FAQs
If you have a question that is not listed below, please email us.Q: How do I know if I'm over my head, and need help?
A: Do you...
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Use your credit cards to make ends meet?
- Live on payday loans?
- Feel stressed about money?
- Bounce cheques?
- Pay only the minimum amount due on your credit cards?
- Receive calls from creditors threatening legal action?
Q: I'm afraid to answer the phone. How can I stop calls from creditors?
A: If you ignore creditors' calls, they may be left with no choice but to proceed with legal action. If they know that you are doing your best to pay them back, chances are they will be more patient. Be upfront with your creditors. Let them know you are taking steps to pay back the money you owe. To find out more information on how to deal with creditors effectively, the Collection Agencies Act of Ontario may help.
Q: How can I stop them from taking part of my wages?
A: You can consult a 310 DEBT financial counsellor who will contact your creditors on your behalf to negotiate a financial arrangement, such as a consumer proposal or, if necessary, file for personal bankruptcy.
Q: How can I deal with income tax debt?
A: Contact Revenue Canada by phone or in person. Be honest about your financial situation and explain your circumstances. Revenue Canada will likely negotiate a payment plan. There will be penalty charges and interest on the debt until it is fully paid. If the payment plan is more than you can afford, our financial counsellor can determine whether a consumer proposal or personal bankruptcy would be the best option.
Q: What is a consumer proposal?
A: A consumer proposal is a plan that gives you more time to repay your loans with affordable payments, and keeps your creditors off your back. The financial counsellors at 310 DEBT can prepare a consumer proposal tailored to your personal situation.
Q: Why would I choose a consumer proposal?
A: For the following reasons...
- Interest charges stop
- Legal actions will cease
- You make only one monthly payment rather than trying to deal with several different debt payments
- No more harassing phone calls
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You don't have to give up assets, such as automobiles or your home
- Avoids possible negative effects on your professional status (estate agent or insurance agent) as a result of bankruptcy
- Offers your unsecured creditors more money than they would receive in a bankruptcy
Q: Does a consumer proposal cost anything?
A: The cost of administering the proposal is included in the monthly payment to your creditors. The costs are fixed by the Bankruptcy and Insolvency Act.
Q: Will I lose my house if I declare bankruptcy?
A: This is a common question. Many people believe that they will lose everything they own if they declare bankruptcy. As the mortgage is secured against the home, you merely contact the mortgage holder to ensure you will continue the payments in order to keep the home. If there is equity in the home, this amount must be paid towards your debt and can be arranged through affordable monthly payments. You may also be surprised to learn that (up to a certain amount) you can also keep your vehicle, some household contents and any equipment that you need to earn a living.
Q: How will bankruptcy affect my spouse and family?
A: Only you are legally responsible for your debt. Filing for bankruptcy will have no effect towards your spouse, unless he/she has co-signed your debt.
Q: A bankruptcy or proposal will affect my credit rating. How do I rebuild my credit rating?
A: The bankruptcy or proposal will stay on your credit rating for several years. However, rebuilding your credit rating starts right away. By continuing to make your car loan/lease payments or mortgage payments, you are helping to improve your credit rating.