Archive for May, 2006

We are often asked what debts are part of the bankruptcy. The Bankruptcy and Insolvency Act states that all debts are discharged (gone) once your bankruptcy ends except in general for:

- student loans that are less than 10 years old,
- fines, penalties, restitution orders,
- awards for damages in civil court for wrongful death or sexual assult,
- alimony or support,
- debts incurred through fraud or misrepresentation,
- an amount a creditor who didn’t know about a bankruptcy would have received if they had been notified of the bankruptcy.

There are always interpretations about what kind of debt does not go away in a bankruptcy. To review your situation in Windsor, please call our Windsor office at 250-8060 or 310-PLAN or email a question.

Debt consolidation is a loan offered to a debtor by their bank. For example, if you have $30,000 in credit card debt, if you qualify, the bank will give you a $30,000 loan to pay off these credit cards. Depending on your term and interest rates, the payments could be around $650 per month for 5 years or more.

A consumer proposal is a payment plan administered by a licensed trustee in bankrupty. You offer a payment plan to your creditors based on your ability to pay. In most cases the payment is alot lower than a debt consolidation.

To discuss a consumer proposal in more detail, call or email a question.