by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Uncategorized
Nobody looks forward to filing for bankruptcy, but it is one of the most common options that people opt for when they are in debt. Things may become even more complicated when you have child support or alimony duties too. This goes for both the cases; cases where you owe child support or alimony as well as cases where you get child support or alimony.
Both these claims (child support and alimony) are not dischargeable even if you file for bankruptcy. So while you may file for bankruptcy and get away with not paying anything for the moment, you cannot be released from these support or alimony responsibilities.
During a bankruptcy proceeding, both child support and alimony obligations are flagged as priority debts; which means you cannot be discharged from them. As general rule priority debts are given quite a treatment in bankruptcy. The child support payments in which you were lagging behind before you even filed your case, you are required to pay them back in full through whatever repayment plan you come up with.
Those who receive child support are often apprehensive of the fact that once they file for bankruptcy, they may not be able to protect the money they get from the support. Luckily, if you are a person who is finding himself in a similar situation, you can relax because the ongoing payments that you do receive as child support will be protected even if you have filed for bankruptcy.
And not just this but you can have the leftover money which you received as child support, marked as an ‘exempt asset’ which would prevent anybody who wishes to use that money for paying back the creditors from doing so.
Alimony money is your ex husband/wife’s money which they give to you so that you can manage some of the finances even after the divorce or separation. Since this too is considered as a ‘domestic support obligation’, you cannot be discharged from paying it and just like with child support, if you have missed paying any alimony money in the past to your ex spouse, you would be required to make up for that as well. If you are at the receiving end of the alimony money, but have to file for bankruptcy due to some financial setback, you also have to option of protecting that money.
Filing for bankruptcy is a big and serious decision. If you are about to file for a bankruptcy case and have child support or alimony duties too, please make sure that you look into the matter with an experienced attorney who can help you make the right decisions, ask him any relevant questions about any concerns that you may have, ask for clarifications for anything that you are not being able to understand. Remember to hash out all your concerns before filing for any legal matter, be it bankruptcy or anything else, so that you do not experience any troubles with the law later.
by admin | Consumer Proposal, Uncategorized
It is only natural to lose hope after you have filed for a consumer proposal. Many people worry about getting the credit again, and believe that it will never happen. But it is all a myth. You can get a credit card, a home, or even a car after you have gone through the process of a consumer proposal. When you are done repaying your debts, and have met all the requirements of the proposal, you are also officially debt-freehand therefore, responsible enough not to repeat the same mistakes again.
After you have paid back the debts, the credit bureau will be informed about it, and strike the credit rating to approximately R7. This rating will get upgraded to R1 after the duration of three years. An individual also cannot get a credit card until they have repaid the loan and built up their credit. But below are the steps which will facilitate you in rebuilding your credit after you have completed the consumer proposal debt payment.
1. Secured Credit Card
The first step towards rebuilding is getting a secured credit card. The card is called so because the person has to pay around 10 – 100% of the amount before getting that card. That money acts as a protection in times when the individual is not able to repay the amount again. Additionally, when planning on getting a secured credit card, apply for it at places where you haven’t before, and which are not in your repayment plan proposal. Also make sure to apply for a real credit card and not a pre-paid one. You can get 3 or more of such cards and also keep it at good standing to portray that you are responsible enough now to pay off the money.
2. Bill Payment on Time
As mentioned above, paying bills on time is essential. If you fall behind, it will have a negative impact on the credit ratings. So pay bills before the due date or on time and improve the credit ratings. Since the reports regarding the credit information is sent to the bureau on a monthly basis, you can use this as leverage by maintaining excellent credit rating.
3. Low Balances Owing
The debts on your card should be low, which means you must not spend a lot. The estimated of 30% or less of the total credit should be your owing balance. Furthermore, ensure that you are paying back the entire amount every month. If not, make certain that you are repaying at least the minimum amount.
4. Stay in the Credit Limit
Every credit card comes with a credit limit, which is why it is important to stay in that limit or else you can get in trouble with the penalties thrown at you by the creditors. Therefore, this is a deal breaker and the most important rule to follow.
5. Stay on a Budget
In the start of every month, plan a budget and stick to it. You need to keep a check on the money you are getting and the place where you are spending it. This will also help you in recognizing the areas where you tend to overspend, and the additional taxes.
6. Keep a Check on Utility Bills
Many times, people ignore utility and phone bills. However, these are the firms that don’t waste time in reporting such incidents. So secure your credit rating and pay the cellphone and utility bills in a timely manner.
If you need further guidance regarding rebuilding of the credit, you can contact counselors present in your area and get the help you need!
