If you’re a Canadian struggling with unmanageable debt there are many avenues to consider. But did you know that there are only two options that are federally legislated to protect you from your creditors while you resolve your financial difficulties?
Both Consumer Proposals and personal bankruptcy provide an automatic “stay of proceedings” meaning that once filed, your creditors can no longer pursue you for payment, seize your assets or garnish your wages. In Canada only a Licensed Insolvency Trustee (“LIT”) is legally empowered to provide these solutions. The Government of Canada produced a series of videos aimed at helping consumers better understand the options that are available to them, should they find themselves in need of financial guidance.
The first step towards solving debt issues is to understand all of your options. An LIT will meet with you at no cost or obligation to discuss all potential routes – some you could undertake on your own, some with an LIT’s assistance. The important thing is to get all the information you need to make informed decisions about your specific personal situation.
Consumer Proposals are the number one alternative to bankruptcy in Canada. A Consumer Proposal allows you to fully settle your debts for less than you owe – with zero interest and no additional fees. Virtually all consumer debts, including tax debts and student loans can be settled using a Consumer Proposal filed by an LIT.
If a personal bankruptcy is the option that makes the most sense for your situation it’s important to be aware of how the process works. There are many myths and misconceptions about bankruptcy in Canada and an LIT will explain all the ins and outs to you.
To find out more about your debt solutions, contact Sands & Associates for a free, confidential consultation in one of our local BC offices. We’ve been helping people become debt-free for over 29 years in British Columbia and are proud to be multi-year Consumer Choice Award winners.