Archive for October, 2006

There is a lot of confusion about how long a bankruptcy in Brantford will remain on your credit report. Here are the facts:

According to Equifax, Canadas largest credit reporting agency:

“A bankruptcy automatically purges six (6) years from the date of discharge in the case of a single bankruptcy. If the consumer declares several bankruptcies, the system will keep each bankruptcy for fourteen (14) years from the date of each discharge. All accounts included in a bankruptcy remain on file indicating “included in bankruptcy” and will purge six (6) years from the date of last activity.”

“When a registered consumer proposal is paid, it will automatically purge three (3) years from the date paid.”

In other words, a first bankruptcy remains on your credit report for six years from the date of discharge, and a consumer proposal remains on your credit report for three years from the date your proposal is completed.

Please note that your ability to borrow is affected not only by what’s on your credit report, but also by your income, job history, and ability to make payments.

My advice: if you have more debt than you can handle, give us a call at 310-PLAN (no area code required) or e-mail us and we will meet and determine if a bankruptcy or proposal is necessary to deal with your debts. If it is, we can then make a plan to re-build your credit once your bankruptcy or proposal is completed.

At Hoyes, Michalos & Associates in Brantford, we meet with many individuals from the community for various reasons, but one common element in some of the cases is the existence of tax related debts. A tax related debt could arise for many difference reasons including being self-employed, cashing out RRSP’s, working more than one job, pensions receiving pension income with out taxes taken off, etc. What ever the reason, tax debts tend to be hard to plan for as they are calculated after the year is over and when added to all the living expenses and other personal debts that individuals have it can be unmanageable.

At Hoyes, Michalos & Associates, we have group of people that can assist with individuals experiencing financial difficulty. I am Scott Schaefer and my background is I am a Chartered Accountant with various accounting and taxation experience. Currently, I am in the final stages of the trustee in bankruptcy program. I have been working in the insolvency/bankruptcy industry since 2002. With this insolvency and tax experience, I manage the income tax group at Hoyes, Michalos & Associates and assist many individuals in dealing with there tax debts and obtaining a fresh financial start.

If you are currently are in a financial situation, including income tax debt problems, and want to discuss your options, you can reach us at 310-PLAN or e-mail us. We can arrange a free consultation at our Brantford office located at 218 Brant Avenue.