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

Posted on Wednesday, October 25, 2006

Applying for Credit After Bankruptcy

After someone files for bankruptcy in Windsor, I am often asked about how he or she can obtain credit again. The first thing to note is that you cannot get any new credit until you are discharged. Once you are discharged, the easiest credit to get is a secured credit card. You can apply for this through various financial institutions. You should also be saving money to use as a down payment for any big purchases such as a car. The lender will probably be more willing to extend credit if you have made a large down payment.

If you have a question, send me an email.

Posted on Wednesday, October 11, 2006

Bankruptcy vs. Consumer Proposal

As a Windsor based trustee, I am often asked what is better – a bankruptcy or consumer proposal. There are pros and cons of each. Here is an overview:

BANKRUPTCY:
CON:
- you lose your non-exempt assets
- you lose the ability to deal with your own assets while bankrupt, such as selling an exempt asset
- you make a payment based on your income so your monthly payment can change each month
- you get the worst credit rating

PRO:
- bankruptcy can be faster from start to finish than a consumer proposal

CONSUMER PROPOSAL:
PRO:
- you do not lose your assets
- you do not better effect on your credit rating than bankruptcy
- payments are fixed each month, your payments don’t increase if you get an increase in salary
- provides a better credit rating than bankruptcy

CON:
- it can last longer than a bankruptcy. The period can be anymore from a lump sum payment to up to 60 months

If you would like to review your situation and determine which option is better for you, call me at 310-PLAN or email me to book a no charge consultation.