Three IMPORTANT Questions
We have three important questions that we will ask during our first meeting. The three questions are critical to us understanding your situation and providing you with helpful solutions.
Question 1. “What do you Own?”
We need to know what you own to see if you have anything of value that may used as part of a plan to make a proposal to your creditors. Exempt property is property that cannot be seized by your creditors, most commonly owned property has some level of exemption associated with it. For example:
House: If you own you own home, how much equity do you have – is it possible to access mortgage funds to help with some kind of plan? Bearing in mind that you can claim an exemption on your principal residence of $10,783 (per registered owner) and we would need to contemplate the cost of conveyance, including penalties and interest payable to determine equity. Note: Whether you file a bankruptcy or a proposal we will not force you to sell your home.
Furniture: You can claim an exemption of up to $14,180 (per person) for Furniture and Household Goods. That value is based on what we call “fair market value” – which basically means yard sale value.
Clothing: There is no limit to the value of clothing that you can keep as exempt property.
Tools of the Trade: Tools of the trade are defined as any property that is necessary for the debtor to earn a living and has an exemption of $14,405 (based on fair market value).
Investments: There are many types of investments, most common types, such as RSPs. RDSPs, RESPs have some form of associated exemption.
Question 2. “Who do you Owe?”
We will need to know who you owe money to, including estimated amounts of the debt, account numbers, whether or not the creditor has any registered security interest (mortgage, car loan) and the status of any proceedings taken against you.
Question 3. “How much Income do you have?”
Knowing how much income you and your other family members have as well as what your family’s expenses are will guide us to how much money is available to make some form of proposal offering to your creditors.
Be prepared, and have as much of this information as you can available for our initial meeting.