Financial Services _Çô Client Services RFC121 Lecture Notes - Lecture 6: Personal Bankruptcy, Debt Consolidation, Annual Percentage Rate
5 Jun 2018
School
Department
Professor
Bankruptcy
▪ Changes to Bankruptcy and Insolvency Act
▪ Proposed changes were approved December 2007
▪ Major changes made in the areas of;
▪ Income tax debt
▪ Registered Retirement Savings Plans
▪ Consumer Proposals
▪ Student Loans
▪ Individuals owing more than $200,000, representing more than
75% of total unsecured liabilities, are not automatically
discharged
Effects of Bankruptcy
▪ Obtaining future credit will be difficult
▪ Easier for those who file a consumer proposal and repay some of their
debt than those who make no effort to repay
▪ A bankruptcy remains on your credit file for 7 years
▪ Significant costs associated with filing consumer proposals and
bankruptcy
Summary of Learning Objectives
▪ Analyze the major sources of consumer credit
▪ Banks, trust companies, credit unions, finance companies, life
insurance companies, family and friends
▪ Each has unique advantages and disadvantages
▪ Parents or family members are least expensive source of loans
▪ May only charge you interest they would have earned on savings
▪ May complicate family relationships
Summary of Learning Objectives
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