What Happens to a Financed or Leased Car in Bankruptcy?

What Happens to a Financed or Leased Car in Bankruptcy?

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.

  • 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.


  • 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

Choosing Between A Consumer Proposal and Bankruptcy:

Choosing Between A Consumer Proposal and Bankruptcy:

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 only three years in comparison to 6 years of 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 the amount of debt money. And can hold more of their assets.

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 for their advice on this case. In case you have the credit or debt issues visit www.gtacredit.com or call 416 650 1100

What is A consumer proposal?

What is A consumer proposal?

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

Buying a Home after Bankruptcy

Buying a Home after Bankruptcy

Bankruptcy is not the end of your life. You will be able to rebuild your life after bankruptcy. All you have need is to have a clear understanding on how to manage your finances and get back on your feet strong. This can provide an excellent assistance to you with purchasing the home that you wanted after bankruptcy.

There are certain steps, which you should follow after bankruptcy in order to increase your chances of buying a home. Let’s go ahead and take a look at those steps.

  • Debt discharge

As the first thing, you need to file for bankruptcy and then work out on a plan to discharge your outstanding debt. There are four options available for you to discharge your debt in Canada. In here, you will be able to get rid of some of your obligations. Therefore, you will be able to receive excellent relief by rebuilding your finances. You can discuss with a bankruptcy lawyer and figure out how to proceed with this. Then you will be provided with the most outstanding results at the end of the day.

  • Take a look at the credit report

You need to keep on taking a look at your credit report. Before you obtain a mortgage loan to get a new house, the lenders will take a look at the credit report. A credit report will contain a detailed history of the credit history. As a result, your lender will be able to get a better understanding of your creditworthiness. It is true that bankruptcy filings can remain within your credit report for a period of 10 years. However, you don’t have to wait for a period of 10 years to obtain your home mortgage loan.

You will be able to accelerate things by ensuring that your credit report is up to date and accurate. You can freely check the credit report as well. In fact, you will be able to receive one free credit report per year. You need to take a look at it and then proceed.

  • Rebuild your credit

You should now start working on rebuilding your credit. This can help you to increase your chances of getting your mortgage loan approved. To qualify for the mortgage loan, you need to prove to the lender that you are a person who can be trusted. However, you will notice that credit options available to you after bankruptcy are quite limited. However, there are certain options available for you to try and rebuild your credit along with time.

One of the best methods available for you to rebuild your credit after bankruptcy would be to use a secured credit card. You will be using this credit card based on a security for the money that you have in your savings account. On the other hand, installment loans can also help you to rebuild your credit. However, you need to make sure that you are making credit card payments and installment loan payments on time. . In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100

What Happens to Debt Resulting from Fraud in Bankruptcy?

What Happens to Debt Resulting from Fraud in Bankruptcy?

Most of the people who end up with debt assume that filing for bankruptcy is the only solution available for them to consider. You need to keep in mind that filing for bankruptcy would not make your debt go away. That’s because debt is divided into several categories. Out of these, the non-dischargeable debts will not go away, even if you file for bankruptcy. The debts that accumulate from fraud activities fall into this category. Hence, you are encouraged to pay special attention to this fact and make sure that you make an informed decision when overcoming such debt.

If the debt needs to be declared under non-dischargeable debt, it should fall under specific criteria. In fact, a creditor needs to go to the court and ask for the determination of fraud. If the creditor fails to do it, the debt will be wiped off. You should also keep this fact in mind when you are dealing with non-dischargeable debt.

What exactly is fraud?

Before we deep dive and understand more information on this topic, it is important for you to have a basic understanding of the topic of fraud. Fraud will take place when someone manipulates or lies. During the bankruptcy cases, the fraud activities usually take place as an expense of the creditor.

For example, most of the people are not honest about their true income, when they go ahead and apply to obtain a credit card. On the other hand, some people tend to hide their money from business partners when they work on joint business ventures. When your restaurant business goes down, you go ahead and sell all the items that you had in it, including the ovens and tables. After you do that, you will need to fairly divide the amount between all shareholders. But if you decide to pocket all the money, you will end up committing fraud. Therefore, you will need to take appropriate measures to overcome such situations and make sure that you don’t become a person who commits fraud. Otherwise, you will have to face a lot of issues when you file for bankruptcy.

Presumptive abuse of credit cards can be considered as one of the most common types of fraud. In here, you will be using your credit card to make payments and purchase a variety of luxury items, including jewellery, purses and to enjoy movies. You do this within the 90 day period before you file for bankruptcy. Then you will be committing fraud. But still, you can use your credit card to get all the basic necessities of your life, such as food and home rent covered. But if you use that money to purchase fancy stuff, which you really don’t need, you will be committing fraud. You never want that to happen.

These are just few examples of fraud and there are many more. Embezzlement, larceny and fiduciary fraud are to name a few.

A creditor is in need of a judgement

As mentioned earlier, the creditor needs to take the case to the courts and prove that you have committed fraud. Otherwise, you will not have to face any negative consequences associated with it. To do that, the creditor will need to file a lawsuit and get the fraud judgement to work against you. The creditors do it in several ways.

In most of the instances, the creditors file complaints alleging the fraud, even before you go ahead and file for bankruptcy. By doing that, it is possible for them to end up with two different judgements. Those 2 judgements include:

  • Default judgement

In here, the court will grant the judgement by default. To make sure that it doesn’t happen, you will need to provide a response within the given time period. If you fail to do it, you will be labelled as the committer of a fraud.

  • Trial judgement

If you respond within the given time period, the trial will begin. The creditor will need to go through the trial period and prove that you have done the fraud. If you are proven guilty, the creditor will receive trial judgement.

When the creditor files a fraud judgement against you, all the debt that you own related to fraud would become non-dischargeable. This is the reason why it is important to get the assistance of an attorney, especially when you get a lawsuit. When you take quick action, you will be able to take appropriate steps to overcome the negative complications that are linked with the judgement.

There is a time period, which the creditor should adhere to, when filing a lawsuit against you for fraud. In fact, the creditor will need to do it within a period of 6 0days. If the creditor fails to do it, your debt will remain dischargeable, even if they are linked with fraud. This type of debt would eventually go away along with time.

Proving the fraud activity at the trial is not an easy thing to do. That’s because it is important to pay attention to a few important factors and prove them. The creditor will need to prove that you committed the fraud activity by having a good understanding of it. In other words, the creditor should prove that you purposely mislead something. On the other hand, the creditor should prove that they believed the misrepresentation that you did. As a result of all these activities, the creditor should prove that he lost his money at the end of the day.

All the matters that are associated with fraud are taken seriously. Therefore, it is important for you to get the assistance of a bankruptcy lawyer and how you can get assistance to overcome the pain and frustration associated with these situations. In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100

When is the Best Time to Open an RRSP?

When is the Best Time to Open an RRSP?

Are you looking forward to opening an RSRP? Then you must be looking for the best time of the year to go ahead and make that decision. At the beginning of the year, you can see many financial institutions advertising that it is the best time to go ahead and open a Registered Retirement Savings Plan, which is also known as RSRP. By taking a look at these advertisements, you will wonder whether it is the best time of the year for you to go ahead.

Yes, if you are in a position to spend money out of your pocket to the RSRP contribution, the beginning of the year is the best time to go ahead and open an RSRP. We will tell you why and you can keep on reading to figure out more information.

Most of the employers tend to provide the opportunity for the employees to go ahead and contribute towards a group RSRP. This is a good opportunity that you can get your hands on as well. Therefore, you are strongly encouraged to take a look at this alternative. If you compare the facts, you will figure out that it is a better option available to consider instead of opening an individual RSRP at a credit union or a bank.

When you open an individual RSRP account, you will have to pay a management fee of around 2% to 3%. But when you open a group RSRP account, you will be able to reduce that to around 0.5% to 1.5%. In the long run, this can contribute a lot to your savings.

Some of the individuals boast about having thousands of dollars in their bank accounts towards the RSRP in the months of January and February. Due to this reason, contributing to the RSRP account during this time can be considered as more effective. Then you will be able to make a wise move towards your retirement.

If you want to save enough money for your retirement, you need to make sure that you have an excellent savings plan. This savings plan needs to be based upon the regular contribution frequency to RSRP. As a result, you will be able to overcome hassle and frustration that you have to do with budgeting as well. For example, contributing $50 towards your RSRP account in every couple of weeks is more convenient, instead of contributing over $1,3000 at the end of the year. Therefore, you are encouraged to take a look at such a plan and make sure that you don’t take your retirement savings as a headache.

It has also been identified that people find it as an easier task to make the payments if they are being deducted directly from their paychecks. In fact, the deductions are made from the paycheck before it is deposited into the bank account. This is another benefit that you will be able to get with the assistance of group RRSPs.

You can also receive a tax refund when you are making a payment to the group RSRP account with your payroll deductions. This tax refund would be immediate. Therefore, you don’t need to wait until you file for the tax returns. For example, if you make a contribution of $100 from every paycheck, $100 will be the actual deposit. However, your real deposit will only be around $60, and $40 will be the tax saving.

You will be able to get a large number of benefits with the immediate tax savings, instead of receiving refunds at the end of the year. In fact, this will help you to experience a large number of additional returns. Moreover, you can make sure that you don’t have to wait until the end of the year to get your hands on the returns.

When you spread the RSRP contributions throughout the year, your return potential is much higher. That’s mainly due to the amount that you will be able to save with the assistance of income tax savings. You will be making immediate investments and the returns of that investment can be obtained both short term and long term. As a result, you will be able to generate a better return.

When you wait until the end of the year to make a contribution, you will not be able to generate any return throughout the year. But when you contribute with your every payment, it will be converted to thousands of dollars at the time of your retirement. Even though this depends on the performance of bond markets and stocks, your returns are guaranteed. Therefore, you will be able to keep peace of mind when you go ahead as well.

Now you have a basic understanding of when you need to invest your money on the RSRP account. With that in mind, you can go ahead and start your investment. You should also determine the exact contribution amount before you start so that you will be able to get the best possible results out of it in the long run. When you do it, you will be provided with a peaceful and hassle-free retirement, without any financial difficulties. In case of you have the credit or debt issues visit www.gtacredit.com or call 416 650 1100