There are several myths surrounding the bankruptcy process that might prevent you from seeking advice from a Licensed Insolvency Trustee. The following are some common bankruptcy myths: MYTH: YOU WILL LOSE EVERYTHING IF YOU DECLARE BANKRUPTCY Fact: Each province has exemption allowances that allow you to retain certain assets that cannot be seized in bankruptcy.  The following are the assets that are exempt from seizure in Northern BC $4,000 – Household furnishings and appliances $5,000 – Equity in one motor vehicle ($2,000 if you are subject to an order to pay maintenance) $9,000 ..read more

In British Columbia, Consumer Protection BC is responsible for enforcing BC debt collection laws and for licensing third-party collectors. If you are getting calls from a collector, it is important to know your rights and responsibilities. You can request that a collection agency contact in writing only.  To make this change, you must notify the collection agency of your request.  After they receive your notification they cannot continue to contact you by phone. You can dispute a debt by notifying the collection agency and the original creditor that you don’t feel you owe the deb ..read more

When you start falling behind on bill payments, creditors’ collection activity can become relentless. This is when you might consider borrowing to get out of debt, but it’s when you should be very careful. It is very important to look closely at the payment terms, interest rates, payment periods, the monthly payment amount, and the overall repayment amount.  You want to ensure that you are able to save money, not lose more. Here are a few signs that borrowing might be a bad idea: The interest rate on your new loan is higher than the rates on your current debts; The amount you will be ..read more

As Credit Reports influence many aspects of our everyday lives, it is important to both understand how the credit bureaus work and how information affects your score. Usually, your credit reports can only be used to: Lend money or extend credit Collect a debt you owe Consider you for a rental housing or for a job Provide you with insurance Meet a direct business need There are two main credit bureaus in Canada – Equifax and TransUnion.  Free reports are available through their websites, or by ordering them by mail, fax, or telephone.  You can also install an app on your s ..read more

There are several possible solutions to help manage rising debt levels – one of which is a Consumer Proposal. If your debts are less than $250,000 (not including your mortgage) and you have a stable source of income, a Consumer Proposal might be the right choice for you. A Consumer Proposal is a federally legislated debt settlement program between you and your creditors that allows you to pay a percentage of what is owed, extend the time you have to pay off your unsecured debts, or both. Once accepted by your creditors, you will have one payment per month at 0% percent interest. When a Consume ..read more

As interest rates and the cost of goods continue to rise, it has become more difficult to manage debt payments and put food on the table. The following are Financial Resolutions that can help manage these issues: Get Debt Under Control Debt products like credit cards, lines of credit, and personal and payday loans carry the highest interest rates. Take control of these types of debts by setting up a plan to pay them off instead of just making minimum payments - this is key to getting off the debt treadmill. Consider the following: Ask your creditors if lower interest rates are available Co ..read more

As the Bank of Canada announces interest rate increases and the cost of goods start to rise, it becomes more and more difficult to manage debt. The following are strategies to consider to help deal with debt while managing these increases: Pay Down Higher Interest Debts First Payday loans and credit cards typically carry the highest interest rates.  Targeting these debts first and setting goals to pay these types of debts off quickly can spare you as interest rates continue to rise. Consider Consolidating Talk to your bank about converting high-interest payday loans and credit cards into ..read more

The holiday season is fast approaching and it’s interesting to note that previous surveys indicate that almost 45% of us would rather skip the holidays to avoid financial stress. The holiday season shouldn’t be about financial stress. Here are a few tips to keep your budget on track during the holiday season: Consider a Secret Santa Talk to your family and friends about a Secret Santa gift exchange instead of trying to buy for everyone.  Set a spending limit and then everyone gets a quality gift and no one ends up with a large credit card bill. Have a Plan Make a list and check it twice ..read more

By creating a budget, you can target and reduce your debt! By creating a budget, emergency fund accounts can be created! By creating a budget, assets and vacations can be planned for and purchased!   Budgeting won’t prevent “life” events from happening, but the process can greatly assist when they do happen.  There is an abundance of information, programs, spreadsheets, and apps that will assist you to collect the necessary information to start the process, but you still have to do the actual work to review the information, set goals, and make decisions. Most of us know that we shoul ..read more

As the beautiful spring weather draws our attention to more attractive outdoor activities, we encourage you to first spend a little bit of time conducting some Financial Spring Cleaning.  Financial health can get ignored during the spring and summer seasons, especially after we’ve spent most of the winter indoors.  Here are a few tips to tidy up finances and ensure all is well before our attention is diverted: Update Your Budget and Plan Your Summer Spending Put together a rough idea of what your summer activities are going to be, how much they will cost, and ensure they fit within y ..read more