Financial trouble can hit anyone at any time, and an unstable economy does us no favours. There may be a time in your life when you need to consider a consumer proposal.
If you get more than three months behind on your mortgage, often the bank will begin the foreclosure process, where they take possession of your home and sell it.
If you are drowning in a lot debt, you could consider entering a consumer proposal with a bankruptcy trustee. A consumer proposal offers an alternative payment plan to make monthly payments more affordable and you are still paying back money to your creditors.
Filing for a bankruptcy in Alberta is a tough decision. It hurts your credit rating considerably, but that's not the end of it.
A home is probably the most substantial investment that you’ll ever make. For most people, mortgage payments take the largest portion of their monthly income.
For Canadian consumers, a consumer proposal that alleviates the burden of some debt does not mean you must give up your home. The action does, however, impact your credit rating or beacon score and could be a factor as you approach a mortgage renewal.
While foreclosure is more common than many people think, facing one can be a frightening and stressful time. Lenders have the option to exercise a judicial foreclosure that will, if you choose not to respond, mean that you will lose your home.
While the intent of bankruptcy is to clear away much of your debt, you will likely incur a degree of stress while undergoing the process. While, in many instances, you may be able to keep your home, your ability to refinance your mortgage may become somewhat restricted.
When your current mortgage reaches maturity, you will need to renew your mortgage to cover the existing balance. However, if you have recently entered a consumer proposal, your renewal may be affected.
From the moment your bankruptcy is official, you should be making every effort to improve your credit standing and beacon score while disciplining yourself to manage your finances.