Yes, most of the time, that is what we’ll ask you to do.

Any time someone is considering their options with us, I always ask where they do their day-to-day banking.  If it’s anywhere they have any ‘unsecured’ debt, like overdraft, line of credit or credit card, I suggest they open a new bank account somewhere they have no debt, and start banking there.  Even if the person decides not to file a bankruptcy or proposal, and here’s why:  the bank has the right to take the money out of that account.

You may not realize it, but when you open an account, you are giving permission for the bank to ‘offset’ any debts with deposits you make (payroll, child tax benefit, etc).  Generally no bank is going to use that right of offset if all your payments are on time, that’s what keeps them happy.  But, if you stop making payments, or file a consumer proposal or bankruptcy, they will freeze your account, and you won’t want to put any money in there any more.  So, why not just start by opening a new account and keeping your money safe?

Here’s another good reason – many of the people I meet tell me they’d like to rebuild credit at some point in the future.  It will be far easier to do this with a new bank, than with the old bank that you owed money to.

Struggling to pay all your debts?  Call our offices at either 866-747-0660, or 310-PLAN (no area code required) or locally here in Sarnia at 519-344-1058, to book an appointment to come and see me.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

{ 0 comments }

Great success with Consumer Proposals in Sarnia

October 17, 2013

A consumer proposal can be an excellent alternative to bankruptcy – the basic idea being to offer to repay your creditors a portion of what you owe, over time.  Most proposals are for about 1/3 of the money owed, so for example, $30,000 of credit card debt could be dealt with in a proposal costing […]

Read the full article →

How does the Trustee get paid in a Consumer Proposal?

October 8, 2013

Well, first, let’s clarify – only a licenced Trustee in Bankruptcy can help you file a consumer proposal (that’s me, see below for ways to reach me).  When a consumer proposal is filed, the Trustee becomes the Administrator of the proposal, working with you, and your creditors to find a common ground between you and […]

Read the full article →

What happens to my child’s RESP if I file a bankruptcy or consumer proposal in Sarnia?

October 3, 2013

Hello all, I’ve been getting this question a lot this past week or two so I thought I’d share the answer on the blog. As I’m guessing you are aware, an RESP (Registered Education Savings Plan) is a financial tool you can use to help save for your child’s education.  You deposit money, after tax, […]

Read the full article →

Can I include a pay day loan in my Consumer Proposal or Bankruptcy?

September 26, 2013

Yes!  Unfortunately this is a more common question than ever before – there are a lot of people with payday loans out there. Just in case you aren’t familiar with them, payday loans are short term high interest ways to borrow money.  For example, you borrow $100, in a week or two you pay back […]

Read the full article →

Reasons to file a consumer proposal in Sarnia

September 13, 2013

Here’s reason number 1:  Surplus income.  For a thorough and detailed explanation of surplus, please see this page on our main website: How Much Will Bankruptcy Cost?  The basic idea is simple though -if you file bankruptcy, the more you make the more we’re required to take from you, to compensate your creditors. If you file […]

Read the full article →

How much does it cost to see a Bankruptcy Trustee in Sarnia?

September 12, 2013

I had a client in today who met with a local company last week, to learn about options to deal with debt. The company they met with told them that a plan could be worked out for them to save 60% on their debt, and it would only cost $3,500 up front to do it. […]

Read the full article →

If I have a house, should I file Bankruptcy or a Consumer Proposal in Sarnia?

May 7, 2013

One of the largest fears I see on a daily basis in my office in Sarnia is of those who own homes:  if they file bankruptcy, they worry they will lose the house.  I can sympathize with this fear:  I own a house, my family lives there, I would be devastated to lose it.  BUT […]

Read the full article →

2013 Surplus Income limits released

March 25, 2013

Around this time every year, the Office of the Superintendent of Bankruptcy releases a chart, which is used in the Bankruptcy process to help determine the ‘cost’ of filing bankruptcy. This chart references the ‘Surplus Income’ guidelines for the year ahead.  For this year, the limits are: Household of 1:  $2006 Household of 2: $2497 […]

Read the full article →

Dealing with Debt in Sarnia? Make sure you know who you are dealing with

February 8, 2013

Interesting article in the Star today – it appears that one of the most well known national credit counselling firms doesn’t employ any actual credit counsellors:  Consolidated Credit Counseling Services of Canada So what does this mean for you?  Maybe nothing, the article says the agency is ‘accredited’ so that must mean they have some […]

Read the full article →