Archive for September, 2006

As a Windsor based trustee, I often get asked if someone qualifies for bankruptcy. The requirements to file for bankruptcy are: debts greater than assets, debts greater than $1,000 and unable to pay the bills on time. However, most people we see owe more money than $1,000. If you think you need to file for bankruptcy, you first step is to call or email me and we will review your situation.

A few months ago I met with someone in Windsor who wanted to file a second consumer proposal. The first one failed because missed 3 months of payments. Unfortunately, under the Bankruptcy and Insolvency Act he cannot file another consumer proposal until all of the debts from the first one are paid, unless he gets a court order allowing him to do so. He then was able to hire a lawyer and obtained a court order allowing him to file another consumer proposal. This second consumer proposal is now awaiting creditor approval.

The important point is that his first proposal failed because he stopped making payments. If your situation changes and you can no longer afford the proposal, you need to talk to your trustee about this. It is possible to send an amendment to your consumer proposal if you are no longer able to make the payments you once could. If you would like to discuss consumer proposals in more detail, email me a question.

As a trustee based in Windsor, I have noticed a dramatic increase in the number of people who come to see me and owe money to various “pay day loan” stores. It is important to understand the cost of these loans before you use this form of debt. For instance, I looked a one company’s web site and they indicated that they charge $25 for every $100 you borrow.

Let’s say a paycheque is $300. You borrow $100 from the pay day loan store, and now owe them $125. You get your $300 paycheque next week, but now you only get to keep $175, the rest pays back the loan. For many people, they have started started into a cycle which is very difficult to get out of. I meet with some people who owe money to 2 or more pay day loan stores. You need to look at the big picture before you get stuck into a bad cycle. If you can’t pay your credit cards and unsecured loans, you should call us at 519-250-8060 or 310-PLAN
to see if a consumer proposal or personal bankruptcy is an option for you.