decision insights


This decision is based on the following factors:

* Length of Job

* Type of income

* Ability to prove income

At times when a yellow light comes into play the team may request income is complete prior to sign off. This also could be an issue if a potential client has a high income level and low debt. Each scenario is unique and the approach taken is based on a wide array of information.

Clients that owe money to government entities like child support, alimony, student loans or chattel assignments require additional effort. 

If you have to pay child support or alimony, you will still have to make these payments during the process. Child support and alimony payments cannot be deferred or suspended. Because of this the payment call may be effected which could cause issue. 

Student loan debt requires a gap of at least seven years, you can include your student loan debt in a consumer proposal, which can reduce your total unsecured debt by up to 80 per cent. If the debt is under the seven year gap terms and payments would change, this could effect your pay-call.

One of the most common concerns are how our services affect married couples, and how debts are handled in a marriage. We always want to protect the ones we love and we understand that.

For individual debt, only the spouse who signed for the debt is responsible for it.

So, if you have student loans under your name only, your partner isn’t responsible for those payments unless they choose to be. Likewise, if your partner has a vehicle loan and credit card debt, you are not obligated to repay your partner’s debts. 

Joint debt is when both you and your spouse sign a legal agreement to share responsibility for a debt. 

Once you’re married, there may be situations when a lender will ask both of you to sign a loan as co-borrowers. In other cases, one of you may be the borrower, while the other will need to co-sign and act as a guarantor. Whether you’re a co-borrower or a guarantor, you are still responsible for abiding by terms of the loan. If one of you falls behind or stops making payments altogether, the other will be liable for the entire loan.

Once we have discussed options with your client and explained to them the possible outcomes a decision can be made. 

Each lender has a debt threshold needed in order to secure an approval after the client has graduated the program. Considerations would be income to debt ratios alongside possible creditor challenges after filing. If a budget is challenged after filing this could cause future issues for the client. 

Clean Start will always look for a way to get the deal done but in the case of a client who have previously entered into bankruptcy or consumer proposal the team has a few more barriers to navigate through. A few factors which are prevalent in deciding would be…

  • Current status of bankruptcy or proposal
  • Time since first filing 
  • Amount of debt vs assets when filed
  • If an auto loan was included within the filing
  • If an auto loan was acquired after filing
If we are able to challenge and restructure that would be the best course of action but this process typically takes 3-5 weeks

Although a client may fit the criteria in regards to debt load or income service area may be an issue. Clean Start will always use lender guidelines when adjudicating a potential client. If those parameters do not offer an elevated probability of approval once graduated the client may not be optimal for the program.

Gross Income is what employees earn before taxes, benefits and other payroll deductions are withheld from their wages. The amount remaining after all withholdings are accounted for is net pay or take-home pay.

A low internal credit score means that your creditworthiness, as assessed by a particular lender or financial institution, is considered to be lower than desired. Credit scores are used by lenders to evaluate the risk of lending money to individuals and determine the terms and conditions of credit.