Tips to Get Approved for Debt Consolidation Loans in North York

Debt consolidation loans in North York can be one of the best ways to streamline 
numerous debts and make your monthly payments more manageable. However, it’s not 
very easy to obtain a loan nowadays. You can’t just walk in a bank or a finance company 
and expect them to lend you the amount you need just because you ask. Lenders these 
days are very careful who they grant a loan to and want to be very sure that they will be 
paid back the money owed them.

So how do you figure out if you qualify for a debt consolidation loan and increase your 
chances for approval? Here are some tips:

Figure out how much you need to borrow

This is an important first step to do, so that you can have a clear picture of what amount 
you can exactly afford to borrow. Calculate all the debts that you wish to consolidate. Next,

work 

out a budget to determine how much monthly payment you are able to make towards the 
consolidation loan. Once you’ve looked over your existing debts and have an approximate 

number for your monthly payment, decide on the exact amount you have to borrow. Keep 
that number in mind when applying for a personal loan to avoid borrowing a higher amount 
which you won’t need or can't even afford to pay back.

Choose the right type of loan to make

There are two main types of consolidation loans that you can make, a secured consolidation 

loan and unsecured consolidation loan. With secured loans, you will need to put up collateral 

as security for repayment of the loan. Most commonly, lenders ask for real estate property 

such as your home or other valuable asset you own, such as your car or art, jewelry or 

collectibles or even investment accounts. In this type of loan, you can borrow a higher amount 

and get a lower interest rate even if you have a low credit score because of the security that 

the collateral offers the lender. You lose assets you offer as collateral in the event you default 

on loan payments.With unsecured loans, you do not have to provide any collateral but you will 

need a high credit score to get approved, and you may end up with a higher interest rate than 

a secured loan.

Check the state of your credit  

Lenders will look at both your credit score and credit history. You want to make sure that 

they see a fairly high credit score. The higher your credit score, the more it will help lenders 

to see you as being safe to lend to and that you are able to keep up with payments. If you 

have a very low credit score, lenders will likely reject your loan application. On top of your 

credit score, lenders will also look at your credit history to gauge your credit worthiness, 

whether you have defaulted on a loan, how many times this has happened in your financial 

history and if you have been on any debt repayment program. You need to prepare all your 

credit information before you apply. If there are errors in your credit report, take the steps to 

dispute them so they can be fixed. If you have a low credit score, you need to take action to 

raise it so you can qualify for a loan.

If you are struggling to manage your debts month after month, debt consolidation loans in 

North York can be an option to consider. Although it is important to know that it’s not the only 

option you have. It will really help if you talk to a debt professional like a licensed insolvency 

trustee or a certified credit counselor to find out the best way to consolidate your debts or if 

there is another solution to your financial challenges.

Why Should You Trust a Personal Licensed Insolvency Trustee Toronto

If you are behind on payments for your credit card, loans and other debts and you’ve decided 
to face your financial situation head on, the first step is to find the best options available to deal 
with all of your debts. A personal licensed insolvency trustee Toronto can help you find a debt 
solution that is right for your unique situation to help you get out of debt and get your finances 
back on track.

Carrying too much debt is in itself a heavy burden. The harassing phone calls, the past due 
notices can lead to anxiety and debt stress. It can be more exhausting if you try to navigate 
through the process of finding a solution all by yourself. With all the companies offering 
different kinds of debt management solutions out there, it's difficult to know who to trust or 
where to turn.

Your safest approach is to seek sound advice from a Licensed Insolvency Trustee (LIT). In 
Canada, trustees are licensed and regulated by the Office of the Superintendent of Bankruptcy 
(OSB). This is what sets them apart from other debt management consultants who are 
governed by limited provincial regulations. Being regulated by the federal government, licensed 
insolvency trustees are held to a much higher standard of quality, accountability and regulation.

Fair and just

Trustees follow a strict code of conduct for professionalism, judgment and work ethic. As such 
when they provide their services, they must adhere to provincial and federal insolvency laws and 
ensure that both debtors and creditors are treated fairly and reasonably and whatever solution 
they come up for a particular debt situation is made without bias or favoritism.

Highly trained and qualified

Trustees are the only debt professionals authorized to administer government-regulated 
insolvency proceedings such as a consumer proposal or a personal bankruptcy. For this, 
trustees must obtain exceptional training, go through a rigid process for licensing and must 
pursue continuing education. Most have a university education and are active CPA’s. To qualify 
for a license, they complete a three year bankruptcy law course, work in a trustee office to gain 
experience, go through an oral board exam and are investigated by the RCMP for good character 
and reputation. Ongoing education is mandatory for them to be able to keep up to date with 
changes in the law.

Compassionate and generous

Licensed Insolvency Trustees are required by the Bankruptcy and Insolvency Act of Canada to 
give you all the information you need to help you make the best decision for your own unique 
financial circumstances. Thus, they provide a free and confidential consultation to all individuals 
who come to them for help during which they assess the debt situation and provide independent 
and impartial advice on all possible options. Other debt consultants can offer guidance and 
support on informal debt solutions, but only a Licensed Insolvency Trustee can provide 
comprehensive information on all debt relief services, including the informal and formal ones. 
They will explain each solution thoroughly, pointing out important details on why one solution is 
better than the other. If a consumer proposal or bankruptcy is your best option, they can 
administer the whole process for you from beginning to end. If you need a less drastic solution, 
they can help you find a reputable credit counselor or financial advisor who can give you the help 
you need.

If there’s only one debt professional you can trust in this treacherous debt market filled with 
countless organizations promising to get you out of debt for good, you must only trust a  
personal licensed insolvency trustee Toronto and no other. You can definitely trust their expertise, 
reputation and ability to help you find a solution that can lead you to a debt free life.

How a Personal Bankruptcy in Pickering Can Affect You

Filing for personal bankruptcy in Pickering may be the first thing you think of when you 
suddenly figure out that you can no longer pay your debts and creditors are starting to 
harass you. While it might turn out to be the right solution for your debt problem, you have 
to understand how the process works and get a clear picture of how it will affect you and 
your family in the years to come.

Here are some important things you need to know.

Bankruptcy can definitely help eliminate debts, but it will not get rid of all types of debt. It can 
erase most of your unsecured debt, such as the following:

• Credit card balances
• Unsecured  lines of credit
• Unsecured personal loans
• Accounts in arrears or in collection, such as income taxes and municipal house taxes
• Unpaid utility bills
• Medical bills
• Insurance premiums past due
• Income tax debts, HST and other tax debts
• Student loans that are more than 7 years old

Some debts cannot be included when you file for bankruptcy in Pickering and which you are 
still obligated by law to pay. This include:

• Secured debts, like mortgage loans, home equity loans and car loans.
• Student loans less than 7 years old
• Child and spousal support payments
• Debts incurred by fraud or theft.
• Criminal fines or any penalties imposed by the Court

Valuable assets that you own can also be affected. Depending on where you live in Canada, 
there are certain assets that can be exempt from seizure and there are some that you may 
lose when you go bankrupt.

If you live in Ontario, for example, you may be allowed to keep these assets:

• All personal clothing for you and your family
• Household furnishings and appliances up to $13,150
• Any vehicle up to $6,600 in value
• Up to $11,300 tools of the trade that are used to earn a living or run a business
• Your home if the equity does not exceed $10,000
• Some types of  life insurance products
• Funds held in an RRSP, RRIF and DPSP (Deferred Profit Sharing Plan) savings for 
  more than 12 months

These are some non-exempt assets you may have to give up when you file bankruptcy in 
Pickering Ontario:

• RRSP contributions made in the last 12 months;
• Home equity over $10,000
• RESPs, TFSAs and other savings plan
• Tax refunds
• Lottery winnings or inheritances
• Gifts, transfers of property or special treatment to creditors
• Any income above a certain threshold, surplus income

You will also have duties to perform during your time in bankruptcy and you will need to 
perform them all in order to get discharged. If you fail to perform all duties, you cannot be 
discharged and your debts cannot be cancelled.

Some important duties you will have to do include:

• Send proof of your income to your trustee every month.
• Make payments to your trustee every month for any surplus income.
• Provide your income tax information.
• Attend two credit counselling sessions for you to learn budgeting and money 
  management skills.
• Attend meetings with your creditors as requested.

There is a lot of information to consider before filing for personal bankruptcy in Pickering. 
It is certainly not a decision that you should make lightly. It’s important that you discuss 
with a Licensed Insolvency Trustee to get more information and find out if there are other 
options and solutions that could work better for your financial circumstances so you can 
decide on the best solution for you and your family.