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Are You Facing Bankruptcy? There Are Options Available

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When faced with financial problems, some people are left questioning their next move and are misled about what to do. If you find yourself facing a possible bankruptcy, it’s important that you know how bankruptcy will affect you and your family in the years to come and it is important to research all of your bankruptcy options before you declare bankruptcy.

Your Credit Rating & Bankruptcy Options in British Columbia

Bankruptcy is one of the worst things you can do to your credit rating. There is no easy way to obtain credit after you have legally eliminated your debts through bankruptcy. It takes time and patience before creditors will trust you enough to lend you money again. Not being able to take out a loan, renew your mortgage or apply for a low interest rate credit card can impact your financial plans and put your life on hold for years. It is important that you research all of the bankruptcy options that are available to you.

Not all debts can be included in bankruptcy, e.g. secured debts will survive a bankruptcy because they can not be included. Unsecured debts, which some people call non secured debts, can be eliminated, however, debts that are included in a bankruptcy are not always discharged. Many people are also not aware that creditors, their bankruptcy trustee or the Office of the Superintendent of Bankruptcy (OSB) have the option to oppose someone’s discharge from bankruptcy.

If You Facing Bankruptcy, There Are Bankruptcy Options Available To You

If you are having trouble paying your mortgage and you are worried that you might be facing foreclosure, your mortgage lender can still foreclose regardless of whether you are bankrupt. Contact us for help right away as you will have more bankruptcy options available to you and you will avoid foreclosure if you obtain help sooner than later. We have helped many clients with bankruptcy options by helping our clients keep their equity in their property while protecting their credit from being ruined. Contact us or Free consultation to discuss the different bankruptcy options and bankruptcy foreclosure options that are available to you. Office: 604-812-3718 or info@gvcps.ca.

**Secured Debts Not Discharged In Bankruptcy**

A debt secured by a mortgage on an asset, such as your house or car, will not be discharged by bankruptcy. However, bankruptcy and secured debts complicate each other.

Property and Mortgage – Are your payments on the mortgage up to date? If not, your mortgage lender can foreclose regardless of whether you are bankrupt. In the case of a house, are your payments on municipal taxes and utilities up to date? If not, the city or BC Hydro can place a lien on the house, changing those debts from unsecured to secured.

Equity in the Property – If you have positive equity, beyond any limit on its bankruptcy exemption value, the excess is considered an asset to be included in your bankruptcy estate. This can happen by your Licensed Insolvency Trustee’s seizing and selling the asset. However, if you can get the amount from some source like your family, you could keep the asset.

A general summary of the equity you are able to keep is – Equity in your primary residence in Greater Vancouver and the Greater Victoria Regional District = $12,000. Outside these districts, the amount is = $9,000.

We provide Free consultation to discuss the different bankruptcy options and bankruptcy foreclosure options that are available to you. You can get more information about avoiding bankruptcy and avoiding foreclosure by calling us at 604-812-3718 or emailing us info@gvcps.ca.

Debts That Can Be Included In Bankruptcy

Credit card debt including retail store cards
Unsecured lines of credit
Personal loans not secured by any asset
Income tax, HST and property taxes
Unpaid utility bills, cable and phone bills, insurance or membership payments
Medical bills
Payday loans

**Unsecured Debts Not Discharged In Bankruptcy**

Student loans if it has been less than 7 years since your ceased being a student
Government over-payments, e.g. if you were paid too much in EI benefits, you will still need to repay the surplus
Alimony and child support
Fines and penalties imposed by the court
Debts due to fraud

Our Team of Legal Experts Can Advise You With Bankruptcy Options Including:

A Consumer Proposal is a formal, legally binding process which involves a reduction of unsecured debt, or an extension of time for repayment of the debt, or both. The term of a Consumer Proposal must not exceed five (5) years, and no interest accumulates during the term of the Consumer Proposal. A Consumer Proposal is legally binding on all types of unsecured creditors (including government debts such as unpaid taxes and student loans) provided that the Consumer Proposal is accepted by creditors holding the majority in dollar value of proven claims. A Consumer Proposal is administered by a Licensed Insolvency Trustee.

A Debt Management Plan (“DMP”) is an informal (i.e., not legally binding) debt repayment plan which is arranged through a licensed, accredited, non-profit credit counselling organization. A credit counsellor works with the debtor and creditors to develop a more manageable and affordable debt repayment plan. Under DMP, credit card and similar unsecured debt payments are consolidated into one affordable payment which is made to the credit counselling service, who then distributes the payment to the creditors. Licensed, accredited, non-profit credit counsellors are effective in negotiating with creditors to reduce or eliminate interest, which helps reduce overall costs. Many types of debts, such as unpaid income taxes, student loans and other government debts cannot be part of DMP.

A Consolidation Loan is a loan provided by a bank, credit union or finance company to pay out other debts and consolidate several monthly payments into one monthly payment. A consolidation loan requires an application and approval by the lender, who will consider the debtor’s credit rating, income, assets and debts. Many lenders require the debtor to provide security or collateral for a consolidation loan. Interest rates on consolidation loans can be high and will vary from lender to lender.

Consolidate your debts with a home equity line of credit (HELOC): A home equity line of credit gives you access to the equity in your property and it is secured against your property. The interest rate is low because you are using your property as collateral. Alternatively, if you have little or No Equity and need to sell your property but cannot sell through traditional methods or if you are having mortgage payment problems, we can either buy your property for cash or take over your mortgage payments and the property associated with it.

Our Company, GVCPS, is a real estate investment Company who has experience and knowledge regarding the Bankruptcy laws in BC and we specialize in providing you with bankruptcy options and bankruptcy foreclosure options. Our interest is in helping our clients to resolve their financial burdens and to help them gain a fresh start on their financial future. Our mission is to counsel our clients to understand their individual needs and then provide our clients with the best solution to their situation.

There are certain bankruptcy rules that need to be followed. For more detailed information regarding bankruptcy laws in BC:

http://www.bclaws.ca/civix/document/id/complete/statreg/96078_01

http://www.bclaws.ca/civix/document/id/complete/statreg/28_98

We provide Free consultation to discuss the different bankruptcy options and bankruptcy foreclosure options that are available to you.

Do I Have Bankruptcy Options? Yes, Contact Us. There Are Alternatives

/in Bankruptcy Options /by webadmin

Personal Bankruptcy Options Vancouver – Facts & Alternatives | BC

No one wants to file for bankruptcy. It’s important to look at all other bankruptcy options and obtain all of the facts before taking such a drastic step.

Personal Bankruptcy Options in Vancouver, BC – Bankruptcy might be the first thing you think of when you realize that you can’t keep up with your mortgage payments, other debts and bills. You may think that bankruptcy might be the right debt solution for you., however, before declaring bankruptcy, you need to know what your options are, how the process works and how it will affect you and your family in the years to come. You should never take a step as serious as filing for bankruptcy without an accurate understanding of your bankruptcy options first.

Types of Debts – What Bankruptcy Won’t Do For You

Bankruptcy can get rid of some of your debts, however, did you know that there are some debts that you might still have to repay because they can’t be included in your bankruptcy?

3 common kinds of debt that are excluded from bankruptcy are:

Secured debts, like a mortgage or car loan
Child and alimony support payments that aren’t up to date
Student loans, if they are less than 7 years old

Also, if you recently racked up credit card bills and now want to go bankrupt, creditors may stop you or ask that you pay more, before they let you get rid of your debt through bankruptcy.

Contrary to popular belief, when you file for bankruptcy, you will not ‘lose everything.’ Each province and territory has its own exemptions to the bankruptcy law that outline which of your assets, and how much equity, you are allowed to retain.

Can I keep my property?

There are exemptions that allow you to keep some of the equity in your property when you file for bankruptcy. Generally speaking, however, if you’ve already paid off a large portion of your mortgage (ie. you have built up equity in your home), filing for bankruptcy might not be the best solution for you—the law requires you to use that equity to pay off some of the money you owe to your creditors.

To keep your property after filing a bankruptcy, you would need to pay a Licensed Insolvency Trustee (LIT) the amount of property equity you have—minus any provincial exemptions. Property equity is calculated by subtracting the remaining amount of your mortgage, along with any outstanding taxes you owe, from what your property is currently worth on the market.

For example: If the current market value of your property is: $500,000

LESS:

Your remaining mortgage amount	$440 000
Your property tax arrears	$4,800
Your total liens	$444,800
Your estimated property equity	$55,200

Depending on which province you live in, you would have to pay up to $55,200 during the bankruptcy process in order to keep your property. This is one of the reasons why bankruptcy is only considered after all other bankruptcy options have been explored. If you can afford to repay a portion of your debt, but not the full amount of equity in your property, you may wish to consider another bankruptcy option.

Our Company, GVCPS, is a well established Real Estate Investment Company that can provide you with bankruptcy options. We specialize in protecting your equity along with protecting your credit in these types of situations.Office: 604-812-3718 Email: info@gvcps.ca or visit our Website for more information: www.gvcps.ca

In British Columbia, property owners’ exemptions are higher if you live in Vancouver or Victoria. In this case, $12,000 of the equity in your property is protected in Greater Vancouver and Victoria. In all other areas of the province, $9,000 in property equity is exempt from bankruptcy.

Bankruptcy Options – There are Good Alternatives to Bankruptcy

A lot of people don’t realize it, but regardless of how bad your situation may seem to be, there are often ways to avoid bankruptcy. There are consumer proposals, debt management programs, and other bankruptcy options. It is important to go over your financial situation and take an objective look at all your bankruptcy options. Between financial difficulty and bankruptcy are many options, and we specialize in helping you explore those options to figure out what will work best for you to protect all of your equity in your property and protect your credit moving forward.

Property and Mortgage – If you are not paying your monthly mortgage payments, your mortgage lender can still foreclose regardless of whether you are bankrupt or are planning on filing for bankruptcy. Bankruptcy does not stop the foreclosure process because a mortgage is a secured debt. If you are experiencing difficulty paying your mortgage payments each month and want to avoid foreclosure, protect your equity in the property and protect your credit, contact us today. We provide you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in the property and protecting your credit.

References:
BDO Canada Limited
Credit Counseling Society of BC

Bankruptcy Options And Alternatives

/in Bankruptcy /by webadmin

Bankruptcy may be the only thing that comes to mind when you realize that you can’t afford to pay your debts, your mortgage payments and other bills. You may think that bankruptcy might be a good solution for your debt problems, however, you should know more about your bankruptcy options before taking such a drastic step – what are bankruptcy options?, how much will it cost to file for bankruptcy? how does the process work? and what are the consequences of filing for bankruptcy for me and my family in the future?

If you are experiencing financial difficulties and having problems paying your mortgage payments each month or if you have fallen behind on your mortgage payments and are facing Pre-Foreclosure, our Company, GVCPS, can help you with your debt to avoid a possible bankruptcy by showing you your other options first.

We are a Real Estate Investment Company that can provide you with bankruptcy alternatives and options. We can provide you with immediate monthly cash flow management solutions to unmanageable or unwanted mortgage payments along with protecting any equity you may have in the property and protecting your credit. Our focus is to help you eliminate insurmountable debt and stress. We can help get your mortgage payments back on track or if your lender has issued you a demand letter for your missed mortgage payments, we can help reinstate your mortgage and bring the mortgage back into good standing if you act within the time limits that your lender has provided in their demand letter. If you ignore the demand letter from your lender, your lender will have no choice but to start the formal foreclosure process against you.

It may feel as though bankruptcy is your only option to solve your mortgage difficulties and other debt, however, many people do not explore alternative bankruptcy options first before filing for bankruptcy. More often than not, declaring bankruptcy isn’t a very wise financial decision. You should never take a step as serious as filing for bankruptcy without an accurate understanding of its true costs – some of which will include:

Filing for bankruptcy is a very costly and time consuming process
Your lender won’t allow you to renew your mortgage
Your credit will be damaged severely when you file for bankruptcy
Your credit will suffer for seven years (and in some cases up to 14) after a bankruptcy is discharged
It will be difficult to get new credit cards and loans including a mortgage loan
It will be difficult to obtain the most affordable mortgage, rent and interest rate on credit products, impacting your financial plans and putting your life on hold
A bankruptcy will also force you to surrender a great deal of your property and other assets. Unless other arrangements are made, you will have to surrender:

home equity in excess of $12,000 in Vancouver, BC and Victoria, BC and $9,000 elsewhere in British Columbia
vehicle equity in excess of $5,000
the value of household items such as furniture minus $4,000
equity in tools of your trade worth over $10,000

We can provide you various bankruptcy options and alternatives. Contact us for Free consultation. Office: 604-812-378 or Email: info@gvcps.ca.

Explore Bankruptcy Options and Alternatives and Be Aware of the Following Bankruptcy Facts:

If you have assets or too much equity in your property, above what you’re allowed to keep in BC, your trustee will sell your property and your assets. It’s not well known, but it takes at least 9 months to go through all the steps of the bankruptcy process. As part of the process, you make payments to your trustee for the costs and fees of going bankrupt, and you also have to attend two bankruptcy counselling sessions. Completing the process and getting discharged takes longer if you need to pay extra to your creditors because of your situation.

You should also know that your bankruptcy trustee, your creditors, the Office of the Superintendent of Bankruptcy or the Court can oppose or delay your discharge. Depending on your circumstances, you may need to attend a hearing, answer questions under oath and/or meet the additional requirements to obtain your discharge from bankruptcy.

There are many bankruptcy options and bankruptcy alternatives available. Contact us to provide you with bankruptcy options and alternatives to you situation. We specialize in helping clients protect equity in their property as well as protecting their credit.