When you can’t cover the mortgage without mom…
When the Canada Revenue Agency comes knocking…
When you think you’re caught up and the car breaks down…
When utilities bingo backfires and hydro pulls the plug…
When you can’t remember the last time you paid all the bills on time…
When you’re afraid to answer the phone if you don’t know who’s calling….
When you dread what’s in the mailbox, or hide mail from your spouse…
Family, job, kids, health, elderly parents… anything can become the unexpected speed bump that throws your budget out of balance.
When the bills are growing faster than your budget, it doesn’t take long before you feel that debt rules.
Your shed the debt™ consultation with Goldhar & Associates Ltd. is the first step in restoring balance to your financial life and your future.
human. responsive. proactive.
These attributes are at the heart of Goldhar & Associates Ltd.
Our role is to review your debt situation with you, explore all reasonable opportunities to resolve your financial problems, and provide you with straightforward counsel to help you rebuild your finances for a fresh and manageable future.
As licensed Trustees in Bankruptcy, we can administer your Consumer Proposal, or file your assignment in Bankruptcy, both of which offer you protection from creditors under the
Bankruptcy and Insolvency Act.
We won’t consider either of these options until we’ve truly assessed your debt load and explored all other options for relief.
debt relief options
● credit counselling
● debt consolidation loan
● consumer or Division I proposal
● assignment in bankruptcy
A consumer or Divison I proposal, or an assignment in bankruptcy are the only options that provide legal protection from creditors and immediately stop garnishments, executions, suspension of essential utilities, and other collection actions.
Only a licensed trustee in bankruptcy can help you make a proposal to your creditors or file an assignment in bankruptcy.
consumer proposal
A consumer proposal allows you to reduce and then settle your unsecured debts – including what you owe to the Canada Revenue Agency – for an agreed-upon amount, to be repaid in one manageable monthly payment to the trustee for up to 60 months.
The amount of your settlement offer must be more than the creditors would receive in bankruptcy. And you must be able to demonstrate that you can meet that monthly payment without fail.
A consumer proposal is prepared by Goldhar, who will present it to your creditors and assist in negotiations until there is an agreement between you and the creditors on the amount you propose to pay.
Goldhar will administer the fulfilment of your proposal until all amounts have been paid. Once Goldhar files your proposal, all garnishments, executions, and legal actions by creditors are stopped, and public utilities may not discontinue service for non-payment.
●On unsecured debts totalling $250,000 or less (other options exists if debts are over $250,000)
● you retain control of your assets
● your obligation is limited to payment of the settlement amount accepted by your creditors
● you can pay off the remainder of your proposal at any time you choose
● if your proposal is rejected you may choose to file for bankruptcy, or can work with Goldhar to find another solution
assignment in bankruptcy
Bankruptcy is a legal declaration that you are insolvent and are unable to meet your obligations to your unsecured creditors. It offers you the chance to wipe your debt slate clean and start a fresh financial life.
If you are truly unable to pay your bills and make debt payments when they are due, and you cannot afford to make an offer to your creditors through a consumer proposal or Division I proposal, bankruptcy may be the only viable option for debt relief.
To make an assignment in bankruptcy, you work with Goldhar as your Trustee in Bankruptcy to determine what assets you have that can be liquidated as payment to your creditors. Many people who file for bankruptcy have no assets to be liquidated.
Once you make your assignment in bankruptcy, all garnishments, executions, and legal actions by creditors are stopped.
● you are required to fulfill certain obligations to the trustee, including a monthly reporting of your income and expenditures
● if you have income in excess of the thresholds set by the Superintendent of Bankruptcy, up to 50% of your deemed “surplus” is payable to the Trustee until you are discharged from bankruptcy
● assets traditionally do not include such items as household furniture, clothing and your personal effects
● usually you may keep your car/vehicle; savings in an RRSP; your computer, etc.
● if only one spouse goes bankrupt, the Trustee usually permits the other spouse to buy out the bankrupt spouse’s share of the home equity
special circumstances for tax debtors
When your biggest creditor is the Canada Revenue Agency, or the provincial Ministry of Finance, there are some limitations to the debts you can relieve in a consumer or Division I proposal or a bankruptcy.
In a Division I proposal (made if your debts total more than $250,000) trust monies, such as the employee portion of source deduction remittances, must be discharged in full, inclusive of any interest and penalties, within 6 months. This may not rule out a proposal, if you can afford monthly payments that are sufficient to discharge this portion of your debt within six months.
The bankruptcy of a corporation will transfer responsibility for HST and outstanding source deductions to the Director(s) of the corporation, who must then personally make a proposal or file for bankruptcy to settle the debt.
A CRA lien against your home or property is not relieved through a proposal or bankruptcy. In fact, the debt lives on and may continue to accrue interest. However, CRA cannot register a lien after you have filed any of the following: a Notice of Intention; a proposal; a bankruptcy. If there is the possibility that CRA is moving to register a lien, don’t delay in filing your Notice of Intention, proposal or bankruptcy.
effect on your credit rating
Filing a proposal or an assignment in bankruptcy will have a negative impact on your credit rating. A proposal will be reflected on your rating for 3 years after the fulfilment of your proposal; a first bankruptcy will show for 7 years from the date of discharge. Second and third bankruptcies remain even longer.
That said, if you haven’t been paying your bills on time, and/or are in arrears on credit cards, public utilities and other creditors, your credit rating is likely already low, and won’t improve until you take steps to settle your debts.
Working with Goldhar now can get you back on a sound financial footing and help you rebuild your credit rating.
Once you have settled your debts, you can qualify again for certain credit cards and other loans, such as car loans or a mortgage. Goldhar can assist you in rebuilding your credit.
don’t be embarrassed
Will the neighbours know?
What will the children think?
My mother will be so upset…
Can my boss find out?
How will I face my family ?
It’s natural to want to protect your privacy and your dignity when you’re dealing with unmanageable debt.
Here’s the good news: nobody needs to know.
Working with a licensed Trustee in Bankruptcy permits you to come to terms with your creditors confidentially. Your family, your employer, your neighbours don’t need to know a thing – unless you happen to be formally indebted to them, which most often is not the case.
Your Goldhar Trustee can help you work out what to say to the children at home. But believe us when we say that the kids will only notice your smile. And they will be happier to see you bounce back to life. So will your mother, your community group, your friends, your brothers and sisters…
There will be no visits to your home, no notices posted on the door. The neighbours have no reason to know you are working with a Trustee in Bankruptcy. And there is no need to contact your employer – unless your wages are garnished, in which case our contact will be of the best kind – to advise of the removal of the garnish.
Bankruptcy – exemptions
Once you have been declared bankrupt, Goldhar, as your trustee, will deal directly with your creditors on your behalf, and will hold the money raised by the sale of your assets in trust for distribution to your creditors.
Certain obligations cannot be discharged by bankruptcy, including court-ordered alimony and child support payments; student loans (if you stopped being a student less than seven years ago); court-ordered fines or penalties; and debts arising from fraud.
Your bankruptcy will not cancel the liability of anyone who guaranteed or co-signed a loan with you.
For the self-employed and business owners.
● The business debts of a sole proprietorship are discharged through your personal bankruptcy.
● You may not hold the position of director of a corporation while you are personally an undischarged bankrupt.
● the debts of a corporation will be addressed if/when the corporation files a proposal or bankruptcy.
● Directors of a corporation may be assessed personally for the corporation’s tax arrears related to the employee portions for CPP/EI, employee income tax deductions at source and HST/GST.
Bankruptcy – obligations and insights
1. There is no free ride. You may be required to pay some amounts to your creditors, and any assets valued at over the allowable exception amount(s) will likely be liquidated by the trustee.
2. A bankruptcy involves ALL your unsecured debts, including your tax debt.
3. If there is equity in your home, it may not be necessary to sell your home. With appropriate approvals, the trustee may permit an arrangement for you to buy back your equity. When only one spouse goes bankrupt, the trustee may permit the other spouse to buy out the bankrupt spouse’s share of the home quity.
4. If you are a sole proprietor, bankrupting your business is achieved through your personal bankruptcy.
5. Tax arrears for trust monies (GST/HST, PST, and employee portions of source deductions for EI, CPP and income tax), as well as vacation pay and employee severances, may be assessed personally to the directors of a corporation, should the business go bankrupt or cease to operate. Directors who are unable to pay these amounts personally may discharge the liability through a personal bankruptcy or proposal.
6. There is a mandatory period during which you remain a bankrupt until you are discharged and then are fully clear of your debts.
7. Failure to fulfill the duties of a bankrupt will extend the time before you are discharged, or may invalidate the bankruptcy – Which permits your creditors to pursue you anew.
8. While you are bankrupt, you cannot hold office as a director of a corporation or other organizations.
9. The trustee is an office of the court and is licensed insolvency professional. As such the trustee is obliged to represent both sides, meaning you and your creditors. The trustee is required to recover as much as possible for payment to your creditors.
10. If you receive or become entitled to assets, win the lottery, or receive an inheritance or other substantial gift before the day of your discharge, you are required to disclose it to your trustee.
11. Tax filings must be up to date. You must provide your trustee with pre-bankruptcy and post-bankruptcy tax returns for the year in which you are making your assignment. Any tax refunds owning to you will be paid to the trustee.
12. GST/HST refunds may be required to be paid to the trustee while you are an undischarged bankrupt.
13. You are required to ensure that your trustee knows your current home address and telephone contact number at all times. If you move or get a new phone, change jobs, or have a change in salary, you must inform your trustee promptly.
14. Your bankruptcy and discharge are a matter of public record. However, a notice of personal bankruptcy is not usually advertised in the newspaper and your employer is not normally notified. The neighbors will not find out. It is up to you to decide how or what to discuss with your family, including the kids. Your Goldhar Shed the debt counselor can offer you guidance, if you wish.
Final thoughts
Refer family and friends to Goldhar.
we will not share your secrets. But we will help your family and friends Shed the debt and rebalance for a fresh financial future.
Suggest they call us at 1-866-649-8090 for a free, no-obligation financial review. Or they may contact us online at www.realrulesofdebt.com.
If you need help with debt management in the future…
Dont be shy. We can help you again. It happens.