How to Survive Without Credit Cards – Part 2

Flight Without Credit Card Booking a Flight without a Credit Card

Filing for a Consumer Proposal or Bankruptcy can be a very intimidating process.  There are a lot of questions and concerns about managing without having Credit Cards.  Our previous blog discussed two questions that often arise regarding this, “How do I book a flight without a credit card?” and “How can I reserve a hotel without a credit card?”  The key to both situations is always plan ahead.  Reserving a flight can often times be easier than reserving a hotel without a credit card.  Here are a few keys to get you started.

Do Your Homework

West Jet Airlines

Although many airlines and websites require you to pay by credit card for a flight reservation there are still many other airlines that accommodate patrons who wish to pay by cash or debit.  Be sure to call around and do your research the same way you do when you are looking for a cheap flight.  For instance, in Toronto, one Canadian airline that is good to start with is West Jet.  Here is a look at their policy regarding booking from their website.

  1. When do I have to pay for my flight?
    WestJet requires payment at the time of booking. If you do not have a payment card, you can book your flight at one of our airport locations or at a travel agency.
  2. How can I pay for my flight?
    We accept American Express®, Discover® and Diners Club International® cards, MasterCard®, Visa®, Visa Debit®, and Universal Air Travel Plan (UATP). WestJet gift certificates purchased prior to October 1, 2009, may be redeemed* by calling 1-800-581-9499 or at a WestJet ticket counter. We also accept debit and Canadian cash at our Canadian airport locations, and U.S. cash at U.S. airport locations. For international airport locations, the accepted forms of payment vary. Please call us for information on a specific location.

As you can see the one significant detail regarding booking a flight with cash or debit is the need for you to do so at either an airport or travel agency.  Keep this in mind and again make sure you plan ahead.  It may mean a trip to the airport a few weeks prior to your trip in order to make sure you get the flight you desire.

Visit a Local Travel Agency

If getting to the airport is not an option because of distance or time restraints you can also look into booking a flight through a local travel agency.  For example, Flight Centre in Barrie offers a wide variety of options when booking a flight or travel package.  Some options include paying by cash or debit for the flight or buying gift cards to use towards flights in the future.  Also they offer an option of starting an account that you set aside money in to help with saving up for a vacation or flight that you can redeem when you have saved the needed funds.

No matter the situation you are facing, getting a handle on your debt is an important step and whether you are filing for bankruptcy or a consumer proposal, with proper budgeting and some planning ahead you can still enjoy vacations and travel without out the need of credit cards.

How to Survive Without Credit Cards – Part 1

Hotel without Credit Card Booking a Hotel without a Credit Card

Often when entering into a Bankruptcy or Consumer Proposal many people are concerned with how they can manage without the use of Credit Cards.  Two of the most common questions people face are, “How do I book a flight without a credit card?” and “How can I reserve a hotel without a credit card?” Although the process can sometimes be more complicated, it still is possible.  Here are some simple tips to keep in mind when facing this situation.

Plan ahead

When booking a hotel you will want to make sure you call ahead to the city or destination and see what hotels allow for debit or cash reservations.  When searching places to stay look for local, non-chain hotels or even bed and breakfasts as well as more common hotel franchises.

Prepare For Security Deposits

Make sure you also state that you will be paying by cash or debit and that you won’t have a credit card for a security deposit.  Some hotels will allow you to stay if you authorize a security withdrawal to cover incidentals, damage, or amenities like mini bar and pay-per-view.  This money will be refunded to you at check out, but be sure to check if there are any delays for refund as some hotels can hold deposits for several days.

Pay Upfront

Debit Credit Card Logos By paying for the stay upfront you ensure to the hotel manager that they will get the appropriate funds for the stay.  This is often a guarantee for hotels with credit cards.  An upfront payment on your room limits the risk and conveys a certain sense of responsibility and liability for the room. As well many debit cards now come with Visa and MasterCard logos making it easier to use debit as an alternative to credit.

Finally, remember to budget accordingly.  Make sure you set aside the appropriate amounts needed for the stay and still have extra finances and cash to cover your meals, gas and other travel expenses like souvenirs and attractions.  Preparation is the key to a great vacation.

Bankruptcy Court and What You Should Expect

Barrie Bankruptcy Court

Since filing for bankruptcy in Canada is a legal process, as outlined by the Bankruptcy and Insolvency Act (BIA), you may be required to appear in court. In Canada, the ability to exercise the bankruptcy process falls under the provincial Superior Court’s jurisdiction. You typically would attend a hearing in a Bankruptcy Court to appeal for a discharge.

In your first or second bankruptcy, you need to:

  • Complete all of the duties required for filing for bankruptcy as outlined by your trustee
  • And if no one opposes the discharge.

Throughout the process of filing for bankruptcy, you are bound to complete certain duties – which includes attending two sessions for credit counselling. Not completing these duties is a sure-fire way to wind up in court. To add insult to injury, if you don’t complete them, you will not only have to go to court, but offer up an explanation as to why they weren’t finished.

If you are eligible, you will be given a copy of the discharge papers by your trustee. However, if you do not qualify, your trustee will have to apply for a hearing with the court to review your discharge.

In Canada, there are four types of discharges: Automatic Discharge, Order of Absolute Discharge, Order of Conditional Discharge, and Order of Suspended Bankruptcy Discharge.

An Automatic Discharge will be appointed if you have completed all of your duties on time, and there were no objections to the discharge. No court hearing is required in this case.

An Order of Absolute Discharge will officially rid you of your debts that were incurred prior to filing for bankruptcy. Exceptions are taken into consideration under the BIA.

An Order of Conditional Discharge means you will be discharged of your debt provided you meet the conditions set by the court.

An Order of Suspended Bankruptcy Charge means the court has delayed the discharge until a set date. This is typically due to an opposition to the discharge on the grounds of a criminal investigation, or failure in completing any and all duties.

Don’t place all of your worries on the notion that your creditor will oppose your discharge. In fact, an opposition occurs less than 1 out of 100 bankruptcies filed in Canada. A creditor would really only oppose the discharge if they believe they can convince the court to require you to make extra payments, or perform extra duties – however, this is a rarity due to the fact that your duties are laid out in the BIA.

You should note that on your third bankruptcy (and fingers crossed you don’t come to that), you will not be eligible for an automatic discharge. You will now have to go to bankruptcy court for a discharge hearing in any of the other three categories.

If you have any questions regarding bankruptcy, debt or help handling your personal finances, give us a call toll free at 1-888-504-1511, or visit us on the web at www.allentrustee.ca.

What is Your Role in Filing for Bankruptcy?

Filing For Bankruptcy Barrie If you have decided it’s time to throw in the towel by declaring bankruptcy, one way to make the process less stressful than it already is would be to educate yourself on your role in filing for bankruptcy. When you declare bankruptcy, you have set duties and responsibilities you must comply with in order to not commit any offenses under the Bankruptcy and Insolvency Act. If you commit an offense, you could not only face a hefty fine, but also imprisonment for upwards of five (5) years.

Start by handing over your assets to your bankruptcy trustee. You will also have to hand over all credit cards issued to you for cancellation. Your Trustee will also need to obtain all of the records relating to your affairs.

Compile a formal list of your liabilities and assets, which should include the names of your creditors, addresses, account numbers and debt amounts. You should also note any of your assets you have sold in the year leading up to your bankruptcy declaration, and any assets you have obtained as a gift in the last five year prior. Your Trustee will need the necessary information to file income tax returns, as well as a monthly income and expense statement. You are also required to report inheritances or lottery winnings to your Trustee.

Your Trustee will begin arranging meetings with your creditors, and you will be required to attend if you are called upon. You will also need to attend at least two counseling sessions, which are set up by your Trustee. If you have a change in address or telephone number during the time of your bankruptcy filing, you are required to inform your Trustee immediately.

While it all seems like an incredibly stressful process, you have to keep your head together. If you miss anything, make any mistakes or purposely leave something out of your bankruptcy claim, you can be convicted with a fine or jail time.

You are at risk of conviction if you fail to follow any and all of the requirements previously mentioned, as well as falsifying statements, hiding or destroying property / records, obtaining any kind of credit over $1000 in the time of your bankruptcy, falsely obtaining credit, engaging in any sort of trade or business without full disclosure to your Trustee, and refusing to answer questions truthfully during an examination under oath. These offenses carry fines and/or jail time, depending on their severity. Your Trustee is there to guide you through the process, so if you feel confused or overwhelmed; it always helps to just ask questions.

If you are considering filing for bankruptcy or would like to know some of your other bankruptcy alternatives, feel free to contact one of our four offices located in Toronto, Barrie, Collingwood and Owen Sound.

Battling The Unexpected Personal Finance Problems

Battling Personal Finance Issues We’ve all been down this road before: something unexpected happens – maybe your car breaks down, or you need some special kind of medication – your insurance isn’t covering it all, and you’ve got to pay out of pocket. You’ve already smashed the piggy bank, and checked between the cushions but you’re just coming up empty. So how are you supposed to battle the unexpected? Until you find a way to predict the future, there’s a couple ways to get some quick money.

If you’ve ever walked around your city, chances are you’ve seen a Money Mart, or something similar that offers what seems to be an insane amount of money the moment you walk through the door. This option is called a payday loan, and your eyes don’t deceive you. Money Mart’s website notes that 99% of people who apply for a payday loan are almost instantly approved, and receive their money shortly following. All you need to apply: a pay stub, bank statement and blank cheque. Almost seems too good to be true, right? That’s because it is.

Before you even consider this option, research, research and then research some more. Where they get you with their enticing calls to action are the charges and interest rates.

Let’s put this in perspective: in Ontario, a loan amount can range from $120 to $1500, and you are charged around 20% for every $100 you borrow. So if you want to borrow $300 for a car repair, you’ll end up having to pay $363 at the end of your loan term – an ambiguous amount of time that is due on your next payday and can range anywhere from one week and 42 days.

So what if life gets in the way once more? What if you are unable to pay that $363 back on time? Like any other loan, you will be charged annual interest. So what is the annual interest on a payday loan in Ontario? 547.50%. No – you didn’t read that wrong…it is actually 547.50%! What if you miss your due date by two months? That’s 91.25% interest. That $300 you needed for your car payment is now almost $700! Many people fall into massive debt when it comes to payday loans, and this is mostly due to simply not knowing the interest rates or charges that come with the loan.

Unless you are incredibly diligent with your money, or are at your wits end and have exhausted all your options, it is always a good idea to avoid a payday loan. So how else can you get some money?

Budget: Do you really need a case of soda this week? Maybe you could skip on the new shirt for now. Ask yourself “do I really need this now?” before you make a purchase – at least until you’ve remedied your situation. Check out our Personal Budget Tool

Odd Jobs: Ask around for jobs you could do in your spare time, even if it’s just shovelling driveways or carrying boxes. Money is money at this point.

Borrow from family and friends: The people closest in your life are, more often than not, willing to help you. Swallow your pride and explain the situation. They’ll most likely be willing to help, so long as you pay them back.

Sell Things you don’t need: You know that old guitar you don’t play with anymore? That pile of video games you beat already? Sell them online! Use websites like eBay, Kijiji or Craigslist to make some money. Don’t sell yourself short, but keep in mind: the more reasonable the price, the faster someone is to buy it.