Informal Proposals


Out of court settlements

An informal proposal is a settlement between the debtor and the creditor. Whereas a Consumer Approval represents a single offer to your collective creditors, an Informal Proposal requires creditor-by-creditor negotiation. Without the protection of the Bankruptcy and Insolvency Act, you are more vulnerable to creditors who would prefer to take their chances with you in court. Nonetheless, if your creditors are few, this might be a viable option. 

I’ll negotiate directly with your creditors and will act on your behalf. I have relationships with a multitude of creditors who know me and my services and are willing to work with me here in Victoria. Depending on your assets at the time of negotiations, the settlements reached can range from 10% to more than 85% in reduced debt. However, an Informal Proposal is not the right debt relief program for everyone. Let’s review your situation and see if it’s right for you.

Benefits of an Informal Proposal in Victoria, BC

  • There is a chance you might be able to pick and choose the debts you negotiate
  • It is not mandatory that you file under the Bankruptcy and Insolvency act
  • You are still permitted to be a Director of an incorporated company
  • Rebuilding your credit can start instantly. Settled debts are usually reported as an R7

Things to remember

  • A lump sum payment is usually required when you reach a deal with your creditors
  • There is no predetermined time line to pay back debt like there is in a Consumer Proposal or Bankruptcy. Each circumstance is different and can vary depending on the situation and the creditors involved
  • You need to prove that you are unable to repay your debt in full, but are not required to be technically insolvent
  • Support or alimony obligations cannot be eliminated
  • Canada Revenue Agency debts (personal income tax, GST, or source deductions) cannot be eliminated
  • Mortgages and car loans (or anything considered to be a secured debt) cannot be included. Informal Proposals are only good for unsecured debts