Surgeson Carson specializes in personal and corporate Ottawa bankruptcy solutions. We can help you solve the following issues:
- Debt Problems
If you are contemplating bankruptcy, you are probably experiencing a great deal of stress because of your financial situation. This stress usually bleeds into other areas of life—family, friendships, and career—often leading to arguments with loved ones and coworkers and the inability to relax in ways that are healthy. In the mind’s eye, the situation becomes increasingly bleak. It is difficult to see a good way out of debt.
- Avoiding Bankruptcy
Bankruptcy should be your last option when facing debt or money problems. You should investigate the option of debt consolidation first. If that is not an option, then a consumer proposal may be in order.
- Collection Agencies
A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Some agencies, sometimes referred to as “debt buyers”, purchase debts from creditors for a fraction of the value of the debt and pursue the debtor for the full balance. Creditors typically send debts to a collection agency in order to remove them from their accounts receivable records; the difference between the amount collected and the full value of the debt is then written off as a loss.
Many people are relieved to discover that during bankruptcy the taxes you owe to the Canada Revenue Agency can be discharged. Prior to filing for bankruptcy or a consumer proposal, the Canada Revenue Agency (CRA) has the power to garnish your wages, take money out of your bank accounts, or place a lien on any property you own without having to go through the court system (as your other creditors must). Once a proposal has been filed by a licensed insolvency trustee, all unsecured creditors, such as the CRA, must deal directly with your licensed insolvency trustee and can no longer garnish wages or remove funds from your accounts.
- Student Loan Repayment
In Canada, increasing tuition, text, and living costs have left many college and university students with no option but to take out large student loans, despite their savings and part time jobs. For the past three decades, the cost of education has risen much faster than the rate of inflation. Additionally, the traditional low interest rate on student loans was abolished, creating higher monthly payments to service the amount added by interest. If the primary debt forcing you to consider bankruptcy is your student loan, you should be aware that it is treated differently than loans from other creditors. The main thing to be aware of is that student loans are not eligible to be discharged through bankruptcy UNLESS you have been out of school (either full time or part time) for at least seven years.
- Rebuilding Your Credit
Many people think that they will not be able to get credit after bankruptcy. This is not true; you will be able to borrow money after bankruptcy, it will just be more difficult than if you had a good credit rating. Your credit rating can actually get better following a bankruptcy, providing you follow a few practical steps. Once your bankruptcy is discharged, you can pay bills on time and build up cash reserves and take other actions that will rebuild your credit score.