Financial Literacy: A Financial Literacy: A Challenge to NewcomersChallenge to Newcomers

Presented By: Daniel ChometaPresented By: Daniel Chometa

Consolidated Credit Consolidated Credit Counseling Services of Counseling Services of

Canada.Canada.

OverviewOverview

• We will be looking at:We will be looking at: – Identifying the IssuesIdentifying the Issues– BudgetingBudgeting– What credit is and how we can develop itWhat credit is and how we can develop it– Understanding credit scores and the credit Understanding credit scores and the credit

reporting process in Canadareporting process in Canada– Barriers and Options for the new comerBarriers and Options for the new comer– What are our options if we get into trouble.What are our options if we get into trouble.– What are barriers that are created through What are barriers that are created through

these options.these options.

Identifying the Issues Identifying the Issues Surrounding CreditSurrounding Credit

At Issue:At Issue:

• Access to Credit can be too easy to get at Access to Credit can be too easy to get at timestimes

• Credit can be seen as an easy way to Credit can be seen as an easy way to establish yourself in Canada!establish yourself in Canada!

• There are dangers to this type of thinkingThere are dangers to this type of thinking• We must look at the dangers that credit We must look at the dangers that credit

can create for the newcomercan create for the newcomer• Too much credit can be dangerous and Too much credit can be dangerous and

increases liability for the individual or even increases liability for the individual or even the entire family.the entire family.

EducationEducation

• Often times newcomers become victims Often times newcomers become victims due to a lack of education in the world of due to a lack of education in the world of personal financial literacy.personal financial literacy.

• Becoming increasingly important that the Becoming increasingly important that the frontline worker understand personal frontline worker understand personal financefinance

• There may appear to be little in the way of There may appear to be little in the way of information for frontline workers availableinformation for frontline workers available

• Many resources are available however Many resources are available however impartial information is difficult to find impartial information is difficult to find

Putting it into perspectivePutting it into perspective

• Most countries do not have credit reporting Most countries do not have credit reporting agencies as we know them in Canada. (only the agencies as we know them in Canada. (only the UK Canada and the US have these systems)UK Canada and the US have these systems)

• If someone immigrates from one of these If someone immigrates from one of these countries to another their credit reports will not countries to another their credit reports will not be transferablebe transferable

• Ontario’s education system does not have a Ontario’s education system does not have a financial literacy component in the curriculum for financial literacy component in the curriculum for schools.schools.

• Most newcomers will look to their frontline Most newcomers will look to their frontline workers to help them to understand the world of workers to help them to understand the world of finance and banking.finance and banking.

If its too good to be true it If its too good to be true it probably isprobably is

• Sub prime lenders are targeting newcomers Sub prime lenders are targeting newcomers • Often times people enter into contracts Often times people enter into contracts

without understanding what they are signing.without understanding what they are signing.• We must read and understand all of the We must read and understand all of the

terms of the contract.terms of the contract.• Proceed with caution.Proceed with caution.• Hold up all of your agreements otherwise Hold up all of your agreements otherwise

there may be penalties accrued that you are there may be penalties accrued that you are not aware of.not aware of.

Buy now and Pay later!Buy now and Pay later!

• Often time new comers are vulnerable Often time new comers are vulnerable to these offers as they may need to to these offers as they may need to establish themselves and may not be establish themselves and may not be able to afford certain big ticket itemsable to afford certain big ticket items

• Balloon Interest PaymentsBalloon Interest Payments• Service fees Service fees • Often costs more than the value of the Often costs more than the value of the

item due to charges for late payment.item due to charges for late payment.

What are some of the issues What are some of the issues you are facing as a frontline you are facing as a frontline

worker?worker?

Seeing the big pictureSeeing the big picture

• If you are working as an intake worker it If you are working as an intake worker it may be important for you to understand may be important for you to understand the financial background of your clientsthe financial background of your clients

• Look for signs of financial stress.Look for signs of financial stress.

• Be aware that financial stress can put Be aware that financial stress can put pressure on a family or an individual pressure on a family or an individual that may result in tragic consequences.that may result in tragic consequences.

What is Debt Stress?What is Debt Stress?

• Debt stress = Chronic Stress Debt stress = Chronic Stress

• Chronic Stress lasts a long time and Chronic Stress lasts a long time and happens quite frequentlyhappens quite frequently

• In severe cases chronic stress can In severe cases chronic stress can lead to panic attacks or panic lead to panic attacks or panic disordersdisorders

How do we Identify Debt How do we Identify Debt Stress?Stress?

• Symptoms of chronic stress can be Symptoms of chronic stress can be but are not limited to:but are not limited to:– anger anger – depression depression – anxietyanxiety– insomnia insomnia

More IdentifiersMore Identifiers

• aggression, substance abuseaggression, substance abuse

• memory loss / lack of concentration.memory loss / lack of concentration.

• A general loss of satisfaction with A general loss of satisfaction with one’s work.one’s work.

• Maladaptive behavior Maladaptive behavior

• General lack of engagement with General lack of engagement with othersothers

The StatisticsThe Statistics

• People who suffer from debt stress People who suffer from debt stress often have problems that are directly often have problems that are directly related to health issuesrelated to health issues

• People with debt stress are more People with debt stress are more likely to develop heart disease likely to develop heart disease – in fact they are twice as likely to suffer in fact they are twice as likely to suffer

from a heart attack (AP-AOL poll 2005)from a heart attack (AP-AOL poll 2005)

Health Issues compared Health Issues compared 2000/20052000/2005

0%

10%

20%

30%

40%

50%

60%

2000 2005

What can you do?What can you do?

• Look into the issues surrounding Look into the issues surrounding personal financial literacy.personal financial literacy.

• Develop a financial literacy program Develop a financial literacy program for your organization.for your organization.

• Educate yourself on how to work with Educate yourself on how to work with credit, budgets and people who credit, budgets and people who suffer from financial stress.suffer from financial stress.

Ask the QuestionsAsk the Questions

• What are the reasons for applying for credit?What are the reasons for applying for credit?

• Have you ever used credit in the past?Have you ever used credit in the past?

• Do you understand the issues that surround Do you understand the issues that surround credit?credit?

• Do you have a credit history?Do you have a credit history?

• Do you need to borrow money or can you Do you need to borrow money or can you wait?wait?

• Budgeting Skills are more important to Budgeting Skills are more important to develop than credit at times.develop than credit at times.

Budgeting for the Budgeting for the NewcomerNewcomer

Budgeting for the future is Budgeting for the future is more effective than using more effective than using

credit credit

““Those who fail to plan, Those who fail to plan, plan to fail”plan to fail”

Words to live byWords to live by

Budgeting starts with you!Budgeting starts with you!

"A budget is restraining and limits my "A budget is restraining and limits my freedom."freedom." – Not so.

•It does the opposite. It puts you in control and helps you achieve your financial goals.

""I can’t solve my money problems I can’t solve my money problems unless I make more money.“unless I make more money.“– False.

•You can do a lot to solve your money problems right now by sticking to a budget.

How Canadians SpendHow Canadians Spend• Housing 25%• Transportation 15%• Savings 15% • Food 10%• Utilities 10%• Debt 5%• Entertainment 5%• Medical/Health 5%• Clothing 5% • Other 5%

Budgeting StructureBudgeting Structure

•STEP ONE:STEP ONE:– List all sources of monthly incomeList all sources of monthly income

IncomeIncome $1500 $1500

Secondary IncomeSecondary Income $0$0

Other IncomeOther Income $400 $400

ExpensesExpenses

•STEP TWO: List ExpensesSTEP TWO: List ExpensesFixed Expenses – Remains the same each Fixed Expenses – Remains the same each

monthmonth

Mortgage/Rent $540Mortgage/Rent $540

Car Payment $270Car Payment $270

22ndnd Car Payment $0 Car Payment $0

Flexible ExpensesFlexible Expensesmay fluctuate over time going up or down due to time of may fluctuate over time going up or down due to time of season or usageseason or usage

ElectricityElectricity $90 $90

Gas/Oil-HeatingGas/Oil-Heating $125$125

PhonePhone $50 $50

CableCable $45 $45

GroceriesGroceries $200 $200

Gas-AutoGas-Auto $180 $180

Discretionary ExpensesDiscretionary Expensesthese are expenditures that you can change

Barber/SalonBarber/Salon $40 $40

MagazinesMagazines $0 $0

NewspaperNewspaper $0 $0

Dining OutDining Out $100 $100

RecreationRecreation $200 $200

InternetInternet $49 $49

Cell PhoneCell Phone $75 $75

Total It UpTotal It Up

Total Expense: Total Expense: $1,964$1,964

Total Income: Total Income:

$1,900$1,900

Income – Expense:Income – Expense:

-$64-$64

In The Red or Black? In The Red or Black?

What to do with the budget?What to do with the budget?

• Prioritize your Prioritize your spending: What can spending: What can you cut back on?you cut back on?

• Where can you save Where can you save money? money?

• What are your What are your greatest expenses? greatest expenses?

• Do your expenses Do your expenses match national match national averages? averages?

• Set your GOALS!!!!Set your GOALS!!!!

• Set a short term goalSet a short term goal

• Set a long term goalSet a long term goal

• Forego instant Forego instant gratification for your gratification for your long term goals.long term goals.

• Keep track of your Keep track of your achievementsachievements

• Pay yourselfPay yourself

• Plan what bills to pay Plan what bills to pay with what chequewith what cheque

SMART – Goal SettingSMART – Goal Setting

• SS

• MM

• A A

• RR

• TT

• Specific – be specific with the Specific – be specific with the goalgoal

• Measurable – Measurable – A goal stated in dollar A goal stated in dollar terms terms

• Attainable – realistic planAttainable – realistic plan• Relevant – Relevant – must be relevant to the must be relevant to the

individual who is making the lifestyle changeindividual who is making the lifestyle change

• Tentative - flexibilityTentative - flexibility

Understanding CreditUnderstanding Credit

Navigating the Credit report Navigating the Credit report

How Credit is Defined?How Credit is Defined?

• Credit ratings:Credit ratings:• The assessment of the The assessment of the

credit worthiness of an credit worthiness of an individual, corporation individual, corporation or even a country.or even a country.

• Tells a creditor the Tells a creditor the probability of the probability of the subject being able to subject being able to pay back a said debtpay back a said debt

• Poor rating = high risk Poor rating = high risk of defaultof default

• Credit Scores:Credit Scores: a a statistical analysis of a statistical analysis of a persons credit files.persons credit files.

• The score is a product The score is a product of information created of information created by credit bureaus.by credit bureaus.

• Used by banks to have Used by banks to have an understanding of an understanding of the potential risk of the potential risk of lending money to a lending money to a person company ect.person company ect.

• Used for qualification Used for qualification and rate adjustmentand rate adjustment

Credit RatingCredit Rating

• This is determined by a collection of This is determined by a collection of information on you. information on you.

• The information that is collected is The information that is collected is done so by these companies.done so by these companies.

• Equifax – www.equifax.caEquifax – www.equifax.ca

• Transunion – www.transunion.caTransunion – www.transunion.ca

Credit Rating cont’dCredit Rating cont’d

• Creditworthiness: A representation of a Creditworthiness: A representation of a persons standing with the three bureaus.persons standing with the three bureaus.

• Calculated by financial history based on Calculated by financial history based on your current assets and liabilitiesyour current assets and liabilities

• Tells the lender the probability of paying Tells the lender the probability of paying back a loan or debt.back a loan or debt.

• Also allows for the lender to determine the Also allows for the lender to determine the interest rate allowed for a loan.interest rate allowed for a loan.

• Shows saving/spending patterns. Shows saving/spending patterns. • Also shows debt load.Also shows debt load.

Types of CreditTypes of Credit

• Installment Installment LoansLoans– Borrow a fixed Borrow a fixed

amount and pay it amount and pay it back over a said back over a said period of timeperiod of time

– The repayment is The repayment is done at a fixed ratedone at a fixed rate

– Examples: A Car Examples: A Car Loan or a Mortgage.Loan or a Mortgage.

• Revolving Revolving AccountsAccounts- Gives you a certain - Gives you a certain amount that you may amount that you may borrow against your borrow against your “credit limit”“credit limit”

- Can usually pay off in - Can usually pay off in one payment or make one payment or make smaller paymentssmaller payments

- Example: Credit - Example: Credit Cards.Cards.

LoansLoans

• SecuredSecured- loans that have - loans that have

collateral as back upcollateral as back up- The collateral can be The collateral can be

repossessed due to repossessed due to default on the loan.default on the loan.

- Ontario: seize and sue Ontario: seize and sue province. province.

- Car Loans, Mortgages, Car Loans, Mortgages, Secured Lines of Secured Lines of Credit.Credit.

• UnsecuredUnsecured- There are other loans There are other loans

that do not require that do not require collateral collateral

- Higher interest on Higher interest on these types of loans these types of loans due to higher risk on due to higher risk on the part of the lenderthe part of the lender

- Can be harder to Can be harder to obtain as there is no obtain as there is no recourse for the recourse for the lenderlender

Letter RepresentationsLetter Representations

• The “R” ScoreThe “R” Score: revolving credit where you make : revolving credit where you make regular payments in varying amounts depending regular payments in varying amounts depending on the balance of the account and can borrow on the balance of the account and can borrow money up to a credit limit. (credit cards)money up to a credit limit. (credit cards)

• The “I” ScoreThe “I” Score: Given credit on an installment : Given credit on an installment basis such as a car loan where you borrow money basis such as a car loan where you borrow money once and repay it over a period of time. once and repay it over a period of time. (Mortgage)(Mortgage)

• The “O” ScoreThe “O” Score: You have an open line of credit : You have an open line of credit that you can borrow as needed. The total that you can borrow as needed. The total balance is due at the end of each period. (Lines balance is due at the end of each period. (Lines of Credit, Student loans) of Credit, Student loans)

Numerical RepresentationsNumerical Representations

The numbers are based on a scale of The numbers are based on a scale of 1-9 1-9

““1” Represents the perfect credit score 1” Represents the perfect credit score where the individual makes a where the individual makes a purchase and pays that balance purchase and pays that balance within thirty days of the purchase. within thirty days of the purchase.

““9” Represents the worst rating this 9” Represents the worst rating this represents bankruptcy or that you represents bankruptcy or that you never pay your bills.never pay your bills.

FICO score (Fair Isaac Corp)FICO score (Fair Isaac Corp)

• Bill Fair and Earl Isaac founded in 1956Bill Fair and Earl Isaac founded in 1956• Covers more than 1400 financial Covers more than 1400 financial

service providers (banks, cell phones, service providers (banks, cell phones, dept stores ect.)dept stores ect.)

• Ratings are based on a scale between Ratings are based on a scale between 300 and 900 300 and 900

• 300 represents the worst score 300 represents the worst score possible possible

• 900 represents the best score possible900 represents the best score possible

Credit ScoreCredit Score

• This is a numerical representation of This is a numerical representation of your credit report.your credit report.

• Allows creditors (not only banks) but Allows creditors (not only banks) but also cell phone companies, insurance also cell phone companies, insurance companies, employers and companies, employers and government departments to see government departments to see what your score is. what your score is.

• This is a representation of your This is a representation of your attitude to debt and finance.attitude to debt and finance.

Understanding Your Credit Picture - How long can information be reported?

•The first thing most people with bad credit want to know is, “How long can this information haunt me?”

•While positive or neutral information can be reported indefinitely, negative information can only be reported for a specific length of time. The following information is according to Equifax Canada

Duration of Credit Report actions

• CREDIT INQUIRIES TO THE FILE

• An inquiry made by a Creditor will automatically purge three (3) years from the date of the inquiry. The system will keep a minimum of five (5) inquiries.

• CREDIT HISTORY AND BANKING INFORMATION

• A credit transaction will automatically purge from the system six

• (6) years from the date of the last activity. All banking information

• (chequing or savings account) will automatically purge from the

• system six (6) years from the date of registration.

More on credit reportsMore on credit reports

VOLUNTARY DEPOSIT - ORDERLY PAYMENT OF DEBTS, CREDIT COUNSELLING:

• When voluntary deposit -OPD- credit counselling is paid, it will automatically purge from the system three (3) years from the date paid.

REGISTERED CONSUMER PROPOSAL

• When a registered

• consumer proposal is paid, it will automatically purge three (3) years

• from the date paid.

More on credit reportsMore on credit reports

• BANKRUPTCY:• 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.

• JUDGMENTS, SEIZURE OF MOVABLE/IMMOVABLE, GARNISHMENT OF WAGES:

• The above will automatically purge from the system six (6) years from the date filed.

• COLLECTION ACCOUNTS:• A collection account under

public records will automatically purge from the system six (6) years from the date of last activity.

Development of Credit: Development of Credit: Options for NewcomersOptions for Newcomers

Where can we go to begin the Where can we go to begin the process?process?

BanksBanks

• Royal Bank of Canada – developed Royal Bank of Canada – developed “Welcome to Canada” initiative “Welcome to Canada” initiative

• Offers a secured Visa to newcomers Offers a secured Visa to newcomers

• Many different bank account optionsMany different bank account options

• http://www.rbc.com/canada/http://www.rbc.com/canada/financial/wtcpackage/index.htmlfinancial/wtcpackage/index.html

RBC offers Welcome to RBC offers Welcome to CanadaCanada

• 1) Monthly fees waived up to 6 1) Monthly fees waived up to 6 months with the months with the RBC Signature No Limit Banking® RBC Signature No Limit Banking® account†account†

• An all-inclusive banking account An all-inclusive banking account that offers unlimited banking that offers unlimited banking transactions, 3 non-RBC ATM transactions, 3 non-RBC ATM transactions refunded per month1, transactions refunded per month1, 2 free email money transfers per 2 free email money transfers per month, 12 drafts and/or money month, 12 drafts and/or money orders per year, free personalized orders per year, free personalized cheques, and more.cheques, and more.

• Choose between an RBC Royal Choose between an RBC Royal Bank® Visa Classic II card or any Bank® Visa Classic II card or any other eligible+ RBC Rewards or other eligible+ RBC Rewards or Specialty Rewards Visa card and Specialty Rewards Visa card and we will waive the $35 annual fee we will waive the $35 annual fee of the primary applicant+++. of the primary applicant+++.

• 2) Monthly fees waived up to 3 months 2) Monthly fees waived up to 3 months with thewith theRBC VIP Banking® account†RBC VIP Banking® account†

• All-inclusive banking package that includes All-inclusive banking package that includes the option to open up to four accounts with the option to open up to four accounts with monthly fees waived, unlimited monthly fees waived, unlimited transactions, unlimited non-RBC ATM transactions, unlimited non-RBC ATM transactions per month1, 2 free email transactions per month1, 2 free email money transfers per month, 12 drafts money transfers per month, 12 drafts and/or money orders per year, free and/or money orders per year, free personalized cheques, travel benefits and personalized cheques, travel benefits and more.more.

• Choose one of the following RBC Rewards Choose one of the following RBC Rewards or Specialty Rewards Visa cards and we will or Specialty Rewards Visa cards and we will waive the entire annual fee for both the waive the entire annual fee for both the primary and co-applicant.primary and co-applicant.

– Visa Infinite* Avion®, Visa Platinum Visa Infinite* Avion®, Visa Platinum Avion®, Visa Gold Preferred; Visa Avion®, Visa Gold Preferred; Visa Platinum Preferred, US Dollar Visa Platinum Preferred, US Dollar Visa Gold; Visa Classic II; British Airways Gold; Visa Classic II; British Airways Visa Platinum; Cathay Pacific Visa Visa Platinum; Cathay Pacific Visa Platinum and RBC Mike Weir Visa Card. Platinum and RBC Mike Weir Visa Card.

Source: http://www.rbc.com/canada/financial/wtcpackage/index.html

Scotia Bank – Start Right Scotia Bank – Start Right ProgramProgram• Requires 2 pieces of identification to open a bank accountRequires 2 pieces of identification to open a bank account

– 1) Proof of landed Immigrant Status (IMM5292) 1) Proof of landed Immigrant Status (IMM5292) – 2) Valid Photo Id: Foreign Passport, landed immigrant card, 2) Valid Photo Id: Foreign Passport, landed immigrant card,

Canadian issued Drivers LicenseCanadian issued Drivers License

• Free account for 1 year – power chequing accountFree account for 1 year – power chequing account

• Landed within 1 year no fee Credit Card with a limit of Landed within 1 year no fee Credit Card with a limit of $1000 and no credit check.$1000 and no credit check.

• If you are brining in cash to Canada and would like to invest If you are brining in cash to Canada and would like to invest in GIC you will get a 1% over posted rate bonusin GIC you will get a 1% over posted rate bonus

• Free small safe deposit box for 1 year. Free small safe deposit box for 1 year.

• http://scotiabank.com/mcben/cda/content/http://scotiabank.com/mcben/cda/content/0,1679,CCDmcben_CID2836_LIDen_SID122_YID29,00.html0,1679,CCDmcben_CID2836_LIDen_SID122_YID29,00.html

CIBC – Banking In CanadaCIBC – Banking In Canada

• Various presentations in conjunction Various presentations in conjunction with the YMCA with the YMCA

• Series is called “Facts and Finance”Series is called “Facts and Finance”

• Covers topics such as opening a bank Covers topics such as opening a bank account, loans and what you need to account, loans and what you need to know and investments know and investments

What are the options if we What are the options if we get in trouble?get in trouble?

What do you do if you get in What do you do if you get in trouble?trouble?

• Often people think their only option Often people think their only option is bankruptcyis bankruptcy

• Not so! Not so!

• There are 3 options available to youThere are 3 options available to you

• 1) Consumer Proposal1) Consumer Proposal

• 2) Debt Management Programs2) Debt Management Programs

• 3) Bankruptcy 3) Bankruptcy

Consumer ProposalConsumer Proposal

• In Canada a person can file for a consumer In Canada a person can file for a consumer proposal as a alternative to bankruptcy.proposal as a alternative to bankruptcy.

• Consumer Proposal = negotiated settlement Consumer Proposal = negotiated settlement • Can only be made if a debtor has an excess of Can only be made if a debtor has an excess of

$5000 to a maximum of $75000 (not including $5000 to a maximum of $75000 (not including the mortgage on their principal residence)the mortgage on their principal residence)

• In 2006 there were 98,450 filings in Canada In 2006 there were 98,450 filings in Canada 79,218 bankruptcies and 19,232 consumer 79,218 bankruptcies and 19,232 consumer proposalsproposals

• Does have an effect on your credit 7 years R7Does have an effect on your credit 7 years R7

Debt Management Debt Management ProgramsPrograms

• Allows you to honor your debtsAllows you to honor your debts• Counseling session that will help you Counseling session that will help you

to determine your best course of to determine your best course of actionaction

• Allows you to pay off more toward the Allows you to pay off more toward the principal rather than paying high principal rather than paying high interest rates and fees.interest rates and fees.

• We help to reduce your interest rate We help to reduce your interest rate between 0% to 10%between 0% to 10%

Debt Management Cont’dDebt Management Cont’d

• Example One Example One • $16000 of debt on $16000 of debt on

6 cards 6 cards • Average interest Average interest

rate 18%rate 18%• Total time to pay Total time to pay

off = 35 years 9 off = 35 years 9 monthsmonths

• Total interest = Total interest = $23,615.45$23,615.45

• Debt ManagementDebt Management• $16000 of debt on $16000 of debt on

6 card6 card• Average interest Average interest

rate 6.9%rate 6.9%• Total time to pay Total time to pay

off 4yearsoff 4years• Total Interest = Total Interest =

$2355$2355

The Benefits of Debt The Benefits of Debt ManagementManagement

• Transunion found that people who go Transunion found that people who go through debt management programs were through debt management programs were 40% less likely to default on a loan.40% less likely to default on a loan.

• Benefit though the learning processBenefit though the learning process• Access to many self improving materials Access to many self improving materials

and counseling sessions.and counseling sessions.• Debt free in 4 years or less.Debt free in 4 years or less.• Fastest way to pay off this type of debtFastest way to pay off this type of debt• We stop the collection calls from coming in.We stop the collection calls from coming in.

BankruptcyBankruptcy

• It is a legally declared inability or It is a legally declared inability or impairment of ability to pay the creditorimpairment of ability to pay the creditor

• It is regulated through Federal Law in the It is regulated through Federal Law in the Bankruptcy and Insolvency Act.Bankruptcy and Insolvency Act.

• Bankruptcy must be done through a Bankruptcy must be done through a Trustee who is an administrator.Trustee who is an administrator.

• Shows an R9 on your credit report for 7 Shows an R9 on your credit report for 7 years or depending on the province you years or depending on the province you are in are in

Trustees ResponsibilitiesTrustees Responsibilities

• Review of the file for any fraudulent Review of the file for any fraudulent activitiesactivities

• Chair meetings of creditorsChair meetings of creditors

• Sell any non-exempt assets.Sell any non-exempt assets.

• Objects to the bankrupts discharge Objects to the bankrupts discharge

• Distribute funds to the creditors.Distribute funds to the creditors.

Effects of Bankruptcy on the Effects of Bankruptcy on the NewcomerNewcomer

• Business ClassBusiness Class- Must meet - Must meet conditions that conditions that indicate that they indicate that they have had a have had a successful business successful business for one yearfor one year- If bankruptcy is - If bankruptcy is declared they may declared they may not be able to meet not be able to meet requirements.requirements.

• Skilled WorkersSkilled Workers

- Must Hold a Job- Must Hold a Job

- Must show they have - Must show they have sufficient means sufficient means to support themselvesto support themselves

- Must have at least - Must have at least 10,000 in the bank to 10,000 in the bank to support themselves or support themselves or family if they are family if they are unemployed.unemployed.

Effects of Bankruptcy on the Effects of Bankruptcy on the SponsorSponsor

• The sponsor must be able to support The sponsor must be able to support the newcomer the newcomer

• If the sponsor declares bankruptcy If the sponsor declares bankruptcy they generally do not have assets to they generally do not have assets to support their sponsored person.support their sponsored person.

• Their application if approved before Their application if approved before bankruptcy may be rescinded.bankruptcy may be rescinded.

How Is Consolidated Credit How Is Consolidated Credit Helping Advance Personal Helping Advance Personal

Financial Literacy?Financial Literacy?

• Distribute Distribute educational educational material in the form material in the form of self help of self help booklets.booklets.

• Distribute display Distribute display units that help to units that help to allow individuals to allow individuals to get help without get help without asking for it.asking for it.

Educational SeminarsEducational Seminars

• We provide We provide educational educational seminars to assist seminars to assist you with educating you with educating your people in your people in personal financial personal financial matters.matters.

• Some Seminar Some Seminar Topics are ----Topics are ----

• Budgeting Made EasyBudgeting Made Easy• Identity TheftIdentity Theft• Coping with Financial Coping with Financial

StressStress• Money Saving Tips Money Saving Tips

for New Parentsfor New Parents• Credit In a New Credit In a New

CountryCountry• Understanding Understanding

Credit.Credit.

Budget LoungeBudget Lounge

For more information on our For more information on our Personal Financial Literacy Personal Financial Literacy

ProgramProgram

• Call Daniel Chometa at:Call Daniel Chometa at:

- 1-800-656-4079 ext 1034- 1-800-656-4079 ext 1034

or locally at 416 915 7283 x 1034or locally at 416 915 7283 x 1034

• Go to our website:Go to our website:

www.consolidatedcredit.cawww.consolidatedcredit.ca