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.