by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
Going bankrupt is a tough time indeed for anyone and it becomes even more stressful when a bankrupt individual decides to try and get a job in order to make his financial position more tenable. There are a veritable host of questions in his mind that might make the prospect of future employment quite daunting. However, it is not as bad as it looks. Here is why:
Effect of Bankruptcy on Job Applications
When it comes to government employment, no agency in Canada may consider your bankruptcy when deciding whether to hire you. Unfortunately, this rule does not apply to the private sector. And it is certainly possible that a prospective employer in the finance industry would be wary of hiring you especially when it comes to dealing with sensitive tasks such as making or supervising the disbursement of payrolls, general accounting and the like.
Honesty is the best policy
The key thing is to be upfront about it and to refrain from hiding your financial history if your prospective employer asks you. Rather than ‘fudging’ the question or out rightly lying (an almost certain way of losing out on your prospective job just when you need it the most) it is always better to speak the truth. If not for any other reason than the simple one that many prospective recruiters conduct a summary credit check on almost all would be employees as a matter of course. All details of your bankruptcy would be shown in that report and if you have lied, it would seriously tarnish your reputation as well as any chances of gainful employment in that organisation, since its altogether very easy to find out any information about your bankruptcy from your credit report.
While it is certainly true that all potential employers do require your specific permission before they can extract details of your credit history, however not giving consent to access such information would almost certainly compel any prospective recruiter that you have something to hide and so deny you any employment opportunities in that organisation. Therefore, it would always be in your own interest to be honest and up front about your bankruptcy during the application process.
Losing a job due to bankruptcy
As a general rule being bankrupt does not automatically mean that you would end up losing your job due to the fact that your personal financial history should not have any visible affect on your work. Your employers have no legal ground to dismiss you per se.
However, that does not always hold true and there are certain cases where your financial history may prove detrimental to your current and future job prospects, such as:
- Being employed in the financial industry including banks and other money lenders that deal with their clientele’s money (and therefore trust)
- If you are a credit councillor or an insolvency and bankruptcy lawyer, your current employers may not wish to allow you to continue in that position.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Uncategorized
Not all of us have the financial wherewithal to stay out of debt. Sometimes we simply want more then we earn or just want to impress our neighbours, friends or our spouse and so we spend more than we are capable of paying back, or alternately make financial decisions that lead to disasters. Under the circumstance we have to understand how it would affect our better half, both in terms of legal ramifications as well as the emotional toll on the marriage itself. While on his or her part, the spouse has to understand the tremendous trauma you are going through when you are on the verge of declaring bankruptcy and losing all of your property.
Legal ramifications
If you were to file for bankruptcy in Canada, just remember that doing so will ‘not ‘directly affect your wife, husband or common law partner. This is primarily due to the fact that your loans and bills are essentially ‘your” loans and the “In sickness and in health till death do us part” bit of your marital vows does not make your spouse liable to pay your debts. Once you declare bankruptcy your personal debts would be recovered from you through your property and your spouse will not be legally responsible for them.
It is however, a fairly common misconception that spouses are somehow responsible for each other’s debts. This is quite simply not true in spite of collection agents telling you that if you do not ‘pay up’ they will approach and extract the required amount from your spouse. This is nothing but a blatant ‘scare tactic’. You and you alone are wholly and solely responsible for your own personal debts.
However there is an exception to this cardinal rule and that is if it’s a ‘joint loan.’ Or alternately if your wife, husband or common law spouse has signed on as either a guarantor or a co-signee to the loan in which case he or she is also legally responsible for the debt as well. The loan may be either a bank loan or a credit card bill issued to the same account. However, in case of a supplementary credit card issued to him or her under your instructions and on the basis of your personal account than you will be responsible for paying the bills accrued on that particular card.
Movable and immovable assets
Quite apart from debt, once bankruptcy has been filed, a key problem (that a married couple may potentially face when either one of the spouses becomes insolvent) is the evaluation of who holds which assets. If your spouse holds property in his or her name only than it will not become part of bankruptcy proceedings. For example if your husband’s home is in his name only, then it would be party to bankruptcy proceedings provided you have filed for bankruptcy rather than him. However, if the property is in his name and moreover, he has become insolvent and filed for bankruptcy than he might lose the property, even though you would also be living in the same house.
by admin | Credit Counseling, Credit Repair, Uncategorized
So you want a bank loan for your business? It’s not all that easy since banks are entrusted with depositors’ money and therefore have to be very careful as to when and where they disburse these funds. Nevertheless, without disbursing loans that they charge interest on, the banks can’t really be in business which is why they can and indeed do give loans to business owners. Following are some key points to take into consideration when applying for a business loan:
1. Double check your credit score
Whenever you apply for a loan from a bank the very first thing they will check is your credit score. This is why it is absolutely essential that you know your credit score in advance before applying for a loan from ‘any’ financial institution whatsoever. Check and double check for any errors or discrepancies. Such errors may include any late payment that you may have made on time but that had erroneously being reported as late. Once such mistakes have been noted down, contact the relevant agency or credit bureau and get them rectified as soon as possible. Preferably before applying for the loan in the first place.
If you have a very high credit score (hovering around 900 in Canada), There is an excellent possibility that you will be able to acquire that coveted loan at an extremely attractive rate. However if your rating is average (If you have a mid-level score (650 to 700), you may certainly get a loan but the interest rates may be higher. But a credit score below 600 may make it very difficult to acquire a business loan because the bank will term you a high risk factor. In this scenario, even if you do manage to get the loan, the interest rates may be so high you might need to seek recourse to an alternative form of financing (such as borrowing from friends and family etc.), or you may reconsider your business expansion plans at this point in time.
Another important consideration to keep in mind is that having your loan application rejected would mean a drop in your overall credit score, effectively making it more difficult for any future borrowings later in life. So be very careful when applying for such a loan.
2. Figure out how much you need beforehand
Before applying for a loan it is necessary to figure out just how much money you need as a loan. You would have to show the bank precisely how you will utilize the amount so that they would be reassured that you would be able to pay back what you have borrowed, on time and with interest. You might need to create monthly cash flow predictions and then follow them to the letter if your loan request is approved by the bank.
3. Think long and hard
Before applying for a loan think long and hard as to why you need a loan and if it’s possible to do without it even if it leads to slower expansion of your business. Check for any alternative to borrowing from a commercial institution if a loan is absolutely necessary. This is because in the eventuality of anything going wrong the bank would be compelled to take legal action to recover its funds and that may include foreclosing on any mortgage or property that you might have put up as collateral.
by admin | Consumer Proposal, Credit Counseling, Credit Repair, Uncategorized
Credit card fraud is an all encompassing term for a form of theft and/or fraud that may be perpetrated though the illegal use of a credit card, in order to purchase goods or services as a fraudulent source of finance in a monetary transaction The purpose may be to either acquire anything without paying for it or alternately to gain access to funds in an account that the individual has no legal right to operate.
There are many broad categories of credit card fraud, these include:
Credit Card theft
Having a card stolen can be a traumatic experience and it becomes even more so if you find yourself being billed for products that you never purchased. Unfortunately, credit card theft is a pretty common phenomenon and it is imperative that a lost card should be reported and blocked ‘as soon as possible’ to avert such losses.
On the plus side though, it is not as easy for prospective thieves to actually steal credit cards and buy stuff with them. This is because more and more merchants now ask for at least some form of identification when they are being paid though credit cards. Additionally many credit card facility providing financial institutions also add a photograph of the owner’s face to the card’s front side as a security measure. While these may not be fool proof measures but they have helped mitigate losses resulting from credit card theft to an extent.
Account takeover
An account can be said to be ‘taken over’ when a fraudster manages to acquire the personal information of a credit card holder (such as mother’s maiden name, date of birth, home address and other personal information). The prospective swindler then approaches the cardholder’s bank all the while pretending to be the original card holder, he informs them that he has lost his card and has also shifted his address. Once the card is delivered to him in the name of the original owner, he may be able to steal at will till the original card holder finds out what is happening and has the card blocked.
Skimming
This is by far the most common method of credit card fraud. Skimming works by putting a legitimate card in a machine that looks just like an actual credit card reader. But in reality the machine, unlike a conventional card reader saves all the details of the card. These details are then extracted and computer hackers may use them to make unsecure transactions or even create new cards from them altogether.
”Borrowing” the card
When you hand over your card to a gas station attendant or a waiter in a restaurant when making a payment, he has the opportunity to note down your card number as well as other details. These can then be used to make unauthorized online transactions in your name.
Phishing
This is also another well known form of credit card fraud. Instead of stealing or ‘borrowing,’ the fraudster deceives his victims into disclosing their credit card details. He may call them pretending to be a bank officer or send them emails promising them winnings in a lottery ticket. Some net savvy swindlers have even been known to create websites identical to original bank sites. Once the data is entered, the thieves go to work immediately transferring either funds or buying expensive products online.
Conclusion
Irrespective of the method used, using a credit card without due authorization is considered stealing in Canada and as such is considered a criminal offence in the eyes of the law.
by admin | Credit Counseling, Uncategorized
Few parents would disagree to the importance of quality education for their offspring. Unfortunately such education does not come cheap. Therefore, it is imperative that you plan before hand since it is arguably the best investment you can make for your children.
However, once you make up your mind that you will start saving for your kids’ future, you will realise that it’s not really that difficult to save up and does not involve any big financial sacrifices either for you or your spouse.
1. Make saving Attractive for your Children
Since it’s their own future at stake it would be prudent to get the young ones involved in the saving process. This is because it is not all that difficult a concept to understand and once the child grasps it, then it just might be a life altering experience for him or her. You may consider giving your child a small allowance or stipend so as to make them understand that you don’t have unlimited resources and they are also responsible for their own future. But while doing so also make sure that they spend at least a quarter of their allowance on their own basic necessities such as clothes and school books.
2. Investment Bonds
Investment bonds may easily be acquired from any number of financial institutions and are now becoming a universally accepted option for funding the future educational needs of children and young adults in Canada. These bonds are available in a variety of different investment options that may include both variable as well as fixed interest.
3. Start as early as possible
When it comes to your children’s future, it is never too early to start. If you plan ahead by saving as early as possible, you would be able to have a tidy nest egg by the time your kids grow up to be of college going age.
4. Be Creative in your Saving
If you feel that the amount you are saving is not good enough to afford your children a quality education, even in the long run than figure out just what part of your expenses have to curtail so as to ensure that your savings are correspondingly higher. For instance, if you ‘order in’ four times a week, reduce it to twice a week and put the amount saved into your kid’s education ‘nest egg.’
5. Don’t put all your eggs in one basket
If you want to save and invest for junior’s education, it would be advisable not to put all your savings in only one account. Rather you should try and hedge your bets by investing in different places such as investment bonds or stocks or even property.
6. Set clear cut goals
Once you have determined how much you want to save and for how long, you may set your core goal accordingly and in this way budget your monthly expenses. Since this type of saving would be more in the nature of a day to day observation of expenses, it would help you stay on track while serving to keep you motivated in the long run as well.
