Ajay Oberoi, Author at GTA Credit Solutions Services Ltd.

What to Choose Between A Consumer Proposal and Bankruptcy?

by Ajay Oberoi | Bankruptcy, Budgeting, collection calls, Consumer Proposal, Credit Counseling, Debt, Insolvency

The major difference between the consumer proposal and bankruptcy is that the consumer proposal gives the person more rights on their assets. It means that the person can learn more of their assets. And also, it has less effect on the credit score of a person. That can stay of only three years in comparison to 6 years of the bankruptcy. But both of the solutions are made to clear out the debt on the person. In a consumer proposal, the person gives some percentage of amount of debt money. And can hold more of their assets. Then pay the rest amount after some time. Or can be paid monthly or annually depends on the condition of the person.

Whereas in bankruptcy, the asset will be sold out. And from selling those assets the debt amount will be cleared. But in a consumer proposal, not many items will be sold. The person needs to pay some percentage of the debt amount to the creditor and can possess more of their assets. And the rest amount which will be paid monthly or something will be decided by the committee. It depends upon the income of the person and what the person has in their asset list. So, just choose wisely which one to go with.

According to the experts, the consumer proposal is good to go with

Many financial experts suggest that consumer proposal is the best solution in, debt relief solution. Because in consumer proposal the person needs to pay some fixed amount decided by the person and the creditor. And it is good so, even a person is making some more money at some time. They only need to give only a fixed portion of their money. And it also allows possessing more assets. So, it is better to go with it.

Consumer proposal mainly have a lower monthly payment

In a consumer proposal, the monthly payment is always lower. But when a person filed bankruptcy, they need to show the trustees about their growth in income. And that could trigger the surplus charges on recovering the debt amount. While in a consumer proposal, the monthly amount doesn’t change and is less than bankruptcy.

Get help from the professions

Always take help from the professional. Because they are the person who regularly deals with such a case. So, it is better to ask their advice on this case. In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100

What is A consumer proposal?

by Ajay Oberoi | Bankruptcy, Budgeting, collection calls, Consumer Proposal, Credit Repair, Insolvency

A consumer proposal is nothing but a plan which provides debt relief to Canadians who are struggling with money debt payments. It is sectioned by the Canadian government so that their people can have some relief in debt payments. And it was a very important step that took by the Canadian government because many people suffer from money debt payments. And in the end, they have to file bankruptcy, which was not good for any Canadian people. So, the government thought to give some relief to their people and sectioned this act.

By using this act, the consumers now have some relief in paying the debt amount. In a consumer proposal, a legally blind debt settlement agreement is filled between the consumer and the creditor. But this proposal can only be filled with licensed insolvency trustees. So, the consumer can pay some debt amount to get full debt forgiveness. And the amount is decided by the trustees on the basis of the consumer’s income and what consumer’s own. This is the consumer proposal.

All the settlements are the same or different

Not all the settlements are the same each and every settlement is unique in its own way. Because the settlement amount, which is decided by the trustees, is mainly depended upon the consumer’s income and their possession. So, the settlement amount will also be different in every case. The same amount is not applied to every person. And that is why it is very popular among consumers.

Eligibility criteria for the consumer proposal

There are mainly four things that everyone should keep in their mind before filling the consumer proposal. And that is

First thing first, the consumer must be a residence of Canada. That thing is not necessarily the person can be permanent resident of Canada or must be residing in Canada for some work or anything else.
The consumer must have some amount to pay some portion of the debt amount.
The debt amount should be less than $250000.
The consumer must not be able to pay their debts in order to apply for a consumer proposal.

Is it okay to go with a consumer proposal?

Of course, it is good to go with a consumer proposal. If the consumer doesn’t have the money to pay their debts, then they should go with it and have some relief on debt payment.

In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100

What Happens to My professional Designation If I File Bankruptcy or Consumer Proposal?

by Ajay Oberoi | Bankruptcy, Budgeting, collection calls, Consumer Proposal, Credit Counseling, Insolvency

Nothing would happen to any person if they filed bankruptcy. The law prohibits both the government and private companies from terminating their employment. Just because the person filed bankruptcy, but it can affect when a person applies for a new job or search for a new job. In that case the situation is not that good in many private companies. But filing bankruptcy doesn’t mean that the person is not qualified for the job or anything. If the person is qualified then the company should hire that person.

But in some cases, the company doesn’t hire a new employee if the employee has filed a bankruptcy or consumer proposal. And it is just the mindset of some people. But no law states that if a person has filed bankruptcy is not eligible for a job. They have all the right to apply for the job and get that job if that person is eligible for the job. And most of the company doesn’t mind hiring a person who has filed bankruptcy or not. They just want the skills for that job, and if the candidate has those skills then the candidate will get the job.

Any effect on credit score after filling consumer proposal

Yes, after filling bankruptcy or consumer proposal, it affects the credit score of any person. The credit score can go to negative. Because filing the bankruptcy or consumer proposal means the person is telling the bank that the person has no money. And that is why that person is filling the consumer proposal. It means that the consumer is not able to pay the debt amount or anything. So, the credit score can automatically go to negative.

Think about the long-term perspective

The credit score is temporary, and one can get a good credit score after a certain time of period. But if someone is in a situation where they can’t pay the debt amount. So, they better file the consumer proposal. It is a good step that a person is taking. By doing so, one can get debt relief. And after paying all the debts one can increase their credit score.

Maintain your credit score

After paying the debt amount to start paying the credit card bills on time. So, the credit score never goes to negative or something. And the bank can trust their consumer easily.

In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100

Will I Lose My Real Estate License If I File Bankruptcy or Consumer Proposal in Ontario?

by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Insolvency, Realtor

No, filing a bankruptcy or consumer proposal does not mean that one can lose their real estate license. And it is according to the Real Estate Council of Ontario (RECO). RECO doesn’t say anything like filing a bankruptcy or consumer proposal means the license will be ceased or something. So, if someone has such questions that they might lose their license or something. Then it is just a piece of false news that someone has spread. And the main government of this thing RECO doesn’t say anything like that. So, don’t believe in such things.

There will be no termination of license even the person has filed bankruptcy. One can have their real estate license even when they file bankruptcy. And nothing will happen to their licenses. Neither they will lose their job or something. And it is a government law that prohibits all the government and private companies from terminating their employees. One can continue what they were doing in their life.

Things to know before filing bankruptcy if someone has a real estate license

If someone is going to file their bankruptcy and if that person owns a real estate license. Then they have to inform the registrar’s office within five days of applying for bankruptcy or consumer proposal. And these documents are needed

Proper reason for filing the bankruptcy with signed and dated
Form 69: Bankruptcy assignment
Form 79: Statement of all the possession and liabilities
Form 65: Monthly expenditure statement
Form 85: Discharge certificate but only if it is applicable

These are documents that will be needed in the registrar’s office.

A person can apply for real estate license after filing bankruptcy or not

As the RECO says that bankruptcy doesn’t prevent anyone from losing their license or registering for a license in RECO. So, a person can apply for the real estate license even that person has filed bankruptcy or not. But the person needs to disclose that they have applied for bankruptcy. Only after proper checking one can get their license.

Just disclose each and everything

Before registration, a person needs to disclose the proper reason for filing their bankruptcy, credit score, and a financial image. And the RECO official will take a complete check on those things. So, that they can know the person will be able to perform the job or not.

In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100

Saving for unforeseen debt issues

by Ajay Oberoi | Bankruptcy, Budgeting, collection calls, Consumer Proposal, Credit Counseling, Insolvency, unforeseen debt

Unforeseen debt issues can be painful. They can lead you to a lot of frustration as well. Therefore, it is extremely important for you to plan ahead of time and make sure that you come up with a proper strategy to overcome the unforeseen debt issues. In order to make life easy for you, we will be providing you with some of the most effective tips, which you can follow in order to save for the unforeseen debt issues. This can help you to overcome frustration once you are dealing with debt.

Define your savings goals

You need to define your savings goals while you are trying to save for unforeseen debt issues. In other words, you need to start saving after coming up with a proper plan. Then you will be able to minimize the chances available for you to get distracted. Once you define the plan, you just need to follow it and you will be able to end up with achieving the milestones as defined in your plan. Therefore, you will be able to end up saving enough money.

Create an emergency fund

Upon creating your goals, you should take appropriate measures to implement an emergency fund. The emergency fund should be in a position to help you with covering up your expenses at least for a duration of six months. Then you will be able to survive the difficult period in your life without going through a lot of frustration.

While you are creating the emergency fund, you should never ignore the annual insurance premiums as well. They are some of the mandatory expenses that you have to play. Hence, you shouldn’t ignore them and move forward. You need to make sure that you take a look at all your obligations and then create the emergency savings fund.

Work more

When you work more, you will be able to save more. That’s the right strategy available for you to follow while saving money for your unforeseen debt issues. If you are working for a traditional 9 to 5 job, you will feel that there is no possibility for you to work more. However, you can keep on building a side hustle. On the other hand, you can also think about developing a source of passive income. It can contribute a lot towards helping you to achieve your financial goals. Therefore, you can end up saving enough money to overcome unforeseen debt issues.

Get rid of unwanted expenses

You need to sit down and take a look at all your expenditures. That’s where you will figure out that you are spending your money on unwanted expenses as well. You need to take appropriate measures to get rid of all those unwanted expenditures. It is better if you can make the habit to think twice before you spend on something. This can help you to save more money, which can eventually help you when dealing with unforeseen debt issues. In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100