Debt Consultants

If you live in the (519) area code call 310 John and we can help you sort through your debt issues.

Nightmare A
We are presently working with a Gentleman who sought such advice. He and his spouse were advised that the way to resolve their financial problems was to refinance their house. Unfortunately his credit was poor and hers was better, so the advice that they received was to transfer the property into her name and then have her re-mortgage the house and obtain enough money to pay off her creditors. There was not enough equity available to allow for his creditors to be paid, so hers were paid and he was advised to file a proposal to settle his debts.

For someone without adequate knowledge, this sounded great. The debt problem would be solved and only one spouse would need to do a bankruptcy or proposal. Unfortunately, this plan is a complete disaster!!! The person giving the information did not have adequate knowledge to know what the ramifications would be. A major creditor has sued both spouses and has registered a certificate of pending litigation against the home.

Also, the person who receives the property can become liable for the other person's tax debts, pursuant to Section 160 of the Income Tax Act. In this situation, it is unlikely that a proposal will be successful, and the couple is now going to be spending large amounts of money to defend a lawsuit. However, had the couple made a joint proposals, there would not have been mortgage broker fees, legal fees to register on title and the now legal fees to fight a hopeless lawsuit. This is the reality of being informed by the misinformed.

Below are some relevant paragraphs taken from the legal documents:

Apparently not such good advise!!!