Windsor Ontario Personal Bankruptcy Blog: May 2006: Answers to Personal Bankruptcy Questions

Posted on Wednesday, May 31, 2006

What debts are included in a bankruptcy?

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.

Posted on Thursday, May 04, 2006

What is the difference between debt consolidation and a consumer proposal

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.