Bankruptcy can sometimes be your best way out of an overwhelming debt situation but you should consider how the law forces a Trustee in Bankruptcy to operate in Canada.
The bankruptcy process must be administered by a Trustee in Bankruptcy. Most Trustee's have both an accounting designation and a university degree. They must also pass a bankruptcy and law course. When considering filing for bankruptcy, always deal with a licensed trustee; that is, a trustee who has obtained a license from the Superintendent in Bankruptcy pursuant to the Bankruptcy and Insolvency Act (Canada).
What most people don't know is that even though you pay a Trustee for filing an assignment in bankruptcy, they are working on behalf of the creditors that you owe. That means even though you pay the Trustee to provide a fresh start for you, they are essentially an appointed agent for the creditors and looking after the best interest of the people that you owe. The Trustee works towards returning the creditors money back through the assets you hand over during the bankruptcy process.
You will present all of your debts and most of your assets to the Trustee. Very little of your assets are exempt from bankruptcy. In Ontario for example, you may keep your car if it is worth less than $5,650, necessary and ordinary wearing apparel up to $5,650, certain tools up to $11,300 if required by your trade, up to $11,300 of furnishings and certain types of life insurance. Most of your other assets are available for seizure and may be lost including your home, and your investments (except RRSP's and pension plans in certain cases). As a result, always consider doing everything you possibly can do to avoid going bankrupt.
If you owe more then $10,000 and your debts have been listed to a collection agency, consider debt settlement as an option. A debt settlement company can help avoid bankruptcy and works towards stopping collection calls by acting as your agent and negotiating a settlement with your creditors. It is an excellent way for you to wipe out your debt fast while saving you a substantial amount of money. In most cases you pay back about half of what you originally owed the creditors and that should include the fees. I have seen people achieve total debt freedom in as little as 30 days if they have access to a lump sum of money; anyone who is a homeowner or has family willing to help should definitely consider this option. Others may take 24-36 months to settle their debt. Unlike a Trustee a debt settlement company is acting for you only; in most cases fees charged are based on the money you save. That means that they will work to save you as much as possible. See http://totaldebtfreedom.ca/ for more information on debt settlement in Canada.
Always look at all of your options when considering bankruptcy. Generally speaking, if you suffer from financial hardship, have very limited income and most of your assets qualify as being exempt from bankruptcy seizure, then it's a good idea for you to get a free consultation from a Trustee about going bankrupt.
Don't be afraid of dealing with your debt. Sometimes bad things do happen to good people or maybe you just made some bad choices in life. We are only human. The worst mistake you can make is putting it off. Either way if you choose debt settlement or bankruptcy, start your path to debt freedom as soon as you can and get on with living life totally debt free.
Richard Cooper is Founder & CEO for Total Debt Freedom Inc. Canada's most respected debt settlement company. Originally conceived for the mortgage community in 2003 to help fund more sub-prime mortgages and fix turn downs due to bad credit; Total Debt Freedom also offers debt settlement plans up to 36 months for those that aren't homeowners. http://www.totaldebtfreedom.ca
Showing posts with label bankruptcy. Show all posts
Showing posts with label bankruptcy. Show all posts
Tuesday, March 18, 2008
Tuesday, March 4, 2008
Get out of Debt - The Secret
In order to get out of your debt, you must apply the secrets of debt freedom. These tips are the foundation of becoming debt free and creating options in your life.
There is an old saying that talks about stupidity. It goes something like "the definition of stupidity is doing the same thing over and over again, expecting a different result". For example, people don't keep turning on a cold water tap expecting hot water to pour out. So why would you keep doing the same thing with your debt? If it isn't going away you need to do something differently.
Ignoring the debt isn't going to make it go away. Blaming others for your mistakes is of no help, but hoping something will change is even worse.
You have to effect change in your life and not wait for it to happen. At the end of the day you have to want to get out of debt to make that change to your financial situation.
As a little 8 year old I can remember that burning desire for a bicycle one summer, my parents were poor so I had to figure out a way to get it on my own. I must have shoveled 50 driveways that winter in the freezing cold (and it snowed heavy that winter) at $5 a driveway to make the money. But I did it because I had the image of that bicycle burned into my minds eye.
I don't care if you owe $75,000, if you want out of debt bad enough, sit yourself down and figure out a way. Don't blame anyone else for your problems; take a good hard look in the mirror. The person looking back at you got you into debt, and believe it or not can actually get you out of it.
During my career I have seen winners and losers deal with all types of debt. I can tell you without a doubt the reason why people get out of debt is because they don't blame others, are serious about it, and do something to fix it. The main reason the losers are stuck with their debt is because they aren't serious about resolving it.
Brian Tracy, a motivational speaker, once stated that "you only have options if you can save money. If you are in debt, you have no options." What he means is you cannot quit your job, open a business, treat yourself to a luxury or even take a vacation. Being in debt severely limits your options in life. Once you find your reason for becoming debt free and plan it out, nothing can stop you.
There are a lot of great articles on getting debt help, some can do it all on their own and others may need help. Bankruptcy, Debt Settlement, and Credit Counseling are all viable plans. I personally believe (and have proven) that debt settlement does the least amount of damage to your credit and is the fastest and most cost effective way to debt freedom. Do your homework and start doing something about it.
Richard G. Cooper is Founder & CEO at Total Debt Freedom Inc. Canada's most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years. http://www.totaldebtfreedom.ca/
There is an old saying that talks about stupidity. It goes something like "the definition of stupidity is doing the same thing over and over again, expecting a different result". For example, people don't keep turning on a cold water tap expecting hot water to pour out. So why would you keep doing the same thing with your debt? If it isn't going away you need to do something differently.
Ignoring the debt isn't going to make it go away. Blaming others for your mistakes is of no help, but hoping something will change is even worse.
You have to effect change in your life and not wait for it to happen. At the end of the day you have to want to get out of debt to make that change to your financial situation.
As a little 8 year old I can remember that burning desire for a bicycle one summer, my parents were poor so I had to figure out a way to get it on my own. I must have shoveled 50 driveways that winter in the freezing cold (and it snowed heavy that winter) at $5 a driveway to make the money. But I did it because I had the image of that bicycle burned into my minds eye.
I don't care if you owe $75,000, if you want out of debt bad enough, sit yourself down and figure out a way. Don't blame anyone else for your problems; take a good hard look in the mirror. The person looking back at you got you into debt, and believe it or not can actually get you out of it.
During my career I have seen winners and losers deal with all types of debt. I can tell you without a doubt the reason why people get out of debt is because they don't blame others, are serious about it, and do something to fix it. The main reason the losers are stuck with their debt is because they aren't serious about resolving it.
Brian Tracy, a motivational speaker, once stated that "you only have options if you can save money. If you are in debt, you have no options." What he means is you cannot quit your job, open a business, treat yourself to a luxury or even take a vacation. Being in debt severely limits your options in life. Once you find your reason for becoming debt free and plan it out, nothing can stop you.
There are a lot of great articles on getting debt help, some can do it all on their own and others may need help. Bankruptcy, Debt Settlement, and Credit Counseling are all viable plans. I personally believe (and have proven) that debt settlement does the least amount of damage to your credit and is the fastest and most cost effective way to debt freedom. Do your homework and start doing something about it.
Richard G. Cooper is Founder & CEO at Total Debt Freedom Inc. Canada's most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years. http://www.totaldebtfreedom.ca/
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