Need some debt relief?
You are not alone. In 2015, 121,609 Canadians filed for protection from their creditors through the Bankruptcy and Insolvency Act. Nearly 45% avoided outright bankruptcy in favour of other Debt Restructuring options.
Many Canadians wrongly assume that bankruptcy is the only option available when debt gets out of control. In fact, debt restructuring comes in many forms. What they have in common is a reduction of the debt and repayment schedules that can be spread out up to 5 years.
1. CONSUMER PROPOSALS
A Consumer Proposal allows you to negotiate with your lenders and reach a settlement where you pay back only part of what was originally owed, most often in the area of 15 - 25%. Creditors generally prefer this to pushing you into bankruptcy, where they may get nothing. The remainder of the balance will be forgiven. The Consumer Proposal is administered through the Bankruptcy and Insolvency Act, so it is a legally binding agreement between you and your creditors, approved by the courts and administered by a trustee. Learn more about Consumer Proposals…
2. PERSONAL BANKRUPTCY (YOUR LAST RESORT)
If you are not a candidate for either a Consumer or Informal Proposal – which is rare but does happen – Bankruptcy might be your best option. It protects you by law from your creditors. It’s not an easy decision, because it will impact your financial life for some years – but in a manageable way. I will help you through the process and guide you into the steps beyond bankruptcy, into a new life free from debt. Learn more about Bankruptcy…