has misconceptions about bankruptcy. Licensed bankruptcy trustees are experts on bankruptcy and debt relief, who can do much more than provide you with information and expert counsel in bankruptcy proceedings. These professionals can also disabuse the potential filer of ideas such as trouble opening bank accounts after a declaration, and provide information on the various legal debt relief options that may be just what the debtor needs.

Will a Lethbridge Bankruptcy Cause Trouble Opening Bank Accounts? is a post from: Personal Bankruptcy Lethbridge

Lethbridge debtors considering bankruptcy should keep in mind that a furniture exemption, among others, may allow them to retain some of their assets in a bankruptcy declaration. These exemption allowances should be part and parcel of your research so you will be in a better position to prepare for the effects of bankruptcy on your assets and general finances. Insolvency laws have put regulations involving these exemptions in place so that bankrupt individuals can retain some assets that they need to work and live.

What is an Exemption?

Exemptions can be defined as the assets or items you may be able to keep despite the liquidation of assets often present in bankruptcy proceedings. As long as these assets meet the stated guidelines as set forth in local insolvency law, there is a chance that you can hold on to them even when you are declared bankrupt. There are some general exemptions in addition to those for furniture, such as:

• The filer’s primary home
• Vehicle
• Food
• Clothing
• Occupational equipment

As you may have noticed, these assets can be considered essentials. Luxury items such as expensive electronic equipment are not included in the furniture exemption allowances, and may be sold in bankruptcy proceedings should the need for liquidation arise.

Exemption Limits

The allowable equity value for items considered in a furniture exemption can differ considerably from one area to another – as such, the exemptions for one province may not be the same as the next. These exemptions are regulated by legislation specific to your province or territory, and any inquiries as to the allowable equity value limits set on each must come from your local government office or a bankruptcy trustee licensed to handle cases in your area.

Aside from local bankruptcy trustees and government offices, you can visit the website of the Office of the Superintendent of Bankruptcy to find general information about bankruptcy asset exemptions.

Calculating Value for Exemption

You should have a good idea of how much your furniture and other items are worth so you can plan for your bankruptcy declaration and know what items you may or may not keep. Your bankruptcy trustee can help you with the calculations. You should start with a list containing all assets and items you own, as well as the respective values of each of these items. Remember that you should document the current value of an item, and not its original price, in the process of identifying which ones may be covered by local furniture exemption regulations.

Furniture Exemption Information for Lethbridge Bankruptcy Filers is a post from: Personal Bankruptcy Lethbridge

Canadian debtors looking for Lethbridge bankruptcy information on the Web might have some trouble filtering through all the entries they find. The amount of information on the topic one can find is, at the very least, overwhelming.  Pre-bankruptcy credit counseling services is one of the topics that confounds debtors, which in turn may prevent them from resolving their financial problems.

Many websites put up by licensed bankruptcy trustees state that a filer has to attend a minimum of two credit counseling sessions during bankruptcy proceedings. These sites, however, do not mention credit counseling prior to the filing of bankruptcy, which can actually increase the chances of resolving your monetary concerns because these problems are caught and addressed early on. On a related note, debtors searching for bankruptcy information on the Web may have also found that the search engines deliver results for bankruptcy topics from both the United States and Canada. Although there are some similarities on the matter of bankruptcy in these two countries, it is important to know what the differences are so you can make well-informed decisions regarding credit counseling and other aspects of bankruptcy. Here are a few things you need to know about credit counseling for bankruptcy in the US and Canada:

• United States residents are required to undergo pre-bankruptcy credit counseling before they can file for bankruptcy, while Canadians are not required to obtain counseling prior to filing.

• Canada bankruptcy legislation mandates that a filer complete a minimum of two credit counseling sessions to the satisfaction of the counselor to qualify for a bankruptcy discharge.

• Pre-bankruptcy credit counseling services may help the debtor to avoid filing for bankruptcy because of possible debt resolution brought by the counseling.

Credit counseling, whether it happens before, during, or after bankruptcy, can be a useful tool to help an individual stabilize the state of his or her finances. Help with topics such as how to cut down on household expenditures and how to use credit properly are just some of the subjects that can help you control your finances better. Also, credit counselors can help you to pinpoint the exact causes of your economic problems and identify a range of solutions to these concerns.

Many debtors in the United States and Canada have money problems that balloon out of proportion, mainly because they fail to seek qualified assistance that will allow them to ease financial stress early on. The small percentage of debtors that do manage to look for help before their problems become unmanageable is often pleasantly surprised that they would not have to file for bankruptcy to resolve these issues.

Canadian bankruptcy trustees may offer an initial counseling meeting at no cost. Take advantage of these services early enough and you may be able to work out your overwhelming debt and reduce its effects on your finances and future.

Can Pre-Bankruptcy Credit Counseling Services Help You Avoid Lethbridge Bankruptcy? is a post from: Personal Bankruptcy Lethbridge

Lethbridge residents who are deep in debt often have tons of things to think about: a possible bankruptcy filing, potential asset loss, and a damaged credit rating are just a few of these things. If prospective bankruptcy filers don’t have enough to worry about, there’s the possibility that those close to them may find out about their sad state of financial affairs via a bankruptcy name search. Is this a valid concern the debtor should consider before filing for bankruptcy?

Consumer proposals and bankruptcy filings, upon approval or declaration, are legal agreements as stated by the BIA or Bankruptcy and Insolvency Act. Once filed, these actions are deemed part and parcel of the public record. The Office of the Superintendent for Bankruptcy keeps a record of these filings, which are contained in a database that is accessible to virtually anyone – not just the filer, creditors, and bankruptcy trustee or others directly involved in the consumer proposal or bankruptcy filing. Agencies that provide credit reports, in addition to the general public, may also access this information.

These legal agreements are kept in searchable databases. If there are any individuals or groups that wish to determine whether or not a person has filed for bankruptcy or applied for a consumer proposal, answers may be found via the Office of the Superintendent for Bankruptcy for a fee. After the searcher has opened an account with the OSB and paid the fee, they may conduct a bankruptcy name search.

There are no requirements for people who wish to do a bankruptcy name search – anyone who applies for a search and pays the fee can do so and determine if a person has filed for bankruptcy or a consumer proposal. A searcher need only to provide the name, age, and place of residence of the person they want to know about.  That said, it is highly unlikely that anyone will conduct a bankruptcy name search on you unless they have specific reason to do so.  Chances are, your neighbor will not be signing up for an account with the OSB.

In some cases that involve very large sums of money, the bankruptcy filing and its details may be published in newspapers. The information comes from the bankruptcy trustee involved in the case. The disclosure of the details surrounding a big-money bankruptcy case serves to inform the filer’s creditors of the filing.

There are already so many considerations that go through the mind of the debtor, including the possibility of filing for bankruptcy as a means of debt relief. In turn, there are as many (if not more) concerns that go through the mind of the person facing an impending bankruptcy filing, which typically requires the counsel and assistance of a certified financial professional. Those who are preparing for a possible consumer proposal or bankruptcy declaration in Lethbridge should not let the effects of a bankruptcy name search weigh too heavily on their minds, as it is highly unlikely for other people to know about your financial situation via a deliberate search for relevant information – this is something you’ll learn from your licensed bankruptcy trustee.

Important Information About Bankruptcy Name Search in Lethbridge is a post from: Personal Bankruptcy Lethbridge

It’s unfortunate that so many students fresh out of college have to contend with overwhelming debt, causing them to look for bankruptcy help due to lack of income and gainful employment in Lethbridge. The financial situation seems bleak for many recent graduates because of the debt they’ve accumulated; money they owe due to the combination of credit card debt and student loans. Once they exit university, many can’t find the work they expected prior to graduation, which then causes them to seek bankruptcy help.

Avoiding Mounting Debt

A student’s financial lessons should start long before it’s time to enter college. Because many would-be college students aren’t financially literate, they tend to overspend on their credit cards and take large student loans to pay for the costs of college education. Although credit cards can be a good tool in helping one manage his or her finances in school, inadequate knowledge about proper money management makes credit cards a bane for those who use these recklessly. Some financial experts and advisors are against the concept of college-aged children using credit cards away from home precisely because of the financial damage they can cause.

You can teach your children financial responsibility by lending them money and being strict about payment terms. You may also give them debit cards with instructions not to incur overdrafts often. If you must have credit cards issued to your children in college, ensure these cards have low credit limits so they won’t accumulate a lot of debt should they decide to charge purchases frequently. These are just a few options that can help your kids avoid too much credit card debt while they learn to manage their money the right way.

Work and School

Student loans are one of the college student’s primary financial concerns. Student loans are often necessary because the student does not have enough monetary resources to pay for the high costs of education, school books, and other miscellaneous expenses. This concern may be mitigated by suggesting that your child find part-time or full-time employment when school is out. Ideally, the money saved from a part-time or full-time job will help pay for college and other expenses related to higher education.

Once a student has determined they’re college bound, he or she should try to look for financial assistance for his or her upcoming college education. Aside from the income one may receive from a full-time or part-time job during or prior to college, the student should also assess his or her eligibility for college grants and scholarships, which could go a long way in stretching monetary resources and decreasing financial stress.

If your child is thinking about going to college, he or she needs a good financial foundation. This preparation can help your child become financially responsible and hopefully avoid the need to seek bankruptcy help in Lethbridge due to large student loans and accumulated credit card debt.

Why Are College Graduates Seeking Bankruptcy Help in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

Looking for bankruptcy information in Lethbridge isn’t just for people who are declaring bankruptcy in the near future – it’s also for individuals whose mounting debts are causing them a lot of financial stress. Proper preparation prevents poor performance, as they say, so finding out as much as you can about bankruptcy, debt management, and other financial issues will equip you better when it comes to securing your finances for the future. The trouble is, many people are threatened with impending bankruptcy and they don’t know it yet. How do you determine if you’re at risk for bankruptcy? Here are some questions that you should answer:

Signs of Potential Bankruptcy

• Have you reached the maximum limit on many of your credit cards? Do you use cash advances from these cards to pay unrelated bills, and/or essentials like gas or groceries? Are you only paying the monthly minimum on your credit cards? Do you have delinquent credit card accounts, causing your creditors to start collection activity?

• Have you received garnishments on your wages?

• Do you have high balances on several loans?

• Do you have inadequate health care coverage and savings?

If these situations are part and parcel of your life, you might have to consult a professional financial advisor, or read up on bankruptcy information and debt resolution at the very least. It is also advisable for you to revisit your financial plans (including your monthly budget) so you can trim the fat and get some of your spending power back. Get a better idea of your personal financial situation by doing an audit. Here’s how you can start overhauling your budget:

• Identify your net earnings from your day job, part-time jobs, and earnings from other investments. Add the balances of your checking accounts, savings accounts, and money market accounts also.

• Dispose of unnecessary assets by putting them up for sale, and adding the proceeds to your debt management fund or emergency fund. Cut down on expenditures by dispensing with cable TV or that costly mobile phone contract to stretch your budget.

• List your debts, and determine the total payments you make towards these per month. Add that total to your trimmed-down list of expenditures and see how much more you can save.

Once you’ve documented all these, you’re in a good place to start rebuilding your budget, taking your resources and debts into account. The documentation can also help you pinpoint problems such as high debt interest rate payments (which you may be able to lower by increasing monthly payments or contacting your creditors) or simple overspending on clothes, food, or drink. Once you’ve found out what you can scrimp and save on, you can have more money in your pocket with which to empower your beleaguered finances.

Possible Solutions to Debt and Bankruptcy

If you need more than expenditure adjustments to make your budget work, you may have to go to your banker or creditor for a debt consolidation loan or loan restructuring, respectively. If you find yourself in dire financial straits or think you’re getting there fast, get important debt relief and bankruptcy information in Lethbridge by speaking to a licensed bankruptcy trustee.

When Is It Time To Look for Bankruptcy Information in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

Working with practical, updated, and relevant Canada bankruptcy information in Lethbridge allows the potential bankruptcy filer to make the most out of this typically disadvantageous event. If you’re considering filing for bankruptcy because of debt you can’t seem to handle, you’ll need the experience of a certified professional too, aside from identifying the best sources of bankruptcy info. Many once-indebted individuals have managed to keep their heads above water after declaring bankruptcy, while more fortunate ones have actually steered clear of declaring themselves bankrupt. Whatever your situation may be, you’ll have a better chance at more stable finances if you obtain accurate Canada bankruptcy information in Lethbridge.

Regulations surrounding Bankruptcy

The BIA, or Bankruptcy and Insolvency Act, and the regulations from your own province are both relevant to your bankruptcy case. Provincial bankruptcy rules determine the assets the filer is allowed to keep after filing, while statutes originating from the BIA comprise all other regulations. Sources of reliable information on the general nature of bankruptcy law include the Office of the Superintendent of Bankruptcy and The Office of Consumer Affairs. A professional advisor, such as a bankruptcy trustee should be consulted for information that focuses on your own personal bankruptcy case.

What is a Licensed Bankruptcy Trustee?

A licensed bankruptcy trustee is a professional advisor to those considering bankruptcy in Canada. The licensing or certification is overseen by the Office of the Superintendent of Bankruptcy, which also trains these individuals and regulates their practice. The Office also upholds an ethical standard that licensed bankruptcy trustees have to follow, for the good of both the creditors and borrowers they work with. When choosing a trustee, it’s essential that you provide accurate information that can generate the best results for your case. Here are some of the figures you should disclose:

• Paystubs
• Investment information
• Savings account and checking account balances
• Retirement account information
• Information on garnishments and liens
• All debt balances
• All delinquent debts

Also, because asset exemption rules vary from province to province, you should ensure that you enlist the services of a professional licensed trustee that works in your province or territory of residence.

Bankruptcy Alternatives

Before you file for bankruptcy, you many want to consider a heart-to-heart with your banker and creditors, who may be able to help you manage your debt better. For instance, a banker may be able to give you the option of debt consolidation. A debt consolidation loan can be used to pay off all of your creditors.  What you’re left with is a single monthly payment to be repaid to your bank each month. You may also be able to receive loan restructuring from your creditors, which modifies the terms of your loan for easier, lower payments. For example, you may renegotiate the terms of a loan with a creditor and extend its duration. The loan will then require lower monthly payments.  A credit card company might provide you with a lower interest rate.

To diminish the effects of a potential declaration of bankruptcy on your finances and future, find the best Canada bankruptcy information from a licensed bankruptcy trustee in Lethbridge.

Why You Need Reliable Canada Bankruptcy Information in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Financial Difficulty in Lethbridge

Not all residents who find themselves in dire financial difficulty in Lethbridge end up declaring personal bankruptcy as a means of climbing out from under their troubles.  Some manage to survive using their own resources while others find alternative solutions to bankruptcy in Lethbridge.

In our experience, there are two factors that allow some residents of Lethbridge to survive an unforeseen economic catastrophe like the loss of a job or a prolonged layoff – their total personal debt and personal savings.

If you have been searching the Internet for information on dealing with financial difficulty in Lethbridge you have probably come across the advice to maintain a personal savings “rainy day” fund of anywhere from 6 months to 8 months of your monthly income.

However, given the fact we live in a culture of consumption where many judge their success by what they own, spending takes precedence over savings, leaving far too many Canadians with debt to income ratios well over 50%.

There are a variety of solutions available for starting to deal with financial difficulty in Lethbridge, but they all start at the same place – developing a personal budget.

There is no way to get out of financial difficulty without more disposable income at the end of each month.  For many Canadians the only way to do this is by reducing expenses.  In essence, if you cannot get a part-time or second job or find a higher paying job, your only recourse is to get more out of what you have.

In our experience working with people in financial difficulty, we find few residents who are able to develop realistic budgets on their own.  Of course, many do not even try, but of those who do, they either go too far and assume they can live on macaroni and cheese every night for the next five years, or assume that lowering their premium cable service one level is the best they can do when it comes to eliminating expenses.

Licensed bankruptcy trustees like us offer free initial consultations where we can help you get started on a realistic budget.  Depending on your total personal debt, it is often possible to generate more disposable income through cost cutting than you might think.

While you might think allocating every dime of disposable income you can lay your hands on towards reducing your highest interest personal debt, this is not always the best approach.  Creditors can reduce your available credit and in some cases close an account entirely.  We can help you determine a good mix of reducing personal debt coupled with increasing personal savings that is appropriate for your situation.

Is it Better to Reduce Personal Debt When Experiencing Financial Difficulty in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

Most people who need financial help in Lethbridge have concerns about their credit reports at the top of their list.  We live in a world driven by credit and the thought of a credit report ruined by financial troubles sends many residents off looking for help.

What few know is that there is a new issue affected by negative credit reports – job search.  Unless you have held the same job for decades, you know that criminal background checks are a normal part of the pre-employment screening process.

Now, in addition, an increasing number of employers are adding credit checks to the process.  This is a practice once restricted to financial industry employers but its use has spread to all types of companies.

Experts have yet to come up with a precise list of reasons why contemporary employers are willing to pay for the expense of conducting a credit check.  Some suspect it is a way for employers to verify other information on an employment application.

Others feel employers think a negative credit history is an indicator of poor organizational skills at best, and bad judgment and unreliability at worst.  Employers can reject an application based on a credit check, but applicants do have the right to demand the reasons for the rejection from the employer.

In short, you now have a new reason to be concerned about the health of your credit report – future employment.  You can get professional financial help in Lethbridge from reputable credit counselors or bankruptcy trustees, but there are several things you can do to help yourself on your own.

The first is to get copies of your credit reports from both of Canada’s credit reporting bureaus and ensure everything there is accurate and up to date.  You have a right to dispute inaccurate information and get it corrected.  You also have the right to include letters of explanation in your credit report.  The Financial Consumer Agency of Canada (FCAC) website has some helpful information on how to do this.

Although including a letter explaining how you came to your financial troubles is a good idea, if not coupled with documented measures to deal with your debts, it is pointless.  If an employer sees a continuing history of payments 90 or 120 days late and no evidence of contact with creditors to remedy the situation, what do you think that says to them?

If you are deep in debt, the most important thing you can to do to help your job search and credit report prospects in the future is to get the financial help in Lethbridge you need to come up with a solution right now.

Financial Help in Lethbridge and Dealing with Job Search and Credit Reports is a post from: Personal Bankruptcy Lethbridge

The age group seeing the fastest growth in bankruptcy filings across Canada in the last few years is citizens 55 and over.  Here in Lethbridge, bankruptcy filings are following the national trend.  More and more residents approaching retirement are finding themselves in deep financial difficulty.  When their incomes drop in retirement, a declaration of personal bankruptcy is often their only solution.

Debt and declining incomes are the twin towers driving people in all age brackets into bankruptcy.  Simply put, if you run up more debt than your income can handle, personal bankruptcy may be your only way out.

In an ideal world, the older people get the less need they should have to incur debt.  Most already own their own homes or are comfortable with apartment living.  The material possessions by which some of us judge our success or failure have already been acquired.

However, for some people even with incomes on the rise, there is no such thing as “enough.”  Their material possessions grow in proportion to the increase in their incomes, and sometimes even beyond what they can truly afford.

Many other Canadians have seen stagnant incomes for decades and instead of altering their living standards accordingly have resorted to credit cards to maintain their life styles.

In either case, approaching retirement with substantial debt places anyone at risk of a Lethbridge bankruptcy in retirement.  The sad fact is that even those who have planned ahead with investments to supplement their government pension and managed their debt can be in for an economic shock from an unsuspected source – their adult children.

Times are very tough and more and more adult children are turning to their parents for help dealing with their financial difficulties.  Some Lethbridge residents who had factored into their retirement plans the proceeds from the sale of that larger home they no longer need find themselves in the position of having to keep the home in order to provide lodging for their struggling children.

Others provide loans or use their own available credit to help their children.  Those who enter retirement virtually debt free may be in a strong enough financial position to help their adult children and still survive.  Those who enter retirement with debt loads of their own that may be beyond their ability to manage may find themselves in the emotionally difficult position of having to say no to their children.

The best course of action for all Canadians nearing retirement in these challenging times is to reduce their level of debt, even if it involves reducing your standard of living.   Doing it while you have more income is a wiser choice than waiting till events force you into it.

Lethbridge Bankruptcy and Retirement Are You at Risk? is a post from: Personal Bankruptcy Lethbridge

Making smart financial decisions involves prioritizing spending and saving. If you have debt, you probably already know the importance of paying it off as quickly as possible. However, you most likely also know how crucial it is to have some savings set aside for an emergency.

So which should you do first, pay off debt or save? Before making a decision, consider the pros and cons:

Paying off Debt

The main argument for paying off your Lethbridge debt as quickly as possible centers around saving money on interest rates. Credit cards typically have interest rates of 20% of more, meaning you end up paying thousands in interest over the life of the card or line of credit.

In addition to interest rates, debt payments typically eat up a good portion of income. Even minimum payments can eat away at your budget. That said, paying off your debt as quickly as possible frees more money up not only in interest rates, but payments as well.

Paying debt off as quickly as possible also helps ensure it doesn’t spiral out of control. Lethbridge bankruptcy in Canada cases are often traced back to excessive debt.

Saving

A savings account provides a cushion that covers unexpected expenses such as car repairs, major medical expenses, or bills after a job loss or reduction in hours. Most financial experts recommend a minimum of six months’ expenses set aside.

In the event of an emergency, not having enough money in your savings account to tide you over can result in major financial difficulties. This includes everything from late payments and damaged credit to more serious ramifications like foreclosure or Canada bankruptcy.

Spend or Save?

The approach you end up taking depends on your goals and current financial state. Keep in mind that it doesn’t have to be one or the other, either—you can save money and pay off debt at the same time with a little creative reworking of your budget.

The first thing you will want to do is create a financial plan. For example, maybe you want to put a large percentage of your excess money each month towards building up your savings account. The rest of the money you can put towards paying off your debt.

A more aggressive approach will help you reach your goals faster. This means looking at your budget for places to cut expenses and then putting that money towards your savings and debt reduction plan.

Another approach would be to alternate each month. For example, one month you could put all of your money towards paying down debt. The next month, put it towards your savings.

The most prudent might be to pay down your debt first. Debt is expensive. If you do the math, the interest rates and fees you’re paying on your credit cards most likely add up to more than what you’re saving each month. If you put all of your money towards debt, you’ll free up extra cash quickly and once your debts are paid, you can put all of that newfound money towards savings. You’ll be amazed how fast your nest egg grows then.

Regardless of how you go about saving money and paying down your Lethbridge debt, an organized, well thought-out plan will help you become financially stable.

Pay Off Your Lethbridge Debt or Save? How to Decide is a post from: Personal Bankruptcy Lethbridge

If you finance any big-ticket item, such as a car or home, your Lethbridge interest rate determines how much you will pay for the item overall. The interest rate is the percentage of money you pay for the privilege of financing something; the higher the interest rate, the more you pay.

Interest rates are liquid, and sometimes fluctuations can be dramatic. A number of factors influence Canada interest rates, including the current state of the economy, demand, bonds, and the Bank of Canada’s prime rate. If you are in a variable loan of any kind, your interest rates—and monthly payments—are also subject to change.

If you want to avoid dramatic rate hikes, the following tips will help you save money in the long run:

• Know the loan terms and risks. Before you decide on the term for your loan, it’s important to know the risks. If you decide on a fixed rate loan, you can be assured that your loan rate will stay locked for the length of the loan. This is advantageous if the market is fluctuating and you would rather not risk a variable loan.

• Understand variable interest agreements. Variable loans often provide the best savings and typically have lower rates than fixed-term loans. However, there is an element of risk that is added with variable rates that is important to understand. If you opt for a variable loan (also called an Adjustable Rate Mortgage, or ARM), your loan is subject to change as the prime rate changes as well. In the United States, the housing crisis occurred after many homeowners faced foreclosure and bankruptcy as their variable loans reset and interest rates soared. In some cases, mortgages doubled. While this is an extreme case, it’s still important to understand that there are risks associated with a variable interest rate.

• Consider a hybrid. A hybrid loan is ideal in many cases, particularly when the market is stable. This type of mortgage loan allows you to split your mortgage terms between a fixed rate and a hybrid rate. Arrangements vary, but a typical 10-year mortgage may include 5 years at a fixed rate and 5 years at a hybrid rate.

• Refinance. If you are in a variable loan and are worried it might reset and your interest rates will climb, you may be able to refinance your loan into a fixed term. Many banks will allow you to do this, although some may charge a fee. Even if you have to pay a fee, the peace of mind may be well worth it to you.

• Educate yourself. There are a number of resources available to help you better understand what influences market rates so you can make a more educated decision regarding the type of loan you decide on. The Internet is a good place to start but it’s always wise to consult a professional before you make any final decisions.

Variable Lethbridge interest rates provide savings that can be significant, but they can be a source of stress if they climb. These tips will help you decide whether a variable rate is right for you and how to prevent rate hikes from damaging your finances.

Protecting Yourself From Lethbridge Interest Rate Hikes is a post from: Personal Bankruptcy Lethbridge

Mortgages are most consumers’ greatest debt. They involve lots of money, many payments, and high amounts of interest to be paid. No wonder most people think long and hard before they purchase a home. Home buyers can help themselves by following some simple steps to ensure they receive they best mortgage deal possible.

Clean Credit

The best way to get the lowest rate possible is to have a good credit score. Credit scores are a mystery to many but usually boil down to some simple numbers:

• About 1/3 of your score is related to your payment history.
• A little under 1/3 of your score is related to how much you owe.
• A little over 1/10 comes from the length of time you have held credit.
• About 1/10 comes from new credit.
• The remaining approximately 1/10 comes from the type of credit you have incurred

It’s easy to see that best way to earn a great rating is by paying your obligations on time. Forgetful? Use online bill pay or auto payments to keep payments timely.

The next most important financial consideration is how much you owe. Be sure your ratio of debt to income is under about 35%. That means that after you add all of your  debt and divide it by your total earnings, your answer should be no higher than .35 or 35%.

If your credit score is low, it may be in your best interest to postpone a home purchase until you can qualify for a better rate. Getting into a home with bad credit or not enough money can lead to more serious issues like foreclosure or filing for bankruptcy in Canada. There are many ways to improve your score quickly.

Mortgage Loan insurance

Mortgage Loan Insurance is required when the amount a purchaser provides as a down payment is less than 20% of the mortgage amount. Owners should have it removed as soon as they owe less than 80% of the appraised value. You must petition your lender to have the loan insurance removed. Lenders may require an appraisal to ensure value, but it is well worth the cost. Most homeowners that eliminate mortgage insurance can save over $100 monthly.

Time Can Be on Your Side

When considering how long your mortgage should run, the rule of thumb is that the shorter the life of the loan, the more you save. If you have excellent financial self-control, you can opt for the lower payments of a 30-year, fixed rate mortgage and thus be able to afford a sizable, monthly principle reduction payment. Bi-weekly mortgage payments also save lots on interest dollars. Shorter loans are typically associated with higher monthly payments but can be paid off significantly faster and can save you thousands in interest over the life of the loan.

When Refinancing is a Good Idea

Interest rates have dropped to historic lows. Now is a good time to consider whether refinancing can save you money. Online calculators will help you determine how much you can save. Don’t forget to factor in closing costs. If your interest rate drops a few percentage points, you can usually recoup your costs in less than three to four years.

Potential home-buyers can save thousands of dollars by paying close attention to these small details.

Canada Debt Help – 4 Little Tips That Can Mean Big Mortgage Savings is a post from: Personal Bankruptcy Lethbridge

As the Baby Boom generation moves into their mid-sixties, they bring with them a host of financial challenges not faced by previous generations. Mortgage and Lethbridge consumer debt carried into retirement places serious burdens upon seniors entering their golden years. Many are unprepared for the significant drop or loss of income that accompanies retirement.

When the Housing Bubble Burst

Before the Baby Boomers began to plan for their Canada retirement, a mortgage-free home was the foundation of a sound financial plan. Paying off the mortgage was the goal of most home owners. Homes rose steadily in value, making the homestead not only a safe haven, but also a good investment.

Baby Boomers came of age in a time of relative peace and remarkable prosperity. Houses appreciated quickly, making it easy to harvest the profits through refinancing. Continued rapid appreciation made it painless to tap into this previously untouched source of family funding.

Then the housing bubble burst. Workers approaching retirement saw the value of their homes plummet. Many were saddled with a second mortgage which they had fully assumed would be paid off not by job income, but by home appreciation. Others, whose plan involved selling their home and using the profit to finance their retirement, saw their hopes evaporate as their home’s value dropped.

Easy to Get and Easy to Max Credit Cards

Just about anyone over the age of 35 remembers the late 1990s as a time when multiple credit cards offers came in the mail every day. Requirements were loose and limits relatively high. Generations Y and Z were not the only ones biting hard at this easy credit hook. Men and women approaching retirement age found credit cards a valuable tool in their late-stage acquisition years. They bought everything they wanted and many easily paid off credit card balances with disposable income or second mortgages. The liberal use of credit cards became a way of life, often touted by financial gurus as part of a healthy financial plan. Then came the recession of 2007–workers in their mid to late 50s were hard hit.

Baby Boomers Face the Credit Crunch Music

Job losses, rapidly decreasing home values, and high Lethbridge debt balances combined to create a perfect storm for Boomers. Some suffered from all three catastrophes, most were hit by at least one. With retirement age looming less than 10 years away, some men and women in their mid and late 50s were faced with preparing for retirement from scratch. Others found themselves over their heads in debt. A study conducted by the University of Michigan Law School concluded that those over the age of 65 are filing for bankruptcy faster than any other age group. The oldest demographic studied, retirees aged 75 to 84, saw bankruptcy rates rise over 400%.

Baby Boomers are facing retirement age with many challenges. Carrying Lethbridge debt into retirement taxes finite resources meant to finance the balance of one’s life. New strategies are needed by our oldest citizens.

Baby Boomers are Carrying Lethbridge Debt into Retirement is a post from: Personal Bankruptcy Lethbridge

There are residents who seek alternative solutions to bankruptcy in Lethbridge because they believe declaring personal bankruptcy means they will lose their homes. There are two things residents like that need to know:

1. Alternative solutions to bankruptcy in Lethbridge do not guarantee you will not lose your home.

2. Not everyone who declares bankruptcy in Lethbridge will lose their home.

If you get behind in your unsecured debt repayments, creditors begin a gradually escalating process of collection activities. It begins with letters and calls and can end with lawsuits to attach your property as a means of collecting your debt.

Many Lethbridge residents who fear bankruptcy are attracted by the advertisements they see and hear from debt settlement companies that promise to cut debts in half, without bankruptcy. The debt settlement plans they offer involve getting your unsecured creditors to agree to reduce the amount you owe.

Participation in these plans is voluntary on the part of your creditors. What that means is that one or more of your creditors may not agree to the plan in the first place, or might change their minds while you are in the program. They can sue you to attach your home at any point. You have no legal protection against this with these alternative solutions to bankruptcy in Lethbridge.

Depending on what you owe and the value of your home, you could lose it. However, in most cases, the result is a lien on your home for the amount owed.

If you declare bankruptcy in Lethbridge, Alberta law sets exemption allowances for the assets you can keep and those you must surrender. Residents whose assets fall below the allowable exemptions lose nothing in a bankruptcy filing.

The personal exemption allowance for home equity in Alberta is $40,000. If your equity is less than that, you will not lose your home in bankruptcy. However, even if your equity is five to ten thousand dollars above the allowance, you might still be able to keep your home.

The fact is it costs money to sell a home and it is often in the best interests of your creditors to find a way to make up the difference. There is only one way to determine with certainty whether you are at risk of losing your home in bankruptcy. You need to schedule an appointment with a licensed bankruptcy trustee to determine your options.

Will Alternative Solutions to Bankruptcy in Lethbridge Protect You from Losing Your Home? is a post from: Personal Bankruptcy Lethbridge

The other day I got a call from someone who had come in for a consultation about what declaring bankruptcy in Lethbridge would mean in her situation.  She was upset because she saw a notice in the classified section of the newspaper about some Lethbridge resident who had declared bankruptcy.  She asked me if everyone would know about her financial trouble if she filed for bankruptcy in Lethbridge.

For almost everyone we work with, the simple answer is no.  How then does a bankruptcy notice appear in the classified section of a local newspaper?  A notice of a bankruptcy in Lethbridge is advertised in the newspaper when it is an “Ordinary” Administration, most personal bankruptcies are filed as a “Summary” Administration.  It will be filed as an Ordinary Administration when the trustee is expecting $15,000 or more to be paid into the estate (through sale of non-exempt assets or surplus income). When a business makes an assignment into bankruptcy it is also filed as an Ordinary Administration.

The fact is, the only people who get automatic notification of a bankruptcy filing are the Office of the Superintendent of Bankruptcy (OSB), the creditors that are included in the filing and Canada’s two main credit reporting bureaus – TransUnion Canada and Equifax Canada.

The notification that is placed in your credit history drops off after six or seven years, depending on the reporting bureau.  The notification in the OSB stays forever as a means of tracking multiple bankruptcy filings from the same individual.

Since these filings with the OSB are a matter of public record, should you go into politics or become famous (or infamous) in some other way, it is possible some reporter somewhere could dig into your record and publicize your bankruptcy.  No one is interested in the financial troubles of average residents of Lethbridge.

Finally, in most cases, your employer will not know if you declared bankruptcy.  However, if your wages have been garnished, they will be notified to lift the garnishment.  In addition, there are some jobs in the financial industry involving handling public money that requires licensing and/or bonding.  If these requirements prohibit employment to anyone who has declared bankruptcy, your employer will be notified.  You should know these are very rare occurrences.

In summary, beyond the government, your creditors, and the credit bureaus, no one will know about your financial troubles unless you tell them.

Declaring Bankruptcy in Lethbridge – Will Everyone Know about My Financial Trouble? is a post from: Personal Bankruptcy Lethbridge

Some Lethbridge residents in financial trouble avoid taking immediate action to help themselves, believing somehow things will get better.  More often than not, things get worse instead of better.  Others start looking for potential solutions at the first sign of impending trouble.  When looking at formal debt solution programs, one of the last things many residents think about is how long they take to complete.  So how does the duration of a Lethbridge bankruptcy compare to non-bankruptcy solutions?

The fact is a Lethbridge bankruptcy is the fastest way to eliminate your debt and start over.  Although there are negative consequences to declaring personal bankruptcy, no one should overlook the powerful advantage of the duration of a personal bankruptcy.

First, you should know a credit counseling solution can take 3 years or more to complete and a debt settlement plan can take 5 years.  Although with both these programs your monthly debt repayment will be lower, it must be substantial enough to pay down the debt in the time allotted.  Some Canadians who cannot keep up with the payments for such a long period default and find themselves facing bankruptcy anyway.

While you are enrolled in either of those programs, you are not eligible for credit.  Once you successfully complete the program, you can begin the process of rebuilding your credit history.

If you declare a Lethbridge bankruptcy, the result is the same – no credit while in bankruptcy but you can begin rebuilding the moment you are discharged.  The difference is the duration of these different debt solutions.

How long you remain in bankruptcy depends on whether you have filed before and how much you make.  The government has established a threshold living allowance, depending on family size and location.  If your monthly gross income is more than $200 over the threshold, a percentage of that surplus must go towards repaying your creditors.

In addition, surplus income increases the duration of your Lethbridge bankruptcy.  If you have never filed bankruptcy before and you have no surplus income to contribute, you will be discharged from bankruptcy in 9 months.

First time filers with surplus income remain in bankruptcy for 21 months.  In an attempt to discourage repeat filers, the government has increased the duration of bankruptcies throughout Canada for second time filers.

If you have declared personal bankruptcy before and have no surplus income, you will remain in bankruptcy for your second filing for 24 months.

If this is your second or third bankruptcy filing and you are required to contribute a portion of your surplus income, you will remain in bankruptcy for 3 years.

Duration of a Lethbridge Bankruptcy is a post from: Personal Bankruptcy Lethbridge

In the 1990’s the Bankruptcy and Insolvency Act of Canada (BIA) was amended to include two mandatory credit counselling sessions.  Prior to that time, the government’s assumption appeared to be that the bankruptcy process was difficult enough to motivate filers to stay out of financial trouble in the future.  Although no one can say for sure, it is also possible the government failed to acknowledge the major role credit card and other unsecured debt played in Lethbridge bankruptcy filings.

The short answer is simply this.  The two formal credit counselling sessions are meant to teach debtors the skills needed to avoid repeat bankruptcies.  The amendment was added in response to increasing numbers of repeat filers.  Our neighbors to the south have the same requirement, although in the United States the counselling must be completed before declaring bankruptcy and in Canada it takes place during the bankruptcy.

Debt management plans offered by credit counselors and debt settlement plans offered by for-profit debt solution companies do not have this requirement.  Although many credit counseling agencies offer these courses, the decision to enroll is left up to the consumer.

In our work as bankruptcy trustees, we often work with people who do not see the need for these formal credit counselling sessions.  Many sit before us in our offices due to some form of income interruption.  As a result, they see their situation as beyond their ability to control.  It is not their fault they lost a job, got laid off, or did not get an expected pay raise or bonus.

It is true events like these push people over the edge into Lethbridge bankruptcy.  But not everyone in Lethbridge who loses a job or suffers income loss in some other way ends up declaring personal bankruptcy.  What is the difference?

You can answer that question in one word – debt.  Excessive levels of debt leaves Lethbridge residents standing right at the edge of bankruptcy, ready to fall over with even the slightest of economic shocks.

Credit counselling offers more than the opportunity to learn personal budgeting and money management techniques, although both are important and extremely helpful.  The heart of effective credit counselling is an objective and often painful look at your personal spending habits and why you buy so much “stuff”; you may be living on the edge of being beyond your means.

In the absence of that knowledge, first time Lethbridge bankruptcy filers can become second time and even third time filers.  Once the first bankruptcy eliminates their unsecured debt, they start the process all over again and can end up back where they started.

Why is Formal Credit Counselling Required in a Lethbridge Bankruptcy? is a post from: Personal Bankruptcy Lethbridge

Declaring bankruptcy in Lethbridge is not the only way to get legal protection against your creditors.  Most Canadians have a deep-seated fear of bankruptcy and refuse to consider it as anything other than as a last resort.  As a result, they fail to research our bankruptcy laws to see what exactly is involved in a bankruptcy filing and how it might affect their personal financial situation.

Were they to spend some time searching the Internet, they might end up on the website of the Office of the Superintendent of Bankruptcy where they would learn our bankruptcy laws offer two non-bankruptcy alternatives for managing debt while still getting legal protection.

One solution works with large levels of unsecured debt and is available through licensed bankruptcy trustees anywhere in Canada.  It is called a consumer proposal and it allows those accepted into the program to repay less than the total unsecured debt they owe at a reduced interest rate over a period of five years.

With the other solution – an orderly payment of debts – residents of Lethbridge repay all they owe over four years at a reduced interest rate and lower monthly debt repayments than they are currently making.  An orderly payment of debts is only available in the provinces of Alberta, Saskatchewan, and Nova Scotia.

Not everyone qualifies for these alternatives.  The most important requirement is stable income.  The trustee or counselor begins the qualification process with a detailed evaluation of your personal financial circumstances.  Based on your current income and family size, they determine a monthly payment you could afford to continue to make for four to five years.

The totals determine which option – a consumer proposal or an orderly payment of debts – is appropriate for you.  In either case, Lethbridge residents need to think long and hard about their ability to stay current with those new monthly payments.

People deep in debt do not always think rationally.  In an attempt to do anything to stay out of bankruptcy, it is possible to ignore how difficult it might be to continue with those payments.  It is also possible to minimize the chances your income situation might change over such an extended period.

If you default on those payments, you leave yourself completely exposed to legal action from your creditors.  The normal legal collection procedure requires creditors to take two steps.  First, they must get a judgment order validating the debt as yours.  Second, they must return to the courts to get an enforcement order to collect.

If you are enrolled in an OPD, creditors do not need a judgment order.  They can proceed immediately with an enforcement order.

Orderly Payment of Debts An Alternative Solution to Declaring Bankruptcy in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Young Canadian college and university graduates from coast to coast are struggling with three economic upheavals many did not anticipate.  First, the cost of their education made it necessary to borrow far more in student loans than their parents or even their older siblings did.  Second, jobs are harder to find.  Third, incomes are lower.  The end result is many resort to using credit cards to make student loan payments from time to time, adding potential credit problems to their list of worries.  If the burden of dealing with these debts becomes too much to bear, can declaring bankruptcy in Lethbridge make these worries disappear?

Unfortunately, many students take on student loans without paying attention to the details of how they must be repaid.  The sad fact is that if you have student loans less than seven years old, they cannot be included in a Lethbridge bankruptcy filing.

However, if you are certain you have no way to restore your financial health on your own, declaring bankruptcy in Lethbridge still might help.

First, you need to know no one can get to where they want to be – in sound financial condition – without knowing where they are.  In short, you have to know the details of your current financial circumstances.

In a time when few Canadians of any age rely on personal budgets to guide their financial decisions, many of us have little idea of our total net worth and current financial condition.  That is where you need to start.

Although this is something you can do on your own, there is no shame in getting professional financial help.  In Lethbridge, you can meet with a licensed bankruptcy trustee for a free initial consultation.

We are licensed by the federal government to provide debt relief advice.  Our extensive training makes sure we are well suited to the task.  We will work with you to prepare a detailed statement of your financial affairs.  In some cases, a personal budget can cut expenses enough to get back on track without further help.

However, if you are in deeper financial trouble, declaring bankruptcy in Lethbridge can help, even if your loans are less than seven years old.  When you file for personal bankruptcy, you stop making payments on your unsecured debt.  Depending on your circumstances, the elimination of those debt repayments might leave you with enough disposable income to continue to meet your student loan payments.

Can Declaring Bankruptcy in Lethbridge Make Student Loans and Credit Problems Go Away is a post from: Personal Bankruptcy Lethbridge

Experiencing financial difficulty in Lethbridge ranges from people concerned about their continued ability to stay current with their bills to those who have lost their jobs and have no savings on which to draw.

However, once Lethbridge residents begin to go late with some of their bill payments, they all share a common experience – creditor collection activity.  The process begins with polite reminder letters and can end with wage garnishments and property attachments.

What kind of legal protection activity do you have against creditor collection activity?  The sad truth is when you signed that application for a credit card or an installment loan or a line of credit, you entered into a legally binding agreement with the lending party.  If a creditor is able to produce that proof of your agreement, the debt you owe them is valid, and they have the legal right to initiate collection activity to recoup what you owe them.

However, there are restrictions on what they can and cannot do in their efforts to collect.  For example, they have an obligation to inform you in writing of certain collection activities they are considering.  If they plan to place your debt with a professional debt collection agency, they must inform you in writing.  If they are ready to initiate legal action, they must inform you in writing.  They have the right to call you between the hours of 7 AM and 10 PM, but they cannot use abusive, intimidating, or profane language.

If a creditor has violated any of these, you can file a complaint with the Alberta government.  Complaint forms and a complete description of what creditors can and cannot do are on www.servicealberta.ca.

Even though creditors have the right to collect and ultimately to sue, you can get legal protection.  You should know the debt settlement and credit counseling solutions you might have heard of are not legal solutions to debt problems.  Creditor participation in these programs is voluntary.

To stop creditor collection activity and/or to reverse existing wage garnishments, you have three options:

1. Declaring personal bankruptcy
2. Filing a consumer proposal
3. Applying for an orderly payment of debts.

If you think you have good reason to avoid a bankruptcy filing, you should know the other two choices are considered non-bankruptcy solutions, even though they provide the same legal protection as a bankruptcy filing.  Once in place, all these options will prevent your creditors from making any direct contact with you.

To determine which solution is best for your financial situation, schedule a free initial consultation with a licensed bankruptcy trustee at your earliest convenience.  We can assess the level of your financial difficulty in Lethbridge and advise you of what solutions you have available.

Financial Difficulty in Lethbridge – Legal Protection against Creditors’ Collection Activity is a post from: Personal Bankruptcy Lethbridge

Some frightened residents in deep financial difficulty in Lethbridge think creditors can do almost anything they want to collect what they are owed.

They have heard stories of threats of jail time and collection agents appearing at a spouse’s workplace to demand payment of their partner’s debts.  They are convinced bankruptcy protection will prohibit them from ever taking out a loan to buy a home, or a car, or from getting any kind of credit at all for the rest of their lives.

These stories are the direct result of creditor collection activity.  Creditors do not have the right to spread falsehoods or misleading information, yet it happens all the time.  They prey on the paralyzing fear that frequently accompanies serious financial difficulty in Lethbridge and all across Canada, and rely on consumer ignorance of the rights they do have relating to creditor collection.

If you are already in trouble, chances are you have received letter and calls directly from your creditors.  Original creditors, like the banks that provide your credit card accounts, are interested in one thing and one thing only – getting repaid as much of what you owe as possible at the lowest collection cost to them.

Most begin the process with their own internal employees.  The Alberta Fair Trade Act establishes what creditors can and cannot do to collect a debt.  Original creditors are required to inform you in writing of their intentions.

In far too many cases, Lethbridge residents and Canadians from coast to coast ignore the letters and calls so the creditors turn over the account to professional debt collection agencies, also regulated by the provincial government.

If a creditor decides to bring in a collection agency, they are required to inform you in writing.  Debt collectors are required to identify themselves when contacting you and specify the debt they claim you owe and the total due.

They have the right to call you at home between 7 in the morning and 10 at night.  They do not have the right to call you so frequently the calls become harassing.

They do not have the right to discuss your debt with anyone but you, although they do have the right to contact anyone who might be able to provide them with a current address and phone number.

You have the right to file a formal complaint with the provincial government if any creditor or debt collector has violated your rights.  You can find complaint forms and other helpful information at www.servicealberta.ca.  Make sure you document violations as they occur.

Financial Difficulty in Lethbridge – You Have Rights Relating to Creditor Collection Activity is a post from: Personal Bankruptcy Lethbridge

Some residents find themselves plunged into extreme financial difficulty in Lethbridge when they lose their jobs or have their source of income reduced in some other way without warning.  Others slip into trouble a little at a time, something like sinking slowly into quicksand.

In either case, the thought of dealing with creditors at the first sign of trouble is not something most of us would consider.  For one thing, many Lethbridge residents believe things will get better and they can work things out on their own.  For another thing, few residents believe their creditors would have any desire to help them in any way at all.

So most Lethbridge residents who are in deep debt and starting to go late with some of their debt repayments wait for their creditors to contact them, hoping against hope things improve.  Eventually the letters come, followed by the calls.

The letters start out amiably enough, even apologizing for bothering you if your payment is already on its way.  Often, the response to both the letters and the calls is to ignore them.

While some creditors with whom your total debt is modest may be unwilling to initiate costly legal collection actions against you, those to whom you owe substantial amounts usually will.  If they discover you have stable income or property with substantial value, you can be sure you will see at the minimum, a wage garnishment.

The fact is not dealing with your creditors as you begin to go late repaying them is the worst thing you can do.  No matter how much you dread the thought, you need to pick up the phone and talk to them or write them a letter explaining what is going on.

While lenders are certainly not social service agencies, they have an interest in helping you with your situation – they want your money.  Believe it or not, many lending institutions are in financial difficulties of their own and they are more than willing to consider restructuring the way you repay them.  They are well aware they will get next to nothing from you if you are forced into a Lethbridge bankruptcy.

Of course, they are not going to take your word for it.  You will have to document your financial situation and demonstrate your ability to make whatever restructured payments you propose.  Dealing with your creditors on your own works best if you act before you get behind with every one of your accounts.

Financial Difficulty in Lethbridge, Dealing with Your Creditors is a post from: Personal Bankruptcy Lethbridge

Provincial Law, Personal Exemption Allowances for a Lethbridge Bankruptcy is a post from: Personal Bankruptcy Lethbridge

Declaring bankruptcy in Lethbridge is supposed to be a way out of financial difficulties, allowing filers a chance to get a fresh financial start.  Of all the stresses of modern living, few compare to the financial stress associated with declining income and rising expenses.

Yet despite its intent, the thought of declaring bankruptcy in Lethbridge actually accelerates the level of financial stress felt by most residents in trouble.  When you consider the dire warnings everywhere about the negatives of bankruptcy and how it should be your last resort, this should come as no surprise.

The fact remains that in many cases declaring bankruptcy in Lethbridge should be a quick and cost effective way to get out of debt and eliminate the financial stress that comes from being so deeply in debt.

Why does the thought of bankruptcy raise stress levels instead of reducing them?  With one exception, the reasons are tied up in beliefs residents of Lethbridge have about bankruptcy that are not true.

One such belief is that they will surely lose their homes if they file for bankruptcy.  Federal and Provincial bankruptcy laws ensure no one loses everything in bankruptcy.  Each Province has exemption allowance for what assets a filer can keep and what assets they might lose.  Alberta has some of the most generous in Canada, including a $40,000 exemption allowance for home equity.

Another belief is that bankruptcy destroys your credit rating.  Debt collectors prey on this fear and rarely get to the real truth that this is a temporary situation.  The truth is bankruptcy is actually the fastest way to start rebuilding your credit.  All debt solution programs that change the way you repay your unsecured creditors lead to a temporary freeze in your ability to get credit.

You can begin to repair and rebuild your credit rating when you complete the program and the bankruptcy process is the shortest solution out there – debtors are discharged in anywhere from nine to twenty-one months, compared to three to five years with other programs.

An exception to what some people believe goes beyond facts, into the realm of emotion.  Bankruptcy is not a crime and expert after expert claim no one should feel a sense of shame when declaring bankruptcy in Lethbridge or anywhere in Canada.  However, some Canadians’ value systems include the belief that repaying a debt is a matter of honor and ethics.  For them, there is no getting around the fact a declaration of bankruptcy will diminish their feeling of self worth.

Financial Stress Is Declaring Bankruptcy in Lethbridge a Way Out? is a post from: Personal Bankruptcy Lethbridge

People in financial trouble will do almost anything to find alternative solutions to bankruptcy in Lethbridge, or for that matter, anywhere in Canada.

In their search for credible solutions, desperate people frequently suspend good judgment and accept anything they are told without question.  If you are struggling to keep up with your bills and you get a notice in the post informing you that you have been pre-approved for a debt consolidation loan of $20,000, you desperately want to believe it is a legitimate offer.

In most cases, Lethbridge residents are smart enough to smell a scam when they read all they have to do to get the loan is send in a hefty processing fee.

In our experience, there is a bigger problem arising from what many Canadians simply fail to understand about how even reputable credit solutions work.  Depending on your circumstances, credit solutions can lead to making your financial difficulties worse, not better.

You may find complaints on the Internet from consumers convinced they have been the victims of credit solution scams when they find themselves being sued by a creditor even though they are in a credit solution program.  However, in almost all cases the problem lies in the fact consumers fail to grasp the pitfalls inherent in these solutions.

Credit solution providers do inform potential clients their programs offer no legal protection from lawsuits.  The warning may be buried in the fine print or be part of a long verbal litany of disclosures read by a voice over the phone while the consumer on the other end waits patiently for the end.

Another real danger lies in how the credit solution provider communicates with your creditors.  As you probably know, most of these programs involve making monthly payments directly to your creditors.  Few consumers have enough cash on hand to allow the credit solution provider the opportunity to propose a lump sum payment.

What this means is creditors will have to wait to be paid.  In far too many cases, the creditors get only an announcement letter from the credit solution provider that leaves them with no idea at all when they can expect payment.

To protect yourself from these problems, the best advice you can get is to stay away from credit solution providers that operate exclusively on the Internet.  Stick with a provider who has been in business in the Lethbridge area for an extended period.  Even then, you need to know how they communicate with each of your creditors and when they can begin distributing funds to them.

Credit Solution Scams What You Need to Know about these Solutions to Bankruptcy in Lethbridge is a post from: Personal Bankruptcy Lethbridge

While no one can argue that the Internet is not a great source of information of all kinds, is it always the best place to go for financial help in Lethbridge?

Let’s consider a simple example.  You are struggling with your bills and you have accumulated a lot of unsecured debt.  You are looking for debt relief help, so you enter Debt Relief into your favorite Internet Search Engine.

On Google you will get over 8 million results but in the top 10 listings, only two are non-commercial.  The others are all sites offering their own forms of debt relief, for which they will charge you a lot of money.

Experienced Internet searchers often prefer local search, but entering Debt Relief in Lethbridge produces similar results.  In this case, all results in the top ten are from organizations that provide debt relief solutions.

Debt relief has become a multi-billion dollar industry throughout North America.  In the United States, abuses and outright debt relief frauds have become legendary.  In Canada, our sole consumer watchdog agency, the Office of Consumer Affairs, studied the industry in 2006 and issued a warning to consumers to “shop around” before signing up due to both a wide variety of fees charged and professional qualifications of the providers.

The Internet is a good place to learn the basics of some of the debt relief options available, but it is no substitute for face-to-face consultation.  Some of those websites you will find offering debt relief take you through their entire process without ever sitting down with a human being you know to be qualified.

Are you willing to turn your financial future over to someone you only know as a voice on the phone?  Most financial experts throughout Canada will tell you to never sign up with a debt relief provider with only online contact.  They tell you to stick with local providers you can meet with in person and whose reputation and qualifications you can verify.

In Lethbridge, you can get the financial help you need from two trusted sources.  The first is a licensed bankruptcy trustee.  We are fully regulated by the federal government in both our professional training and our day-to-day operations.  You can also search for credit counselors approved by the federal government to provide credit counseling in insolvency proceedings.  This is the best way to ensure you are getting the help you need, without having to worry about verifying the credentials of your debt relief provider.

Debt Relief Is the Internet the Best Place to go for Financial Help in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

Some residents needing financial help in Lethbridge feel that personal budgets and the worksheets used to create them are only for those who are in reasonably sound financial condition and are only interested in better managing their money.

Unfortunately, much of the advice you find on the Internet about ways to help yourself get out of debt reinforces that idea.  If you have already begun searching, you know what we mean.  There are sites that tell you personal budgeting helps in cases where the financial hole in which the consumer finds himself or herself is not too deep.

Although there is truth in that advice, personal budgets can help even those who are in very deep trouble.  If nothing else, the process of itemizing income and real expenses can point out the need for professional debt help.

We see people in our offices who have looked at the kind of budget worksheets you find on the Internet, tried to use them, and failed.  We feel the problem with most of the forms you find on the net is they are generic, “One Size Fits All” approaches that do not always help you capture the details you need about your own spending habits.

To make these budget worksheets work for you, you need to see them as starting points towards creating budgets specific to your needs.  For example, most of these worksheets have expense categories marked as “Fixed Expenses.”

They define a fixed expense as one that you cannot change, including rent or mortgage payments, car loan payments, and child-care payments.  In truth, all of these expenses might better be considered required expenses that you can reduce, depending on the severity of your situation.

If you are budgeting to better manage your money and reduce your debt, the thought of seeking cheaper living quarters is not something to consider.

However, if you are budgeting to do everything in your power to stay out of bankruptcy, you can sell your home and your car to save money.  You can even try to get help with child-care from nearby relatives.

Generic budget worksheets will give you broad categories you can use to begin searching through past credit card statements to find your specific spending patterns.  In addition, keeping a daily spending log is a way to begin tracking where your money is going.  Another alternative is to simply collect purchase receipts and log them onto an expense journal at a later time.

If you use them properly, personalized budget worksheets can show you if there is a path you can follow on your own or if you need professional assistance.  In Lethbridge, you can schedule a free initial consultation with a licensed bankruptcy trustee or some credit counseling agencies to start the process of getting the financial help you need.

Can Budget Worksheets Provide Real Financial Help in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Many residents who are experiencing financial difficulty in Lethbridge are reluctant to look for help from family, friends, or professional debt consultants.

In a culture where we are often measured not by who we are but by what we own and how much we make, it is painful to come face-to-face with the reality we don’t make enough to keep up with the bills we have.  Nor is it easy to confront the fact many of those bills may be a consequence of acquiring things we really cannot afford.

Self-help for Lethbridge residents who feel that way is the first order of business.  While some are able to help themselves, far too many wait until the last minute to visit a licensed bankruptcy trustee or a creditor counselor in the Lethbridge area, both of whom offer free initial consultations.

In the face of severe financial difficulty in Lethbridge, the worst thing you can do is to do nothing in the hopes things will get better.  We see many residents in our offices that have done just that, only to find themselves facing wage garnishments, property attachments, or other debt collection lawsuits.

You can learn much from reading debt solution articles on the Internet but you cannot learn what you need to know about your own financial condition.  For that, you can rely on a budget calculator and your own personal financial records.

You may have already run across budget calculators in your Internet searching and may even have tried to use one.  Unfortunately, some Lethbridge residents use what we like to call “guestimates” to work through the calculator.

They see the entry for transportation expenses, and their “best guess” is around $120 a month for gas, with a series of additional “best guesses” thrown in for maintenance expenses, and even car insurance.

If you use a budget calculator the right way you will learn which of three conditions your budget is in:

1. Over Budget
2. Under Budget
3. Breaking Even

Reducing debt is all about having resources to throw at the problem – your total debt.  Resources mean cash and you can only generate cash by raising income or lowering expenses.

If you take the time to sort through credit card statements and start keeping an expense journal, you can come up with the precise numbers you need to determine where your money is going.

If you are over budget – you have some disposable income left at the end of the month – is it enough to make a serious dent in your debt?  If you are barely breaking even, can you cut enough expenses to generate the cash you need?

If the budget calculator displays a negative number – you are over your budget and potentially in serious trouble.

Budget Calculators – Self-Help Tools for Managing Financial Difficulty in Lethbridge is a post from: Personal Bankruptcy Lethbridge

For many residents, the most trying aspect of their financial difficulty in Lethbridge is the harassing phone calls and letters from creditors.  Financial difficulty begins with troubles meeting all of your current obligations on time.  Whether due to loss or reduction of income or some medical emergency, the troubles begin when your total monthly bills are more than your income.

We hear tales from many of the clients we see in our offices about how they began to use credit cards to pay bills and resorted to payday loans along the way to continue to stay afloat from one month to the next.  Along the way, some bills have been ignored for a month or two and then the harassment begins.

The harassment includes threats of legal action but creditors are reluctant to make good on those threats, since it is a costly process.  But eventually they do and a notice of an impending wage garnishment drives many frightened Lethbridge residents into our offices.  They come in convinced the only option they have to get out of the financial difficulty in Lethbridge in which they find themselves is personal bankruptcy.

But we have another solution – a Consumer Proposal – that for many Lethbridge residents is a better choice.  With a consumer proposal, you pay back less than the total amount of unsecured debt you owe and you get to keep your assets.  If you owe $100,000, you might end up repaying only $50,000 or even $40,000 of that total.

To qualify for a proposal you have to have a stable source of income high enough to allow you to make affordable monthly debt repayments that go towards paying off the reduced amount of your debt.  Licensed bankruptcy trustees document both your need for a proposal and your ability to make the payments specified.  Creditors have a chance to vote to accept or reject the proposal and if a majority agrees, all creditors are legally bound to accept.

What that means for you is if your financial difficulty in Lethbridge has reached the point of wage garnishment, a successful Consumer Proposal will stop the garnishment and restore your wages.  If you are getting harassing calls and letters, they will stop as well.  What’s more, as long as you continue to make the agreed upon monthly debt repayments, none of your creditors can contact you in any way.

Consumer Proposals – A Legal Solution for Financial Difficulty in Lethbridge is a post from: Personal Bankruptcy Lethbridge

If you are in financial difficulty in Lethbridge, you have probably read or heard that personal budgeting is the key to restoring your financial health.  True enough, yet every day we see people in our offices ready to declare bankruptcy in Lethbridge, even though they have tried to use personal budgeting to right their sinking ships.

What went wrong?  Well, for one thing, the kind of budgeting tools most people use often end up being too general to do them any good.  Personal budgeting is a difficult process that follows similar financial principles that guide business budgets.

If you have ever been involved in developing a business budget, you know it goes through multiple reviews by experienced financial gurus.  So why don’t more consumers look for professional help with their personal budgets?

Cost is often cited as a reason, yet we offer free initial consultations where we would be happy to review your budget with you.  You can also get similar help from reputable non-profit credit counseling agencies in Lethbridge.  In short, you don’t have to lay out a lot of cash to get help from a professional financial advisor to get help with a personal budget.

If you’ve searched the Internet for personal budgeting help, you won’t find many sites that recommend getting professional help.  The idea is to do it on your own, yet the evidence clearly suggests individual consumers find this a tough task to get right on their own.

Many residents fail to match their personal budgets to the severity of the financial difficulty in Lethbridge in which they find themselves.  If you have a high debt total but are still able to make your monthly debt repayments on time, shouldn’t your personal budget look different than if you are at the point where your wages have been garnished?

Conventional wisdom calls for a savings component in your personal budget.  What sense does it make to be allocating income towards a savings account earning 2% interest when you are paying 14% or more on thousands of dollars in credit card debt?  Throw conventional wisdom out the window and commit every dime you can towards lowering your debt.

Finally, don’t be afraid to challenge some of your variable monthly bills.  Call some of your creditors and ask for a bill extension, offering partial payment this month.  Call your credit card issuers and ask them for a reduction in the interest rate you are paying.  Don’t assume your rent or mortgage is a fixed expense.  Move and lower that expense if it will help deal with your financial difficulty in Lethbridge and keep you out of bankruptcy.

Financial Difficulty in Lethbridge – Unconventional Personal Budgeting Tactics is a post from: Personal Bankruptcy Lethbridge

If you are one of many residents of Lethbridge struggling to stay afloat in a sea of bills and have been actively searching for a way to keep your head above water, you surely have run across debt consolidation.  Search the Internet and you will find debt consolidation in Lethbridge as number two on most lists of preferred methods for dealing with debt.

If you are dealing with large amounts of unsecured debt, debt consolidation using the equity in your home as collateral is universally hailed as the only way to go.  If you have good credit and a stable source of income, it very well might be.

While many Lethbridge residents think refinancing their existing mortgage is the only way to make use of the equity they have in their homes, there are actually two other options for debt consolidation in Lethbridge – second mortgages and home equity lines of credit (HELOC.)

Regardless of the debt consolidation approach you select, you should know about a huge disadvantage.  Debt consolidation doesn’t reduce the total you owe by even one dime, and in many cases, it actually increases it.

When you consolidate your existing debts, all you are doing is moving your “eggs” from several baskets and placing them in a single basket – but you still have the same number of eggs.

If you have an existing mortgage of $90,000 and you owe your credit card issuers and a few other lenders a total of $15,000, your total debt is $105,000.  If you refinance your mortgage to $105,000 and pay off the other debts, you still owe $105,000.   But in actuality, you might owe more.

Refinancing your mortgage can come at a higher cost than you might think.  If your existing mortgage has prepayment penalties, that amount and associated closing costs will be added to the total you owe.  However, even though you may increase the total debt, you will almost certainly reduce your monthly payments, and that is a good thing, right?

It should be but we often see people in our offices for which it didn’t turn out that way. Once you pay off that $15,000, you now have $15,000 in available credit, begging to be used.  If you got into financial trouble in the first place from living beyond your means, debt consolidation in Lethbridge does nothing to stop you from doing it again.  Our advice is to get credit counseling to learn to manage credit and cut up most of your cards, leaving one or two for emergencies.

Refinancing Your Mortgage – There’s a Downside to Debt Consolidation in Lethbridge is a post from: Personal Bankruptcy Lethbridge

The Canadian economy proved to be one of the most resilient in the world, getting through the Economic Crisis of 2008 with less damaging consequences than almost all other industrialized nations.  But once Canadian exports began to suffer, the crisis found its way into Canadian households including those in Lethbridge.  Bankruptcy filings went up 28% in 2009.

Much to the relief of Canadians everywhere, bankruptcy filings are on the decline, dropping 18% in 2010.  With an economic recovery underway, including a rising price of oil, will the rate of Lethbridge bankruptcy filings continue to decline?

Predicting the future is difficult.  But our extensive experience with bankruptcy filers over many years tells us the answer lies in part on household debt levels.  Simply put, households that don’t owe a lot of money to a lot of different creditors are in a better position to withstand a personal economic crisis involving reduced income.

Household debt levels in Canada reached all time highs in late 2010 but now it seems Canadians may have figured out how vulnerable excessive debt makes them, and household debt is beginning to go down.

If you have high debt levels but believe you can continue to manage the debt you owe, you may want to rethink that.  Why?  Interest rates.

In response to the Economic Crisis of 2008, interest rates were slashed to promote economic growth.  As a result of these drastically reduced rates, it became easier for many Canadians to pile on more debt, and they did.

It doesn’t require much economic expertise to look at this picture and predict that interest rates will rise.  They have nowhere to go but up.  And when interest rates go up, so will your monthly debt repayments.

If you have an existing home mortgage, you can expect an interest rate increase in your next mortgage renewal.  The rise is likely to be gradual but in the volatile economic times in which we find ourselves, anything can happen.  Experts claim a 2% increase in a monthly mortgage payment will force a 10% reduction in overall expenditures to meet the higher mortgage payment.

Can your budget withstand that kind of cut?  We think the key to protecting yourself from future economic shocks is lowering your household debt, starting right now.  Lower debt acts as a shock absorber against future financial trouble.

While interest rates will surely go up, Lethbridge bankruptcy rates may continue to decline, if Lethbridge residents learn to reduce their debt.  Achieving that goal requires strict personal budgeting as well as learning to manage credit properly.  You can get professional help with both from reputable credit counselors or licensed bankruptcy trustees in Lethbridge.

Economic Crisis in Lethbridge – Bankruptcy and Interest Rates – Will Both Rise? is a post from: Personal Bankruptcy Lethbridge

When some people experience the first signs of financial difficulty in Lethbridge, they do nothing in the hopes their setbacks are temporary and will improve on their own.  Others take immediate action to stem the tide and get back on sound financial ground.

Our experience has shown many Lethbridge residents who end up declaring personal bankruptcy never made use of personal finance techniques like expense tracking and budgeting.  Making personal finance a regular part of your life can both help you out of current financial difficulty in Lethbridge, and also help keep you out of trouble in the future.

If you’ve searched the Internet and other sources for information on what personal finance is all about and how to put it into practice, you have surely come across a description of the difference between fixed and variable expenses.

Fixed expenses are those that remain the same from month to month.  Most experts will tell you a car loan is a fixed expense since you make the same monthly payment for the life of the loan.  Home mortgages and rent are also considered examples of fixed expenses.

Variable expenses are those that change from month to month, such as your utility bills, clothing expenses, and possibly your food expenses.  The advantage of this division of expenses is to identify areas where you can make “budget cuts” just like corporations do.

The assumption is you cannot do anything about fixed expenses.  After all, that is why we call them fixed.  Occasionally we run across Lethbridge residents interested in making radical changes in their financial lives by refusing to accept any expense as fixed.

As an example, do you really need the size home or apartment in which you are currently living?  Homes can be sold and new apartments can be leased, thus lowering what is supposedly a fixed expense in your budget.  The cost savings can go towards debt reduction or savings for future needs.

The same is true of the cars we own.  Can you live with a smaller, more affordable car?  Some personal finance zealots go so far as to eliminate personal vehicles entirely, relying on public transportation if it is available.  This eliminates another supposedly fixed expense – car insurance.

If you are deeply committed to a radical change in lifestyle that will get you out of financial difficulty in Lethbridge in the shortest amount of time, rethinking your fixed expenses is something to consider.

Personal Finance –Rethinking Fixed Expenses to Help with Financial Difficulty in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Although declaring bankruptcy in Lethbridge is a serious step that should not be undertaken lightly, for some residents of Lethbridge it actually is the best way to get their financial lives under control.  Yet many people who would benefit from a bankruptcy put it off because they fear it will ruin their credit.

The hard truth is that in the short term declaring bankruptcy in Lethbridge will destroy your ability to get credit.  Your credit report will reflect an R9 rating and the notice of your bankruptcy will remain on your credit history for a full 6 years after you get your discharge from bankruptcy.

What many Lethbridge residents forget is that their credit rating begins to deteriorate the moment they start going late with their debt repayments.  Despite struggling to catch up, the further behind they fall, the worse their credit rating becomes.  In cases like these, we feel the best way to begin credit repair is to get your debts behind you by declaring bankruptcy in Lethbridge so you can begin to rebuild your credit.

You can be through with a bankruptcy filing in as little as nine months and walk away virtually debt free.  Even if you have to contribute some income during the bankruptcy, you can be discharged in 21 months, ready to start over.

Credit repair after a Lethbridge bankruptcy begins with accumulating a cash “nest egg.”  Some filers even begin building their nest egg while still in bankruptcy, since the elimination of the monthly credit card payments gives them more disposable income at the end of each month.

Once you complete your bankruptcy, you can use your savings to open a secured credit card.  These cards require a savings deposit with the issuing company that sets your credit limit.  If you deposit $500, you have a credit limit of $500.  Opening a secured card and then using it often, coupled with on time repayment, demonstrates your credit worthiness.

You can use the Internet to search for these cards and you will find a lot from which to choose.  They vary in the interest rates they charge and some require membership fees.  Ideally, you should look for a card that allows you to convert to an unsecured card in the shortest amount of time.

The more you take the opportunity to borrow money, the more opportunity you have to build a history of on time repayment.  That is the key to credit repair after declaring bankruptcy in Lethbridge.  With cash in the bank, you can buy things like appliances and home electronics on installment plans, using your savings as collateral.  Taking out automobile loans on late model used cars is another strategy for credit repair that helps you build your history of on time debt repayment.

Credit Repair After Declaring Bankruptcy in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Did you know Canadian household debt reached a record 148 Trillion dollars in late 2010?  Did you know more than 100,000 Canadians filed for personal bankruptcy in Canada last year?  Did you know historically low interest rates are likely to rise in the coming years?  Even if you are still keeping up with your monthly debt repayments, looking for debt solutions for potential financial difficulty in Lethbridge is a good idea.

One of the best measures of financial difficulty in Lethbridge is your debt-to-income ratio.  This number will tell you how much of what you make goes towards debt repayment.  Divide the total of your monthly debt payments by your gross monthly income.  Make sure you include both your secured debt, like your mortgage and automobile loans, and your unsecured debt, like credit cards, installment loans, student loans, and alimony and child support payments.

In the past, financial experts would tell you a debt-to-income ratio of around 36% is relatively safe and even ratios in the mid 40% range are minimally acceptable.  If more than 50% of your income is going towards repaying debt, you are in financial difficulty in Lethbridge and should start looking for debt solutions.

The sooner you start looking, the more options you will have.  All debt solutions depend on what you owe, what you own, and how much you make.

We see some people in our offices who can get out of their financial difficulties by selling off some of what they own.  If you are having trouble meeting your bills, giving up a vacation home in the mountains may be your best debt solution.  If you ignore your troubles and end up declaring personal bankruptcy at some point in the future, you will lose that vacation home anyway.

If you owe a lot of money but have sufficient income to pay all or some of it back over time with a little help restructuring your payments, you might be able to present informal proposals to your creditors on your own behalf.

If this is not an option, you can hire professional help.  You have three resources from which to choose – credit-counseling agencies, debt settlement companies, or licensed bankruptcy trustees.

Of the three, only bankruptcy trustees are regulated by the federal government.  We are not bragging when we point out trustees are the best trained and educated debt consultants available to help you deal with financial difficulty in Lethbridge.  An initial consultation is free of charge.  Schedule a visit and we can help you determine a debt solution that best meets your needs.

Debt Solutions for Financial Difficulty in Lethbridge is a post from: Personal Bankruptcy Lethbridge

The current economic climate is putting a pinch on many Canadians.  It is hard enough to deal with the more normal debts of life like auto and home loans and credit cards, but those young Canadians saddled with thousands in student loan debt have an added burden.  Can a Lethbridge bankruptcy trustee help deal with Canada student loans?

Absolutely.  An initial consultation with a Lethbridge bankruptcy trustee is free of charge so you have no reason not to take advantage of their professional advice.

It is possible to deal with Canada student loans on your own by negotiating directly with the lenders.  A trustee can help you work out a personal budget to see how much you can realistically expect to contribute towards those student loans.  Few people today actually adopt and stick to a budget.  Without one, it is impossible to figure out how much you could afford to pay without undue hardship.

If you talk directly to the lender and can negotiate a reduction in interest rates and lower monthly payments stretched over a longer period of time, you might be able to handle those loans on your own.

If your loans are more than 7 years old, you have additional options a trustee can help you with – personal bankruptcy and a consumer proposal.  Loans like these are dischargeable in a declaration of personal bankruptcy.  In addition, significant reductions in the repayment amount of loans older than 7 years are possible through a consumer proposal.

Any Lethbridge bankruptcy trustee can advise you as to whether a consumer proposal or a declaration of personal bankruptcy is a better option for you.  With bankruptcy, you risk losing assets but you emerge from the process virtually debt free.  With a proposal, you commit to repaying an affordable portion of what you owe.  Proposals are costlier than a bankruptcy.  The trustee can cost both options out for you.

Sounds great.  But what if your Canada student loans are less than 7 years old? Is there anything you can do about these loans?

Bankruptcy might still help you out.  These loans would remain if you filed for personal bankruptcy.  However, a Lethbridge bankruptcy trustee can do the math for you and determine whether the elimination of the unsecured debt forgiven in bankruptcy would allow a less painful repayment of those student loans.  In almost all cases, eliminating your monthly unsecured debt repayments makes those Canada student loan repayments manageable.

Lethbridge Bankruptcy Trustees – How Trustees Can Help with Canada Student Loans is a post from: Personal Bankruptcy Lethbridge

The business pages of the Toronto Globe and Mail as well as various other Canadian business news outlets recently carried the story of a historic first that is causing concern among financial experts.  In October of 2010, Canadian household debt reached an all time high of 148.1%.  That is about $44,000 for every Canadian citizen.  With numbers like that you would think many of us would be seeking financial help in Lethbridge and all across Canada.

You would be wrong.  A May 2010 research report issued by the Certified General Accountants Association of Canada entitled “Where’s the Money Now: The State of Canadian Household Debt as Conditions for Economic Recovery Emerge” contains some amazing findings.

An astounding 60% of respondents are comfortable with their current level of debt and an equally amazing 14% are ready and willing to take on even more debt.  But it gets worse.  Seventy percent of Canadians say they have no intention of increasing their savings.

What do these people plan to do if interest rates rise, as they inevitably will?  Right now interest rates are at historic lows and when they go up, so will your debt repayments.  Without managing debt to reduce your risk or increasing savings to provide a financial cushion against rising rates, what are you going to do?

So look at yourself in the mirror and ask if you are in need of financial help in Lethbridge.  The starting point of answering that question is your debt-to-income ratio.  If the ratio for the country as a whole is 148.1%, do you know what yours is?  You should, but if you do not, here is how to calculate it.

Add up the total of the monthly payments you make towards debt repayment.  These are your mortgage and auto loan payments, credit card payments, and alimony and child support payments.  Then divide that number by your total gross monthly income.

If your ratio is over 50%, there is no getting around it.  You will not find a financial expert anywhere in the country who won’t tell you to get financial help in Lethbridge.  Some experts think somewhere around 36% is relatively safe while others think ratios creeping into the mid 40% range are cause for great concern.

The point here is straightforward.  Increase interest rates increase debt repayments.  If your debt-to-income ratio is already on shaky ground, rising rates in the future will only make it worse.  The time to get financial help in Lethbridge is now.  You can get help from any licensed bankruptcy trustee or non-profit credit counselor in Lethbridge.

Managing Debt – Are You in Need of Financial Help in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

The decision to declare personal bankruptcy in Lethbridge, or Medicine Hat, or Saskatoon, or Winnipeg, or anywhere else in Canada is not an easy one.  Contributing to the difficulty are the many myths that exist about what can happen to people who declare personal bankruptcy.

The myths abound – you’ll lose everything you own (not true); your spouse will be ruined (not true); you won’t be able to leave the country (not true) and two of the scariest – bankruptcy filers can go to jail and lose their jobs.

First, insolvency – which is nothing more than the inability to pay what you owe on time with what you currently make – is not a crime.  There are no debtor’s prisons anywhere in Canada.  However, the job issue is a little more complicated.

As a general rule you cannot be fired if you declare personal bankruptcy but there are exceptions.  Some professional occupations that involve dealing with money have rules prohibiting people discharged from bankruptcy from performing tasks like managing trust accounts.

Some jobs that involve a variety of accounting functions have similar rules.  Whether the employee who has declared personal bankruptcy is terminated or transferred to another job within the organization is up to the company.

The best way to determine if your job status might be affected by declaring personal bankruptcy in Lethbridge is to first check any available job descriptions and company employment requirements.  If your company has a human resources professional you may wish to consult with that person.  Licensed bankruptcy trustees know all there is to know about bankruptcy so a meeting with a trustee in the early stages of your deliberations over whether or not bankruptcy is right for you can answer that question.

Finally, if your job may be in jeopardy as a result of a bankruptcy declaration you need to know you have alternatives to filing bankruptcy.  Generally speaking, most of these jobs that may have restrictions that impact bankruptcy filers are higher paying jobs.  As such, people affected are more likely to have assets of value and higher incomes.  As you may know, no one loses everything they own in bankruptcy but filers with significant assets may lose an uncomfortable amount.  For them the ideal alternative is a consumer proposal, which would also be a way to protect your job if you are in an occupation that might be affected.

Consumer proposals are administered by the same professional debt consultants who manage bankruptcy filings – licensed bankruptcy trustees.  A trustee will evaluate your situation and determine a monthly payment you can be realistically expected to maintain over a maximum 5 year period.  The payment replaces your multiple unsecured creditor payments and is made directly to the trustee.  To make the time frame, the trustee proposes to your creditors they accept less than the total they are owed.  In most cases they are willing and even eager to do that as they stand to get back more of what they are owed than they would if you are forced to declare personal bankruptcy in Lethbridge.

Will I Lose My Job or Go to Jail if I Declare Personal Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

You no longer have the strength to continue the agony of the monthly wrestling match with too much debt and too little income so you have decided declaring bankruptcy in Lethbridge is your only option.  Now you’ve read you’ll need to work out a personal budget.  Why?

To explain let’s start at the beginning.  You’re ready to declare bankruptcy in Lethbridge because you can’t meet your debt payments.  But without a budget that tells you exactly where your money is going, how do you know?

Did you know some people in similar situations have found ways to deal with severe debt burdens without declaring bankruptcy in Lethbridge?  Some figure out how to pay back what they owe on their own over time while others enroll in professionally supervised debt management and debt settlement plans.  Still others find the legal protection of a consumer proposal where they pay back only a portion of the total they owe to be a better alternative.

The only way to determine which of these options, if any, can help you is to establish a budget.  You need to know exactly what you spend each month and on what you spend it – not just your minimum monthly payments to your credit cards and your fixed expenses.  You need to know the value of everything you own as well as what you make right now and also how much you might be able to make in the near future.

With a personal budget in place you might be able to stay out of bankruptcy.  But even if you declare you’ll need a budget for several reasons.

First, the trustee whom you hire to manage your filing needs to verify that you are insolvent and can’t pay your bills on time with the income you currently make.

Second, once you are formally in bankruptcy you may be expected to contribute some of what you make towards creditor repayment.  How much depends on whether you have surplus income – which is more than $200 over the allowable standard living expense established by the government for your location and family size.

Third, discharge from bankruptcy is dependent on your successfully completing the requirements, one of which is demonstrating to the trustee that you will be able to manage your money once discharged.  The obvious advantage to declaring is that once your unsecured debt goes away you will have more income to spend.  Trustees are charged with the responsibility of ensuring you won’t get into financial trouble again.

Finally, sticking with a budget once you are free of your debt and free of your bankruptcy responsibilities just makes good sense.  The moral here is really quite simple:  if you’re going to need to develop a budget in order to file and indeed to determine whether declaring bankruptcy is your only option; and if a budget will help you after bankruptcy; what are you waiting for?  Lethbridge residents can get help with budgeting from counseling agencies, debt solution companies, or licensed bankruptcy trustees.

Why Do I Need a Budget if I’m Declaring Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

When faced with mountains of debt you can’t keep up with, you often have to choose which ones to pay and which ones must wait to be paid on another day when things get better.  When confronted with unpaid debts to the CRA, Lethbridge residents are often forced to ignore them.  After all, if you’re about to have your power shut off, whom are you going to pay?  The Utility Company or the CRA?

But for many Canadians everywhere things are not getting better; they are getting worse.  If you’ve begun learning what is involved in declaring bankruptcy in Lethbridge you know not all unsecured debt goes away.  What about CRA debt?

In a bankruptcy filing the CRA becomes just another unsecured creditor.  In most circumstances they have no special status that places the debt you owe them in a superior or special position over the debts you owe your other unsecured creditors.  You may know there are some differences in the details of how bankruptcies are handled across the Provinces of Canada; but when it comes to CRA debt all Provinces are the same.  Your CRA debt will go away, either in whole or in part.  Here’s how it works.

Once you are 100% certain a personal bankruptcy filing is the best way for you to get out of debt and get a fresh financial start your bankruptcy trustee will prepare the paperwork necessary for your filing.

This paperwork includes a statement of financial affairs which demonstrates to the court that you owe more than you can pay and need relief from your debt.  Each of your unsecured creditors will be listed, along with the total amount you owe them.

Once the paperwork is filed with the courts all collection activity currently underway against you will stop.  So if the CRA or any other creditor is garnishing your wages, that will cease and the amount they have been withholding will be restored.

Each of your creditors, including the CRA, will file a claim against your bankruptcy “estate.”  The estate is simply an escrow account set up by the trustee where funds from the seizure and sale of your non-exempt assets and possibly some of your monthly income will be deposited and later distributed amongst the creditors.

If you have significant assets and income the creditors will get a fraction of what they are owed and once you are discharged from bankruptcy the remaining amount is forgiven.  You are virtually debt free.

If you have minimal assets and income the creditors will receive nothing.  To determine what assets you will keep and what you might lose you need to consult with a Lethbridge trustee licensed in Alberta.  Alberta laws differ substantially from other provinces in exemption allowances.

For example, while Ontario and Quebec have no exemption allowance for equity in a home, Alberta has an allowance of $40,000.  However, even for residents of Ontario and Quebec and Albertans with more than $40,000 in equity, there are sometimes options to keep from losing a home.

In summary, CRA Lethbridge debt is handled the same as any other unsecured debt in a personal bankruptcy filing.

What Happens to CRA Lethbridge Debt in a Bankruptcy Filing? is a post from: Personal Bankruptcy Lethbridge

If you are experiencing financial difficulty in Lethbridge, you need to know you are not alone and you do have options.  Thousands and thousands of Canadians are in similar situations and are finding ways to deal with their financial difficulties.  All options begin with a personal budget.

To best determine how to get out of debt you have to know precisely how you got into debt.  In today’s troubled times the answer to that question is often tied up in loss of income or reduction in income.  While this change is typically what drives people to the brink, the hard truth for many Canadians is that all too many of us live way to close to the edge.  We live in a culture that promotes spending most of what we make and saving little.  The first thing you need to do is figure out where the money you do bring in every month goes.

This means the kind of rigorous analysis most of us rarely do.  In the age of plastic, expenses get hidden in minimum monthly payments on credit cards.  If you’re looking for ways to cut expenses you have to examine each and every charge.  Many Canadians are stunned to learn they spend $40 a month or more on gourmet coffee and a muffin on the way to work every morning!

Once you know for sure where you money goes, you can determine whether you can cut expenses enough to start lowering your debt.  If you can’t, you’ll have to look at other options.

First, you can get a debt consolidation loan to pay off your unsecured debt.  With an asset of value to use as collateral, a stable source of income, and decent credit, you can pay off what you owe and be left with a single lower monthly payment.

Second, if you don’t qualify for a loan you can look into the different settlement options available.  Basically, these options for resolving financial difficulty in Lethbridge can be divided into 2 categories;

• those in which you pay back all you owe over an extended period of time, and
• those in which you pay back a portion of what you owe over an extended period of time.

With debt management plans (DMP) and an orderly payment of debts (OPD), you work with a professional counselor who determines a monthly payment you could afford to make directly to the counselor in lieu of the multiple payments you’re currently making to your creditors.  If your debt is low enough that it can be fully repaid in 5 years or less, the counselor contacts your creditors for agreement to the plan.  A DMP is not legally binding while an OPD is.  With an OPD – which is only available through a not-for profit credit counselor and only in the Provinces of Alberta, Saskatchewan, PEI, and Nova Scotia – your creditors are prohibited by law from continuing or initiating any collection activities against you.

Third, if you owe more than you can repay in full, your options are debt settlement plans – available through credit counselors – and consumer proposals – available through licensed bankruptcy trustees.

Both involve establishing an affordable monthly payment and then negotiating with your creditors, reductions in the total you owe which will allow repayment of the reduced amount in 5 years or less.  The key difference between these two similar approaches to resolving financial difficulty in Lethbridge, and indeed anywhere in Canada, is the legal protections you get with a consumer proposal, but not with a debt settlement plan.

Financial Difficulty in Lethbridge – What Are Your Options to Get Out of Financial Difficulty in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

You may already know there are two kinds of consumer proposals – formal and informal – and both are viable alternatives to declaring personal bankruptcy in certain circumstances.  Why should you consider this route?

First, if the amount you owe is relatively small and you have reason to believe your financial situation might improve you can make direct contact with your creditors with an informal proposal for repayment.  While not legally binding, in some circumstances, creditors might be willing to listen.  The proposal is informal in that creditors can change their minds at any point and come after you for what you owe.  It is extremely rare for an informal proposal to be accepted when your total debt is high.

Second, the formal consumer proposal – which is prepared, presented, and administered by a licensed bankruptcy trustee – is an offer to repay each of your creditors a portion of what you owe.  The trustee evaluates your finances to determine what you could realistically afford to pay each month towards repayment of unsecured debt over a maximum 5-year period.  Then the trustee looks at the total of what you owe to see how much could be paid back and presents a reduced total to each of your creditors for their consideration.  If the proposal is accepted by more than 50% of your creditors by highest dollar volume, the proposal is accepted and becomes legally binding on all creditors as long as you continue to make the payments monthly.

Comparing a consumer proposal to a declaration of personal bankruptcy highlights the obvious fact that a proposal will cost you more.  In bankruptcy you walk away from virtually all of your unsecured debt in between 9 and 21 months.  With a consumer proposal you repay somewhere between 30% and 70% of what you owe over a time frame more than twice as long as bankruptcy.  Why would you want to do that?

To boil the advantages down to the simplest terms; there are two reasons – emotional and financial.

Some Canadians see paying their debts as a matter of morality and personal ethics.  This is especially true of older Canadians who grew up in a different world where the majority of people took personal responsibility for their actions even if that involved hardship that could be avoided.  Even though in the cold hard world of dollars and cents personal bankruptcy would be a better solution for people like this, a consumer proposal allows them to hold their heads a little higher and proclaim that at least they paid back some of what they owed.

From a purely financial perspective, Canadians with significant assets stand to lose much of what they may have spent years accumulating in a bankruptcy filing.  Our bankruptcy laws ensure that no one loses everything they own in bankruptcy, but debtors who own a lot of valuable things will have many of them seized and sold to repay their creditors a portion of what they are owed.  If you own a home with substantial equity in it, a vacation home, recreational vehicles, and assorted other adult toys you want to keep, consumer proposals may be the only route you have.

Consumer Proposals – Why Should You Consider This Route? is a post from: Personal Bankruptcy Lethbridge

One of the major concerns of anyone thinking of declaring bankruptcy in Lethbridge is what will happen to their possessions.  People wonder – will I lose my home?  Will I lose my car?  What am I allowed to keep?

There is probably no greater source of confusion over the impact of declaring bankruptcy in Lethbridge or anywhere in Canada is what happens to what you own.  The confusion is fueled in part by the fact that – unbeknownst to many Canadians – there are significant differences in asset exemption allowances across the Provinces in Canada.

Although our bankruptcy laws are set out in a federal act – the Bankruptcy and Insolvency Act – the issue of asset protection is left up to the Provinces.  The BIA (Bankruptcy and Insolvency Act) is meant to be fair to both debtors and creditors.  Debtors who are insolvent — they no longer have the ability to make timely payments on what they owe with the income they make – are forgiven most and in some cases all of what they owe and get a chance to start over with a clean slate.

However, creditors are entitled to recoup some of what they are owed from people who can afford to pay.  The Act stipulates that no one loses everything they own and are allowed to keep assets needed to maintain a life without undue hardship.  Obviously, if you own a home in Lethbridge and a cabin in the mountains, you can live without the cabin and it will be seized and sold with the proceeds distributed amongst the creditors.  But what about your home?

If you have friends in Ontario or Manitoba who declared bankruptcy and lost their homes you need to know Alberta is different.  Ontario and Manitoba have no exemption allowances for home ownership while Alberta has a generous $40,000 allowance.

This means if you’re declaring bankruptcy in Lethbridge or anywhere in Alberta and you have less than $40,000 equity in your home, you will not lose your home in bankruptcy.

And for residents of Provinces without home allowances or residents of Alberta with too much equity in their homes there are ways to essentially “buy back” your home from the bankruptcy estate established for creditor repayment to avoid losing it.

For specific details about what assets you will be allowed to keep you need to meet with a bankruptcy trustee as soon as you begin thinking about declaring bankruptcy in Lethbridge.  You may not know there are viable alternatives to bankruptcy which allow you to cut your debt from 30% to 70% and repay the remainder within a maximum of 5 years while protecting all you own.  This alternative is called a consumer proposal and a trustee can determine if you qualify for one.

Declaring bankruptcy in Lethbridge is a serious step that has both significant advantages and disadvantages.  To get the facts straight and to see if you have alternatives to bankruptcy available to you meet with a trustee as soon as possible.  An initial consultation is free so there is no reason not to see one and find out if bankruptcy is right for you.

Declaring Bankruptcy in Lethbridge – Will I Lose My Home? is a post from: Personal Bankruptcy Lethbridge

For Lethbridge residents sinking into debt help is available from several sources.  If you are finding it increasingly difficult to pay all your bills on time every month, you are far from alone.  Canadians all across the country are looking for debt help that will get them back on their feet in time.  Here are 5 places Lethbridge residents can go for debt help.1.  Help Yourself.

2.  Help from Your Bank.

3.  Help from Your Social Network.

4.  Help from Credit Counselors and Debt Solution Companies.

5.  Help from a Licensed Bankruptcy Trustee.

Yourself

The biggest thing you can do to help yourself is to get educated and get organized.  You can use the Internet to learn about different types of debt help available.  You’ll be relieved to know there are debt solutions that can keep most people out of bankruptcy.  You’ll also be pleased to know bankruptcy is not the end of the road but in fact is the best way to get out of debt for certain situations.

Every single debt solution starts at the same point – a thorough investigation of where your money goes; how much you make; how much you owe; and how much you own.  Even people who try to tough it out without getting professional help by cost cutting have to start by knowing what they spend in order to know what they can cut.

Even if you think you might be able to get through this on your own you would be well advised to explore all other alternatives in case you need to resort to them later.

Your Bank

If you have equity in your home or car or own anything else of substantial value you might be able to get a debt consolidation loan to pay off your unsecured debt.  You’ll need a verifiable and stable source of income and good credit so many people in debt may not qualify.  If you’re already in trouble starting out with your own bank is a good idea.  Although a loan like this does nothing to reduce the total you owe it does reduce your monthly debt payment substantially.

Your Social Network

Recent statistics indicate approximately 100,000 Canadians a year file bankruptcy; so you can imagine how many others are in trouble and trying alternatives to bankruptcy.  Somewhere in your network of trusted family, friends, and business contacts you will surely find someone who is in a situation similar to yours and may be offer advice on the best way out.

Credit Counselors/Debt Solution Companies

In today’s troubled times the number of not-for-profit agencies and for-profit debt solution companies offering different types of programs designed to deal with debt expands every day.  Some are reputable and honest and others are not.  Talking with one is generally free so it doesn’t hurt to hear what they have to say.  One key thing to keep in mind when you consider their programs is that most don’t offer legal protection.  If you need the protection of the courts now or think you might at some point soon, you’ll need to speak with a licensed bankruptcy trustee.

Licensed Bankruptcy Trustees

These debt solution consultants are licensed by the government to administer personal bankruptcies and an effective way to reduce debt without bankruptcy – the consumer proposal.  There are differences in how these legal protections work across Provinces so Lethbridge residents need to get debt help from a local trustee licensed in Alberta.

Debt Help – Where Can Lethbridge Residents Go for Debt Help? is a post from: Personal Bankruptcy Lethbridge

Before you look into how to file for bankruptcy in Lethbridge, make sure you are certain bankruptcy is the best option for you.

Some people think the answer to that question is a simple matter of debt to income, but nothing could be further from the truth.  That approach fails to consider the assets you own, which you might lose in bankruptcy.

Canadian bankruptcies are administered under the provisions of the Bankruptcy and Insolvency Act (BIA) which tries to be fair and equitable to both debtors and creditors.  So while the BIA provides for exemptions which allow debtors to keep some of the things they own in bankruptcy, debtors with assets whose value is significantly above the exemptions will most likely be required to sell some of them to pay back their creditors.

Exemptions vary by province, so if you live in Lethbridge and you want to know what the exemption allowances would be for you, you need to consult with a bankruptcy trustee licensed in the Province of Alberta.

Filing for bankruptcy in Lethbridge, or anywhere in Canada for that matter, is not something you can do on your own.  The BIA requires the filing process and the management and administration of personal bankruptcies to be handled by a licensed bankruptcy trustee.

So the first step in answering both the question of how to file for bankruptcy in Lethbridge and whether you should file for bankruptcy begins in the same place – with a meeting with an Alberta bankruptcy trustee.

Some Canadians do not know there is a legally binding alternative to personal bankruptcy that protects their assets from sale and seizure.  That alternative is called a consumer proposal and a bankruptcy trustee can tell you if you qualify for one or if bankruptcy would be your better choice.

When you meet with a trustee they will prepare a detailed statement of your present financial condition.  That statement will determine whether bankruptcy, a consumer proposal, or perhaps even another debt solution option, is best for you. The trustee will inform you of the costs and details of each option and advise you as to which might be best for you.

Once you have made your decision, the trustee prepares all the necessary paperwork for your signature.  It is a good idea to give yourself a day or two to digest what you have learned in your meeting with the trustee.  In many cases, this allows you to come up with additional questions you hadn’t thought of during the initial meeting.

Finally, once you’ve signed the declaration of personal bankruptcy, the trustee files it with the courts and you become officially “bankrupt.”  At that point, all collection activity against you must stop.

In summary, if you live in Lethbridge you should meet with a bankruptcy trustee licensed in Alberta to begin the process of filing for personal bankruptcy.  The trustee will review your financial situation and advise you if there are other options available.  The trustee will fully explain what’s involved during bankruptcy and how much it will cost.  Once you have signed the paperwork, the trustee files it and you are now protected under the bankruptcy laws.

How Do I File for Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

If you have searched the Internet for consumer debt proposal information in Lethbridge and you’re ready to file, how do you do it?  You should already know it is not a “do-it-yourself” project and in fact the BIA (Bankruptcy and Insolvency Act) states a consumer proposal must be prepared and filed by a licensed bankruptcy trustee.

You should also know there are differences in some aspects of how the act is administered across the Provinces so if you live in Lethbridge, you’ll need a trustee licensed in Alberta.  They will know what’s relevant to your particular situation.

Here are seven steps you and your trustee will need to take to file a Consumer Proposal in Lethbridge:

1. Make a list of potential Alberta bankruptcy trustees to contact.
2. Meet with a trustee to ensure a Consumer Proposal is right for you.
3. Work with your trustee to complete a Statement of Affairs.
4. Review the details of the proposal your trustee will present to your creditors.
5. Your trustee presents the proposal to the creditors, who have 45 dates to vote for or against its acceptance.
6. If accepted by a simple majority, the trustee files the proposal with the courts.
7. The proposal becomes legally binding within 15 days of submission.

You can accomplish Step 1 by visiting these Lethbridge Bankruptcy Trustees. You can visit their website and even call them for consumer debt proposal information for Lethbridge residents, but for Step 2 you will need to sit down with one or more face to face and pick one with whom you are comfortable.  Initial consultations are generally free of charge, so you have nothing to lose by interviewing several.

In Step 3 you will provide your trustee with all your financial details and based on that, the trustee will determine how much you can afford to repay your creditors and what kind of monthly payment you can afford over the allowable time frame.  The BIA requires that a Statement of Affairs is filed with the proposal itself.

Steps 5 and 6 determine the fate of the proposal.  The trustee presents the proposals and the creditors vote to accept or reject.  The vast majority of Consumer Proposals are accepted and the process then proceeds to Step 7, where it is formally accepted by the courts.

However, if 25% of your creditors vote ‘no’ to the terms outlined in the proposal, an additional step comes into play – the Creditor Meeting.  Simply put, the trustee arranges a meeting between you and the dissenting creditors to see if he or she can get the two sides – you as debtor and the creditors who voted no – to come to an agreement.  Since creditors almost always prefer to opt for partial repayment over the potential of no repayment in a bankruptcy, it is rare that a solution is not reached.

In summary, filing for a Consumer Proposal in Lethbridge involves finding a bankruptcy trustee licensed in Alberta who will first assess your financial situation.  Based on the assessment, a formal proposal outlining how much you can afford to repay and how long it will take will be prepared by the trustee and presented to your creditors for a vote of acceptance.  Once accepted, the trustee files the proposal with the courts and it becomes legally binding.

Consumer Proposals – 7 Steps for Filing in Lethbridge is a post from: Personal Bankruptcy Lethbridge

First, congratulations on being wise enough to consider looking for credit counseling options available from a local Lethbridge counselor instead of enrolling in one of the many questionable credit counseling services you find advertised via the Internet.

Most reputable experts in debt solution issues will advise you to work with someone you can meet face to face and who has been doing business in your local area for a long time.  What credit counseling options will you find at a Lethbridge Credit Counseling service?

First, the credit counselor will assess your current financial picture.  Although these initial sessions are generally free of charge, there really is no such thing as “free credit counseling” in that all credit counseling services, even not for profits, have to charge something for their services or they couldn’t continue to operate.

Second, based on how much you owe and how much you make as well as how much you own, the Credit Counselor will walk you through the options available to you.  If your debt is not that large, they may be able to help you develop a strict budget where cutting expenses to the bone will allow you to get through your difficulties.

If you have equity in your home they may suggest a debt consolidation loan through your bank or other financial institution.  If you have no significant assets or if your credit rating is already in tatters, they will suggest other debt consolidation options.

Third, if your income to debt ratio allows you to make single affordable monthly payments to pay off your total debt in 3 – 5 years, you can qualify for a Debt Management Plan.  The Lethbridge Credit Counseling Service will manage the plan for you – for a fee of course – and inform your creditors to expect payment from them, not from you.

Fourth, if your debt load is too high to allow full repayment in the 3-5 year period, you might qualify for a Debt Settlement Plan, depending on your income.  Here the Credit Counselor contacts your creditors and negotiates reductions in the principal you owe and the interest you are paying low enough to allow repayment of the reduced amount in the 3-5 year period.

Both Debt Management Plans and Debt Settlement Plans will negatively impact your credit rating, although a DMP will be less severe.  However, their major disadvantage is not what they do to your credit score but the fact they offer no legal protection.

In both cases there is nothing to prevent a creditor from changing their minds and coming after you to collect what you owe.  If you have assets you could well be sued.

Fifth, a reputable Credit Counselor will be aware of the possibility of asset sale and seizure and suggest another option – an Orderly Payment of Debts (OPD).  This alternative involves petitioning the courts for a consolidation order, allowing you to pay back your debt in full with reduced interest over a 4 year period.  Your assets and income will be fully protected from seizure and sale and wage garnishment.  Alberta is one of only 4 Canadian Provinces that allow OPD’s (the others are Saskatchewan, Prince Edward Island, and Nova Scotia) and you must work with a not for profit Credit Counseling Service to get one.

In summary, a Lethbridge Credit Counseling Service can offer you help in creating a budget which might see you through your troubles.  It may also be in your best interest to contact a Bankruptcy Trustee to discuss all options available to you.

Credit Counseling – What Options are Available to Me in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Did you know that bankruptcy trustees in Lethbridge, Alberta follow different government guidelines than bankruptcy trustees in Hamilton, Ontario?

Although all Canadian bankruptcies follow the provisions of the Bankruptcy and Insolvency Act (BIA) there are differences across provinces making it necessary for a resident of Lethbridge to get help answering bankruptcy questions from a bankruptcy trustee in Alberta.

How can a bankruptcy trustee in Lethbridge help you if you are one of the thousands of Canadians struggling in these tough economic times?

The general and obvious answer is they can deal with whatever questions you might have about filing personal bankruptcy in the Province of Alberta.  However, let’s look at seven specific ways they can help you, both before and after declaring personal bankruptcy.

Before Filing for Bankruptcy

1. Provide a precise assessment of your current financial situation.
2. Review all available debt solution options with you.
3. Advise you as to which option is best for you.

After Filing for Bankruptcy

1. Prepare and file the necessary paperwork.
2. Inform your creditors of the filing and arrange meetings if necessary.
3. Manage the bankruptcy process, including arranging counseling sessions.
4. Secure a court ordered discharge from bankruptcy.

Some people in a deteriorating financial situation wait to get help from a bankruptcy trustee until they have no other choice but filing for personal bankruptcy.  You should know that bankruptcy trustees in Lethbridge and all over Canada are debt solution professionals who can advise you about alternatives to bankruptcy that might be available for your situation.  However, waiting too long all too often eliminates these options.

Before filing for bankruptcy, a licensed trustee will help you prepare a detailed statement of everything you owe – both your total debt and your monthly payments – and everything you own – your total assets, including your home, cars, investment accounts, savings and checking accounts, and other possessions.  They will also include all sources of current income and any potentially significant increases in income.

Based on this assessment the bankruptcy trustee will review options with you.  Many Canadians who fear losing their homes in personal bankruptcy are unaware there is an alternative to bankruptcy – called a Consumer Proposal – which will allow you to protect your assets from seizure and sale in bankruptcy.

After filing for bankruptcy the trustee will handle all the paperwork and becomes basically a financial guardian of your assets and income during the process.  Many filers find the required counseling sessions to be the most helpful and forward looking aspect of the bankruptcy process.  The bankruptcy trustee will arrange for these sessions where you will not only examine what aspects of money management caused you problems in the past, but also how to avoid them in the future.

In summary, bankruptcy trustees in Lethbridge not only manage the process if you decide to file, they also can be an invaluable source of help in determining whether or not declaring personal bankruptcy is the best way for you to manage your debt crisis.

Bankruptcy Trustees – 7 Ways They Can Help You in Lethbridge is a post from: Personal Bankruptcy Lethbridge

If you are filing for bankruptcy in Lethbridge, it is extremely important to set up a personal budget. Your trustee will be asking for a statement of income and expenses one you have filed in order to determine how much your bankruptcy is going to cost you each month. So with this information, going a step further and creating a personal budget will be beneficial to you in many ways.

You will have limited credit options available to you once you are bankrupt.  A well- structured budget will help you to meet or exceed your goals to keep your spending within the proper limits.  You will need to learn to spend only what you can afford and a good idea is to adopt the tenet “If I don’t have cash to pay for what I want, I can’t afford it”.  This obviously is necessary to avoid future credit problems.

A personal budget is the amount of money you (and/or your spouse) earns in one month, as well as what you both spend.  Spending includes, mortgage and car payments, line of credit or other loan payments, utilities, gas for your vehicle(s), insurances (life, house and vehicle), food and incidentals.

Many people don’t think about the restaurant lunches at work every day or the two or three coffees they purchase daily.  These items can really add up in a month.  If you were both buying two medium coffees a day this would amount to about sixty dollars a month for both of you with a 5-day workweek.  That could be a monthly bill payment. (i.e. your house fire insurance).

Preparation of a personal budget before filing for bankruptcy in Lethbridge will allow you to track exactly where you are spending your money.  It may be that cutting some corners in your spending could help you avoid bankruptcy and allow you to pay down your debts on your own.  You may discover that a consumer proposal or orderly payment of your debts could be an alternative to bankruptcy if you have a better understanding of your spending habits and are willing to take the necessary steps to cut back on your spending where you can.

Another good reason to prepare a personal budget is that if you do end up going bankrupt, your trustee is going to require an accounting of the exact amount of money you owe, and to whom.  One of your trustee’s responsibilities will be to make payments to your creditors based on your surplus income.   Surplus income is the amount of money you earn monthly that exceeds the money you require for your basic living expenses.

Your personal budget also helps your bankruptcy trustee determine how much your bankruptcy is going to cost you.  He determines this with a statement of your income and expenses.  After your bankruptcy is discharged, following a strict budget will help you to avoid the same mistakes that led you into financial difficulty in the first place.

Why Is It Important to Prepare a Personal Budget Before Filing Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

Student loans can be both advantageous and detrimental for several different reasons.  Most people who apply for student loans are youngsters, often under the age of 20, and have no “life experience”.  Often they are leaving their parents’ Lethbridge home for the first time and have little or no idea of the impact of the amount of personal debt they will incur with a student loan.  This is especially true for students entering a 4-year university program of study rather than a 2-year community college degree.  Their debt load after graduation may be huge.

Repayment of a student loan can be difficult for a couple of reasons.  There is no guarantee that a post-secondary education is going to allow you to land a good paying job.  Many university graduates work at low-paying jobs for extended periods of time before getting a good-paying job in their chosen field.

Student loans are also not allowed to be included in a bankruptcy for at least 7 years after you cease being a student, so if you are going into a large student loan with the idea of declaring bankruptcy to avoid repayment, this is no longer an immediate option.  The damage to your credit rating in these ensuing 7 years will be such that you will not be able to get a loan for a car, a mortgage or other things you may want to purchase on credit.

If you are unable to repay your student loan, you may be thinking of consolidating that debt with any other debt you may have.  One advantage to consolidation with a bank or other lending institution is that you will no longer owe the money to the government.  If you do not repay your student loan in a timely manner, the government can and will keep any income tax refund owed to you, as well as your GST rebate.  A bank cannot do this if you consolidate with them.

An advantage to owing your student loan to the government is that you may qualify for the “interest relief” program.  This allows you to defer your student loan payments until you are in a position to begin repaying them.  If you’ve consolidated your student loan into one payment with a financial institution, there is no interest relief.

Other advantages to consolidation with a bank or other lender is that you may be able to negotiate better interest rates, and/or to have the loan spread over more time, which lowers your monthly payments.  Also, if your credit is damaged by your inability to repay a student loan, consolidation and a healthy repayment to the lender can help to rebuild your credit.  You should be aware, however, that if your credit is damaged when you apply for consolidation loans, you might not get a better interest rate with a bank or other lender.

On the flip side again, keeping your student loans with the government can give you a tax break every year.  Your student loans are tax deductible.  You will need to weight the pros and cons with your own personal debt and make a decision based on the amount of money you own in student loans and whether or not a tax break once a year would be more advantageous than a more manageable repayment schedule with an outside lender.

What are the Advantages and Disadvantages of Student Loan Debt Consolidation in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

A  Lethbridge trustee in bankruptcy is a professional who is licensed by the Office of the Superintendent of Bankruptcy (OSB).  A licensed trustee is trained and experienced in bankruptcy and the laws that govern it in Canada, and is also a sworn officer of the courts.

A trustee’s primary duty is as follows:

• To review the situation and counsel the debtor on available alternatives;
• To oversee the preparation of all official documentation that is both filed with the OSB and used to notify creditors;
• To ensure the creditors’ claims are valid;
• To ensure that debtors are provided with mandatory counseling and access to mediation services if there is a dispute regarding any income they are required to contribute;
• To sell the debtor’s assets, except those exempt from seizure by provincial and federal laws, and hold the proceeds in trust for distribution to creditors;
• To administer the bankrupt estate from beginning to end;
• To assess the debtor’s conduct both before and during a bankruptcy, as well as the cause(s) of the bankruptcy; and
• To make an application for discharge of the debtor’s bankruptcy once all obligations are fulfilled.

A bankruptcy trustee can also be involved in the credit counseling process.  Your trustee may or may not lead any or all of your mandatory credit counseling sessions.  Who better than a trustee who deals in bankruptcy every day to give advice on financial planning and financial advice meant to ensure that you never have to declare bankruptcy again?

Your Lethbridge trustee will play a vital role during the time you are bankrupt.  He will have the tools and knowledge to be a sound advisor on all things financial.  He will also be able to help you with your personal budget and show you ways to save some money for the future.  This can avoid further problems once your bankruptcy is discharged.

If this is the first time you have declared bankruptcy and you meet all of your obligations to the trustee, you can expect a discharge at the end of nine months.  If, however this is a second or subsequent bankruptcy, the laws that applied for a first bankruptcy are different.  A subsequent bankruptcy means you will not be discharged as quickly.

Most people are not aware of what is involved in filing for bankruptcy.  Again, a bankruptcy trustee will be able to explain all the ins and outs involved and be able to steer you in the proper direction.  This is important in order to have your bankruptcy discharged at the earliest possible time.

In summary, the trustee’s main duties are to administer all aspects of a bankruptcy.   The trustee will be in communication with your creditors and are in place to make sure that all the obligations required of a person in bankruptcy are fulfilled.  The trustee also protects the debtor and his estate and ensures that the bankrupt’s rights are not abused in any way.

What are the Responsibilities of the Lethbridge Bankruptcy Trustee? is a post from: Personal Bankruptcy Lethbridge

There are certain requirements you must meet during the time you are in bankruptcy in Lethbridge.  If this is your first bankruptcy and you fulfill your obligations to your bankruptcy trustee, you will most likely be discharged after a period of nine months.  If this is a subsequent bankruptcy or your surplus income exceeds the mandated limit for your family size, your bankruptcy will not be discharged within a nine-month period.  In fact, be delayed if you do not fulfill the requirements set out for you.

After filing for bankruptcy, one of the first things that could occur is a meeting of your creditors.  If a creditors meeting is scheduled you are required to attend.  However, usually a creditors meeting is not required unless you owe one particular creditor 25% or more of your total debt.  For example if you owe a total of $20,000 to various creditors and $12,000.00 of that total is owed to one particular credit card company, for instance, the Superintendent of Bankruptcy will most probably order a creditors meeting.  These are normally held at the office of your bankruptcy trustee.

One thing you will be required to do is provide monthly report of income to your trustee. This can sometimes be one of the most difficult things you will have to do during your bankruptcy.  Sitting down and listing your total monthly income and expenses will mostly likely open your eyes to the mistakes that led you into filing for bankruptcy in the first place.  It makes you accountable and helps you to realize that you can keep track of the money you earn and how you ultimately spend it.

Another thing you will be required to do before your bankruptcy is eligible for discharge in the nine-month period is to attend two credit counseling sessions.  There are group sessions available for you to attend along side other people who are in bankruptcy. Or if you prefer, you can opt for one-on-one sessions with your trustee and a credit counselor.  You are required to attend at least one session within the first 60 days after filing for bankruptcy and the second one must be completed within 7 months of filing.

Credit counseling is intended to teach you good money management as well as how to follow a budget to help you avoid further financial difficulties.  While you may feel reluctant to attend your counseling sessions, you will most likely find them very helpful in giving you a better understanding of and control over your finances.

During your bankruptcy, you are obligated to keep your trustee informed of where you are living.  If you move, you must tell him.  You also may not head or be a director of any company during bankruptcy.

It is essential that you keep up your monthly payments to your bankruptcy trustee.  Any missed payments will cause your discharge to be delayed.  The discharge of your bankruptcy is extremely important as it signifies the end of your crushing, stressful debt load and means that you can now put your financial woes behind you, start to rebuild your credit and begin a whole new financial future.

What am I Required to do while I am Bankrupt? is a post from: Personal Bankruptcy Lethbridge

If you are married and considering filing for personal bankruptcy in Lethbridge as an individual, both you and your spouse need to know what impact the bankruptcy filing by one partner will have on the other.

First, the non-filing spouse is NOT responsible for the legal debts incurred by the filing spouse acting alone.  If you have creditors threatening you with forcing one spouse to pay off the debts of the other, it is nothing more than a common scare tactic.

If a husband is filing and has credit card debt from accounts in his name only, the wife is not responsible for those debts.  In addition, the wife’s credit rating will not be negatively impacted by the filing.  If both names are on the credit account, however, then it is a joint account and the wife is legally responsible and her credit rating will be affected.

Similarly, if the mortgage on your home or your car loan is in the husband’s name only, the wife is not responsible.  However, if the wife co-signed the note, then legally she is seen as a guarantor of the debt and is responsible.

For joint accounts, you should be filing joint bankruptcy.  Individually contracted debt by one spouse does not obligate the other.  However, it would be a serious mistake to think that an individual bankruptcy filing from a husband or wife would have no impact on the other spouse at all.

Beyond the obvious potential emotional impacts, there are financial considerations as well.  In personal bankruptcy in Lethbridge, the filer is turning over the management of his or her financial affairs to a licensed bankruptcy trustee.  As part of that process, the filer must report his or her total income to the trustee, who will use that information along with a listing of the assets and expenses to determine what monies are available to pay the creditors.

By law, the trustee must include the income of the non-filing spouse in the calculations of total income, assets, and expenses.  While it is possible for the non-filing spouse to refuse to divulge his or her income, there are negative implications here as well.

The Superintendent of Bankruptcy in Canada has established generous guidelines for how much of your income you may have to pay to your creditors, based on family size and location.  After the trustee has deducted the guideline amount from your monthly income, any amount over $200 is considered surplus income and a percentage of that will go to your creditors.  If the non-filing spouse does not divulge his or her income, the trustee can only use 50% of the Superintendent’s standard guidelines in calculating any monthly payments to the creditors.

Lethbridge Bankruptcy Trustees undergo rigorous training and licensing examinations from the federal government and are fully aware of all the options available for solving debt problems, not just personal bankruptcy.  If you are considering bankruptcy you can certainly get a lot of information from a variety of websites covering personal bankruptcy in Canada topics.  However, nothing replaces a face-to-face consultation with a licensed bankruptcy trustee.

How Will Bankruptcy in Lethbridge Affect My Spouse? is a post from: Personal Bankruptcy Lethbridge

The decision to declare bankruptcy in Lethbridge is a difficult one.  You worry about how it will affect your credit score now and in the future.  You second-guess the decision, wondering if there could be another way “out”.  The social stigma attached to a bankruptcy is probably the hardest part to deal with and you will be wondering what Lethbridge friends, and more importantly, family will think.  Will they consider you a “failure”?  You fear the embarrassment and the unknown if you are unaware of the process of filing for bankruptcy.

Perhaps you are shocked that your financial status has declined to this level. Many people are able to pay their credit card and other debts in the beginning when the payments are manageable, and before the exorbitant interest rates make it virtually impossible to meet even the minimum payments each month. Maybe you or your spouse suffered the loss of your job, or became ill and were unable to work.  Or you might have taken advantage of the unsolicited credit cards that showed up in your mailbox and just got in over your head.  Let’s face it – most of us like to shop and have new things, but the buy now pay later scenario can land you in a heap of trouble later.  All of a sudden you are so far behind in your repayments, there is little, or more likely, no chance of you ever paying back the enormous amount of money you owe.

If we’re laying blame for the dire financial straits that people get themselves into, some responsibility should be placed at the feet of the banks who lend more money to people than they can pay back. Or the credit card companies that send new, unsolicited credit cards, sometimes with limits up to $10,000, to people who haven’t asked for them, and maybe shouldn’t have them.  At the same time, the recipient of these cards always has the option to cut the card up and throw it away.  But most don’t do this.   Unfortunately by not throwing the new card in the trash, even if your intention is to put it away and only use it for emergencies, will eventually end up adding to your financial problems.  If you are already unable to meet your monthly payments on three or four other credit cards, and/or your mortgage or car payment, it’s all too easy to take out a cash advance on the new card, to pay an existing debt, thus creating yet another debt that you can’t pay.  Known as “robbing Peter to pay Paul, this is the beginning of your journey to bankruptcy in Lethbridge.

No one wants to go bankrupt, but if your debts are overwhelming, you will eventually not have a choice.  Unfortunately, money issues are one of the foremost causes of marriage breakdown in Canada (and the U.S.). Thinking about it logically, if your debt load is to the point where you can’t even meet your minimum monthly payments, what’s the point in fighting about it?  The damage is done and you and your spouse both need to focus on getting out from under the tremendous pressure you’re under.

Feeling guilty about declaring bankruptcy is counter-productive.  You may, indeed, feel guilty, but you shouldn’t.  Instead you should begin to formulate a plan to fix the problem.   Begin by sitting down and putting pen to paper.  If you are married or living common-law, do this together with your partner.   In one column, list all of your creditors, including your mortgage, line of credit and automobile lenders.  In another column, list your everyday expenses such as utilities, food, clothing, gasoline, etc.   In the final column, list your total net income for each month; the dollar figure that you actually have available to spend.

Once that is complete, go online or in your phone book, and look up the name of a reputable bankruptcy trustee.  These companies are knowledgeable and helpful and will guide you through the entire process, which generally takes about nine months to a year, from start to end.  Lastly, regroup and make a vow to yourself that even though you are now debt-free, you will need to change the way you use credit and spend money.  The relief you will experience once the process is complete will most likely override your guilt at declaring bankruptcy, but a lesson is to be learned by the entire process, and is hopefully one you will learn well.

Should I Feel Guilty for Filing for Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

If you are having trouble meeting your minimum monthly payments, or you have defaulted on your mortgage or a loan payment, you may be heading for financial trouble.  If any of your credit accounts have been sent to collection or you have a letter threatening legal action, you are already in enough financial trouble that will require assistance to fix.  The difficult decision to declare bankruptcy in Lethbridge has been taken out of your hands.

At this point, it is irrelevant how your financial problems got out of hand.  The important thing is to get them fixed.   If you have determined, either on your own or with the help of a professional, that this is your only recourse, you will need to educate yourself on the process of filing for bankruptcy in Canada. When you decide that bankruptcy is your only option, you will be, in essence, surrendering your property and belongings to a bankruptcy trustee in return for the elimination of your unsecured debts.

Declaring bankruptcy in Canada is a legal process, which is overseen by the “Bankruptcy & Insolvency Act” on the Federal level.  In order to qualify for bankruptcy in Canada, you must live in Canada, have outstanding debts that total more than $1000.00, and be unable to pay back your creditors. Your first step is to contact a licensed bankruptcy trustee to set up an initial consultation.  Bankruptcy trustees are licensed federally and their fees are regulated.

Your first consultation with a trustee will be free of charge and is used to determine not only the amount of your debt but the options available to you in your bankruptcy.  Be prepared to answer some hard questions.  There will be no place for embarrassment or sugarcoating how bad your situation really is.  You need to tell the trustee about ALL of your debt.  At this time, you will be informed of which of your debts are eligible to be included in the bankruptcy and which are not.

The rule of thumb is that unsecured debt (i.e. credit card debt) will be eligible for discharge, with the exception of student loans (for a period of 7 years), child support or alimony, and court fines.   Secured debts (i.e. house, car, etc.) are not eligible for discharge. However this does not necessarily mean you will lose your house and be living on the streets, especially if you have children.  Be aware that if you are permitted to keep your house, your mortgage payments will still need to be met each month and the same goes for your car payments.  It would make sense that you’d need to keep your car in order to get back and forth to work if it is determined that you are able to continue with your car payments each month

The length of a bankruptcy is different for each person.   In Canada, a bankruptcy is usually fully discharged at the end of a nine-month minimum.  How long you will be bankrupt, however, will be determined by whether or not you fulfill your agreed-upon duties to your bankruptcy trustee.

Some duties you will be required to fulfill are the attendance of a creditor’s meeting.  This meeting gives your creditors the opportunity to attend and ask about your bankruptcy.  Often with a personal bankruptcy, this step is eliminated but sometimes is not.   Another of your obligations will be to pay your trustee the agreed-upon fee each month. Other duties may include the surrender of all credit cards in your possession, as well as any non-secured assets, such as furniture etc.

If a discharge is opposed, the matter will go before a Registrar or a Judge.  Generally this is not the case in a personal bankruptcy, but you should be aware that the possibility exists.  Additionally, if this is your second or subsequent bankruptcy, you will not eligible for an automatic discharge in nine months.  These are all things your trustee should explain to you during the process.

What Happens When I File for Personal Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

If you are indebted to the Canada Revenue Agency (formerly Revenue Canada), you should be aware that the agency will take all necessary steps to have the money you owe repaid in full.  Not paying your debt to Canada Revenue can eventually cause a lot of disruption in your life in Lethbridge.

If you ignore letters and phone calls received from them regarding your debt, you may find that your GST and/or child tax benefit is affected; meaning the government will use these credits to pay down your debt to them.  The agency can take money from your bank account if they so choose and your paychecks are also at risk of being garnished until your debt to Canada Revenue is paid off in full.

Canada Revenue agency also charges interest and late fees on any monies owed to them.  The larger your debt, the more you will end up paying in interest, so you should regard your tax debts as a priority and as a serious matter.  The agency will not back down as they have millions of taxpayer who owe money to them.  They do expect to be repaid in full regardless of your personal circumstances.

To get a handle on your tax debt, there are some initial steps you should take.  First of all, make sure all of your tax returns have been submitted.  You can have your tax returns looked at by a tax service or a chartered accountant to make sure you have taken advantage of all the tax breaks you are allowed.  This could possibly reduce the total amount you owe to Canada Revenue.

There is a department of the CRA that you might want to contact in the event that non-payment of your tax debt was caused by circumstances beyond your control such as illness, job loss or natural disaster.  The department is called the Fair Practices Commission and at their determination, you may be able to have interest and penalties waived and come to a repayment agreement for your debt based on the balance after waiver of fees and interest.  In order for this to work well for you, you must keep up the payment arrangements without fail and inform the agency if you are going to miss a payment for any reason.

Once you are sure of the amount of tax debt you have, and have decided a consumer proposal will not help you, your only option is to consider filing for bankruptcy.  Unlike with student loans, you can include tax debt in a bankruptcy.  However, there are some

special circumstances and laws surrounding tax debt in bankruptcy.  It is important to contact a bankruptcy trustee to look into your particular situation and affirm that your tax debt can, in fact, be included if you choose bankruptcy as your only option.

To avoid further problems with the Canada Revenue agency, you would be smart to determine what caused your tax debt problems in the first place.  If your tax debt was caused by not submitting taxes from your paychecks to the government from self-employment income, you will need to have an accountant or tax specialist determine the amount you must deduct each pay period.  The taxes (and Canada Pension and EI) will then be submitted to Canada Revenue on a schedule, either quarterly or yearly to avoid problems with income tax at the end of each year.

Canada Revenue Agency Income Debt Answers in Lethbridge is a post from: Personal Bankruptcy Lethbridge

Rebuilding your credit after a bankruptcy in Lethbridge can take some time and sound financial planning.  Generally a bankruptcy will show on your credit report for a full six years after your bankruptcy has been discharged.

It is important to keep abreast of the activity on your credit report.  You should contact both of the major credit reporting agencies in Canada (Equifax and Trans Union) at least once a year.  Checking yearly is recommended because building and maintaining a good credit history involves more than just paying bills on time.

Your careful inspection of the information that is reported on your credit file is important.  Everyone makes mistakes (including credit reporting companies) and even small inaccuracies reported by a lender to your credit file can be the difference between a good or poor credit reports.  There is usually a small fee involved to obtain your credit report.

You can begin to repair your credit immediately after you file for bankruptcy in Lethbridge by paying the monthly fee in a timely manner, attend any scheduled creditor meetings and fulfill all of the obligations set out by your trustee.  The more quickly you are discharged, the more quickly you can take steps to repair the damage a bankruptcy does to your credit.

Banks are known to lend money to people who don’t really require it, rather than lending to people who are in dire financial straits.   So if you don’t already have a savings account, open one.  As soon as your bankruptcy is discharged, put the money you were paying to your trustee once a month into the savings account.

When you are in a position to go to a lender and ask for a loan, a healthy nest egg will show the lender that you have learned to be more responsible with your money in the time since you went bankrupt, and thus they will be more likely to grant a small loan.

A good reason to borrow money is to allow you to contribute to a Registered Retirement Savings Plan or RRSP.   Lenders are more likely to loan you money for an RRSP than for a vacation to Tahiti next winter.  If you have an extra $1000 to invest, you can ask a lender to loan you an additional $1000 to invest.

The RRSP will give you an income tax refund at the end of the year.  Pay off the $1000 loan with the aid of your tax refund.  This way your credit reports shows a small load paid off in full, as well as your $2000 investment in RRSPs.  Investing in an RRSP also shows a lender that you are being responsible in saving for your financial future.

Another good way to rebuild your credit is by obtaining a secure Visa or MasterCard.  A secured credit card is a bit different than a normal card.  You fill out a standard credit card application form.  However, you would send a check or money order along with the application form as “security” to the lender.  The security deposit is usually $500.00, which will also be your credit limit on the card.  The deposit is held for an indefinite period of time while the lender scrutinizes how your handle this new debt.  It is a good idea to charge a small amount on the card each month and pay it off in full.  Several months of this type of activity will improve your credit rating.  The lender may, after a number of months, decide to increase your credit limit without further security deposit.  Maintaining an excellent repayment schedule with the credit card lender will also improve your credit rating.

How Can I Repair my Credit after Filing for Bankruptcy in Lethbridge? is a post from: Personal Bankruptcy Lethbridge

Perhaps you’ve seen scenes like this in movies depicting conditions during the Great Depression of the 1930s.  The flinty-eyed banker in a fancy car is followed by the town sheriff into the drive of a distraught homeowner.  Papers are waved in the air and amidst a flurry of tears and grief-stricken gestures; the family is put out into the street to fend for themselves.

Some call the recent financial collapse the “Great Recession” of 2008 and many homeowners again find themselves in dire financial straits.  Unemployment and other factors have forced thousands and thousands of ordinary people to consider declaring personal bankruptcy as a way to solve their personal debt crises.

The greatest fear of any homeowner staring into a financial abyss is the though of losing the family home.  Today, the cruel bankers and heartless sheriffs have left the landscape as the truth is that right now, no one wants you out of your home; not your creditors, or your neighbors, or your family, or the government.

In Canada and elsewhere, businesses and governments have vested interests in keeping people in their homes.  Foreclosures lead to lower tax collections, less consumption, and declining property values in entire communities.

For that reason, our government has established something called “equity exemption claims” for residential homeowners who need to declare bankruptcy.  Simply put, Canadian provincial governments say a pre-determined amount of the equity you have in the home in which you live cannot be taken by your creditors.

In Alberta, the equity exemption is $40,000.  Here’s what this means to you.  If you have less than $40,000 in equity in your home, you have nothing at all to worry about.  You can stay in your home.  Okay, how do you determine the equity in your home?

Check with your mortgage holder for the “payoff balance” on your home – that’s the amount it would take to fully pay off the loan immediately.  Let’s say that number is $120,000.  The next part is a bit trickier.  How do you determine how much your home is currently worth?

The most reliable way to do this would be to hire an independent real estate appraiser to determine your home’s current value.  Banks and other mortgage lending institutions use these appraisals in loan decisions so they are much more reliable than the CMA (Comparative Market Analysis) you could get from a real estate professional.  The downside of the more accurate independent appraisal is that you have to pay for one, while a CMA is free.

If the appraisal comes in at $155,000 your equity in the home is $35,000 – its current value of $155,000 minus the $120,000 balance on the mortgage.  Before getting either an appraisal or a CMA it’s a good idea to talk to a bankruptcy trustee, who can advise you as to the best way to determine your home’s value.

If you have more than $40,000 in equity, you still have options that will keep you in your home and out of the street.  For one, there’s the possibility of getting a debt consolidation loan, using the equity in your home as collateral.

Do yourself a favor and get in touch with a reputable bankruptcy trustee to discuss all the options you have for keeping your home.   Consultations are free and the peace of mind you’ll get from knowing help is available is truly priceless.

Will I Lose My Lethbridge Home in Bankruptcy? is a post from: Personal Bankruptcy Lethbridge

Much of the Western industrialized world has gone into an economic tailspin from which we are only beginning to recover.  As a consequence, more and more Lethbridge consumers find themselves in dire financial straits and are looking for ways to help manage their debt load.

When most of us think of debt solutions, our minds turn to bankruptcy or credit counseling.  The airwaves and other advertising venues are crammed with pitches for bankruptcy assistance as well as credit counseling services.

The idea of declaring personal bankruptcy is more than some people can bear, so they turn to credit counseling agencies, unaware there is yet another potential solution that gets little publicity – the Consumer Proposal.  Let’s walk through a brief overview of what’s involved in both a credit counseling service and a Consumer Proposal.

Credit counseling assistance is offered through both for-profit companies and not-for-profit agencies.  Both charge fees for what they do.  The end result of working with a credit counselor is the preparation of a Debt Management Plan, which the credit counselors present to your creditors.  These plans only apply to your unsecured debt, not to secured debt like car loans and home mortgages.

The idea behind the plan is fairly simple.  The credit counselor gets your creditors to agree to lower their interest rates and waive late fees you might have acquired in exchange for a managed repayment schedule.  Your credit accounts are closed and you will pay a single, much lower, monthly payment directly to the counseling service who in turn pays the creditors.

Not everyone qualifies for credit counseling.  There are limits on how much debt can be included in the plan based on a maximum repayment period.  To see if you qualify, you could contact a counseling service.  Before you do, however, you should be aware of the differences between the Debt Management Plan and the little known Consumer Proposal.

First, a DMP (Debt Management Plan) does not lower your total debt; it just restructures the repayment in a more manageable way for the consumer.  If you owe $30,000 in unsecured debt, you will pay all that back over time plus the accumulated fees for the credit counseling service, which varies.

With a Consumer Proposal, you can actually negotiate a reduction in the total amount you owe, reducing that $30,000 in debt to $15,000 and perhaps lower.  In addition, Consumer Proposals afford legal protection unavailable with a DMP.  If your wages are already under garnishment the law specifies it must stop under a Consumer Proposal while cessation of garnishment under a DMP is at the voluntary discretion of the creditor.

Since a Consumer Proposal is a binding legal agreement the government requires consumers to secure the services of a licensed professional bankruptcy trustee to file one.  Unfortunately, some consumers who are aware of the existence of bankruptcy trustees avoid talking to them, thinking they only handle bankruptcies.

In fact, they are highly trained professional debt advisors who can help you evaluate your current financial situation and walk you through all of the available debt solution options, including both Debt Management Plans and Consumer Proposals.  The initial consultation is free so why not do yourself a favor and give one a call.  You have nothing to lose but a little time and everything to gain.

Lethbridge Credit Counseling versus Consumer Proposals is a post from: Personal Bankruptcy Lethbridge

If you recognize you have a problem managing your debt, you have already taken the first and in the minds of many the most important step:  recognizing that you may have a problem.  Whether you have experienced a decline in income or an increase in expenditures, once those two numbers get too close to the same value, you know you are — or soon will be — in serious trouble in Lethbridge.  What’s the next step?

Spending a little time researching debt solutions in Canada over the Internet will show you there are five basic ways to solve your Lethbridge debt issues:

• Work things through on your own with informal proposals to your creditors.
• Get a Debt Consolidation Loan.
• Use a Credit Counseling Service to file a Debt Management Plan with creditors.
• Use a Bankruptcy Trustee to file a Consumer Proposal with your creditors.
• Use a Bankruptcy Trustee to declare personal bankruptcy.

Even if you would like to try to work your way out of the situation on your own, it makes good sense to consult a professional very early in the process.  Those in the business world will tell you all options should be thoroughly explored before a sound decision about a solution to a problem situation can be adopted.

You now know there are five options and you would be well advised to inform yourself of what is involved in each before you go off on your own.  All options require you to conduct a thorough review of your financial picture in terms of monthly income and expenses as well as what you own and what you owe, so that’s the place to start.

If you want to get the best and most complete evaluation of which solution is right for you, consider starting with a call or better yet, a visit to a professional bankruptcy trustee.  Why would you want to do this, even if you have no intention of filing bankruptcy?

Trustees are professional financial experts licensed by the Canadian governments to manage the two legal solutions to debt problems – Consumer Proposals and Personal Bankruptcy.  These two solutions are the only ones providing legal protection, but because they impact a consumer’s credit rating, many are afraid to even consider them, until it is too late.

Credit counseling services – which exist both in not-for-profit and for-profit companies – seem to be preferred since they appear less threatening.  However, credit counselors rarely have a complete understanding of the two legal options and consequently are not in a position to discuss them with you.

Professional bankruptcy trustees, on the other hand, are experts in all debt solution options.  They can help you create that needed initial picture of your overall financial picture and use that to help you sort through the available solutions to determine what is best for your particular situation.

The initial consultation with a bankruptcy trustee is almost always free of charge, so you really have nothing to lose by going in for a visit.  Most are happy to offer basic information and advice over the phone as well.

In summary, now that you have recognized you have a problem, the next step to take is to get some professional advice.  You’ll get better advice if you get together some numbers on your current financial situation before you contact a professional.  Bankruptcy trustees are the professionals in the best position to offer advice on all available debt solution options.

The First Step in Solving Your Lethbridge Debt Problem is a post from: Personal Bankruptcy Lethbridge