Is Bankruptcy My Only Option?
Bankruptcy is not the only option available to resolve the overwhelming debt. Your trustee can also put together a settlement proposal to your creditors whereby you pay a portion of what is owed and the creditors agree to write off the remaining balance. This process is known as a consumer proposal and it provides you with the same legal protection as a bankruptcy.
As long as the majority of your creditors vote in favour of the proposal then it becomes binding on all creditors whether they voted in favour our not.
A proposal can provide for a fixed monthly payment which will not increase if your income goes up. It can also allow you to maintain control over assets such as your house, vehicles, RESPs, and RRSPs and you get to keep any income tax refunds. The structure of the proposal can be creative and involve your sale, over time, of assets and payment of all or a portion of equity to your creditors. The Trustee will help you craft a proposal that suits your situation.
Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses. We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown or Dartmouth - it's your choice.