by admin | Bankruptcy, Consumer Proposal
Creditors Can Garnish Your Wages! Learn More about Wage Garnishment in Canada
What’s worse than not having enough money to pay your debt? That’s right, having your wages cut down. Wage garnishment is basically a legal order that allows creditors to get hold of a certain percentage of debtor’s monthly income until that individual pays back the debt in full.
Wage garnishment in Canada can really have a negative impact on you and your family. A smaller paycheck does not only diminish your motivation but can also pose a risk of even more severe financial crisis for you.
If the court issues an order of wage garnishment to your employer, they will have to comply with the order and withhold a certain amount of your pay. However, first, the creditor has to go through a process before starting to garnish their wages.
How It Works
For wage garnishment in Canada, the creditor will have to acquire a judgment from the court. This judgment recognizes that the creditor does have a case against you. Then, the creditor will need to be granted seizure summons, which will allow them to look for your assets to seize. In case you have no physical assets that can be legally seized, the creditor will serve a seizure notice to your employer and begin garnishing your wages. Your wages will continue to be garnished until your whole debt has been cleared.
Wage garnishment in Canada most commonly occurs among people who do not have any equity or assets worthy of being seized for the recovery of debts.
Rules in Canada
Both federal and provincial laws are present for wage garnishment in Canada that administrate what kind of assets a creditor can seize and what percentage of a paycheck can be garnished. Typically, there are similar laws all over Canada. The only exceptions are New Brunswick and B.C.
Creditors are not at all allowed to garnish wages in New Brunswick, whereas, home appliances and items cannot be seized in B.C.
Some provinces do not allow garnishment of more than 30% of the paycheck.
Also, creditors cannot get a hold of your line of credit as it doesn’t have the actual cash for them to take, but they will be able to seize cash straight from your bank account.
Your Options
If you ever find yourself in this dreadful situation, you have a few options.
- You can negotiate with your creditor to settle on a new payment plan and request them to stop your wage garnishment.
- You can seek the help of the court to get your wage garnishment reduced on the basis of financial hardship.
- You can simply quit your job. No paychecks mean no wage garnishment in Canada.
- You can file a consumer proposal.
- You can file for personal bankruptcy.
The two best options to stop wage garnishment in Canada are filing for bankruptcy or filing a consumer proposal. Although both these options will put a stop to the proceeding with garnishment, they can significantly affect your credit score and your overall financial situation.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling
Love can really do go blind no matter angle you look at it. Though you do all to achieve financial stability, love prevails and eat you. The problem that you are facing is you are marrying your true love with the debts he/ she have. If you do not what to deal with his or her financial debts, both of you must work together to overcome her or his mistakes with finance in the past. Since that marriage is the union of two people that have the love for each other, you can both work with this burden. Nevertheless, that does not mean that you have to give all the wealth that you get when you are single.
If you are marrying in the name of love and her or his debt cannot be avoided, better to read the texts below so you will not find your marriage in a poor state.
- Know your liabilities with the debt of your spouse
Many are mistaken with the joining of assets and liabilities in marriage. It is not true that you will join all your financing and assets in a marriage. In contradiction, the assets and liabilities will only be shared when both of you are legally married. The assets that both of you acquire before the marriage will remain in your name. It will be left untouched even that you are married to her or him.
- Join credit or not
Before you made an account titled joint credit, you have to know the time your assets will be pulled by the debt of your wife or husband. Make sure that your finance in when you’re single will not be part of the joint account. Since you are married, any assets that you acquired during the period of marriage will be a property of both of you.
- Past financial responsibility
Before you say yes in the church or court, make sure that you know the financial part of your partner. Not you will leave him or her with the burden of debt, it called conservative. You just want to be prepared and since you are madly and deeply in love. Death does us part is the only thing that will separate you and not the marriage with debt.
- Wait a little time
Before you imprison yourself in a marriage that deals with the debt of your husband or wife, wait more time to decide. No matter how you love her or him and you are convinced that she or he is the one, it is not good that others see that marriage is the solution to pay a debt.
- Have a legal agreement
If you do not wish to take the burden of debt by your wife or husband but you are really on to marrying her or him, do an agreement. There is a prenuptial agreement that you can have to assure that you will not be responsible for the past debt of your spouse.
Marriage is a sacred joining of many people, and they want that the best person is standing with her at the altar. However, if you really love him and her, you marry in the name of love and debt is not part of it. Take the information above to be your guide.
by Ajay oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
Credit Card use has been widely accepted as the most efficient way of handling your urgent or emergency mobile purchase needs. Having a credit card gives you access to purchasing powers or any financial aid for any method requiring trading options. Having access to this kind of trading method gives the option of traveling without you needing to bring along huge loads of money. This method gives you the needed protection that you would prefer to have for your finances enables you to carry on with your day to day tasks without any added worry of where to store your cash or from any threat of your money being stolen. When in use of a credit card, you will have the advantage of using its perk, but it does not stay forever, for it comes with a limit.
What Determines the Limit of your Credit Card?
When your credit card limit is being considered, the bank bases it off the customer’s debt in relation to the customer’s known financial resources at any level. A customer’s credit profile is reviewed as a factor in determining your limit for they comprise of the client’s payment history, related income, and the method of use. Setting the client’s credit limit is not that permanent, for they can vary depending on the use and payment habits of the client, decreasing or increasing it in the process.
What connotes an increase in credit card limit, it might be related to the fact that your credit has improved and is now eligible for more borrows and in some cases the bank would contact you and inform you that you have made the necessary adjustments to qualify and ask you how you want to increase your credit limit funds. Your debt to credit ration might benefit from your unchanged spending habits providing a way for you to have an easy fall back in case of emergency situations. You would also be able to ask for an increase in the limit provided that you have a curated history of on-time bills payment. If you have had a positive impact on credit use then your company would notify you that they have increased your limit for your great participation.
How could your limit decrease? If you have been doing the opposite of what entails you to an increase in the limit, like not falling behind in the payment of your bills and constantly abusing the use of your card even though you have already reached the limit multiple times, then that would net you the credit card limit decrease. It is important for you to track your own credit limit and be able to review your credit card use as well as be able to communicate effectively with your credit card company.
With all these in mind, wanting a higher credit limit is now a very easy task to accomplish. It is important to understand your credit card options and manage your credit card spending habits to be able to build a positive credit score helping you out in the future.
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
Canadian homeowners have more negotiating skills than they think when we talk about the Canada Revenue Agency. That’s until the CRA has placed your property and placed a lien on it. Utilizing your home to deal with CRA all comes down to the right timing. If you have some equity in your home and you the CRA money, here are the steps to take.
Everyone knows that tax debt could be alarming; alarming because owing to the CRA money if you cannot pay will likely result in collection activities. Further, tax debt is one of the major reasons why people get behind filing as the money to pay isn’t there and they fear that once the returns are filed, CRA is going to come searching for the money. If you are aware that you have a tax debt, do not wait until the CRA catches up with you. Remember that you can beat them and get a plan, which will effectively deal with your CRA tax debt.
What Are the Options?
In case you didn’t know yet, you more options to deal with CRA tax debt when it has not started enforcement action. A good example of this is homeowners who have tax debt. Let’s say you have or you own a home, have a tax debt, at the same time the CRA puts a lien on the home, this will greatly lessen your options if you really can’t repay them on a monthly basis given that the CRA will become a secured creditor.
The challenge here is your probabilities of being able to make the consumer proposal are extremely lessened once the CRA has taken enforcement action, secured with a lien on your home for instance. The same goes for bankruptcy. If you’re holding the bankruptcy card in your pocket or hoping that filing for bankruptcy may seem like a means to get out of the tax debt, this as well would no longer be a viable option when the CRA becomes secured on the asset such as real estate.
The Faster You Deal with CRA Tax Debt, the Better
Don’t mind problems like financial planning and enforcement action. The presence of tax debt and the CRA collection action against you can lead to damage to your relationship with your family or along with lenders like your mortgage holder or bank, embarrassment at work, and even health issues if you become stressed and have some difficulty coping with the stress.
There’s no need to put yourself through this kind of situation. You will find companies, which can help you with your financial CAR tax debt problem. Selecting the right solution for you could be easier said than done; however, but not if you are aware of your options. Collaborating with a financial consultant employed by you to represent your interest is one great way to assess and check your options and develop your plan.
Remember, dealing with your tax debt before CRA catches up with you will allow you to have relief and move forward on a new footing. Any problem with CRA debt call GTA CREDIT at 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
We all know that payday loans are meant to help us cover all of the unexpected and sudden costs. While they are readily available loans, the main concern for many people is to get rid of this liability in a best possible manner. However, not many people are able to repay the loan. Besides, they end up fixing debt problems and creating more difficulties for themselves than the actual benefit sought out of it.
The basics of a payday loan
Not many of us fully realize the importance of returning such payday loans in time. That is because not all of us do the required planning for repayment of the loan before we actually take a loan. For you to plan a payday loan you must be aware of the basic terms of it as follows;
- A person can cancel a payday loan two days after signing an agreement
- You must return the complete amount of loan except for the borrowing cost
- A person is not required to pay any money unless the loan comes due
- A person may repay the loan before the due date without paying any excess charges to the lender
Once you know these above-mentioned basics (and others), only then you will be able to plan a loan in a way that would not leave you worse off in the end or creating more debt problems for you than proving to be any good. Hence, you must always deal with a payday loan with some sound strategy.
Dealing with a payday loan
There are several strategies to deal with a payday loan and get out of this vicious cycle, however, whichever strategy you choose to apply totally depends on your current financial situation. Let us have a look at some of the steps that might help you in getting rid of the payday loan.
- Don’t Panic – While payday loans are advertised to settle uncertain expenses, the majority of people use it for essentials like food or petrol. Therefore, stop panicking as you are not alone in this. Also, this would allow you to use other credit options wisely
- Stop borrowing more – Usually, people make the mistake of borrowing more loans in the hope of repaying the previous one. This cycle, however, needs to be stopped to avoid falling deep into the debts.
- Free up some funds in the budget – In order to repay a payday loan you must cut down on your expenses by reviewing your monthly budget. For this, you may need to cut expenses such as shopping, travel or dining etc
- Discuss with other lenders – No matter if you choose to consult a credit counselor or repay a payday loan on your own, another option is that you may seek the help of an alternative lender.
By following these tips, you can help yourself in repaying the payday loan in the quickest and most reasonable manner. That is, without taking more loans; however, planning ahead of time or before taking a loan is a factor that should not be ignored at any cost.
by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair
In today’s world, a debt becomes bad when you are no more capable of repaying it on time. However, in reality not all the debts are bad in nature. Since the majority of us are into debt of multiple forms, we can divide these debts into good debt, a bad debt or to make it worse an ugly debt.
How can debt be a good debt?
As strange as it may sound, a good debt may make us live a life that we always wanted to. It helps us in having a better lifestyle. Many of us want to live in a big house and to have a big car, which is only possible by taking out a loan since not all of us can make cash payments. While it is important to maintain the affordability factor of these houses or cars, buying a commodity that does not suit your affordability may ultimately leave you with a bad debt.
Therefore, a good debt is the one that is taken and paid in time, without disrupting your payment schedule rather than the loan whose repayments rely on the uncertain credit alternatives.
How to deal with a bad debt?
A debt becomes a bad debt when you fail to make timely payments of it. The items bought with a bad debt may fall into the category of ‘wants’ than a necessity. While you may fail to afford the payments of this loan from the start, it is likely that you become incapable of paying a loan later on as well.
Since such debts hold a high rate of interest, therefore, if your financial situation changes to worse, this may leave you with a debt which you’re not able to pay currently. This may be a cause of losing a job unexpectedly or let’s assume an uncertain situation that disrupts your payment schedule badly and hence, changing your good debt into a bad one.
Is debt really bad for us?
In the case of a bad debt, the first thing that requires consideration is the proper planning and management of the money. This may also include the bills and finances; therefore, you must be aware of all of your bills and finances while keeping track of your expenditures.
Simply review how much you are spending, review the growing fixed and variable expenses and check your spending pattern on a weekly basis. While this will help you in assessing your financial standing, it might convert your unmanageable debt into a manageable one.
Therefore, understanding the value of budgeting, the power of setting financial goals and most importantly staying debt free are some of the basic practices that we should all adopt. By this way, we can easily cope with the situations like marital breakdowns, job loss or health issues that can drastically push a good debt over the edge of a bad one and ultimately into insolvency.
In bottom line
A debt is simply a way to make things happen. However, the secret to making it a good or a bad debt lies solely in the way of managing it with due diligence and prior planning to maintain an adequate financial standing throughout.
