FAQ’s
Frequently Asked Questions
Will a consumer proposal or bankruptcy affect my credit score?
A Consumer proposal will assign you a R7 Rating on your credit rating, which will stay on your credit report for three years from the date you have paid off or completed your consumer proposal.
A Bankruptcy will assign you an R9 Credit rating for 6 years after you complete your bankruptcy if it is your first time filing.
At Day Group Inc. we have the tools and resources to help you rebuild your credit.
Is a consumer proposal similar to a consolidation loan?
Consumer proposals are different than a consolidation loan. A consolidation loan doesn’t not affect your credit rating in a negative way, while a consumer proposal will. However, a consolidation loan charges interest and you will pay back a significantly amount more than the amount you are owing today because of the additional interest. In a consumer proposal you typically pay back a portion of what you owe.
Will my employer or friends find out that I filed?
The only time you employer will know is if your wages are being garnisheed and we need to send the a letter to stop the wage garnishee. Your friends will only know if you share your experience with them.
What happens to my income if I file bankruptcy or a proposal?
When your consumer proposal has been accepted by your creditor’s your payments remail the same as agreed on and and your creditor’s cannot ask for more.
In a bankruptcy if your income increases over the Superintendent of Bankruptcy’s guidelines you would be required to submit 50% of what is referred to as surplus income for the duration of your bankruptcy.
Can I qualify for a vehicle loan if I file a consumer proposal?
It’s hard to get to work without a vehicle these days. Finance companies recognise this and will work with you to get into a vehicle now that you have taken care of you outstanding debt.
Can CRA (Canada Revenue Agency) be included?
Yes the income tax you owe can be included in a bankruptcy or a consumer proposal
Will a bankruptcy or a proposal stop a garnishee on my pay?
Yes once you sign your bankruptcy or consumer proposal documents the garnishee will stop immediately. The Trustee will send out a Stay of Proceedings which is the protections from the creditor’s which is only available under the Insolvency Act. The Stay legally stops your creditor’s from sending demand letters, calling you, or applying for a judgement or garnishing your wages.
How can I stop collection calls?
Collection calls will stop once you file a consumer proposal or bankruptcy call us today to discuss your options.
Is my partner responsible for my debt?
No, your debt is not the responsibility of of your partner unless they signed an agreement or paperwork to borrow the money together.
Are there debts I will still have to pay?
You will continue to pay your child support and or spousal support payments, fines imposed by the court and secured debts.
Is my name going to put in the newspaper?
In very few cases does anyone’s name get published in the paper. In a bankruptcy, if you have more an $15,000 of realizable assets, then it has to be published. This does not happen very often.
Will I need to open a new bank account?
We do suggest you open a new bank account with a bank you do not owe any money to.
Will I loose my vehicle?
Each province has exemptions when it comes to your vehicle please email or call our office for the exemption pertaining to your province of residents.
What will happen to joint debt?
Your responsibility to cover the debt will be included in your file however the bank will continue to collect from the joint applicant. You cannot split the debt and accept responsibility for a portion of it.
Can I travel or work in another province?
As long as you continue to full fill your obligations in your file you can travel or work in another province with no issues.
