by Ajay Oberoi | Bankruptcy, car financed, Car Leased, Credit Repair, Insolvency
Fighting with your financial resources is tough enough; however, deciphering what debt solutions are available to you, as well as which of your properties, if any, are protected, call for expert suggestions. A lot of people that owe cash can really feel overwhelmed. Thankfully, some organizations can use financial debt help across Canada.
One alternative, depending on your situation, is filing for personal bankruptcy or a consumer proposition. In such situations, only unsecured financial debts are usually impacted, i.e., lending not attached to certain properties. The safety and security of your protected financial debts, on the other hand, is primarily based on whether you can afford to keep making payments on them.
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Secured financial debt versus unsecured debt
Unsecured debts normally include such items as credit cards, individual loans, earnings tax obligations, etc. On the other hand, secured financial obligations are those where the financial debt is tied to an asset, such as a mortgage, real estate, a vehicle loan, or auto lease, which is safeguarded by your automobiles.
If you are leasing a car as well as you submit a customer proposition or for bankruptcy, you can technically hang on to it as long as you are continuing in making the payments. When you cannot, or you do not want to maintain the vehicle, you can do two things, voluntarily surrender the vehicle or start foreclosure.
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Your choices as well as what occurs next
Leasing a car suggests you are paying for it and will utilize it up until the lease is up. Even if you declare insolvency, as long as you depend on day on your settlements for the leased vehicle and you can pay to continue making them, you are legitimately qualified to keep it as per the terms of the lease. You should additionally keep the insurance coverage in full force.
When speaking with an accredited bankruptcy trustee who can offer financial debt assistance, it is necessary to allow him/her to learn about your automobile lease upfront. Typically, the leasing company and the loan providers would choose that you remain to make the auto settlements.
Needing insurance policy as well
Regardless of what you choose to do with the leased automobile after filing a customer proposition or insolvency, always preserve insurance coverage on the automobile till it is no longer in your belongings. If something should take place to it before you have returned it, as well as you are not insured, you will likely be called to pay. Also, without insurance, car accidents can impact your motorist’s license.
It is highly recommended that you contact an experienced company like gtacredit.com. If you have issued what so ever, feel free to call us at 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
We all need to save money for a rainy day and if we do not we could be in trouble when an unforeseen disaster strikes. The lifestyle in Canada could be quite fast with everything that you would do taking a few dollars from your pocket. If you continue in that trend you would be with an empty pocket at the end of the day or when you step into old age. Financial stability is needed and that could be achieved only if you are in the habit of saving wherever it is possible. It may not necessarily be that you save physically those additional few dollars but by cutting a few corners where a few dollars would remain in your pocket.
Hence it is imperative that you save a few dollars every month and stash it away safely so that you have access to it when you really are in need of money in an emergency. We know that it is little grains of sand that make a mighty land and little drops of water that make a mighty ocean. Keeping this in mind and trying to save a few dollars wherever possible would ensure that you could lay back and be contended that you have a financial backup when you need it.
It is not only by putting away money that you could save but you could do so by ensuring you control your day to day expenses where a few dollars would be drained out without your knowledge. It is these few dollars that we are interested in which if calculated would run into a few hundreds or even thousands of dollars over a period of one year. We have compiled a list of just TEN easy ways that would be easy to follow and also ensure you save a few dollars on a regular basis for which of course you would need to commit yourself very intelligently.
#1. Join or create a carpool with friends or neighbors
Research done by Statistics Canada has enlightened that an average Canadian worker commutes about 25 kilometers to work and back every day. Covering such a distance annually would cost you around $1,800 on gas alone every year. This is not taking into consideration other factors like wear and tear which the car would undergo during that time.
If you carpool and travel only one day per week with friends or neighbors you could be dropping this figure down substantially which could be about half that. If you save that amount of $900 it would be a small amount but would add up in your kitty.
#2. Pay bills on time
Pay your bills on time. If you do so you would not be paying surcharges, interest, or any other unnecessary additional costs. Over a period of time depending on your financial status, you could be saving quite a substantial amount. Paying such unnecessary charges should be avoided. These are savings that would accrue to your saving kitty over a period of time.
#3. Shop with prudence
Many vegetables, fruits, canned items, fish, and other stuff we like to eat are seasonal and if you know what is available in abundance and in which time of the year you could be buying fresh foodstuffs whilst also paying less. You don’t need to be an expert on the matter but when you live a year or so in any particular area you could jot these down on the calendar and then make some prudent changes to ensure that you eat the freshest and at a lesser price too.
#4. Manage the heating and cooling systems
Ensure that you adjust your thermostat according to your needs and don’t just keep the air-conditioning or heating system running when you are away from home. Research by Energy experts has found that you could be saving up to $400 annually if you use your cooling and heating system prudently.
#5. Negotiate your insurance premiums
Negotiate all your insurance premiums, your home, car, and all other insurance would cost a tidy sum annually, but if you could negotiate with your insurance agent you may end up paying much less than they would quote. If you are not satisfied try another agent and they would offer you a better premium than the former. The savings that you would make would be quite a sum when calculated annually.
#6. Check your vehicle every winter
Get ready for the winter and ensure that you do a tune-up to your vehicle every winter before it begins and this way you would not be spending unnecessarily with avoidable breakdowns. Your regular mechanic or the vehicle center would help you out which could save you a good tidy sum annually.
#7. Look for bargains regularly
Bargains are galore in supermarkets and departmental stores and to pick up what you would need, make a list of everything beforehand. When you are out shopping inside any shop look at the bargains you may just find what you wanted and buying at bargain prices would save you a lot especially when spread out over a year.
#8. Check vehicle air pressure regularly
Driving with low tire pressure wastes gas and doing it on a regular basis would burn gas unnecessarily. Ensure that you check your tire pressure on a regular basis and reduce the consumption of gas. This could be a tidy sum saved on gas annually.
#9. Avoid traffic fines
Canadians pay millions of dollars on traffic fines and these are unnecessary payments that could be easily avoided. Ensure that you drive carefully and don’t speed as it is not worth the trouble and could be life-threatening too. If you do not pay traffic fines you would not be contributing to the Canadian police unnecessarily.
#10. Avoid shopping with credit cards
Credit cards generally buy things that we don’t need. Hence avoid flashing your credit card when you buy because by doing so you would not be buying what you don’t need. It would save you loads over a year. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management, Portfolio, Social Media
Do you want to get rid of debt? In that case, if you are getting a fixed income a consumer proposal can be the best option than getting into bankruptcy. The consumer proposal would help safeguard your assets and clear your debts to unsafe creditors.
The consumer proposal helps the interest increasing on the debt, halts collection calls and halts wage trimming. Under a consumer proposal, you can easily pay off a less and small part of the total debt you have with the help of a single monthly payment during a span of 5 years or lesser than that. You can pay for it anytime.
Let us understand what does consumer proposal mean?
It is an alternate option to bankruptcy created for those who are unable to pay off their debts to the unsecured creditors. You can create a new agreement with the help of a Licensed Insolvency Trustee with the creditors to pay off a lesser amount.
The monthly debts amount that you have to pay is completely based on the income you get and the amount that you can manage to pay as a debt payment.
The consumer proposal proves to be an ideal option for all those who are engaged in the process.
Type of debts that consumer proposal covers are
All the unsecured debts that you own are taken care of by the consumer proposal. It includes utility bills that are not paid, debt related to credit card, payday loans, and also the amount you owe to the Canada Revenue Agency. The consumer proposal is meant for all the debts below $250,000 (excluding mortgage). In case the debt amount is above $250,000 then you are entitled to the proposal – Division 1. You can visit gtacredit.com to get rid of debt with the help of a consumer proposal.
How do Taxes work in a consumer proposal?
Well, if you are planning to file your tax returns then it can be a cumbersome task if you are under debts or planning to file a consumer proposal. There are a lot of misunderstandings regarding the taxes you pay upon filing a consumer proposal and you may get in the trap of such misunderstandings as taxes are handled differently when it comes to consumer proposal rather than a bankruptcy.
The best source to get all your misunderstanding clear about your taxes is to seek help from a GTA CREDIT counselor or an Insolvency Trustee and you will get all the answers to your questions about your financial status and what exactly the consumer proposal has in store for you. The trustee helps you all through the process of a consumer proposal, for example, your assets, taxes, credit rating, etc.,
There are some basic things that you should be aware of how the taxes work while filing a consumer proposal.
In case of bankruptcy, you will need to cease the tax refund the same as you actually would pay a portion of your income as part of a legacy or any increment in your salary. On the other hand, the consumer proposal acts differently. You agree on certain payment terms with your creditors wherein you set a fixed amount to be paid on a monthly basis over a time span of 5 years. The agreement will not alter until and unless you choose to replace it with a new agreement that includes a quick rate for paying back the debt amount. The basic idea behind why a person should seek help via consumer proposal is to secure his/her increments in income in the near future.
Do you need to file taxes while seeking a consumer proposal?
It is recommended that you file the taxes while seeking a consumer proposal as if you miss filing taxes it could intervene in your agreement. In case of bankruptcy you need to file pre as well as a post-bankruptcy tax return.
When you opt for a consumer proposal or bankruptcy it is always better to seek credit counselling. Credit counseling helps you plan your credit and use it wisely and stay away from debt in the coming years.
You can get detailed information from the gtacredit.com or trustee as they help you create a consumer proposal and file the consumer proposal for you. They try to negotiate the amount with your unsecured creditors so they act as intermediaries between both you and the unsecured creditors.
They also help you learn how to utilize your credit and provide tailored counseling for dealing with your credit in the near future. They make sure that the agreement rules are followed by both the parties.
There are benefits linked to consumer proposal and they are
- No need to file bankruptcy
- Can protect your assets
- The unsecured creditors will halt any collection actions that they take against you.
- Any of the deductions on your bank accounts or wages will be cancelled.
- You can pay even lesser amounts to the unsecured creditors as payback amount. This entirely depends on how much you can pay based on your income. All these payment terms are taken care of while filing a consumer proposal.
- Once you file consumer proposals there will be no penalties or increased interest rates for you to pay.
The consumer proposal doesn’t include any disbursement of your assets like vehicles or house etc. in case you mortgaged your house then you need to pay the required amount to protect your house. The same applies to a car or any other secured loans. Remember, secured debts like car loans, home loans or mortgages are not taken care of in consumer proposals.
Upon completion of your consumer proposal, you are freed from all unsecured debt payments that are included in a consumer proposal. Basically the debt amount that you are supposed to pay in a consumer proposal is quite less as compared to the debt amount you owe.
A consumer proposal can help you with debts and you won’t find land in a situation where you find yourself under debts and it becomes impossible to overcome such situations. Any help for financial problems contact gtacredit.com or call 416 650 1100
by admin | Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
There are multiple ways for you to reduce your debt and improve your credit rating including consolidation loans and consumer proposals. If you have more debt than you can handle then opting for a consumer proposal is a good choice. What is a consumer proposal and how can it help you to clear your debt? Let’s find out.
If you’re at a point where your debt continues to rise and making ends meets is as good as impossible then you have every right to be worried about your future. However, contrary to what you may think, paying off your debt is not impossible. It’s just that you haven’t found the right solution yet. So what’s the right solution for paying off your debt? If you guessed consumer proposal then full marks to you.
A consumer proposal is your best bet if you want to clear your debts without going bankrupt. Part of the Bankruptcy and Insolvency Act, a consumer proposal allows you to negotiate with creditors for debt reduction. Moreover, it allows you to spread the debt payment over several years. The debt payment you make each month will be based on your personal situation and your budget. Using consumer proposal, you can reduce your debts by up to 70%. However, it’s important to remember that only a licensed credit counselor or Insolvency Trustee can administer and file consumer proposals. After you sign up for consumer proposal, you’ll be required to make monthly payments to the trustee and not your creditors. This means that the creditors can no longer call you for collection after you sign up for consumer proposal. Following are some of the advantages of consumer proposal:
- You will be free of debts once your consumer proposal is completed
- Your debt interests will cease to exist
- You’ll have to make only one payment for your debts each month
- Your belongings will be safe
- Your creditors won’t be able to call you for collection or harass you
- You won’t have to worry about interruption of gas, telephone, or electricity services
- You can pay off your debt in secrecy
As seen above, there are many advantages of signing up for consumer proposal. However, it’s important that you respect your commitments and make timely payments after signing up for the aforementioned dent payment solution. Also, you will be deemed eligible for consumer proposal only after the following things happen:
- Initial meeting with the advisor
- Filing of the proposal
- Presentation of the proposal by the trustee to the creditors
- Response of creditors
- Acceptance of proposal
- Consultation sessions
- Official discharge
Generally, the consumer proposal is for a period of 5 years or 60 months. Consumer proposal is a great way to clear your debts. This is the reason credit counselors highly recommend it. To find out more about consumer proposals, get in touch with a credit counselors today.
