If Your Consumer Proposal Is Rejected What Other Options Do You Have
In the unusual case that your consumer proposal is ultimately rejected, you still have choices. Note that the most common reasons for creditors to reject a proposal are that they wish to have a larger monthly payment, and/or a longer payment term .
Here are some options:
Make Sure Bankruptcy Is The Right Option For You
Bankruptcy can offer you a fresh start if you can’t see any other way out of your debt problems. However, going bankrupt may have a serious impact on your day-to-day life, so it isn’t for everyone. Make sure you’ve done your research, taken advice and are sure it’s the best option for you.
Don’t Rush Into Bankruptcy Too Quickly
Bankruptcy works well to wipe out debt however, you’re only entitled to receive a bankruptcy dischargethe order that wipes out your debtevery so often. So it’s a good idea to examine whether now is the time or whether you might need to file sometime in the future. Specifically, you can receive a Chapter 7 discharge:
- once every eight years, or
- six years after a Chapter 13 bankruptcy filing.
During the waiting period, you might find yourself facing an even more severe financial problem. For instance, if you’re suffering from an illness and accumulating medical debt, you’ll probably want to hold off until your condition stabilizes. Also, be aware of other common problems that can crop up, including unemployment, eviction, foreclosure, and car repossession.
If you already filed a Chapter 7 bankruptcy, you wouldn’t be able to do so again. A creditor could garnish your wages , levy the funds in your bank account, or take valuable property. Less effective Chapter 13 bankruptcy options would likely be available. Depending on how long it had been since you filed Chapter 7, you might not be entitled to another discharge. And, not only would you’d have to have sufficient income to qualify, but you’d be required to pay all of your discretionary incomethe amount left over after subtracting allowed living expensesover a three- to five-year repayment period.
Learn about the timing involved in multiple bankruptcy filings so you know when you can file again.
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Requirements To File Bankruptcy When Living Outside Canada
Canadian bankruptcy law states that you can declare bankruptcy in Canada if:
Practically, this can be interpreted fairly broadly. For example, you may have a mailing address in Canada, you may have assets in storage in Canada, or you may still be employed by a Canadian company but working abroad.
Logistically, to file bankruptcy in Canada when living in a foreign country, you will need to:
- Provide a Canadian address for reporting purposes.
- Meet, in person, with a Licensed Insolvency Trustee at least once prior to filing. An initial assessment can be completed over the phone however one face-to-face meeting is required under bankruptcy law to complete the assessment process and obtain your signature on all filing documents.
- Attend, in person, two required counselling sessions.
- Attend any creditor meeting or discharge hearing that is requested, although these are rare. You must commit to returning to Canada when required to complete any bankruptcy duties.
- Report all of your debts, including monies owed in and outside of Canada. You may have to file bankruptcy in Canada to deal with Canadian debts, and file bankruptcy in the US to deal with US debts. If you do, it is best to coordinate the filing between both countries.
Read More:Filing for Bankruptcy in Canada
The Creditors Meeting And The Vote
Before the meeting date, your Trustee will communicate with the creditors and with you. He or she will learn what conditions the creditors require to vote yes, and what conditions you are able and willing to meet. If agreement is reached, it is a simple matter for the creditors to confirm their approval of the modified proposal by informing your Trustee by phone or email. At this point, 50% of votes must be yes for the proposal to be approved.
Remember that each creditor has a vote for each dollar of their claim.
If the proposal cannot be approved at this point, typically it is withdrawn.
Thus, it is very rare for an actual meeting of creditors to take place.
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Exemptions In British Columbia:
- No limit on clothing for you or your dependents all clothing is exempt from bankruptcy
- Household furnishings and appliances up to $4,000
- One motor vehicle up to $5,000 unless you are behind on child support payments, in which case the limit is $2,000
- Work tools and work-related property up to $10,000
- No limit on medical and dental aids for you or your dependents
Our Pennsylvania Bankruptcy Attorney Will Help You Understand The Bankruptcy Process
This has been a quick overview of what occurs when you file for bankruptcy. There are many complexities that this short article could not cover. Our Pennsylvania bankruptcy attorneys are available to give you a comprehensive overview of what filing for bankruptcy will entail, given your specific circumstances. At Young, Marr & Associates, we want our clients to understand the bankruptcy process. Call 701-6519 to schedule a free and confidential appointment.
Bankruptcy Resource Center
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Cooperating With The Trustee
Bankruptcy filers have an obligation to cooperate with the trustee throughout their bankruptcy case. Filers will need to provide the trustee with a copy of the tax return for the year the case was filed.
After the meeting of creditors the trustee will file a Report of No Distribution indicating that no funds are going to be distributed to your creditors or a Notice of Claims Bar Date stating the due date for creditors to file claims to receive funds in your bankruptcy. Other than these filings, ideally you will not hear from the trustee after the meeting of creditors.
What Will Happen If My Spouse Files For Bankruptcy During Our Nj Divorce
If a couple is facing a divorce is one spouse files for bankruptcy, this can cause complications. To learn more about this scenario and what to expect, continue reading and contact our experienced New Jersey divorce attorney for assistance. Our legal team at Townsend, Tomaio & Newmark is prepared to assist you with any divorce matters you may be facing. Give our firm a call today to learn more about our services and how we can assist you. Here are some questions you may have regarding bankruptcy and divorce:
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What Happens After Filing For Chapter 7 Or Chapter 13 In Pennsylvania
As mentioned earlier, people in Pennsylvania will usually file for either Chapter 7 or Chapter 13. In either chapter, an automatic stay goes into effect. After that, there are some differences.
Chapter 7 is designed for people with little income and resources. When an individual files Chapter 7, a 341 meeting will be scheduled. The 341 meeting is conducted by a court-appointed trustee who will review your documents and ask you a series of questions. If you have property that cannot be protected, the trustee will take possession of the property and sell it dispersing the proceeds to your creditors. In most cases, a debtor in Pennsylvania will not lose any of their possessions. Our Philadelphia and Bucks County chapter 7 bankruptcy attorney will review your property and assets before filing. Once the 341 meeting is concluded, your debt should be discharged in a couple of months.
When you file Chapter 13, you will also have a scheduled 341 meeting. Our Philadelphia and Bucks County chapter 13 bankruptcy attorney will also file a bankruptcy plan that lists what creditors you will be paying and your monthly payment amount. The exact figures depend on the circumstances of your case. Our office will carefully review your plan with you before filing. Thirty days after filing Chapter 13, your first bankruptcy payment will be due. After 36 or 60 months, depending on your circumstances, the case will conclude and a discharge order will be entered.
Can States Declare Bankruptcy
Any effort to legalize state bankruptcy, or commence one, would likely spark numerous legal, economic and political issues.
Legal Issues
While Congress can pass a federal law allowing states to take advantage of bankruptcy provisions, its possible that state constitutions would overrule federal statute on the matter of state budget directives. Regardless of whatever federal law Congress might pass, if courts find that state constitutions control the issue then those states might be required to balance their books without the bankruptcy courts.
Secondly, transferring a states budgetary power from the legislature to a federal court may not be permissible under the separation of powers doctrine in the U.S. Constitution, nor under the long-standing judicial principal of refusing to rule on inherently political questions.
Thirdly, the U.S. Constitution contains a section called the Contracts Clause. This bars states from breaching contracts with or between private citizens. This is to prevent states from abusing their control over the police and judicial system during contract disputes. It would apply to existing obligations, such as employment contracts and pensions. Any state bankruptcy law would need to deal with this potential conflict. Courts may find a law that lets states walk away from their existing obligations, as bankruptcy is designed to do, unconstitutional on this basis.
Economic issues
Political issues
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What If I Have Very Little Equity
If you have recently mortgaged or re-financed your home, you may have very little equity in it . If this is the case, there is a chance you can keep your home, and continue your mortgage payments, if you can find a way to pay this amount into the bankruptcy through other means. This is a matter you can discuss with a Licensed Insolvency Trustee for clarification.
What To Do If A Company Goes Bankrupt And Owes Your Business Money
Cash flow the money coming in via accounts receivable and going out via accounts payable is the lifeblood of your business. Whenever you consider extending credit to a client, you take a risk that the client will not pay and your cash flow will be interrupted. Key customers that struggle financially or who declare bankruptcy put your business at risk of being unable to manage financial obligations. A good business risk management plan should include ways to limit your businesss exposure to a company that has gone into administration or bankruptcy and owes you money.
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What Happens If You Dont File
Can Canadian creditors sue you in a foreign country?
The first question is should you file bankruptcy in Canada when you live outside Canada, or can you just ignore your Canadian debts?
Canadian creditors and collection agencies can, and will, continue to call you to collect on overdue debts, assuming they can find you.
Suing you from a foreign country can be a little more complicated. Your Canadian creditor must first sue you in Canada then they have to bring that lawsuit over to the United States to get the foreign court to certify the suit, after which they can pursue you for collection where you live. Not surprisingly, this is a costly process requiring an understanding of foreign collection laws and the engagement of lawyers from another country, so it is rarely done.
Your Canadian creditor can file a lawsuit in Canada, and if you do not, or are unable to defend that suit, they can obtain a judgment against you, even for old debts. To avoid a judgment or lawsuit, its best to deal with your debts by speaking to a Licensed Insolvency Trustee early about your options.
Do Canadian debts show on a US creditor report?
For more detailed information on how to file for bankruptcy on Canadian debt if you live outside of Canada tune in to todays podcast or read the completed transcription below or feel free to contact one of our Licensed Insolvency Trustees.
Additional Resources
- Rebecca Martyn Twitter
The Final Steps Of Your Journey Towards Lasting Debt Relief
Getting all of your bankruptcy forms prepared and filed with the bankruptcy court is usually the most time-intensive process of a Chapter 7 bankruptcy. But that doesnât mean that your job is done. There are a few things everyone filing Chapter 7 bankruptcy has to do to successfully complete their bankruptcy case and receive a discharge. Letâs take a look at what you can expect will happen in your Chapter 7 bankruptcy.
Pay Filing Fee in Installment Payments
If you can’t pay the entire Chapter 7 bankruptcy filing fee and you don’t qualify for a fee waiver, then you can apply to pay the filing fee in installments. You can ask to make four installment payments. The entire fee is due within 120 days after filing.
If the bankruptcy court approves your application, it will grant an Order Approving Payment of Filing Fee in Installments. Your installment payment due dates will be in that order. You must pay all installments on time or your case is at risk of being dismissed.
Take Bankruptcy Course 2
You will complete a credit counseling course before filing bankruptcy. There’s a second course you must take after filing bankruptcy. It covers personal financial management and can help you take advantage of your fresh start after erasing your debts through bankruptcy.
You have to take this course after your case is filed but make sure itâs be completed within 60 days from the date of the meeting of creditors. A certificate of completion must be filed with the court.
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What Are The Effects Of Defaulting
The immediate cost of defaulting is the loss of principle and capital of creditor resulting from either partial debt cancellation or debt restructuring. Among the debt owed to different creditors: domestic private creditor, domestic institutional creditor, foreign private creditor and foreign institutional creditor, the government is most likely to cancel debts owed to foreign private creditor due to the less likely retaliation. Besides, just as any other crisis, soaring inflation, unemployment and political pressure to the defaulting government follow as a result of government defaults.
As most of the domestic debt is held by domestic banks, bank runs occur due to the loss of confidence in the banking system. Bank runs occurs as there is massive withdrawal of money due to public panic and loss of confidence. To prevent this, capital control is imposed as government try to restrict the amount of money that can be withdrawn by each depositor. In June 2015, Greek banks were closed for almost 20 days, bank transfers to foreign banks were controlled and cash withdrawals were limited to only 50 per day to avoid banking crisis. Sovereign debt crisis may also lead to subsequent economic crisis and currency crisis as aggregate demand fall and international market lost faith in its currency.
Companies That Bounced Back Post Bankruptcy
Although, no investor would like his company to file bankruptcy but if that happens, there are examples of companies that filed bankruptcy and came back from the brink of the debt. Below are a few examples of such companies:
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When And How Creditors File Suit
The biggest equalizer that determines if the process to file bankruptcy is worth it is whether or not you hold assets in the US. The actual likelihood of being sued by a creditor which requires an international suit to be filed is slim to none, since its generally too costly and too much of a chance for companies to take. However, the fact still remains that they can go after any assets held on US soil or in accounts with success. Ignoring debt will also cause serious damage to your credit rating in the US, so if you ever do return, youll be in worse shape than when you left because your that figure will inevitably take a serious hit. On the flipside, if youre trying to establish credit in the current country in which youre living, its unlikely that creditors will research your credit beyond their own borders. Once again, its simply too expensive and time consuming for creditors to do so if youve already started to establish a track record as a responsible borrower outside the US.
Bankruptcy Exemptions In Newfoundland And Labrador
- Food and fuel required by you and your dependants for 12 months
- Clothing for you and your dependants up to $4,000
- Household furnishings and appliances up to $4,000
- One motor vehicle up to $2,000
- No limit on medical and dental aids for you and your dependants
- Items of sentimental value up to $500
- All pets are exempt from bankruptcy
- Up to $10,000 of equity in your home
- Tools of your trade or business up to $10,000
- Certain income and pension plans
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