The Rebecca Martyn Bankruptcy Windsor Blog

Many visitors to this blog are experiencing a problem with a collection agency. On our website hoyes.com you can read the letter of direction issued by a Registrar with the Ministry of Small Business to the collection agency industry in Ontario.

I have seen many people who have received a document that looks like a court order but with the word “draft” in the corner. This is done to appear that the collection agency was about to start legal action. However, this is just a form letter designed to scare the debtor into make a payment.

If you have received such “draft” letters or letters from lawyers that don’t identify who they are working for you should contact the following government office:
Consumer Protections Branch
5775 Yonge Street, Suite 1500
Toronto, ON M7A 2E5
Tel: 416-326-8802
Toll free: 1-800-889-9768
Fax: 416-326-8810

By sending copies of your letters to the government you will help to clean-up this deceptive practice on the part of collection agencies. This number can also be used for any other complaints or concerns you may have about collection agencies in general.

The reality is that if you have collection agencies calling you, you should speak with a professional about dealing with your debts. We can arrange a no charge, no obligation meeting to meet with either myself or Catherine Ouellette. In many cases, we will tell you that filing for bankruptcy or a consumer proposal is not the best option and we can refer you to a credit counsellor.

Call our office at 310-PLAN or email me to review your financial situation.

Most people in Windsor have heard about bankruptcy , but although the number of people who filed proposals Windsor has increased in the past 4 years it still seems to be an unknown option for many people.

The first thing we review is can the person afford to pay their creditors in full through a debt management plan. If they can, we refer them to a local credit counselor to pursue that option. If it appears that they cannot afford a debt management plan we then review if a proposal is a good option.

Proposals work best for people who can afford to make some kind of monthly payment to their creditors. There are 2 types of proposals. The first is called a consumer proposal. The first is called a consumer proposal and is used for people who have debts less than $75,000 (excluding the mortgage on their main residence). This number increases to $150,000 if 2 people are filing together (such as spouses). This is the most popular kind of proposal.

If your debt is greater than $75,000 it doesn’t mean you are out of options. There is second type of proposal called a Division 1 proposal. I will provide more detailed information about both types of proposals in another blog entry.

Both proposals are guided by the Bankruptcy and Insolvency Act. Don’t let the name of the legislation scare you, proposals are not bankruptcy; it is just the way the name of the legislation is worded.

The pros of a proposal are that is allows people to avoid bankruptcy, have a consistent payment, maintain their assets and it has a better effect on the credit rating than bankruptcy. People who file proposals also have the option to pay the proposal off as quickly as they like. It gives you court protection from most of your unsecured creditors, meaning that your credit card company can’t sue you for a debt that is included in the proposal.

So what are the cons of filing a proposal? If you are having trouble paying your debt, it is likely your credit rating is no longer perfect. When you file a proposal, you receive a R7 rating on your credit report (R1 is best, R9 is bankruptcy). Other than that, I really can’t think of any cons. I have received countless phone calls and emails from people thanking me for telling them about this option and letting me know what a stress reliever it is to know they don’t have to file for bankruptcy.

If you would like to meet to review your situation to see if a proposal is right for you, call me at 519-250-8060 or 310-PLAN or email me me to arrange a meeting.