Changing the bank account is crucial especially if this bank is a lender covered by the Consumer Proposal. Whether it’s for a credit card, unsecured loan, overdraft, or store card, you must make sure you switch. Why? Because this bank could possibly take matters in their own hands and take all the money you have and use it towards your delinquent unsecured debts.
If this is also the account where you keep all your savings or wages, you could end up with an even bigger problem of being unable to cover the mortgage, rent, or other bills.
Choosing the next bank account should also not be taken lightly. Some people jump the gun and make a switch to another bank account without even checking if this financial institution works with this type of problem.
This may end up a problem if this bank decides to close the account on that basis and keep you from accessing the remaining funds. Again, if this account has most of your money, this may keep you from being able to settle your other bills.
Experts suggest opening a basic bank account for those who plan to use a v as a solution to their debt problems. While there are fewer basic bank accounts compared to full featured bank accounts, people should be able to find one that allows them to withdraw money as well as pay their bills.
Can Consumer Proposal Control The Person’s Bank Account?
Most will probably be wondering what this type of application can do to their bank account. We normally recommend our clients to move to another bank before their Consumer Proposal application. Majority of the time, people who are in debt also have a couple of unsecured debts under their bank whether it be a personal loans, credit cards, or overdraft.
What Your Bank Can Do Against You
During your application our company will talk to your creditors as your representative. If you owe money to your bank, then they will also be notified. In their alarm, some banks may choose to freeze your account and use it to pay off some of your debt.
They often do this without prior notification. In fact, many will realize that the bank has done so only when they try to withdraw money and find out that their access has been suspended. This can a dangerous and desperate situation for anyone, but especially for those in serious debt.
Apart from freezing your account, your banks can opt to just close the account, especially if they’ve cleared out all the cash. Opening an account in another bank before you even apply for this kind of application means that you safeguard yourself from this situation.
We’ll Help You Find Another Bank for Your Consumer Proposal
The reason why most people are wary about moving their account is they worry about not being able to open another account with similar features and conveniences. This is especially true for those with bad credit, which is exactly the case for those who must go through a Consumer Proposal.
Still, you should be glad to know that most major banks will allow you to open a basic account that comes with a bank card.
The New Bank Account Will Be Basic
Unfortunately, these probably won’t come with overdraft or cheque books. At the very least, this accounts comes with a Visa Electron that allows you to pay for things online and withdraw cash from an ATM machine.
While these are obviously very basic features, it is still better than the threat of having your remaining cash taken away from you hanging over your head each night. This can lead to many sleepless nights, which can easily solve by switching banks.
Which Bank To Choose?
Ideally, when opening an account, you should pick a major bank, so you know that they won’t run away with your money. Additionally, make the branch close to where you live or work so you can easily get to it. Everyone knows that local banks are easier to get to when you need to deposit or pay your bills.
If it is possible, get a bank without the monthly charge. You should find plenty of free accounts out there with many banks having this on offer.
Once again, it should be drummed in your head that you need to move your existing funds to another bank. If your present bank is one of the creditors and they get wind that you are planning on undergoing a Consumer Proposal application, they can freeze or close the account to ensure that they are compensated for your debts.
Before you go through this process, consider talking to us so we can work with you together and get you debt-free.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.