• Petition Information

 • Our Services
 • Dealing with Debt
 • Consumer Proposals
 • Mortgage Reinstatement
 • Role of the Trustee
 • What is a Paralegal?
 • Code of Ethics
 • GETTING HELP
FDM Journal
  • Consumer Proposals
  • Car Repossession
  • Debt Collectors
  • Foreclosure
  • Lay Offs
  • Trustees

Slow down in the economy has hit home early for Auto Workers and lay offs meaning for some major financial losses. If you have just been laid off, you need a financial plan immediately. There are temporary and long-term solutions, which can help maintain secured loans on mortgages and cars etc. It's important to understand solutions take time to implement, so you need to act now.

By restructuring your debt early in the lay off process, you will buy yourself valuable time to find a replacement job. You will have extra protection during this period of hardship. For those with homes you need to know that you can not pay your mortgage with your credit card account. The bank can reverse those payments and reduce your credit card debt, while at the same time placing your mortgage back into arrears.

If you have paid into a pension fund that is locked in until you are sixty-five, and you are permanently laid off or your job has been terminated, you may have these funds released for hardship reasons.

It is not always a wise move to consolidate your unsecured debt into one loan with one lender. Doing this can present major problems for you if the lender requires security against your car or household goods. It can also present major problems if you need to file for Bankruptcy Protection or a Consumer Proposal.

You should know that visiting a Bankruptcy Trustee, without representation is like sticking your head in the Lion's mouth and hoping it will not bite it off.

You will have some knowledge from hearsay, if not personal experience that you will lose your house, your car, your shirt etc. if you file bankruptcy. That is not true when someone proficient in Debtors rights represents you.

What is Bankruptcy Protection?

Bankruptcy Protection is the act of surrendering your assets to the Trustee and purchasing them back. Not as stupid as it sounds, let me explain.

If two persons are on one home-ownership deed, and the home has Forty Thousand dollars ($40,000.00) equity, that equity is split as each person owns Twenty Thousand ($20,000.00) each.

Suppose one of those persons has the bulk of the unsecured debt in their name, they can file bankruptcy and the Trustee then owns their share of the equity or $20,000.00. Both partners can work together to buy back the equity from the Trustee and regain control of the home. If the bankrupt person owed more than $20,000.00 at the time of bankruptcy then the surplus amount is forgiven.

There is more to the process than that of course, but this lets you know that you can be bankrupt and still keep your home. The same applies to your car, snow-blower etc.

What is a Consumer Proposal?

Similar to an Orderly Repayment of your debt(s). If you cannot pay your bills on time you can have your debts consolidated and offer your creditors a monthly payment that you can afford. There are standards that apply to this monthly figure and you can have your representative analyze your position and provide you with this figure before offering the proposed settlement.

Again there is much more to the process, but now you know that you can restructure your debt without a bank loan.

Our office has a list of some of the professional offices that represent debtors throughout Ontario. You may request their locations by calling 1-877-727-6529 or contact us now.

I guess most people now know why there was an early election. Our fearless leaders could read the signs and managed to get in under the wire in what now appears to be a very timely election indeed.

Think Thrifty!!!