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I met a gentleman this morning who makes a good income but is having troubles keeping up with his debts. Based on the new rules that have just come in to place, a 2nd time bankrupt is now bankrupt for a minimum of 24 months and could be more like 36 months depending on your net monthly income. As my client's income is above the government threshold for a family of 1, he has a surplus payment to the Trustee that will last for 36 months.
After doing the calculations, it made much more sense for him to file a consumer proposal for many reasons. He can reduce his monthly payment to the Trustee because we can stretch a consumer proposal over a period of 60 months if need be; he doesn't have to monitor his monthly income and report it to the Trustee; and those 5 pay months (he gets paid weekly) won't cost him extra, leaving him an opportunity to either catch up on some other bills or double up on a proposal payment shortening the term of the proposal. He then asked how this will affect his credit rating and I explained that a 2nd bankruptcy is reported for 14 years on your credit bureau as opposed to a consumer proposal which will show for 3 years from completion of the proposal.
He was thrilled and we proceeded with filling out an application to have him sign sooner than later so he can stop those annoying calls and relieve some of the stress he has been under lately.
Filing bankruptcy in Hamilton may not be the correct option for everyone, so please call our Hamilton office at 905-777-0770 or 310-PLAN, or e-mail us, and we will arrange for a no charge initial consultation to review your options.
Labels: bankruptcy Hamilton
posted by Wendy Young @ 11:46 AM
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