How can debt settlement affect your credit?

Sometimes people get so much consumer debt that they turn to the more drastic options, such as bankruptcy. Unfortunately, they make this decision because they are poorly informed and do not know about other options or solutions that would be available to them. Know that in some situations, people have so much debt that bankruptcy is their only option. But if that’s not your case, there are other options you should consider.

That said, it is extremely important to remember that you should choose the option that will be best for you and your credit. Bankruptcy is the solution that affects your credit the most. Thus, it is important to think carefully about all available debt settlement solutions and how they could affect your credit.

Of course, not all debt solutions are created equal, and each will affect your credit rating to a different degree. If bankruptcy is the most damaging to your credit rating, if not, a financial follow-up would be the least worse. While a financial follow-up is enough to help you reclaim your debts, there is still the debt settlement step.

Debt settlement 101

To put it simply, the purpose of a debt settlement program is to help you repay less debt than you really owe. This option is desirable for people who have more than $ 10,000 in debt but not enough to file a consumer proposal or declare bankruptcy. Working with a financial advisor is a good way to assess whether or not a debt settlement program is the right option for you. In making your choice, be aware that you will have to make a lump sum payment to your creditors. Here, payments are not usually an option; thus, it is more beneficial for you to start saving.

Debt settlement and your credit rating

The extent to which a debt settlement on your credit rating will depend primarily on your situation. You want your creditors to write off a large amount of your debt in order to have a less negative impact on your credit rating.

Since writing off a portion of your debt is really important, it’s a good idea to do business with a debt settlement professional who can negotiate on your behalf, instead of doing it yourself (even if Debt settlement option is still valid). The debt settlement company you choose will analyze your situation and should try to provide you with the best solution for your credit rating. This offer should be enough to satisfy your creditors, while leaving you in a financial ease.

If you have or have had difficulty making payments to pay off your debts, you are surely aware of the negative impact on your finances or balance of debts of late fees and charges. Debt settlement will not erase your late payment history in your credit report, but you will not have to pay for other late payments on your original debt.

Have an overview

A debt settlement will lower your credit rating. This is probably the worst drawback and you will have to choose if it is worth it. However, your credit rating and you will greatly benefit from this action at the end of the line.

1 Your debt / income ratio will go down, which is great for your credit rating.

2 You will stop adding late payments to your payment history on your credit report and by doing so, help your credit rating.

3 The faster you pay your debts, the sooner you can rebuild your credit rating and you will soon be able to take advantage of other financial products, such as loans with lower interest rates.

You need to see debt settlement as a long-term solution that will help you get rid of your debts now, but will also help you move towards a better financial future.

Ask for help and at work

The only way to really know if debt settlement is right for you is to meet a professional and discuss with him your financial situation as well as the options available to you. Take a look at our online applications today or contact one of our specialists.

Licensed Insolvency Trustees: who are they and what do they do?

Trustees in bankruptcy, or those who help Canadians declare bankruptcy or file a consumer proposal, are also often referred to as Licensed Insolvency Trustees. On April 1 of this year, the Office of the Superintendent of Bankruptcy Canada made this change because trustees oversee the filing of many more consumer proposals than filing bankruptcies. As a result, the new title is more representative of what a trustee’s job entails. The word insolvency better represents the relief services available to Canadians through these trustees. Although the authorized word is intended to provide peace of mind to Canadians seeking to declare bankruptcy or file a consumer proposal, it also makes these trustees more identifiable.

What is a Licensed Insolvency Trustee ?

The Trustees Permitted in insolvency are regulated by the Office of the Superintendent of Bankruptcy Canada, a branch of the federal government. They are professionals who have studied for that, and who are trained to oversee the filing of consumer proposals and bankruptcy filings in Canada. A consumer proposal and a bankruptcy are two legal proceedings that must be filed by a licensed insolvency trustee. Trustees are agents of the court and are the only professionals who can help alleviate the debt and legally allowed to file one of these two procedures. In general, licensed insolvency trustees are either self-employed or are members of a business. While a trustee is not an employee of the federal government, he or she must still comply with the laws and regulations set out in the bankruptcy.

What credit relief options can a licensed insolvency trustee offer?

Insolvency Trustees perform the same types of debt relief proceedings under a new name. They work one-on-one with Canadians who need to relieve their debts, assess their financial situation and help them make informed decisions. All trustees offer consumer proposals and bankruptcies, but you will get a free first consultation to discuss your options.

Step1: Consultation

The first meeting you will have with your licensed insolvency trustee is called a consultation and it is free. Your trustee will assess your financial situation, have access to your debt repayment issues and determine what your next step should be.

Step 2: Choose your debt relief solution

A meeting with an insolvency trustee is not just about filing a consumer proposal or bankruptcy. Therefore, your trustee may suggest other less drastic options that you can respect for yourself. But if you and your trustee decide that filing a consumer proposal or bankruptcy is your best bet, here’s what to expect:

Bankruptcy

 

Your trustee will always make sure that declaring a bankruptcy is absolutely necessary before doing so. He will guide you through the process and ensure that your rights are respected.

Once your trustee declares your bankruptcy, the following events should take place:

  • Suspension of proceedings. Your unsecured creditors will no longer be able to contact you, seize your salary or sue you.
  • The creditors will be contacted. Your trustee will contact your creditors and provide them with a copy of all necessary documents
  • The outstanding tax returns will be declared. Your trustee will make the income tax returns you could have up to the date of your bankruptcy declaration.
  • You will have specific obligations to fulfill. You must provide your trustee with a monthly income tax return and attend regular credit counseling meetings. After 9 months, your bankruptcy should be released. This will remain visible on your credit report for a minimum of 6 years.

Consumer proposal

Depending on your financial situation and whether you have assets to keep or not, your trustee may recommend filing a consumer proposal instead of declaring bankruptcy. Your trustee will guide you through the process and confront your creditors on your behalf.

During the process, expect this:

  • Your trustee will create a proposal that will be tantalizing to your creditors
  • Once your proposal is submitted, they will have 60 days to accept it
  • Your interest charges will be frozen
  • Your creditors will not be able to contact you about any debt

Keep in mind that your creditors are not legally obliged to accept your proposal; That’s why it’s important to work with a trustee you trust.

Choosing the right trustee

As mentioned above, a licensed insolvency trustee is the only professional legally entitled to file a consumer proposal or declare bankruptcy. Since a trustee is a court officer and a consumer proposal and bankruptcy are both legal proceedings, you will be legally protected from your creditors. There are no other debt professionals who can help you lighten the debt and protect you from your creditors. Doing business with the right trustee is important, you will have to be honest and open about your financial situation and be able to discuss all your debt problems. You will probably spend a lot of time with your trustee and choosing someone with whom you get along well and who will work hard for you is definitely your priority.

Disclaimer.

The majority of the images I use for this blog are not mine. I always do my best to credit the source when I know it. Many of the used images come from Tumblr or We Heart It, and often times, the origin of the image is unknown. Click on the images to view the original. No copyright infringement is intended. If one of the images I’ve used belongs to you and you would like it removed, please send me an e-mail and I will happily take it down.

KOALA OF EPIC ADORABLENESS

I interrupt our regular scheduled posting to bring you the cutest thing on the entire planet!

Im sorry, I couldnt resist. This is just WAY too cute. Seriously, how adorable is this little guy? I want to take him home and love him and cuddle him forever and ever and ever! ♥ Really, really not helping my desire to kidnap a koala to have for my own. Call me a nutter, but I actually resized all the open windows on my laptop screen this morning so that he could sit in an open window that I could see all. day. long. Those eyes! I just melt.

Never has a GIF (or any picture, really) made me smile bigger than this little guy. I love him. I wish you could carry GIFs around in your pocket. Because I would.

3 like

Krissy

CATEGORY: miscellaneous » TAGS: animals, gif, koalas

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5 comments · JUMP TO COMMENT FORM »

Joy » 3 November 2011

THIS IS TOO CUTE!! I DIE.

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Krissy » November 3rd, 2011

RIGHT?! Im mesmerized by how flippin adorable it is! Ive been staring at him all day.

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Ally » 3 November 2011

So flippin adorable. I wish we could carry GIFs around in our pockets as well.

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Gloria » 3 November 2011

Beyond adorable! His furry little face is putting me into a cute-overload trance 🙂

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Krissy » November 3rd, 2011

Cute over-load trance is the best way to describe it! Im completely mesmerized from him. I have to keep coming back here to Awwww! every few minutes.

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Crissy » 4 November 2011

I.WANT.ONE.RIGHT.NOW
Seriously, your new life mission must be going back to Australia to get one (and another for me). They sleep all the time, it shouldnt be too difficult to just climb a tree and grab one XD

(reply to this comment)

Jennifer » November 4th, 2011

I live in Australia, and have interacted with koalas many a time. Just so you know, like almost all native Australian animals, koalas are fairly vicious if you try to touch them, and are not nearly as cute as they look.

Also, koalas are unfortunately under attack increasingly in the past few years. Many wildlife centres in Australia have been taking in koalas that have been shot or hurt severely by humans some of them, it is believed, because they were attempting to take koalas out of their natural habitat, and did not expect the koalas to fight back.

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Krissy » November 5th, 2011

Hey Jennifer! I actually just spent 3 months abroad in Australia and got to visit quite a few conservation centers to see these lovely creatures. It breaks my heart a little bit that theyre so endangered as theyre one of my favourite animals. Ive always wanted to sponsor one so hopefully someday when I can afford it, Ill be able to so I can call a koala my own. (sort of, haha.)

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MINIIO DOLLHOUSES

Barbie was my favourite toy growing up. I liked picking out her snappy outfits as much as the next person, but it was setting up elaborate houses for her from boxes and pillows and my nightstand drawers that tickled my fancy. Now that I think about it, I dont recall ever really playing with my Barbies (aside from one or two or twenty Ninja Turtle invasions from my brother), but I do remember spending hours painstakingly setting up the perfect home for Barbie, Ken, Skipper and Kelly. That was my idea of fun. I hope that makes it acceptable for me to be madly in love with these darling dollhouses designed by Miniio. Not only are these houses aesthetically pleasing, decked out in their stylin mid-century modern furnishings, but theyre also eco-friendly using locally sourced materials and sustainable resources. Now thats what I call a dream house. Barbie never had it so good!

The raw natural textures, liberal use of white, and modern architecture have me seriously envying Barbies new digs. She even has a Pantone chair! So jealous. Hey, Christmas (and my birthday) is around the corner Santa, if youre listening, my inner 8-year-old would be bouncing off the walls if I woke up to one of these in my stocking.

Images via The Huffington Post & Miniio.

2 like

Krissy

CATEGORY: architecture & interiors » TAGS: architecture, interior design

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7 comments · JUMP TO COMMENT FORM »

Bre » 5 November 2011

yeah, id live in that. 😉

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Annika » 5 November 2011

What a cute idea! Barbie is so style and modern these days!

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Krissy » November 5th, 2011

She really is! Im jealous! Everything was so pink when I was young. (And I made a conscious effort to hate pink as a child. :P)

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Morag Lee » 5 November 2011

I love the way the Barbie is posed in these pictures!

I was however one of those girls who had LOADS of Barbies but never a doll house. Maybe one day

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Krissy » November 5th, 2011

I never had a house either. My best friend did and I was SO enthralled by it. I still loved my boxes since I could make rooms whatever size I wanted, but they werent nearly as pretty looking as the real doll houses.

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Ally » 5 November 2011

OMG, love! I was obsessed with my Barbies (and setting up their homes too) my inner 8 year old self would love this, as well.

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Caity » 6 November 2011

Oh my gosh! I want to play with barbies again! Seriously, that is actually an amazing house! My grandpa built me a dollhouse when I was a kid and it was modelled after my own house. That was pretty amazing, as well.

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Krissy » November 6th, 2011

How cool that you had a doll house modeled after your own house! Do you still have that dollhouse? Ill bet its a pretty treasured family item now especially since it was made just for you.:)

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Caity » November 7th, 2011

It is in my parents attic. It was definitely something special but as a kid I played with it a lot so it is definitely worn. <3

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Harriet » 6 November 2011

Those dolls houses are amazing! Definitely too cool for children I want one!

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Krissy » November 6th, 2011

Way too cool for kids! Im sure very few would appreciate the architecture and design here. But maybe for those that didnt, it might help cultivate good taste? Whoooo knows. I just know I want one. I cant have my real dream house, so Im going to replace that desire with a doll house for the time being. 😉

(reply to this comment)

A FEW LOVELY LINKS №18

01. Loving the vibrant colours and smokey effects of this photoshoot. (Warning: NSFW.)
02. Furniture Men Hate provides a real chuckle. Even funnier is the response from her husband!
03. A tutorial to make a quilt like one (Ive been lusting over for over a year) at Anthropologie.
04. 55 Gentle Ways to Take Care of Yourself When Youre Busy, Busy, Busy. If you click only one link today, make it this one. Marthes list is filled with inspiration, wisdom and fantastic insight!

05. Mallory has opened a new blog showcasing her vintage book collection. (This post of handmade houses is just one of the awesome books shes scanned and shared thus far.)

06. Type created by the prick of a pin. So cool.
07. Paint your own watercolour pixel art.
08. How Blogging Became My Boyfriend. Hilarious because its true.

09. Your weekly dose of architecture Im crushin on. This time, the Barcode House.
10. The Girls with Glasses love hats. I love them.
11. Wildfox has an adorable kids clothing line complete with cute animal illustrations.
12. These rainbow polka dot heels are seriously lust-inspiring.

Busy, busy, busy is definitely the name of my game lately. I dont know where my time disappears to! But in my spare moments, Ive still made sure to visit my favourite blogs, and here are just some of the awesome things from around the web these last two weeks. Until next time, peace out girl scouts. xo.

Follow links for image sources.

2 like

Krissy

CATEGORY: a few lovely links » TAGS: links

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5 comments · JUMP TO COMMENT FORM »

Ally » 6 November 2011

Im really happy I just bought some new watercolour paints and paper on Friday cant wait to try that pixel art. So pretty.

(reply to this comment)

Caity » 6 November 2011

Oh my gosh these are awesome finds. I love blogging is my boyfriend and the furniture men hate.

(reply to this comment)

Kimberley » 7 November 2011

Wow, those rainbow heels are exquisite. Must have now! 😉 x

(reply to this comment)

cam » 7 November 2011

lovely links, once again

love love the Quilt Tutorial, always wanted to start one! fabulous, thanks sweets! x

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Brandy » 9 November 2011

I love all of your finds, especially the How Blogging Became My Boyfriend. Definitely made me chuckle, because I could agree to almost all of those points.

Im not sure whats attracting me to those rainbow heels, the boys, or the rainbow polka dots.

(reply to this comment)

BLUE PLANET HOLIDAY CAMPAIGN

BLUE PLANET HOLIDAY CAMPAIGN

Oh, you know, just some end of the week sparkle for no other reason than I like sparkley things. And Im shameless in my constant search for all that glitters. Like thats any surprise

More of the non-sparkley-but-still-equally-as-pretty here.

Images via Purse n Boots.

4 like

Krissy

CATEGORY: fashion photography & editorials » TAGS: editorials, fashion & style, sparkley things

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5 comments · JUMP TO COMMENT FORM »

Ally » 11 November 2011

Prettiness!

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cam » 12 November 2011

ok, kriss.. now this is a bit spooky! 😉

just had those images bookmarked and for a posting myself! now I can just link them to your beautiful post! xoxo

(reply to this comment)

Krissy » November 12th, 2011

Haha, really? What a coincidence, indeed! I say post anyway because theyre super duper pretty images and everyone needs to see them. 😀

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Caity » 12 November 2011

Awesome images! I also love sparkles and glitter. The one with the stars on her hand are really cool.

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Harriet » 13 November 2011

Oh glitter. Why must you be so sparkly and addictive?

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J. » 13 November 2011

OOOHHH! This makes me want very shiny holidays RIGHT NOW!

(reply to this comment)

Lets Talk Inspiration!

LETS TALK INSPIRATION!

Hello, hello! Long time no see! So far so good over here in epic-homework-land. Stressed to the max, but what else is new? Ill tell ya what in case you missed it, I did a guest post over at Marthes blog The Freedom Experiment a few days ago. Ch-ch-check, ch-check, check it out

Lets Talk Inspiration!

Click image for source.

6 like

Krissy

CATEGORY: blogging,inspiration » TAGS: advice, guest post

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4 comments · JUMP TO COMMENT FORM »

colleen » 5 December 2011

fantastic article, that is just what I needed after not being able to sit down and work on things whether its my blog or homework it always takes a great deal to get things done. Im always feeling like I lack inspiration but your tips are great reminders in getting a project done! thanks for writing that 🙂

(reply to this comment)

Tamara Nicole » 5 December 2011

Oooh I love inspiration, checking it out:-)

http://www.stylesoftamaranicole.blogspot.com

(reply to this comment)

cam » 6 December 2011

how cool, just left a comment for you over there! x

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Kelley » 19 December 2011

I just saw this image in a slideshow and immediately thought of you, so of course I had to share it! http://www.vanityfair.com/culture/features/2011/12/the-year-in-photos-201112#slide=36

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Krissy » December 19th, 2011

Aaaaand bookmarking that image immediately! Thanks for sharing (and thinking of me!)

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