Should You Sell Your Assets?
When faced with the situation of being unable to make their monthly bill payments people often look to sell some of their assets to reduce their monthly payments and pay down their debt. While this might seem like a great idea it can sometimes be the worst thing that you can possibly do for yourself, your family and for your future. Before you start to sell assets or redeem RRSPs, RESPs and life insurance policies it is extremely important that you speak with one of our counsellors.
With the guidance of Bromwich and Smith we can assist you in returning financed cars, snowmobiles, travel trailers and all other manner of personally financed, serial numbered goods and still have the shortfall owed on the loan included in the settlement. Of course, if you want to keep some secured loans and get rid of others we can help you do that too! How do we do this?
It’s through the power and authority of our Appointment as an Officer of the Court. When you deal with Bromwich and Smith you not only get experienced, acclaimed credit counsellors, you also get the full force, effect and power of federal legislation that stops all creditors and binds them together into a forced single monthly payment.
The other reason why you should be speaking with a credit counsellor at Bromwich and Smith before selling any of your assets or redeeming RRSPs, RESPs and life insurance policies is because these types of assets are typically exempt. This means that your creditors are not allowed to obtain a Court Order to seize them or make you redeem them to pay debt. In fact, even if you had to go bankrupt the creditors couldn’t have these assets!
You might be thinking: “But wait a minute, if I have these monies saved up in RRSPs, RESPs and life insurance policies I just wouldn’t feel right keeping them and not paying my debt.” The credit counsellors and Bromwich and Smith certainly understand that just because the law says that your creditors can’t make you redeem these assets to pay them doesn’t mean that you don’t want to. But before you go and do something like this on your own please speak with one of our counsellors to discuss the potential tax implications of redeeming RRSPs and RESPs and also what happens when you take the cash surrender value from your insurance policy.
If after speaking with one of our debt counsellors about the pros and cons of redeeming your RRSPs, RESPs and life insurance policies to pay down your debt you determine that you would feel better about yourself if you offered the money from these assets to your creditors, we could help you file a lump sum proposal. This is not something that we recommend that you try to do on your own, and its incredibly important that before you take any action or steps to redeem these types of assets that you speak with a counsellor at Bromwich & Smith so that you can protect yourself.