Many individuals who are facing mounting debts consider bankruptcy Calgary. This is not a spur of the moment decision and it should be given enough consideration as it will affect your life quite drastically. Your credit rating will be affected negatively. You will have to relinquish all your assets in order to pay the outstanding debts.
Prior to choosing bankruptcy, you should consider the alternatives available to you. One of the alternatives is consumer proposals. The ideal candidates for this proposal are individuals who have a steady income. These individuals are able to pay their debts, however, they need additional time to do so. This method is suitable for those who owe more than $10,000, but less than $250,000.
There are several advantages to opting for this alternative. It stops your creditors from taking any legal action against you. Your attorney will be able to negotiate with your creditors for you to repay a part of your total debt only. If there are garnishee orders on your wages, it will be stopped immediately. Once the proposal has been filed, your creditors will no longer charge interest on the debt. Consumer proposals last for a period of five years.
To continue with the proposal, your financial situation has to be assessed to determine the amount you can afford to pay on a regular basis. Upon agreement between you and your creditors, the attorney will draw up and file the required documentation. All your creditors must be listed in the proposal. They will be given a period of 45 days to make a decision as to whether they accept or reject the proposal.
The terms of a consumer proposal offers you a facility to miss two payments during the period of validity. The contract will be extended by these two periods. In the event that you do not pay for three or more months, the court will cancel the proposal and apply a garnishee order to your wages with immediate effect.
If you choose to go ahead with bankruptcy, you will have to hand over all your assets to a trustee. This is done in exchange for the removal of all your unsecured debts. The fees for the trustee will be dependent upon your regular income, your family size and the value of your assets. You may be able to stop some of your assets from being sold.
This may include household furnishings, motor vehicles and your principal residence. There are however, limits placed on the value of the goods you are allowed to keep. Once you have successfully made the application, your creditors will not be able to pursue any further legal action.
Many individuals in this situation are uncertain as to what they should do and what is required from them. There are attorneys who can help you with bankruptcy Calgary. You must provide your attorney with all the relevant details and details regarding your situation in order for them to effectively assist you.
Prior to choosing bankruptcy, you should consider the alternatives available to you. One of the alternatives is consumer proposals. The ideal candidates for this proposal are individuals who have a steady income. These individuals are able to pay their debts, however, they need additional time to do so. This method is suitable for those who owe more than $10,000, but less than $250,000.
There are several advantages to opting for this alternative. It stops your creditors from taking any legal action against you. Your attorney will be able to negotiate with your creditors for you to repay a part of your total debt only. If there are garnishee orders on your wages, it will be stopped immediately. Once the proposal has been filed, your creditors will no longer charge interest on the debt. Consumer proposals last for a period of five years.
To continue with the proposal, your financial situation has to be assessed to determine the amount you can afford to pay on a regular basis. Upon agreement between you and your creditors, the attorney will draw up and file the required documentation. All your creditors must be listed in the proposal. They will be given a period of 45 days to make a decision as to whether they accept or reject the proposal.
The terms of a consumer proposal offers you a facility to miss two payments during the period of validity. The contract will be extended by these two periods. In the event that you do not pay for three or more months, the court will cancel the proposal and apply a garnishee order to your wages with immediate effect.
If you choose to go ahead with bankruptcy, you will have to hand over all your assets to a trustee. This is done in exchange for the removal of all your unsecured debts. The fees for the trustee will be dependent upon your regular income, your family size and the value of your assets. You may be able to stop some of your assets from being sold.
This may include household furnishings, motor vehicles and your principal residence. There are however, limits placed on the value of the goods you are allowed to keep. Once you have successfully made the application, your creditors will not be able to pursue any further legal action.
Many individuals in this situation are uncertain as to what they should do and what is required from them. There are attorneys who can help you with bankruptcy Calgary. You must provide your attorney with all the relevant details and details regarding your situation in order for them to effectively assist you.
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