1. When should I get help with my credit card debt?
You might consider seeking debt relief options if you find you’re frequently paying your credit card bills after they’re due or regularly making only the minimum payments. If you’re relying on credit cards as a source of financing, you can find out more about filing a consumer proposal to consolidate your unsecured debt and leave you with more money for savings.
2. How much credit card debt should I have to be able to file a consumer proposal?
If you have between $1, 000 and $250, 000 in unsecured debt, you could file a consumer proposal and have a Licensed Insolvency Trustee negotiate to repay all or only a portion of your debt.
1. What is the maximum amount I can be charged for on a payday loan?
In Alberta, Saskatchewan, and British Columbia, you can be charged up to a maximum of $23 per $100 borrowed. In Ontario, it is a maximum of $21 per $100 borrowed. In Manitoba, you can be charged a maximum $17 per $100 borrowed. In Nova Scotia, it costs $22 per $100 dollars borrowed. In the provinces of Newfoundland and Labrador and New Brunswick, no provincial regulations have been set as of yet, so the restriction is up to the federal government’s cap of 60% interest on a payday loan per year.
2. What are my rights and how can I protect myself from poor payday loan business practices?
You can check online with your province’s regulations on the payday loan industry for a breakdown of your rights. But, if you’re finding yourself in a never-ending payment cycle, contact one of our Licensed Insolvency Trustees who will walk you through your options to paying off a payday loan. Request a call by filling out our online form.
1. Can my student loan debt be included in a consumer proposal or bankruptcy before the 7 year mark?
The Bankruptcy & Insolvency Act states student loan debt cannot be discharged for seven years before you have ceased to be a part-time or full-time student, but you may be able to take advantage of hardship provisions. You might also be able to consolidate your other unsecured debts through a consumer proposal, which could leave you with more money to put towards your student debt. Learn more about the consumer proposal process.
2. What is the hardship provision?
If you are or you have been bankrupt and it has only been five or more years since you ceased to be a part-time or full-time student, you can apply to the court for an early discharge of your student loan debt under the “hardship provision.” You can learn more about the hardship provision process on the Government of Canada website.
1. Can I setup a payment arrangement independently with the Canada Revenue Agency?
You might be eligible to enter into an agreement with the CRA to make a payment arrangement, which would allow you to make smaller payments to them over time until you have paid your entire debt. To learn more about this process, visit the Canada Revenue Agency website.
2. What happens if I don’t pay my taxes?
If you don’t pay your taxes, depending on your case, the CRA can take a number of measures against you including a wage garnishment, seizing your bank accounts, registering on your home and seizing or selling your other assets. If you are having a hard time repaying your tax debt, our Licensed Insolvency Trustees can negotiate with the CRA on your behalf to create an affordable repayment plan and stop any legal action taken against you. Request a call today.
1. Why can’t I include my mortgage debt in a consumer proposal or bankruptcy?
Your mortgage is a secured debt, meaning it is backed by an asset. It must be paid or you risk having it repossessed by your lender (the bank). If you are having difficulty making ends meet, you can visit our Debt Relief Options page for more information on how to pay off your unsecured debt like credit cards to allow you to maintain your mortgage payments. Or, you may contact one of our Licensed Insolvency Trustees who will carefully assess your financial situation and provide you with a tailored solution for debt relief.