The Rebecca Martyn Bankruptcy Windsor Blog

Credit Counselling Services of Southwestern Ontario is offering a number of monthly seminars dealing with a variety of topics such as budgeting, credit cards and home ownership.

For more information, or to register contact Credit Counselling Services of Southwestern Ontario at 519-258-2030 or via email at info@ccswindsor.com

Financial Management Skills — March 11 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Credit Cards and You - April  8, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Dealing with Debt/My Options - May 13, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Finances and Divorce - June 10, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Kids and Money - July 8, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Why Save for Retirement - August 12, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Home Ownership - September 9, 2008

12:00 - 1:00pm  $20.00 with lunch: 6-8 p.m. $20.00

Christmas and Money - October 12, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

The Cost of Banking - November 11, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

Seven Financial Blind Spots - December 9, 2008

12:00 - 1:00pm  $20.00 with lunch; 6-8 p.m. $20.00

A Consumer Proposal is a legal proceeding by which you offer to pay your debt, or a portion of your debt, with the assistance of a licensed trustee. Anyone, including someone who is bankrupt, can file a consumer proposal providing their debts are less than $75,000 (not including the mortgage on your home). A consumer proposal can be filed with your spouse and the debt limit increases to $150,000

A consumer proposal deals with unsecured debt only. This debt will include items such as credit cards, personal loans, income tax and overdraft. It does not include secured debt such as mortgage, car loans or finance loans. The exception to this is if you give up the security. The balance owing is now an unsecured debt and is included in the consumer proposal. For instance, you have a car loan in the amount of $30,000. You surrender your car upon filing the proposal and the lender sells it for $20,000. The balance of the loan in the amount of $10,000 is included in the consumer proposal.

The consumer proposal is offered to all of the unsecured creditors and they have 45 days from the filing to vote on the consumer proposal. If the majority of unsecured creditors accept the consumer proposal it is binding on all of the unsecured creditors, even if the creditor voted no. When the consumer proposal is filed, interest is frozen on the debt. Creditors are prevented from taking legal action against you for debt and they can’t garnishee your wages (other than support and alimony). The consumer proposal can be structured with a variety of payment terms such as:

• a monthly payment per month for a number of months
• a monthly payment plus proceeds of sale from an asset
• staggered monthly payments geared to income – such as a higher monthly payment during Sept – June and a lower payment in the months of July and August.

Once a consumer proposal has been filed and accepted the debtor has the ability to pay off the consumer proposal faster. If a negative event occurs and the debtor can no longer afford the proposal, he or she can file an amendment to the proposal explaining the situation and the new proposed payment plan. The creditors then recast their votes.

To review your situation and discuss filing a consumer proposal, please call me in Windsor at 519-250-8060 or email me to arrange a free initial consultation.