Debt Consolidation in Ontario: Alternatives to Personal Bankruptcy

Although credit problems receive more publicity in the U.S. than in Canada, it is not unheard of for some Canadians to get into financial trouble due to unpaid loans, whether they be lines of credit or large credit card balances with financial institutions. A recent survey from a reputable bankruptcy trustee shows that one out of twenty Canadians is dangerously deep in credit card debt. One out of twenty may not seem like a huge figure, but consider for a minute Canada’s total population of approximately 35 million to understand just how many individuals are presently in a tight financial spot.

Another study by Statistics Canada reveals that in 2012, Canadians owed $1.65 for every dollar they earned – the so-called debt-to-income ratio. This ratio has been steadily climbing over the past several years as more and more Canadians take on debt and at the same time minimize savings. Those in debt should immediately find ways to solve their problems before things get way out of hand. One way to do this is to sign up for a service like debt consolidation in Ontario through a reputable bankruptcy trustee and consumer proposal administrator like Paddon and Yorke Inc.

There are two ways that Paddon and Yorke may assist a person in dealing with their mounting debt load. The first is similar to traditional consolidation in that it allows for manageable monthly payments to settle the entire debt, typically by paying only a portion of the overall debt back. This form of settlement is called a consumer proposal. A debtor, instead of filing for personal bankruptcy, may offer to their creditors a full or partial settlement of their total debts over a maximum period of five years. This would translate into a manageable monthly payment plan as allowed for in one’s budget to settle most of a person’s outstanding debt. As soon as a consumer proposal is filed, interest on the debts stop, and immediate protection is received from wage garnishments, bank account garnishments, asset seizures, or any other type of collection activity.

The second option for dealing with mounting debts would be to file an assignment in bankruptcy. This is a last resort option if one’s financial obligations cannot be met. An assignment in bankruptcy usually relieves a person of most of their debt, and collection or court proceedings will cease as well. In a nutshell, bankruptcy is a legal process whereby a person assigns to the trustee their assets, except for those that are exempt by law, and the trustee realizes on the assets and distributes any proceeds to the creditors.

Debt consolidation or the filing of a consumer proposal as a form of financial help for Ontario consumers may seem rather paradoxical, given that it usually entails monthly payments over an extended period of time. Yet with a skilled bankruptcy trustee or proposal administrator to provide expert guidance, the payment of a manageable monthly amount to settle one’s debts may indeed be the best way out of financial difficulty.

When managed properly, credit can provide the means to enjoy a comfortable life. It’s also useful to have available lines of credit in the event of emergencies. Meanwhile, those who wish to avoid sinking further into personal debt can count on a reliable firm like Paddon and Yorke Inc. for appropriate solutions.

Debt Assistance in Ontario: Tips on How to Manage Your Finances Well

In our society, many retailers and commercial establishments offer various discounts and sales to attract more customers. Many people are duped into believing that they are actually saving more money if they buy items on sale. While those who know how to spot a good bargain and manage their finances may be able to save this way, many sales gimmicks are actually designed to ensure that shoppers let their guard down and buy things they don’t really need.

For the average person, this is where debt problems begin, as many people lose control of their finances over seemingly innocent activities like going on shopping sprees. “Buy what you need, not what you want,” is the advice of most financial management professionals. If you don’t heed such warnings, you may end up needing debt assistance in Ontario to make a settlement on all of your outstanding debts.

Financial mismanagement can lead to debt accumulation, and before you know it, more money will be going out rather than coming in. Fortunately, there are ways to avoid such dire straits—in fact, all you need is discipline and a lot of determination to manage your finances well.

Your first order of business is to budget your money by buying only the essentials and avoiding expenses you can live without. This may mean small changes—such as learning how to do your own nails instead of going to the nail salon every week, and major changes—like going to a nearby ski resort for vacations rather than flying out of the country yearly. It is better to deny yourself immediate gratification, and postpone luxuries until you’ve saved up enough money to truly afford such treats.

Next, you’ll need to set aside a certain amount of your earnings for emergencies, savings, and investments. This may be difficult to do for many, but setting aside as much as 10 percent of your earnings can really go a long way. And if you need to use credit cards, make sure that you can actually pay for what you’ve bought to avoid getting into debt.

It really takes a lot of discipline to maintain your good credit standing. But for those who’ve amassed too many unmanageable debts, filing for bankruptcy in Ontario, with the help of financial specialists from Paddon + Yorke Inc, may be the only way for them to start afresh and regain financial stability.

How Debt Consolidation in Ontario Can Relieve Your Financial Burdens

With the widespread use of credit cards and access to easy loans in our society, debts can easily accumulate. By the time you realize you’ve been living way beyond your means, it may already be too late. Your debts may have become so unmanageable that you need professional help to clear up your many loans.

The pressure to settle large debts can become very stressful—with creditors sending you reminder letters and harassing you with constant phone calls and personal visits. While some people will opt to skip town to hide from their creditors, you can do the prudent thing and call financial experts, such as Paddon + Yorke Inc, to facilitate debt consolidation in Ontario.

Being buried deep in debt does not mean the end of the world. There is always a solution to any problem, even financial ones. With debt consolidation, you can combine all your debts into one single payment program and stop high interest rates, while avoiding late fees and additional charges. Debt consolidation also gives you a chance to improve your credit history. This type of debt consolidation with Paddon + Yorke is called a Consumer Proposal.

Not all debts, though, are counter-productive. Some loans can be used to increase your wealth or improve your prospects. This includes taking out loans to finance property and commercial investments, and borrowing money to finance education. However, since many of these loans are high-interest installment loans, debts can quickly accumulate with mismanagement. This can create a vicious cycle, as you spend more than you earn, and are unable to pay for what you buy on credit.

In worse case scenarios, financial mismanagement could lead you to file for personal bankruptcy in Ontario. It may be the only way for you to unburden yourself from your financial dilemma. Filing for personal bankruptcy can release you from most of your debts, and gives you the chance to start anew.

While many of your assets—such as personal effects, automobiles, and household furniture—may be protected from liquidation, personal bankruptcy does not exempt you from financial obligations like spousal support and child support, among others. If you have incurred a lot of debts, you still have a chance to make financial reparations. Solutions like debt consolidation and filing for personal bankruptcy can help you regain financial freedom.

Frequently Asked Questions About Personal Bankruptcy in Ontario

Falling into debt is inevitable, and is even considered by many people in North America as natural. Many people are neck-deep in debt due to unemployment, medical bills, and overspending. There are debt consolidation companies, like Paddon + Yorke Inc., which provide financial solutions and consultation services. Below are some of the questions that may help people understand the facts behind personal bankruptcy in Ontario.

What is personal bankruptcy?

When a person can no longer pay his debts to his creditors, he can seek protection through a legal process called personal bankruptcy. The procedure is facilitated by a trustee, and referred to as an “Assignment”. This procedure enables an individual to obtain relief from most of his debts after a period of time and to allow him to start fresh. People can consult bankruptcy trustees and seek help in filing an assignment to obtain the relief they need.

When is filing an assignment necessary?

Several factors affect an individual’s finances. Debt can be caused by failure to pay bills, overspending, medical problems, marital separation, and unemployment. There are certain criteria to meet before a person can file for personal bankruptcy. A trustee in bankruptcy will look at the amount of debt, net family unit income and expenses, number of people in the family unit, among other things, in order to determine the best course of action in dealing with a person’s debt. There are also instances wherein a person’s debts exceed the value of his assets, which is a necessary requirement for filing a bankruptcy. When these situations happen, the debt can be too overwhelming, making it necessary to file for bankruptcy.

What are the duties of a bankrupt debtor?

Ontario debt consolidation companies require the debtor to perform tasks under the Bankruptcy and Insolvency Act. Some of those include the submission of a complete statement of assets and liabilities and disclosure of details about the disposal of assets during a specified period of time which preceded the bankruptcy. Likewise, the debtor needs to inform the trustee of any change regarding his financial status during the bankruptcy period (i.e. loss of employment, receipt of an inheritance, or a major increase in income, etc.).

What are the advantages of personal bankruptcy?

Personal bankruptcy can help people get relief from most, if not all, of their debts and improve their financial status. It can in many instances assist a person in overcoming a foreclosure, repossession, utility cut-off, and general collection of debts (i.e. wage garnishments or bank account seizures). It can also be regarded as a way to relieve stress and worry from financial problems. It allows people to be spared of persistent debt collectors and overwhelming financial obligations.

Filing for bankruptcy is usually the last resort of a financially-challenged individual. However, there is always the option of filing a consumer proposal to settle the debt, which is an alternative to filing for bankruptcy. What many don’t realize is that a person doesn’t have to be completely broke to file an assignment in bankruptcy. In addition, most people don’t realize that a person does not have to give up all of their assets, especially through a bankruptcy. Individuals who file for bankruptcy are allowed to keep certain things like a motor vehicle, and even “tools” necessary for self-employment. These are called asset exemptions and they vary from province to province. There are debt consolidation companies that offer financial solutions and consultation to people facing huge debts. Personal bankruptcy is a valid option to help individuals obtain relief from their financial obligations and start anew.

Dealing with Debt by Declaring Bankruptcy in Ontario

Debts are like bullets; dodging them gives you the opportunity to continue living and even start anew. But when debts accumulate and are fired at you through a machine gun at 600 rounds per minute, there’s nothing left to do but pray you get out of the predicament alive or hope that each bullet gets miraculously deflected. Luckily, you can survive debt, and live to tell your tale as long as you can pull off filing for bankruptcy.

Bankruptcy is a legal status through which an individual or company claims the inability to repay debts owed to creditors. This status can be used as a way to eliminate most debts while being given protection from creditors under federal legislation. Filing for bankruptcy can be a tedious and complicated process that involves voluminous paperwork and certain legalities. Those who are considering filing are advised to engage the services of a trustee from Ontario bankruptcy assistance firms like Paddon + Yorke Inc.
Read More »

Do-It-Yourself Ontario Debt Assistance: You Control Your Debt

Credit cards work on a “buy now, pay later” basis. Buy anything you want today and worry about how you’ll pay for it once the bill arrives. This grand yet simple idea has remarkably enticed buyers into biting off more than they can chew. And it has given rise to one of the most rampant forms of debt—credit card debt.

Credit card owners are fighting back. Equifax’s Canada headquarters said the average credit card debt fell by 3.4 percent in 2011. Likewise, TransUnion reported a decrease of credit card debt by 1.49 percent compared with last year. While figures vary, a slower trend in consumer debt may just be what people filing for Ontario debt consolidation need.

There are (relatively) simple steps you can take to avoid your credit card debt from pushing you to the brink of bankruptcy.
Read More »

Get Financial Help Ontario Residents Rely On from Bankruptcy Trustees

Financial crisis could happen to anyone at anytime; it has been reported that in the first nine months of 2010, 37,462 Ontario residents filed for bankruptcy. People are filing bankruptcy in Ontario for a variety of reasons. Among them are divorce (lawyer’s fees can take a toll on one’s finances), sudden unemployment, and bad business decisions.

While some Ontario residents choose to disregard the problem and just ignore their creditors, other people choose to face the situation head on. These problems may seem insurmountable, but if you get assistance from financial experts, you’d be able to get yourself out of trouble and start afresh. There are plenty of Ontario based companies that specialize in debt assistance and one of them is Paddon + Yorke Inc. Read More »

Tips on Debt Help Ontario Residents May Need

The word ‘debt’ has reverberated menacingly since the start of the global financial crisis. Nations, and their financial capitals, were hit hard by the sudden fall of markets and the collapse of financial institutions. The hardest hit were the people; the ordinary, everyday wage-earners who looked to these financial institutions for help and assistance. With the programs set in place by these institutions no longer working, many people found themselves buried in debt and chased after by creditors. These people sought the help of debt consolidation Ontario firms to bail them out of their situation.

Why Consider Debt Consolidation

To people, the word ‘debt’ is an ugly word, most especially when they are the very people who had recently been laid off from their jobs or are on the verge of a messy bankruptcy. The solution, debt consolidation, sounds just as bad; but is actually a way of recovering from their current situation and bouncing back to reclaim their lost profits and finances.

Debt consolidation is also known as payment consolidation. In debt consolidation, all payments are combined and stacked into one lower monthly payment. This method makes it simpler for people with multiple debts to track their payments and make sure they are paid. In this process, people can also seek the help of debt relief Ontario firms such as Paddon + Yorke Inc. to negotiate with their creditors on their behalf to reduce the required payments. The clients will then forward their payment to the debt relief firm which, in turn, distributes the collected funds to each of the creditors involved.

Eliminate Debt Completely

While it may seem unavoidable to incur debts, there are steps which people can follow to decrease their debt to the point of never needing credit cards to make purchases. The main point is mentioned previously: eliminate the need for credit cards. Use cash for buying purchases, and only buy what your current situation can afford. Start paying off debts one by one, settling the ones with the highest interest rate first. Repeat these processes until all of the debts have been paid off. For the final step, commit to maintaining only two credit cards which are to be used only in emergencies. Snip to shreds the cards which have cancelled credit lines, and throw the pieces away.

With the help of debt help Ontario firm Paddon + Yorke Inc. and other firms like it, debt doesn’t have to be scary; and it can be overcome. It only takes the willpower to live a simple life, and the commitment to follow it through.

How do I get help to avoid the pitfalls of payday loans?

Everyday at Paddon + Yorke Inc. we encounter individuals caught in a vicious cycle known as “the payday loan”.  Although you may think it’s a fast and convenient way to get cash when you really need it; you could potentially Read More »

Deal with debt in Midland, Ontario with a Consumer Proposal at Paddon + Yorke Inc.

If you are living in Midland or area and need some solutions for dealing with your debt then book an appointment with our trustees Russell Cosby or Clyde Yorke at Paddon + Yorke Inc.  A no fee initial consultation can also be set up with Jacquie Cordeiro or Tom Snider.  Call us at (705)528-6988 to book an appointment in our Midland office to go through your debt options. Find out how you can avoid bankruptcy by Read More »

  • Thank you so much for being compassionate and understanding during our meeting. I appreciate you treating me with a sense of dignity at a time when it is hard to feel good about myself. — George